Queensland Bills Queensland Bills[Index] [Search] [Download] [Related Items] [Help]
This is a Bill, not an Act. For current law, see the Acts databases.
Queensland
Pay-roll Tax (Harmonisation)
Amendment Bill 2008
Queensland
Pay-roll Tax (Harmonisation) Amendment
Bill 2008
Contents
Page
1 Short title . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
2 Commencement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
3 Act amended . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
4 Amendment of s 3 (Meaning of superannuation contribution) . . . 6
5 Insertion of new s 3A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
3A Meaning of termination payment . . . . . . . . . . . . . . . . 6
6 Amendment of s 4 (Other provisions about meaning of wages). . 8
7 Amendment of s 9 (Wages liable to pay-roll tax) . . . . . . . . . . . . . 9
8 Amendment of s 13 (Value of taxable wages) . . . . . . . . . . . . . . . 9
9 Insertion of new pt 2, divs 1A-1D. . . . . . . . . . . . . . . . . . . . . . . . . 10
Division 1A Contractor provisions
13A Definitions for div 1A. . . . . . . . . . . . . . . . . . . . . . . . . . 10
13B Meaning of relevant contract . . . . . . . . . . . . . . . . . . . 10
13C Persons taken to be employers . . . . . . . . . . . . . . . . . 13
13D Persons taken to be employees . . . . . . . . . . . . . . . . . 13
13E Amounts taken to be wages . . . . . . . . . . . . . . . . . . . . 14
13F Liability for pay-roll tax for payments taken to be
wages ............................ 15
Division 1B Employment agents
13G Meaning of employment agency contract. . . . . . . . . . 16
13H Persons taken to be employers . . . . . . . . . . . . . . . . . 16
13I Persons taken to be employees . . . . . . . . . . . . . . . . . 16
13J Amounts taken to be wages . . . . . . . . . . . . . . . . . . . . 16
13K Liability for pay-roll tax for payments taken to be
wages ............................. 17
13L Employment agency contract reducing or avoiding
liability to pay-roll tax . . . . . . . . . . . . . . . . . . . . . . . . . 18
Pay-roll Tax (Harmonisation) Amendment Bill 2008
Contents
Division 1C Shares and options
13M Application of div 1C. . . . . . . . . . . . . . . . . . . . . . . . . . 18
13N Definitions for div 1C . . . . . . . . . . . . . . . . . . . . . . . . . 18
13O When share or option is granted . . . . . . . . . . . . . . . . 19
13P Grant of share because of exercise of option. . . . . . . 19
13Q Day on which wages are paid or payable . . . . . . . . . . 20
13R Election by grantor of relevant day . . . . . . . . . . . . . . . 20
13S Automatic election of relevant day . . . . . . . . . . . . . . . 21
13T Effect of recission or cancellation of share or option . 21
13U Value of taxable wages. . . . . . . . . . . . . . . . . . . . . . . . 22
13V When services are performed . . . . . . . . . . . . . . . . . . 23
13W Place where wages are paid or payable. . . . . . . . . . . 23
Division 1D Allowances
Subdivision 1 Motor vehicle allowances
13X Definitions for sdiv 1 . . . . . . . . . . . . . . . . . . . . . . . . . . 24
13Y Exempt component of motor vehicle allowance . . . . . 25
13Z Working out the number of exempt kilometres . . . . . . 26
13ZA Continuous recording method . . . . . . . . . . . . . . . . . . 27
13ZB Averaging method--how it works . . . . . . . . . . . . . . . . 28
13ZC Averaging method--records to be kept by employer . 29
13ZD Averaging method--what is the averaging period . . . 30
13ZE Averaging method--recalculation of relevant
percentage ......................... 31
13ZF Averaging method--replacing a business vehicle . . . 32
13ZG Switching between continuous recording and
averaging methods . . . . . . . . . . . . . . . . . . . . . . . . . . . 33
Subdivision 2 Accommodation allowances
13ZH Exempt rate for accommodation allowance . . . . . . . . 33
10 Amendment of s 14 (Exemption from pay-roll tax) . . . . . . . . . . . . 34
11 Insertion of new s 14A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34
14A Exemption for parental and adoption leave . . . . . . . . 34
12 Amendment of s 50 (Arrangements for avoidance of tax may be
disregarded) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36
13 Amendment, relocation and renumbering of s 51 (Avoidance
arrangements involving employment agents) . . . . . . . . . . . . . . . . 37
14 Insertion of new pt 2, div 8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37
Division 8 Miscellaneous provisions
Page 2
Pay-roll Tax (Harmonisation) Amendment Bill 2008
Contents
51 Wages paid by or to third parties . . . . . . . . . . . . . . . . 38
51A Joint and several liability of group members. . . . . . . . 39
15 Replacement of pt 4, divs 1 and 2 . . . . . . . . . . . . . . . . . . . . . . . . 39
Division 1 Interpretation
66 Definitions for pt 4. . . . . . . . . . . . . . . . . . . . . . . . . . . . 39
67 Grouping provisions to operate independently . . . . . . 40
Division 2 Business groups
68 Constitution of groups . . . . . . . . . . . . . . . . . . . . . . . . 40
69 Groups of corporations. . . . . . . . . . . . . . . . . . . . . . . . 40
70 Groups arising from the use of common employees . 40
71 Groups of commonly controlled businesses. . . . . . . . 41
72 Groups arising from tracing of interests in
corporations ......................... 44
73 Smaller groups subsumed into larger groups. . . . . . . 45
74 Exclusion of persons from groups . . . . . . . . . . . . . . . 45
Division 2A Business groups--interpretation provisions for
tracing of interests in corporations
74A Application of div 2A. . . . . . . . . . . . . . . . . . . . . . . . . . 46
74B Definitions for div 2A. . . . . . . . . . . . . . . . . . . . . . . . . . 46
74C Who are associated persons . . . . . . . . . . . . . . . . . . . 46
74D Who are related persons . . . . . . . . . . . . . . . . . . . . . . 47
74E Direct interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48
74F Indirect interest. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49
74G Aggregate interest . . . . . . . . . . . . . . . . . . . . . . . . . . . 50
16 Amendment of s 80 (Reassessment--making or revocation of
order excluding a person from a group) . . . . . . . . . . . . . . . . . . . . 51
17 Amendment of pt 7 hdg (Savings and transitional provisions) . . . 51
18 Insertion of new pt 8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51
Part 8 Transitional provisions for Pay-roll Tax
(Harmonisation) Amendment Act 2008
131 Interpretation of amended provisions . . . . . . . . . . . . . 51
132 Application of amended Act . . . . . . . . . . . . . . . . . . . . 52
133 Application of avoidance provision for employment
agency contracts . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52
134 Continuation of orders excluding person from group . 52
19 Amendment of schedule (Dictionary) . . . . . . . . . . . . . . . . . . . . . . 53
Page 3
2008
A Bill
for
An Act to amend the Pay-roll Tax Act 1971 for consistency with
pay-roll tax legislation of other States, and for related purposes
Pay-roll Tax (Harmonisation) Amendment Bill 2008
[s 1]
The Parliament of Queensland enacts-- 1
Clause 1 Short title 2
This Act may be cited as the Pay-roll Tax (Harmonisation) 3
Amendment Act 2008. 4
Clause 2 Commencement 5
This Act commences on 1 July 2008. 6
Clause 3 Act amended 7
This Act amends the Pay-roll Tax Act 1971. 8
Clause 4 Amendment of s 3 (Meaning of superannuation 9
contribution) 10
(1) Section 3(1), after `for an employee'-- 11
insert-- 12
`, or by a company for a director of the company'. 13
(2) Section 3(2), definition unfunded, from `covered by the 14
fund'-- 15
omit, insert-- 16
`, or by a company for a director of the company, covered by 17
the fund or scheme is not paid or payable while the employee 18
is employed by the employer, or the director is appointed as a 19
director of the company.'. 20
Clause 5 Insertion of new s 3A 21
After section 3-- 22
insert-- 23
`3A Meaning of termination payment 24
`(1) A termination payment is-- 25
Page 6
Pay-roll Tax (Harmonisation) Amendment Bill 2008
[s 5]
(a) any of the following payments made because of the 1
retirement from, or termination of, any office or 2
employment of an employee-- 3
(i) an unused annual leave payment under the Income 4
Tax Assessment Act 1997 (Cwlth), section 83-10; 5
(ii) an unused long service leave payment under the 6
Income Tax Assessment Act 1997 (Cwlth), section 7
83-75; 8
(iii) so much of an employment termination payment 9
paid or payable by an employer, whether paid or 10
payable to the employee or to another entity, that 11
would be included in the assessable income of the 12
employee under the Income Tax Assessment Act 13
1997 (Cwlth), chapter 2, part 2-40 if the whole 14
employment termination payment had been paid to 15
the employee; or 16
(b) a following amount, if the amount would be an 17
employment termination payment had it been paid or 18
payable because of termination of employment-- 19
(i) an amount paid or payable by a company because 20
of the termination of the services or office of a 21
director of the company, whether paid or payable 22
to the director or another entity; 23
(ii) an amount paid or payable by a relevant contract 24
employer because of the termination of the supply 25
of the services of an employee under a relevant 26
contract, whether paid or payable to the employee 27
or another entity. 28
`(2) In this section-- 29
employment termination payment means-- 30
(a) an employment termination payment under the Income 31
Tax Assessment Act 1997 (Cwlth), section 82-130; or 32
(b) a payment that is not an employment termination 33
payment under the Income Tax Assessment Act 1997 34
(Cwlth), section 82-130 only because it is received later 35
Page 7
Pay-roll Tax (Harmonisation) Amendment Bill 2008
[s 6]
than 12 months after the termination of a person's 1
employment; or 2
(c) a transitional termination payment under the Income Tax 3
