Australian Capital Territory Repealed Acts

This legislation has been repealed.

PAYROLL TAX ACT 1987 (REPEALED) - SECT 4

    (1)     A reference in this Act to a service contract is a reference to a contract under which a person (the designated person ), in the course of a business carried on by the person—

        (a)     supplies services to someone else in relation to the performance of work; or

        (b)     is supplied with the services of someone else in relation to the performance of work; or

        (c)     gives out goods to individuals for work to be performed by them in relation to the goods and for resupply of the goods to the designated person, or, if the designated person is a member of a group, to another member of the group.

    (2)     However, a reference in this Act to a "service contract" does not include a reference to a contract of service or a contract under which the designated person, in the course of a business carried on by the person—

        (a)     is supplied with services in relation to the performance of work that are ancillary to the supply of goods under the contract by the person supplying the services or to the use of the goods that are the property of that person; or

        (b)     is supplied with services in relation to the performance of work if—

              (i)     the services are of a kind not ordinarily required by the designated person and are provided by someone who ordinarily provides services of that kind to the public generally; or

              (ii)     the commissioner is satisfied that the services are provided by a person who ordinarily provides services of that kind to the public generally.

    (3)     Subsection (2) does not apply if the commissioner determines that the contract under which the services are supplied was entered into with an intention of, directly or indirectly, avoiding or evading the payment of tax by anyone.

    (4)     For this section—

        (a)     a person is taken to be an employer if the person is someone—

              (i)     to whom, under a service contract, the services of people are supplied in relation to the performance of work; or

              (ii)     who, under a service contract, gives out goods to other people; and

        (b)     a person is taken to be an employee if the person is—

              (i)     someone who performs work in relation to which services are supplied to someone else under a service contract; or

              (ii)     an individual who resupplies goods to an employer under a service contract; and

        (c)     the following amounts are taken to be wages:

              (i)     an amount paid or payable by an employer in relation to the performance of work relating to a service contract (less any amount of GST payable for the performance of work);

              (ii)     an amount paid or payable by an employer in relation to the resupply of goods by an employee under a service contract (less any amount of GST payable for the resupply); and

        (d)     if an amount mentioned in paragraph (c) is included in a larger amount paid or payable by an employer under a service contract—the commissioner may determine the part of the larger amount that is not attributable to the performance of work relating to the service contract or the resupply of goods by an employee under the contract; and

        (e)     an amount paid or payable by an employer in relation to the performance of work under a service contract is taken to include the grant of a share or option (not otherwise included as wages under this Act) provided or liable to be provided by the employer if the amount is wages under section 2A (Inclusion of grant of shares and options as wages).

    (5)     If, in relation to a payment in relation to the performance of work that is taken to be wages under subsection (4), payroll tax is paid by someone who is taken to be an employer under the subsection (the relevant person )—

        (a)     no-one else is liable to payroll tax in relation to the payment; and

        (b)     if someone else is liable to make a payment in relation to the work—that person is not liable to payroll tax in relation to the payment unless it, or the payment by the relevant person, is made with an intention of, directly or indirectly, avoiding or evading the payment of tax by anyone.

    (6)     This section does not apply to a contract under which a person is supplied with services ancillary to the transport of goods by a vehicle provided by the person transporting them, unless the commissioner determines that the contract was entered into with an intention of, directly or indirectly, avoiding or evading the payment of tax by anyone.

    (7)     In this section, a reference (however expressed) to the "resupply" of goods acquired from a person includes—

        (a)     a supply to the person of goods in an altered form or condition; and

        (b)     a supply to the person of something in which the goods have been incorporated; and

        (c)     a supply to the person of something manufactured or produced from the goods.

    (8)     In this section:

"contract" includes an agreement, arrangement or undertaking, whether formal or informal and whether express or implied.

"credit contract"—see the National Credit Code, section 204 (1).

"services" includes results (whether goods or services) of work performed.

"supply" includes supply by sale, exchange, lease, hire, credit contract and, in relation to services, includes the providing, granting or conferring of, services.