(Transitional Provisions) Act 1997 (Cwlth), section 4
82-10.'. 5
Clause 6 Amendment of s 4 (Other provisions about meaning of 6
wages) 7
(1) Section 4, heading, after `wages'-- 8
insert-- 9
`--superannuation contributions and GST'. 10
(2) Section 4(1)-- 11
insert-- 12
`Note-- 13
Part 2, divisions 1A to 1D contain other provisions that apply for the 14
definition wages.'. 15
(3) Section 4(2)-- 16
omit, insert-- 17
`(2) For paragraph (g) of the definition, a superannuation 18
contribution paid or payable by an employer for an employee 19
on or after 1 January 2000 is taken to be for the employee's 20
services performed or rendered on or after 1 January 2000.'. 21
(4) Section 4(4), `paragraph (h)'-- 22
omit, insert-- 23
`paragraph (g)'. 24
(5) Section 4(5)-- 25
omit. 26
(6) Section 4(6) and (7)-- 27
renumber as section 4(5) and (6). 28
Page 8
Pay-roll Tax (Harmonisation) Amendment Bill 2008
[s 7]
Clause 7 Amendment of s 9 (Wages liable to pay-roll tax) 1
Section 9(1)(a)(ii), `outside Australia'-- 2
omit, insert-- 3
`in another country'. 4
Clause 8 Amendment of s 13 (Value of taxable wages) 5
Section 13(5)-- 6
omit, insert-- 7
`(5) The value of taxable wages comprising a fringe benefit under 8
the Fringe Benefits Assessment Act is, unless otherwise 9
prescribed by regulation, the value worked out using the 10
following formula-- 11
V= TV x 1/(1 - FBT rate) 12
where-- 13
FBT rate means the rate of fringe benefits tax imposed under 14
the Fringe Benefits Assessment Act that applies when the 15
employer's liability for pay-roll tax on the taxable wages 16
arises. 17
TV means-- 18
(a) if paragraph (b) does not apply--the value that would be 19
the taxable value of the taxable wages as a fringe benefit 20
for the Fringe Benefits Assessment Act; or 21
(b) if the fringe benefit is an amortised fringe benefit under 22
the Fringe Benefits Assessment Act, section 65CA--the 23
amortised amount of the benefit calculated under that 24
section. 25
V means the value of the taxable wages. 26
`(6) This section does not apply to taxable wages comprising the 27
grant of a share or option. 28
Note-- 29
See section 13U (Value of taxable wages).'. 30
Page 9
Pay-roll Tax (Harmonisation) Amendment Bill 2008
[s 9]
Clause 9 Insertion of new pt 2, divs 1A-1D 1
Part 2-- 2
insert-- 3
`Division 1A Contractor provisions 4
`13A Definitions for div 1A 5
`In this division-- 6
contract includes an agreement, arrangement or undertaking, 7
whether formal or informal and whether express or implied. 8
relevant contract employee see section 13D(2). 9
re-supply, in relation to goods acquired from a person, 10
includes-- 11
(a) supply to the person, or, if the person is a member of a 12
group, to another group member, the acquired goods in 13
an altered form or condition; and 14
(b) supply to the person, or, if the person is a member of a 15
group, to another group member, other goods in which 16
the acquired goods have been incorporated. 17
services includes results, whether goods or services, of work 18
performed. 19
supply includes-- 20
(a) supply by way of sale, exchange, lease, hire, or hire 21
purchase; and 22
(b) in relation to services, includes the providing, granting 23
or conferring of services. 24
`13B Meaning of relevant contract 25
`(1) A relevant contract is a contract under which a person (the 26
designated person), in the course of a business carried on by 27
the designated person-- 28
(a) supplies to another person services in relation to the 29
performance of work; or 30
Page 10
Pay-roll Tax (Harmonisation) Amendment Bill 2008
[s 9]
(b) has supplied to the designated person the services of 1
persons in relation to the performance of work; or 2
(c) gives goods to individuals for work to be performed by 3
those individuals in respect of the goods and for the 4
goods to be re-supplied. 5
`(2) However, a relevant contract does not include a contract of 6
service or a contract under which a person (the designated 7
person), in the course of a business carried on by the 8
designated person-- 9
(a) is supplied with services in relation to the performance 10
of work, if the services are ancillary to-- 11
(i) the supply of goods under the contract by the 12
person by whom the services are supplied; or 13
(ii) the use of goods that are the property of the person 14
by whom the services are supplied; or 15
(b) is supplied with services in relation to the performance 16
of work, if-- 17
(i) the services are of a kind not ordinarily required by 18
the designated person and are performed or 19
rendered by a person who ordinarily performs or 20
renders services of that kind to the public 21
generally; or 22
(ii) the services are of a kind ordinarily required by the 23
designated person for less than 180 days in a 24
financial year; or 25
(iii) the services are provided for a period that does not 26
exceed 90 days or for periods that, in the 27
aggregate, do not exceed 90 days in the relevant 28
financial year and are not services-- 29
(A) provided by a person by whom similar 30
services are provided to the designated 31
person; or 32
(B) in relation to the performance of work where 33
any of the persons who perform the work 34
also perform similar work for the designated 35
person; 36
Page 11
Pay-roll Tax (Harmonisation) Amendment Bill 2008
[s 9]
for periods that, in the aggregate, exceed 90 days in 1
the relevant financial year; or 2
(iv) the services are supplied under a contract to which 3
subparagraphs (i) to (iii) do not apply and the 4
commissioner is satisfied the services are 5
performed or rendered by a person who ordinarily 6
performs or renders services of that kind to the 7
public generally in the relevant financial year; or 8
(c) is supplied by a person (the contractor) with services in 9
relation to the performance of work under a contract to 10
which paragraphs (a) and (b) do not apply, if the work to 11
which the services relate is performed-- 12
(i) by 2 or more persons employed by, or who provide 13
services for, the contractor in the course of a 14
business carried on by the contractor; or 15
(ii) if the contractor is a partnership of 2 or more 16
individuals--by 1 or more of the members of the 17
partnership and 1 or more persons employed by, or 18
who provide services for, the contractor in the 19
course of a business carried on by the contractor; 20
or 21
(iii) if the contractor is an individual--by the contractor 22
and 1 or more persons employed by, or who 23
provide services for, the contractor in the course of 24
a business carried on by the contractor; or 25
(d) is supplied with-- 26
(i) services ancillary to the conveyance of goods by 27
means of a vehicle provided by the person 28
conveying them; or 29
(ii) services solely in relation to the procurement of 30
persons desiring to be insured by the designated 31
person; or 32
(iii) services in relation to the door-to-door sale of 33
goods solely for domestic purposes on behalf of 34
the designated person. 35
Page 12
Pay-roll Tax (Harmonisation) Amendment Bill 2008
[s 9]
`(3) For subsection (2)(b), relevant financial year means the 1
financial year during which the designated person is supplied 2
with the services. 3
`(4) Subsections (2)(c) and (d) do not apply if the commissioner is 4
satisfied the contract or arrangement under which the services 5
are supplied was entered into with an intention either directly 6
or indirectly of avoiding the payment of tax by any person. 7
`(5) An employment agency contract under which services are 8
supplied by an employment agent, or a service provider is 9
procured by an employment agent, is not a relevant contract. 10
`13C Persons taken to be employers 11
`(1) For this Act, a person is taken to be an employer if, under a 12
relevant contract-- 13
(a) the person supplies services to another person; or 14
(b) the services of other persons are supplied to the person 15
in relation to the performance of work; or 16
(c) the person gives goods to individuals. 17
`(2) However, if a contract is a relevant contract under both section 18
13B(1)(a) and (b)-- 19
(a) the person to whom, under the contract, the services of 20
persons are supplied in relation to the performance of 21
work is taken to be an employer; and 22
(b) despite subsection (1)(a), the person who, under the 23
contract, supplies the services is not taken to be an 24
employer. 25
`(3) A person taken to be an employer under this section is a 26
relevant contract employer. 27
`13D Persons taken to be employees 28
`(1) For this Act, a person is taken to be an employee if, under a 29
relevant contract-- 30
(a) the person performs work in relation to which services 31
are supplied to another person; or 32
Page 13
Pay-roll Tax (Harmonisation) Amendment Bill 2008
[s 9]
(b) the person is an individual who re-supplies goods to an 1
employer. 2
`(2) A person taken to be an employee under this section is a 3
relevant contract employee. 4
`13E Amounts taken to be wages 5
`(1) For this Act, the following amounts paid or payable by a 6
relevant contract employer under a relevant contract are taken 7
to be wages-- 8
(a) amounts in relation to the performance of work for 9
which services are supplied on or after 1 July 2008 10
under a relevant contract; 11
(b) amounts in relation to the performance of work relating 12
to the re-supply of goods by a relevant contract 13
employee under a relevant contract on or after 1 July 14
2008. 15
Note-- 16
Under section 132, this section applies only in relation to wages paid or 17
payable on or after 1 July 2008. 18
`(2) Subsection (1)(a) is taken to include the following, to the 19
extent the following do not otherwise comprise wages under 20
this Act-- 21
(a) a payment-- 22
(i) made by the relevant contract employer in relation 23
to a relevant contract employee; and 24
(ii) that would be a superannuation contribution if it 25
were made in relation to a person in the capacity of 26
an employee; 27
(b) the value of a share or option-- 28
(i) granted or liable to be granted by a relevant 29
contract employer in relation to a relevant contract 30
employee; and 31
Page 14
Pay-roll Tax (Harmonisation) Amendment Bill 2008
[s 9]
(ii) that would comprise wages under this Act if the 1
share or option were granted in relation to a person 2
in the capacity of an employee. 3
`(3) For subsection (1), an amount paid or payable on or after 1 4
July 2008 for the performance of work under a relevant 5
contract is taken to be for services supplied, or goods 6
re-supplied, on or after 1 July 2008. 7
`(4) However, if the commissioner is satisfied any part of an 8
amount mentioned in subsection (3) is for services supplied, 9
or goods re-supplied, before 1 July 2008, the part is not 10
wages. 11
`(5) If an amount mentioned in subsection (1) is included in a 12
larger amount paid or payable by the relevant contract 13
employer under the relevant contract, the part of the larger 14
amount that is not attributable to the performance of work 15
mentioned in subsection (1)(a) or (b) is the part decided by the 16
commissioner. 17
`13F Liability for pay-roll tax for payments taken to be 18
wages 19
`(1) If a relevant contract employer pays pay-roll tax on wages 20
comprising a payment (the primary payment) in relation to 21
the performance of work-- 22
(a) no other person is liable for pay-roll tax on the primary 23
payment; and 24
(b) another person who is liable to pay wages comprising a 25
payment (a secondary payment) in relation to the work 26
is not liable for pay-roll tax on the secondary payment. 27
`(2) Subsection (1)(b) does not apply if the commissioner is 28
satisfied either the secondary payment or the primary payment 29
is made with an intention either directly or indirectly of 30
avoiding the payment of tax by the relevant contract employer 31
or another person. 32
Page 15
Pay-roll Tax (Harmonisation) Amendment Bill 2008
[s 9]
`Division 1B Employment agents 1
`13G Meaning of employment agency contract 2
`(1) An employment agency contract is a contract under which a 3
person (an employment agent) procures the services of 4
another person (a service provider) for a client of the 5
employment agent. 6
`(2) However, a contract is not an employment agency contract if it 7
is, or results in the creation of, a contract of employment 8
between the service provider and the client. 9
`(3) Subsection (1) applies to a contract whether it is formal or 10
informal, express or implied. 11
`(4) For this section-- 12
contract includes agreement, arrangement and undertaking. 13
`13H Persons taken to be employers 14
`For this Act, the employment agent under an employment 15
agency contract is taken to be an employer. 16
`13I Persons taken to be employees 17
`For this Act, the person who performs work in relation to 18
which services are supplied to the client under an employment 19
agency contract is taken to be an employee of the employment 20
agent under the contract. 21
`13J Amounts taken to be wages 22
`(1) For this Act, the following are taken to be wages paid or 23
payable by the employment agent under an employment 24
agency contract-- 25
(a) an amount paid or payable in relation to the service 26
provider in respect of the provision of services in 27
connection with the contract; 28
Page 16
Pay-roll Tax (Harmonisation) Amendment Bill 2008
[s 9]
(b) the value of a benefit provided in relation to the 1
provision of services in connection with the contract that 2
would be a fringe benefit if provided to a person in the 3
capacity of an employee; 4
(c) a payment made in relation to the service provider that 5
would be a superannuation contribution if made in 6
relation to a person in the capacity of an employee. 7
`(2) However, subsection (1) does not apply to an amount, benefit 8
or payment mentioned in the subsection if-- 9
(a) the amount, benefit or payment would be exempt from 10
pay-roll tax under division 2, other than section 14(2)(j), 11
(k) or (l) or 14A, if it had been paid or provided by the 12
client in relation to the service provider as an employee; 13
and 14
(b) the client has given the employment agent a declaration, 15
in the approved form, that subsection (1) does not apply 16
to the amount, benefit or payment. 17
`13K Liability for pay-roll tax for payments taken to be 18
wages 19
`(1) This section applies if an employment agent-- 20
(a) under an employment agency contract, procures the 21
services of a service provider for a client of the agent; 22
and 23
(b) pays pay-roll tax on an amount, benefit or payment 24
mentioned in section 13J(1) that is paid or payable by 25
the employment agent in connection with that contract. 26
`(2) No other person, including another person engaged to procure 27
the services of the service provider for the employment 28
agent's client, is liable for pay-roll tax on wages paid or 29
payable for the procurement or performance of services by the 30
service provider for the client. 31
`(3) This section applies subject to sections 13L and 13LA. 32
Page 17
Pay-roll Tax (Harmonisation) Amendment Bill 2008
[s 9]
`13L Employment agency contract reducing or avoiding 1
liability to pay-roll tax 2
`(1) If the effect of an employment agency contract is to reduce or 3
avoid the liability of a party to the contract to the assessment, 4
imposition or payment of pay-roll tax, the commissioner 5
may-- 6
(a) disregard the contract; and 7
(b) determine that any party to the contract is taken to be an 8
employer for this Act; and 9
(c) determine that any payment made in respect of the 10
contract is taken to be wages for this Act. 11
`(2) If the commissioner makes a determination under subsection 12
(1), the commissioner must give written notice of the 13
determination to the person taken to be an employer for the 14
purposes of this Act. 15
`(3) The notice must state the facts on which the commissioner 16
relies and the reasons for making the determination. 17
`Division 1C Shares and options 18
`13M Application of div 1C 19
`This division applies for paragraph (j) of the definition of 20
wages in the schedule. 21
`13N Definitions for div 1C 22
`In this division-- 23
director, of a company, includes-- 24
(a) a person who, under a contract or other arrangement, is 25
to be appointed as a director of the company; and 26
(b) a former director of the company. 27
granted, in relation to a share or option, see section 13O. 28
Page 18
Pay-roll Tax (Harmonisation) Amendment Bill 2008
[s 9]
grantee, in relation to a grant of a share or option comprising 1
wages for this Act, means the employee or director to whom 2
the share or option is granted. 3
grantor, in relation to a grant of a share or option comprising 4
wages for this Act, means the employer or company by whom 5
the share or option is granted. 6
relevant day see section 13Q(2). 7
vesting day see section 13R(2). 8
`13O When share or option is granted 9
`(1) A share is granted to a person if-- 10
(a) the person acquires the share; or 11
(b) the requirements for the grant of a share prescribed 12
under a regulation are satisfied. 13
`(2) An option is granted to a person if-- 14
(a) the person acquires a right to the share to which the 15
option relates; or 16
(b) the requirements for the grant of an option prescribed 17
under a regulation are satisfied. 18
`(3) In this section-- 19
acquire, a share or right, means acquire the share or right 20
under the Income Tax Assessment Act 1936 (Cwlth), section 21
139G. 22
`13P Grant of share because of exercise of option 23
`Despite paragraph (j) of the definition of wages in the 24
schedule, the grant of a share by a grantor does not comprise 25
wages if-- 26
(a) the grantor is required to grant the share because a 27
person has exercised an option; and 28
(b) either-- 29
Page 19
Pay-roll Tax (Harmonisation) Amendment Bill 2008
[s 9]
(i) the grant of the option to the person comprises 1
wages for this Act; or 2
(ii) the option was granted to the person before 1 July 3
2008. 4
`13Q Day on which wages are paid or payable 5
`(1) Wages comprising the grant of a share or option are taken to 6
be paid or payable on the relevant day. 7
`(2) The relevant day is the day the grantor elects under this 8
division to treat as the day on which the wages comprising the 9
grant of the share or option are paid or payable. 10
`13R Election by grantor of relevant day 11
`(1) A grantor may elect to treat either of the following as the day 12
on which wages comprising the grant of a share or option are 13
paid or payable-- 14
(a) the day the share or option is granted to the grantee; 15
(b) the vesting day for the share or option. 16
`(2) The vesting day-- 17
(a) for a share--is the day the share vests in the grantee; or 18
(b) for an option--is the first of the following days-- 19
(i) the day the share to which the option relates is 20
granted to the grantee; 21
(ii) the day the grantee exercises a right under the 22
option to have the share to which it relates 23
transferred or allotted to, or vest in, the grantee. 24
`(3) For subsection (2), a share vests in the grantee when-- 25
(a) any conditions applying to the grant of the share have 26
been met; and 27
(b) the grantee's legal or beneficial interest in the share can 28
not be rescinded. 29
Page 20
Pay-roll Tax (Harmonisation) Amendment Bill 2008
[s 9]
`13S Automatic election of relevant day 1
`(1) This section applies if a grantor grants a share or option to a 2
grantee and any of the following applies-- 3
(a) the value of the grant of the share or option is not 4
included in the taxable wages paid or payable by the 5
grantor for a return period during which the share or 6
option is granted; 7
(b) the value of the taxable wages comprising the grant of 8
the share or option is nil; 9
(c) if the grantor were to elect to treat the day the share or 10
option is granted as the relevant day, the wages would 11
not be liable to pay-roll tax. 12
`(2) If subsection (1)(a) applies, the grantor is taken to have 13
elected to treat the vesting day for the share or option as the 14
day on which the wages comprising the grant of the share or 15
option are paid or payable. 16
`(3) If subsection (1)(b) or (c) applies, the grantor is taken to have 17
elected to treat the day the share or option is granted as the 18
day on which the wages comprising the grant of the share or 19
option are paid or payable. 20
`(4) This section applies despite section 13R. 21
`13T Effect of recission or cancellation of share or option 22
`(1) If, before the vesting day, the grant of a share or option is 23
withdrawn, cancelled or exchanged for consideration other 24
than the grant of other shares or options-- 25
(a) the date of the withdrawal, cancellation or exchange is 26
taken to be the vesting day for the share or option; and 27
(b) despite section 13U(1)(a), the market value of the share 28
or option on the vesting day is taken to be the amount of 29
the consideration. 30
`(2) A grantor must reduce, by the relevant amount, the taxable 31
wages paid or payable by the grantor for a financial year or 32
final period, if-- 33
Page 21
Pay-roll Tax (Harmonisation) Amendment Bill 2008
[s 9]
(a) the grantor included the value of a grant of a share or 1
option in the taxable wages paid or payable by the 2
grantor for a periodic return period falling in the 3
financial year or final period; and 4
(b) the grant is rescinded, during the financial year or final 5
period, because the conditions of the grant were not met. 6
`(3) The commissioner must make a reassessment of a grantor's 7
liability for pay-roll tax for a financial year or final period, to 8
reduce the taxable wages of the grantor by the relevant 9
amount, if-- 10
(a) the grantor included the value of a grant of a share or 11
option in the taxable wages paid or payable by the 12
grantor for the financial year or final period; and 13
(b) the grant is rescinded, after the end of the financial year 14
or final period, because the conditions of the grant were 15
not met. 16
`(4) For subsections (2) and (3), the relevant amount is the value 17
of the grant of a share or option previously included in the 18
taxable wages of the grantor under subsection (2)(a) or (3)(a). 19
`(5) Subsections (2) and (3) do not apply only because the grantee 20
fails to exercise an option or otherwise exercise the grantee's 21
rights in relation to a share or option. 22
`13U Value of taxable wages 23
`(1) The value of taxable wages comprising the grant of a share or 24
option is taken to be the amount equal to-- 25
(a) the market value, in Australian currency, of the share or 26
option on the relevant day, worked out under the 27
Commonwealth income tax provisions; less 28
(b) any consideration paid or given by the grantee for the 29
share or option, other than consideration in the form of 30
services performed. 31
`(2) For applying the Commonwealth income tax provisions under 32
subsection (1)(a)-- 33
(a) an option is taken to be a right to acquire a share; and 34
Page 22
Pay-roll Tax (Harmonisation) Amendment Bill 2008
[s 9]
(b) the provisions apply with the following changes and any 1
other necessary changes-- 2
(i) a reference in the provisions to a taxpayer is taken 3
to be a reference to the grantee; 4
(ii) a reference in the provisions to the Commissioner 5
of Taxation must be read as a reference to either 6
that Commissioner or the commissioner under this 7
Act. 8
`(3) In this section-- 9
Commonwealth income tax provisions means the Income Tax 10
Assessment Act 1936 (Cwlth), part III (Liability to taxation), 11
division 13A (Employee share schemes), subdivision F 12
(Special provisions about the market value of a share or right). 13
`13V When services are performed 14
`(1) Wages comprising the grant of a share or option by a company 15
to a director of the company by way of remuneration for the 16
appointment of the director, but not for services performed, 17
are taken to be paid or payable for services performed or 18
rendered during the month in which the relevant day falls. 19
`(2) Wages comprising the grant of a share or option to which 20
subsection (1) does not apply are taken to be paid or payable 21
for services performed or rendered during the month in which 22
the relevant day falls. 23
`13W Place where wages are paid or payable 24
`(1) Wages comprising the grant of a share or option are taken to 25
be paid or payable in Queensland if-- 26
(a) for a share--the share is in a local company; or 27
(b) for an option--the option is an option to acquire a share 28
in a local company. 29
`(2) If subsection (1) does not apply, wages comprising the grant 30
of a share or option are taken to be paid or payable elsewhere 31
than in Queensland. 32
Page 23
Pay-roll Tax (Harmonisation) Amendment Bill 2008
[s 9]
Note-- 1
Wages comprising the grant of a share or option that are taken to be paid 2
or payable elsewhere than in Queensland may be liable to pay-roll tax if 3
the grant is made for services performed or rendered wholly in 4
Queensland (see section 9). 5
`(3) Subsection (4) applies to wages comprising the grant of a 6
share or option by a company to a director of the company by 7
way of remuneration for the appointment of the director, but 8
not for services performed or rendered. 9
`(4) The wages are taken to be paid or payable for services 10
performed or rendered in the place or places where it may 11
reasonably be expected the services of the director for the 12
company will be performed or rendered. 13
`(5) In this section-- 14
local company means-- 15
(a) a company that is-- 16
(i) registered or taken to be registered under the 17
Corporations Act; and 18
(ii) taken to be registered in Queensland for that Act; 19
or 20
(b) another body corporate incorporated under an Act. 21
`Division 1D Allowances 22
`Subdivision 1 Motor vehicle allowances 23
`13X Definitions for sdiv 1 24
`In this subdivision-- 25
averaging method means the method described in section 26
13ZB. 27
averaging period see section 13ZD(1). 28
business journey means-- 29
Page 24
Pay-roll Tax (Harmonisation) Amendment Bill 2008
[s 9]
(a) a journey undertaken in a motor vehicle by a person, 1
other than for applying the vehicle for a use that-- 2
(i) is a private use; and 3
(ii) if the person is paid a motor vehicle allowance for 4
the use--results in a fringe benefit under the 5
Fringe Benefits Assessment Act being provided by 6
the employer; or 7
(b) a journey undertaken in a motor vehicle by a person in 8
the course of producing assessable income of the person 9
under the Income Tax Assessment Act 1936 (Cwlth). 10
business vehicle, of an employee, means a motor vehicle 11
provided or maintained by the employee for undertaking 12
business journeys. 13
continuous recording method means the method described in 14
section 13ZA. 15
number of exempt kilometres see section 13Y(4), definition 16
K. 17
relevant percentage see section 13ZB(4). 18
`13Y Exempt component of motor vehicle allowance 19
`(1) For this Act, a reference to wages, in relation to a return 20
period, does not include a reference to the exempt component 21
of a motor vehicle allowance paid or payable to an employee 22
for the period. 23
`(2) If the total motor vehicle allowance paid or payable to an 24
employee for a return period is not more than the exempt 25
component of the allowance, the allowance does not comprise 26
wages for this Act. 27
`(3) If the total motor vehicle allowance paid or payable to an 28
employee for a return period is more than the exempt 29
component for the allowance, if any, only the amount of the 30
allowance exceeding the exempt component comprises wages 31
for this Act. 32
`(4) The exempt component of a motor vehicle allowance paid or 33
payable to an employee for a business vehicle for a return 34
Page 25
Pay-roll Tax (Harmonisation) Amendment Bill 2008
[s 9]
period is the amount worked out using the following 1
formula-- 2
E=KxR 3
where-- 4
E means the exempt component. 5
K means the number of exempt kilometres travelled by the 6
vehicle during the return period, worked out under section 7
13Z (the number of exempt kilometres). 8
R means-- 9
(a) the rate prescribed under the Income Tax Assessment Act 10
1997 (Cwlth), section 28-25 for calculating a deduction 11
for car expenses for a large car using the cents per 12
kilometre method for the financial year immediately 13
preceding the financial year in which the allowance is 14
paid or payable; or 15
Editor's note-- 16
See the Income Tax Assessment Regulations 1997 (Cwlth), 17
schedule 1. 18
(b) if there is no rate mentioned in paragraph (a) 19
prescribed--the rate prescribed under a regulation. 20
`13Z Working out the number of exempt kilometres 21
`(1) For section 13Y(4), the number of exempt kilometres must be 22
worked out using either of the following chosen by the 23
employer-- 24
(a) the continuous recording method; 25
(b) the averaging method. 26
Note-- 27
See section 13ZG (Switching between continuous recording and 28
averaging methods) for requirements about switching between 29
the continuous recording and averaging methods. 30
`(2) However, if the commissioner gives a written approval for the 31
employer to use another method for working out the number 32
Page 26
Pay-roll Tax (Harmonisation) Amendment Bill 2008
[s 9]
of exempt kilometres, the number of exempt kilometres must 1
be worked out using the approved method. 2
Example of another method-- 3
using an estimate 4
`(3) An approval mentioned in subsection (2)-- 5
(a) may be given by the commissioner if the commissioner 6
is satisfied use of the other method would be more 7
appropriate in particular circumstances; and 8
(b) may apply to-- 9
(i) the employer; or 10
(ii) a class of employers that includes the employer. 11
`(4) As soon as practicable after giving an approval under 12
subsection (2), the commissioner must give a copy of the 13
approval to the employer or, if the approval applies to a class 14
of employers, each employer to whom it applies. 15
`13ZA Continuous recording method 16
`(1) This section applies if, under section 13Z(1)(a), the employer 17
uses the continuous recording method to work out the number 18
of exempt kilometres for a business vehicle. 19
`(2) The employer must keep a record of the following details-- 20
(a) the odometer readings at the beginning and end of each 21
business journey undertaken by the employee during the 22
return period by means of the vehicle; 23
(b) the specific purpose for which the journey was 24
undertaken; 25
(c) the distance travelled. 26
Note-- 27
See the Administration Act, section 118 (Period for keeping records). 28
`(3) The number of exempt kilometres is the distance of all 29
business journeys mentioned in subsection (2)(a), worked out 30
using the odometer readings mentioned in the subsection. 31
Page 27
Pay-roll Tax (Harmonisation) Amendment Bill 2008
[s 9]
`13ZB Averaging method--how it works 1
`(1) This section applies if, under section 13Z(1)(b), the employer 2
uses the averaging method to work out the number of exempt 3
kilometres for a business vehicle. 4
`(2) The employer must keep the records mentioned in section 5
13ZC. 6
Note-- 7
See the Administration Act, section 118 (Period for keeping records). 8
`(3) The number of exempt kilometres is the number worked out 9
using the following formula-- 10
K = D x RP 11
where-- 12
D means the total distance travelled by the business vehicle 13
during the return period, worked out using the odometer 14
readings mentioned in section 13ZC(3)(a). 15
K means the number of exempt kilometres. 16
RP means the relevant percentage for the vehicle. 17
`(4) The relevant percentage for the business vehicle is the 18
percentage worked out using the following formula-- 19
RP = B/T x 100 20
where-- 21
B means the distance travelled by the employee in the course 22
of business journeys undertaken by means of the vehicle 23
during the averaging period for the vehicle, worked out using 24
the odometer readings mentioned in section 13ZC(2)(a). 25
RP means the relevant percentage. 26
T means the total distance travelled by the vehicle during the 27
averaging period for the vehicle, worked out using the 28
odometer readings mentioned in section 13ZC(2)(d). 29
`(5) If a relevant percentage for the business vehicle is worked out 30
on the basis of an averaging period for the vehicle, the number 31
of exempt kilometres for the vehicle for a return period 32
Page 28
Pay-roll Tax (Harmonisation) Amendment Bill 2008
[s 9]
mentioned in subsection (6) must be worked out using that 1
relevant percentage. 2
`(6) For subsection (5), the return periods are-- 3
(a) any return period falling in or comprising the financial 4
year in which the averaging period falls or, if the 5
averaging period falls in 2 financial years, the second 6
financial year in which the period falls, other than a 7
return period ending before the averaging period ends; 8
and 9
(b) the return periods falling in or comprising any of the 10
succeeding 4 financial years after the financial year 11
mentioned in paragraph (a). 12
`(7) Subsection (5) applies subject to section 13ZE. 13
`13ZC Averaging method--records to be kept by employer 14
`(1) An employer who, under section 13Z(1)(b), works out the 15
number of exempt kilometres for a business vehicle using the 16
averaging method must keep a record of the details stated in 17
this section. 18
`(2) In relation to the averaging period for the business vehicle, the 19
details are each of the following-- 20
(a) the odometer readings at the beginning and end of each 21
business journey undertaken by the employee during the 22
averaging period by means of the vehicle; 23
(b) the specific purpose for which each business journey 24
mentioned in paragraph (a) was undertaken; 25
(c) the distance travelled by the employee during the 26
averaging period in the course of all business journeys 27
mentioned in paragraph (a), worked out using the 28
odometer readings mentioned in the paragraph; 29
(d) the odometer readings at the beginning and end of the 30
averaging period; 31
(e) the distance travelled by the vehicle during the 32
averaging period, worked out using the odometer 33
readings mentioned in paragraph (d); 34
Page 29
Pay-roll Tax (Harmonisation) Amendment Bill 2008
[s 9]
(f) the relevant percentage for the vehicle. 1
Note-- 2
Under section 13ZB(5), the relevant percentage worked out on the basis 3
of an averaging period must be used for the return periods mentioned in 4
section 13ZB(6). While the employer is using that relevant percentage, 5
the employer is not required to work out the relevant percentage again, 6
or to make a new record of the details mentioned in subsection (2). 7
`(3) In relation to the return period to which the number of exempt 8
kilometres relates, the details are each of the following-- 9
(a) the business vehicle's odometer readings at the 10
beginning and end of the return period; 11
(b) the distance travelled by the vehicle during the return 12
period, worked out using the odometer readings 13
mentioned in paragraph (a); 14
(c) the number of exempt kilometres for the vehicle for the 15
return period. 16
`(4) If the odometer of the business vehicle is replaced or 17
recalibrated during a return period for which its readings are 18
relevant for using the averaging method, the employer must 19
keep a record of the odometer readings immediately before 20
and immediately after the replacement or recalibration. 21
`13ZD Averaging method--what is the averaging period 22
`(1) The averaging period, for a business vehicle of an employee, 23
means a continuous period of at least 12 weeks, chosen by the 24
employer, throughout which the vehicle is provided or 25
maintained by the employee. 26
`(2) The averaging period may overlap the start or end of a 27
financial year. 28
Note-- 29
See also section 13ZB(5) and (6) in relation to using a relevant 30
percentage worked out on the basis of an averaging period that falls in 2 31
financial years. 32
`(3) If the averaging method is used for more than 1 business 33
vehicle of an employee for the same return period, the 34
Page 30
Pay-roll Tax (Harmonisation) Amendment Bill 2008
[s 9]
averaging period for the vehicles must be the same. 1
`(4) This section applies subject to section 13ZE. 2
`13ZE Averaging method--recalculation of relevant 3
percentage 4
`(1) This section applies to an employer who, under section 5
13Z(1)(b), works out the number of exempt kilometres for a 6
business vehicle using the averaging method. 7
`(2) The employer must recalculate the relevant percentage for the 8
business vehicle if-- 9
(a) the commissioner gives the employer a written notice, 10
before the start of a return period, directing the 11
employer to recalculate the relevant percentage for the 12
vehicle on the basis of an averaging period that falls 13
wholly or partly during the return period; or 14
(b) the employer wishes to start using the averaging method 15
for 1 or more other business vehicles used by the 16
employee. 17
Note-- 18
See also section 13ZD(3). 19
`(3) Also, the employer must recalculate the relevant percentage 20
for the business vehicle if the employer-- 21
(a) has used a relevant percentage worked out on the basis 22
of an averaging period for the vehicle for the succeeding 23
4 financial years after the financial year mentioned in 24
section 13ZB(6)(a); and 25
(b) intends to continue using the averaging method to work 26
out the number of exempt kilometres for the vehicle. 27
Note-- 28
If the employer recalculates the relevant percentage on the basis of a 29
new averaging period, the new averaging period applies for the purposes 30
of section 13ZB(5) and the employer must use the new relevant 31
percentage for the return periods mentioned in section 13ZB(6). 32
`(4) In this section-- 33
Page 31
Pay-roll Tax (Harmonisation) Amendment Bill 2008
[s 9]
recalculate the relevant percentage for a business vehicle 1
means-- 2
(a) record the details mentioned in section 13ZC(2)(a) to (e) 3
in relation to a new averaging period for the vehicle; and 4
(b) work out a new relevant percentage for the vehicle using 5
the details mentioned in paragraph (a). 6
`13ZF Averaging method--replacing a business vehicle 7
`(1) An employer using the averaging method may nominate 1 8
business vehicle (the replacement vehicle) to be the 9
replacement of another business vehicle (the original 10
vehicle). 11
`(2) The employer must record the nomination in writing-- 12
(a) during the financial year in which the nomination takes 13
effect; or 14
(b) if the commissioner allows the employer to record the 15
nomination at a later time--at the later time allowed by 16
the commissioner. 17
`(3) The nomination takes effect on the day stated in it. 18
`(4) After the nomination takes effect, for the employer's use of 19
the averaging method the replacement vehicle is taken to be 20
the original vehicle. 21
`(5) The employer need not repeat, for the replacement vehicle, 22
the steps already taken under this subdivision for the original 23
vehicle. 24
Example-- 25
The employer is not required to recalculate the relevant percentage 26
worked out for the original vehicle. 27
`(6) The employer must keep a record of-- 28
(a) the odometer reading of the original vehicle 29
immediately before the nomination takes effect; and 30
(b) the odometer reading of the replacement vehicle 31
immediately after the nomination takes effect. 32
Page 32
Pay-roll Tax (Harmonisation) Amendment Bill 2008
[s 9]
`13ZG Switching between continuous recording and 1
averaging methods 2
`(1) An employer may change from using a recording method to 3
using the other recording method with effect from the 4
beginning of a financial year. 5
Note-- 6
See section 13ZA(2) or 13ZC for the record keeping requirements with 7
which the employer must comply for the financial year for the 8
continuous recording method or averaging method. 9
`(2) In this section-- 10
recording method means the averaging method or continuous 11
recording method. 12
`Subdivision 2 Accommodation allowances 13
`13ZH Exempt rate for accommodation allowance 14
`(1) For this Act, a reference to wages does not include a reference 15
to an accommodation allowance-- 16
(a) paid or payable to an employee for a night's absence 17
from the employee's usual place of residence; and 18
(b) that is not more than the exempt rate. 19
`(2) If an accommodation allowance paid or payable to an 20
employee for a night's absence from the employee's usual 21
place of residence is more than the exempt rate, the allowance 22
comprises wages for this Act only to the extent it is more than 23
the exempt rate. 24
`(3) The exempt rate, for a financial year, is-- 25
(a) the total reasonable amount for daily travel allowance 26
expenses using the lowest capital city for the lowest 27
salary band for the year decided by the Commissioner of 28
Taxation of the Commonwealth for the Income Tax 29
Assessment Act 1997 (Cwlth), section 900-50; or 30
(b) if no decision mentioned in paragraph (a) is in 31
force--the rate prescribed under a regulation.'. 32
Page 33
Pay-roll Tax (Harmonisation) Amendment Bill 2008
[s 10]
Clause 10 Amendment of s 14 (Exemption from pay-roll tax) 1
(1) Section 14(2)-- 2
insert-- 3
`(k) subject to subsection (8), to an employee for a period 4
when the employee is-- 5
(i) taking part in fire fighting or fire prevention 6
activities, or associated activities, as a volunteer 7
member of a rural fire brigade under the Fire and 8
Rescue Service Act 1990; or 9
(ii) performing functions as a volunteer member of the 10
State Emergency Service or an emergency service 11
unit under the Disaster Management Act 2003; or 12
(iii) performing functions as an honorary ambulance 13
officer under the Ambulance Service Act 1991; or 14
(l) to a person who is an Aboriginal person or Torres Strait 15
Islander employed under an employment project under 16
the Community Development Employment Project 17
funded by the Department of Employment and 18
Workplace Relations (Cwlth) or the Torres Strait 19
Regional Authority.'. 20
(2) Section 14-- 21
insert-- 22
`(8) The exemption given in subsection (2)(k) does not apply to 23
wages paid or payable as annual leave, long service leave, 24
recreation leave or sick leave.'. 25
Clause 11 Insertion of new s 14A 26
After section 14-- 27
`14A Exemption for parental and adoption leave 28
`(1) The wages liable to pay-roll tax under this Act do not include 29
wages paid or payable to an employee for parental leave or 30
adoption leave. 31
Page 34
Pay-roll Tax (Harmonisation) Amendment Bill 2008
[s 11]
`(2) It is immaterial whether the parental leave is taken during or 1
after the pregnancy, or the adoption leave is taken before or 2
after the adoption. 3
`(3) The exemption under subsection (1) is limited to wages paid 4
or payable for-- 5
(a) not more than 14 weeks' maternity leave for any 1 6
pregnancy; and 7
(b) not more than 14 weeks' paternity leave for any 1 8
pregnancy; and 9
(c) not more than 14 weeks' adoption leave for any 1 10
adoption. 11
`(4) A reference in subsection (3) to 14 weeks' leave is a reference 12
to-- 13
(a) for a full-time employee who takes leave on less than 14
full pay--a period equivalent to 14 weeks' leave on full 15
pay; or 16
(b) for a part-time employee--a period of 14 weeks' leave 17
at the employee's part-time rate of pay. 18
`(5) An employer who claims an exemption under subsection (1) 19
must obtain and keep as a record-- 20
(a) for wages paid or payable for maternity leave--a 21
medical certificate for, or statutory declaration by, the 22
employee stating-- 23
(i) the employee is or was pregnant; or 24
(ii) the employee has given birth and the date of birth; 25
or 26
(b) for wages paid or payable for paternity leave--a 27
statutory declaration by the employee stating-- 28
(i) a female is or was pregnant with his unborn child; 29
or 30
(ii) his child has been born and the date of birth; or 31
(c) for wages paid or payable for adoption leave--a 32
statutory declaration by the employee stating-- 33
Page 35
Pay-roll Tax (Harmonisation) Amendment Bill 2008
[s 12]
(i) a child has been placed in the custody of the 1
employee pending the making of an adoption 2
order; or 3
(ii) that an adoption order has been made or recognised 4
in favour of the employee. 5
Note-- 6
Under the Administration Act, section 118, these records must be kept 7
for at least 5 years. 8
`(6) The exemption under subsection (1) does not apply to wages 9
comprising a fringe benefit under the Fringe Benefits 10
Assessment Act. 11
`(7) In this section-- 12
adoption leave means leave given to an employee in 13
connection with the adoption of a child by the employee, other 14
than annual leave, recreation leave, sick leave or similar leave. 15
maternity leave means leave given to a female employee in 16
connection with her pregnancy or the birth of her child, other 17
than annual leave, recreation leave, sick leave or similar leave. 18
parental leave means maternity leave or paternity leave. 19
paternity leave means leave given to a male employee in 20
connection with the pregnancy of a female carrying his 21
unborn child or the birth of his child, other than annual leave, 22
recreation leave, sick leave or similar leave'. 23
Clause 12 Amendment of s 50 (Arrangements for avoidance of tax 24
may be disregarded) 25
Section 50(2)-- 26
insert-- 27
`Note-- 28
See also sections 13L and 13LA for particular provisions about 29
avoidance arrangements relating to employment agency contracts.'. 30
Page 36
Pay-roll Tax (Harmonisation) Amendment Bill 2008
[s 13]
Clause 13 Amendment, relocation and renumbering of s 51 1
(Avoidance arrangements involving employment agents) 2
(1) Section 51, heading, `Avoidance'-- 3
omit, insert-- 4
`Particular avoidance'. 5
(2) Section 51(2)(a) and (6), definition avoidance arrangement, 6
paragraph (b), `agency agreement'-- 7
omit, insert-- 8
`employment agency contract'. 9
(3) Section 51(3), `section 69'-- 10
omit, insert-- 11
`section 71'. 12
(4) Section 51(6)-- 13
insert-- 14
`employment agency contract see the definition employment 15
agent for this section. 16
employment agent means a person who, by a contract, 17
agreement, arrangement or undertaking (the employment 18
agency contract), procures the services of another person (the 19
worker) for a client of the agent, if the employment agency 20
contract is not, and does not result in the creation of, a 21
contract of employment between the worker and the client.'. 22
(5) Section 51-- 23
relocate and renumber, in part 2, division 1B, as section 24
13LA. 25
Clause 14 Insertion of new pt 2, div 8 26
Part 2-- 27
insert-- 28
Page 37
Pay-roll Tax (Harmonisation) Amendment Bill 2008
[s 14]
`Division 8 Miscellaneous provisions 1
`51 Wages paid by or to third parties 2
`(1) Subsection (2) applies if money or other consideration-- 3
(a) for an employee's services as an employee of an 4
employer, is paid or given or to be paid or given-- 5
(i) to the employee, by a person other than the 6
employer; or 7
(ii) to a person other than the employee, by the 8
employer; or 9
(iii) to a person other than the employee, by a person 10
other than the employer; and 11
(b) had it been paid or given, or to be paid or given, directly 12
by the employer to the employee, would be wages paid 13
or payable by the employer to the employee for this Act. 14
Example of other consideration-- 15
the grant of a share or option 16
`(2) The money or other consideration is taken to be wages paid or 17
payable by the employer to the employee. 18
`(3) Subsection (4) applies if money or other consideration-- 19
(a) by way of remuneration for the appointment or services 20
of a director of a company to the company, is paid or 21
given or to be paid or given-- 22
(i) to the director by a person other than the company; 23
or 24
(ii) to a person other than the director by the company; 25
or 26
(iii) to a person other than the director by a person other 27
than the company; and 28
(b) had it been paid or given, or to be paid or given, directly 29
by the company to the director, would comprise wages 30
paid or payable by the company for this Act. 31
Page 38
Pay-roll Tax (Harmonisation) Amendment Bill 2008
[s 15]
Example of other consideration-- 1
the grant of a share or option 2
`(4) The money or other consideration is taken to be wages paid or 3
payable by the company to the director. 4
`(5) In this section-- 5
director of a company includes-- 6
(a) a person who, under a contract or other arrangement, is 7
to be appointed as a director of the company; and 8
(b) a former director of the company. 9
`51A Joint and several liability of group members 10
`(1) This section applies if a member of a group fails to pay an 11
amount the member is required to pay under this Act in 12
respect of a period. 13
`(2) Every member of the group is liable jointly and severally to 14
pay the amount, whether or not the member was an employer 15
during the period to which the amount relates. 16
`(3) This section is subject to sections 34(2) and 42(2).' 17
Clause 15 Replacement of pt 4, divs 1 and 2 18
Part 4, divisions 1 and 2-- 19
omit, insert-- 20
`Division 1 Interpretation 21
`66 Definitions for pt 4 22
`In this part-- 23
business includes any of the following, whether carried on by 24
1 person or 2 or more persons together-- 25
(a) a profession or trade; 26
(b) any other activity carried on for fee, gain or reward; 27
Page 39
Pay-roll Tax (Harmonisation) Amendment Bill 2008
[s 15]
(c) the activity of employing 1 or more persons who 1
perform duties in connection with another business; 2
(d) the carrying on of a trust, including a dormant trust; 3
(e) the activity of holding money or property used in 4
connection with another business. 5
related body corporate see the Corporations Act, section 9. 6
`67 Grouping provisions to operate independently 7
`The fact that a person is not a member of a group constituted 8
under a provision of this part does not prevent the person 9
being a member of a group constituted under another 10
provision of this part. 11
`Division 2 Business groups 12
`68 Constitution of groups 13
`A group is constituted by all the persons forming a group that 14
is not part of a larger group. 15
`69 Groups of corporations 16
`(1) Corporations constitute a group if they are related bodies 17
corporate. 18
`(2) For assessing whether corporations are related bodies 19
corporate, they are taken to carry on a business and not to be 20
trustee companies. 21
Note-- 22
Section 74 allows the commissioner to exclude, for pay-roll tax 23
purposes, persons from a group in some circumstances, but not if the 24
persons are related bodies corporate. 25
`70 Groups arising from the use of common employees 26
`(1) If 1 or more employees of an employer perform duties in 27
connection with 1 or more businesses carried on by the 28
Page 40
Pay-roll Tax (Harmonisation) Amendment Bill 2008
[s 15]
employer and 1 or more other persons, the employer and each 1
of those other persons constitute a group. 2
`(2) If 1 or more employees of an employer are employed solely or 3
mainly to perform duties in connection with 1 or more 4
businesses carried on by 1 or more other persons, the 5
employer and each of those other persons constitute a group. 6
`(3) If 1 or more employees of an employer perform duties-- 7
(a) in connection with 1 or more businesses carried on by 1 8
or more other persons; and 9
(b) in connection with, or in fulfilment of the employer's 10
obligation under, a relevant agreement; 11
the employer and each of those other persons constitute a 12
group. 13
`(4) In this section-- 14
relevant agreement means an agreement, arrangement or 15
undertaking for services to be provided to 1 or more of the 16
other persons in connection with the business or those 17
businesses carried on by the other person or persons-- 18
(a) whether the agreement, arrangement or undertaking is 19
formal or informal, express or implied; and 20
(b) whether or not the agreement, arrangement or 21
undertaking provides for duties to be performed by the 22
employees or states the duties to be performed by them. 23
Note-- 24
Section 74 allows the commissioner to exclude, for pay-roll tax 25
purposes, persons from a group constituted under this section in some 26
circumstances. 27
`71 Groups of commonly controlled businesses 28
`(1) If a person or set of persons has a controlling interest in each 29
of 2 businesses, the persons who carry on those businesses 30
constitute a group. 31
Page 41
Pay-roll Tax (Harmonisation) Amendment Bill 2008
[s 15]
Note-- 1
Section 74 allows the commissioner to exclude, for pay-roll tax 2
purposes, persons from a group constituted under this section in some 3
circumstances. 4
`(2) For this section, a person or set of persons has a controlling 5
interest in a business if any of the following applies-- 6
(a) for 1 person--the person is the sole owner of the 7
business, whether or not as trustee; 8
(b) for a set of persons--together the persons are the sole 9
owners of the business as trustees; 10
(c) for a business carried on by a corporation-- 11
(i) the person or each person in the set of persons is a 12
director of the corporation, and the person or set of 13
persons is entitled to exercise more than 50% of 14
the voting power at meetings of the directors of the 15
corporation; or 16
(ii) a director or set of directors of the corporation that 17
is entitled to exercise more than 50% of the voting 18
power at meetings of the directors of the 19
corporation is under an obligation, whether formal 20
or informal, to act in accordance with the direction, 21
instruction or wishes of the person or set of 22
persons; 23
(d) for a business carried on by a body corporate or 24
unincorporate--the person or set of persons constitute 25
more than 50% of, or control the composition of, the 26
board of management, by whatever name called, of the 27
body; 28
(e) for a business carried on by a corporation with a share 29
capital--the person or set of persons can, directly or 30
indirectly, exercise, control the exercise of, or 31
substantially influence the exercise of, more than 50% 32
of the voting power attached to the voting shares, or a 33
class of voting shares, issued by the corporation; 34
(f) for a business carried on by a partnership--the person or 35
set of persons-- 36
Page 42
Pay-roll Tax (Harmonisation) Amendment Bill 2008
[s 15]
(i) own, whether beneficially or not, more than 50% 1
of the capital of the partnership; or 2
(ii) is entitled, whether beneficially or not, to more 3
than 50% of the profits of the partnership; 4
(g) for a business carried on under a trust--the person or set 5
of persons, whether or not as the trustee or beneficiary 6
of another trust, is the beneficiary in respect of more 7
than 50% of the value of the interests in the trust under 8
which the business is carried on. 9
`(3) If-- 10
(a) 2 corporations are related bodies corporate; and 11
(b) 1 of the corporations has a controlling interest in a 12
business; 13
the other corporation has a controlling interest in the business. 14
`(4) If-- 15
(a) a person or set of persons has a controlling interest in a 16
business; and 17
(b) a person or set of persons who carry on the business has 18
a controlling interest in another business; 19
the person or set of persons mentioned in paragraph (a) has a 20
controlling interest in the other business. 21
`(5) If-- 22
(a) a person or set of persons is the beneficiary of a trust in 23
respect of more than 50% of the value of the interests in 24
the trust; and 25
(b) the trustee of the trust, whether alone or together with 26
another trustee or trustees, has a controlling interest in 27
the business of another trust; 28
the person or set of persons has a controlling interest in the 29
business. 30
`(6) A person who may benefit from a discretionary trust as a 31
result of the trustee or another person, or the trustee and 32
another person, exercising or failing to exercise a power or 33
discretion, is taken for this part to be a beneficiary of the trust 34
Page 43
Pay-roll Tax (Harmonisation) Amendment Bill 2008
[s 15]
in respect of more than 50% of the value of the interests in the 1
trust. 2
`(7) If-- 3
(a) a person or set of persons has a controlling interest in 4
the business of a trust; and 5
(b) the trustee of the trust, whether alone or together with 6
another trustee or trustees, has a controlling interest in 7
the business of a corporation; 8
the person or set of persons has a controlling interest in the 9
business of the corporation. 10
`(8) If-- 11
(a) a person or set of persons has a controlling interest in 12
the business of a trust; and 13
(b) the trustee of the trust, whether alone or together with 1 14
or more other trustees, has a controlling interest in the 15
business of a partnership; 16
the person or set of persons has a controlling interest in the 17
business of the partnership. 18
`72 Groups arising from tracing of interests in 19
corporations 20
`(1) A relevant entity and a corporation constitute a group if the 21
entity has a controlling interest in the corporation. 22
Note-- 23
Section 74 allows the commissioner to exclude, for pay-roll tax 24
purposes, persons from a group constituted under this section in some 25
circumstances. 26
`(2) For this section, a relevant entity has a controlling interest in 27
a corporation if-- 28
(a) the corporation has share capital; and 29
(b) the entity has an interest in the corporation; and 30
(c) the value of the interest is more than 50%. 31
`(3) In this section-- 32
Page 44
Pay-roll Tax (Harmonisation) Amendment Bill 2008
[s 15]
interest means a direct interest, indirect interest or aggregate 1
interest under section 74B. 2
relevant entity see section 74B. 3
`73 Smaller groups subsumed into larger groups 4
`If a person is a member of 2 or more groups, the members of 5
all the groups together constitute a group. 6
Note 1-- 7
Section 74 allows the commissioner to exclude, for pay-roll tax 8
purposes, persons from a group constituted under this section in some 9
circumstances. 10
Note 2-- 11
See also section 68. 12
`74 Exclusion of persons from groups 13
`(1) The commissioner may, by order in writing (an exclusion 14
order), exclude a person from a group. 15
`(2) The commissioner may make an exclusion order only if the 16
commissioner is satisfied a business carried on by the person 17
is carried on independently of, and is not connected with the 18
carrying on of, a business carried on by any other member of 19
the group. 20
`(3) For deciding whether to make an exclusion order, the 21
commissioner must have regard to-- 22
(a) the nature and degree of ownership and control of the 23
businesses carried on by the person and the other 24
members of the group; and 25
(b) the nature of the businesses; and 26
(c) any other matters the commissioner considers relevant. 27
`(4) Despite subsection (1), the commissioner can not make an 28
exclusion order if the person and another body corporate that 29
is a member of the group are related bodies corporate. 30
`(5) The commissioner may, by order in writing, revoke an 31
exclusion order if the commissioner is satisfied the 32
Page 45
Pay-roll Tax (Harmonisation) Amendment Bill 2008
[s 15]
circumstances in which an exclusion order may be made do 1
not apply to the person. 2
`(6) An exclusion order or order revoking an exclusion order takes 3
effect on the date stated in it, which may be a date earlier than 4
the date of the exclusion order. 5
`Division 2A Business groups--interpretation 6
provisions for tracing of interests in 7
corporations 8
`74A Application of div 2A 9
`This division applies for interpreting section 72. 10
`74B Definitions for div 2A 11
`In this division-- 12
aggregate interest see section 74G(1). 13
associated persons see section 74C. 14
direct interest see section 74E. 15
indirect interest see section 74F. 16
private company means a company that is not limited by 17
shares, or whose shares are not quoted on the Australian Stock 18
Exchange or any exchange of the World Federation of 19
Exchanges. 20
related persons see section 74D. 21
relevant entity means-- 22
(a) a person; or 23
(b) 2 or more associated persons. 24
`74C Who are associated persons 25
`Persons are associated persons if they are any of the 26
following-- 27
Page 46
Pay-roll Tax (Harmonisation) Amendment Bill 2008
[s 15]
(a) related persons; 1
(b) individuals who are partners in a partnership; 2
(c) private companies in which common shareholders have 3
a majority interest; 4
(d) trustees of trusts, other than public unit trust schemes, of 5
which there is a common beneficiary; 6
(e) a private company and a trustee of a trust, other than a 7
public unit trust scheme, if a related body corporate of 8
the company is a beneficiary of the trust. 9
`74D Who are related persons 10
`(1) Persons are related persons if they are any of the following-- 11
(a) individuals, if-- 12
(i) 1 is the spouse of the other; or 13
(ii) the relationship between them is that of parent and 14
child, brothers, sisters, or brother and sister; 15
(b) private companies that are related bodies corporate; 16
(c) an individual and a private company, if the individual is 17
a majority shareholder or director of-- 18
(i) the company; or 19
(ii) another private company that is a related body 20
corporate of the company; 21
(d) an individual and a trustee of a trust, other than a public 22
unit trust scheme, of which the individual is a 23
beneficiary; 24
(e) a private company and a trustee of a trust, other than a 25
public unit trust scheme, if the company, or a majority 26
shareholder or director of the company, is a beneficiary 27
of the trust. 28
`(2) In this section-- 29
de facto partner means 1 of 2 persons who is a de facto 30
partner within the meaning of the Acts Interpretation Act 31
1954, section 32DA, if-- 32
Page 47
Pay-roll Tax (Harmonisation) Amendment Bill 2008
[s 15]
(a) the persons are living, and for at least 2 years have lived, 1
together as a couple on a genuine domestic basis within 2
the meaning of the Acts Interpretation Act 1954, section 3
32DA; or 4
(b) the persons are not living, but for at least 2 years were 5
living, together as a couple on a genuine domestic basis 6
within the meaning of the Acts Interpretation Act 1954, 7
section 32DA. 8
spouse includes a de facto partner. 9
`74E Direct interest 10
`(1) A relevant entity has a direct interest in a corporation if-- 11
(a) for a relevant entity that is a person--the person can, 12
directly or indirectly, exercise the voting power attached 13
to any voting shares issued by the corporation; or 14
(b) for a relevant entity that is 2 or more associated 15
persons--each of the associated persons can, directly or 16
indirectly, exercise the voting power attached to any 17
voting shares issued by the corporation. 18
`(2) The value of the relevant entity's direct interest in the 19
corporation is the percentage equivalent to the proportion of 20
the voting power of all voting shares issued by the corporation 21
that-- 22
(a) for a relevant entity that is a person--the person can, 23
directly or indirectly, exercise; or 24
(b) for a relevant entity that is 2 or more associated 25
persons--the associated persons can, if acting together, 26
directly or indirectly exercise. 27
`(3) In this section-- 28
exercise, in relation to voting power attached to voting shares 29
issued by a corporation, includes control the exercise of, or 30
substantially influence the exercise of, the voting power. 31
Page 48
Pay-roll Tax (Harmonisation) Amendment Bill 2008
[s 15]
`74F Indirect interest 1
`(1) A relevant entity has an indirect interest in a corporation if the 2
corporation is linked to another corporation (the directly 3
controlled corporation) in which the entity has a direct 4
interest. 5
Note-- 6
It is possible for a relevant entity to have more than 1 indirect interest in 7
a corporation. In that case, the relevant entity has an aggregate interest 8
in the corporation under section 74G(1)(b). 9
Examples-- 10
1 The relevant entity has a direct interest in corporations A and B. 11
Both corporations A and B have a direct interest in corporation C. 12
2 The relevant entity has a direct interest in corporation A. 13
Corporation A is linked to another corporation through more than 14
1 chain of corporations. 15
`(2) A corporation is linked to the directly controlled corporation 16
if the corporation is part of a chain of corporations-- 17
(a) that starts with the directly controlled corporation; and 18
(b) in which a link is formed if a corporation has a direct 19
interest in the next corporation in the chain. 20
Examples-- 21
1 A relevant entity has a direct interest in corporation A (the directly 22
controlled corporation). Corporation A has a direct interest in 23
corporation B. Corporations A and B are linked and form part of a 24
chain of corporations. Therefore, the relevant entity has a direct 25
interest in corporation A, and an indirect interest in corporation B. 26
2 Corporation B also has a direct interest in corporation C. 27
Corporations B and C are linked to corporation A, and corporations 28
A, B and C form part of a chain of corporations. The relevant entity 29
has a direct interest in corporation A, and an indirect interest in 30
corporations B and C. 31
3 Corporation B also has a direct interest in corporation D. There are 32
now 2 chains of corporations, 1 consisting of corporations A, B and 33
C and the other consisting of corporations A, B and D. Corporations 34
B, C and D are all linked to corporation A. The relevant entity has a 35
direct interest in corporation A, and an indirect interest in 36
corporations B, C and D. However, if a relevant entity had a direct 37
interest in corporation C only, the entity would not have an indirect 38
Page 49
Pay-roll Tax (Harmonisation) Amendment Bill 2008
[s 15]
interest in corporation D because corporation D is not linked to 1
corporation C. 2
`(3) The value of a relevant entity's indirect interest in a 3
corporation (the indirectly controlled corporation) that is 4
linked to a directly controlled corporation is the percentage 5
worked out by multiplying the following amounts-- 6
(a) the value of the relevant entity's direct interest in the 7
directly controlled corporation; 8
(b) the value of each direct interest that forms a link in the 9
chain of corporations by which the indirectly controlled 10
corporation is linked to the directly controlled 11
corporation. 12
Examples-- 13
1 A relevant entity has a direct interest (with a value of 80%) in 14
corporation A. Corporation A has a direct interest (with a value of 15
70%) in corporation B. The value of the relevant entity's indirect 16
interest in corporation B is 80% x 70% = 56%. For section 72, the 17
relevant entity has a controlling interest in corporation B. 18
2 Corporation B also has a direct interest (with a value of 40%) in 19
corporation C. The value of the relevant entity's indirect interest in 20
corporation C is 80% x 70% x 40% = 22.4%. For section 72, the 21
relevant entity does not have a controlling interest in corporation C. 22
`74G Aggregate interest 23
`(1) A relevant entity has an aggregate interest in a corporation 24
if-- 25
(a) the entity has a direct interest and 1 or more indirect 26
interests in the corporation; or 27
(b) the entity has more than 1 indirect interest in the 28
corporation. 29
`(2) The value of a relevant entity's aggregate interest in a 30
corporation is the sum of the following amounts-- 31
(a) the value of the direct interest, if any, of the entity in the 32
corporation; 33
(b) the value of each indirect interest of the entity in the 34
corporation. 35
Page 50
Pay-roll Tax (Harmonisation) Amendment Bill 2008
[s 16]
Example-- 1
A relevant entity has a direct interest (with a value of 40%) in 2
corporation B. The relevant entity also has a direct interest (with a value 3
of 25%) in corporation A. Corporation A has a direct interest (with a 4
value of 60%) in corporation B. Accordingly, the relevant entity also has 5
an indirect interest in corporation B with a value of 15% (25% x 60%). 6
The value of the relevant entity's aggregate interest in corporation B is 7
40% + 15% = 55%. For section 72, the relevant entity has a controlling 8
interest in corporation B.'. 9
Clause 16 Amendment of s 80 (Reassessment--making or 10
revocation of order excluding a person from a group) 11
Section 80(1)(a)(i), `section 68, 69, 70 or 71'-- 12
omit, insert-- 13
`section 74'. 14
Clause 17 Amendment of pt 7 hdg (Savings and transitional 15
provisions) 16
Part 7, heading, after `provisions'-- 17
insert-- 18
`for Pay-roll Tax Administration Amendment Act 2004'. 19
Clause 18 Insertion of new pt 8 20
After section 130-- 21
insert-- 22
`Part 8 Transitional provisions for 23
Pay-roll Tax (Harmonisation) 24
Amendment Act 2008 25
`131 Interpretation of amended provisions 26
`(1) The amendments made to this Act by the Pay-roll Tax 27
(Harmonisation) Amendment Act 2008 are intended to 28
Page 51
Pay-roll Tax (Harmonisation) Amendment Bill 2008
[s 18]
enhance the consistency of this Act with the Payroll Tax Act 1
2007 (NSW) and the Payroll Tax Act 2007 (Vic). 2
Note-- 3
Minor variations in language used in some of the amended provisions 4
are not intended to alter their meaning from the corresponding 5
provisions in the New South Wales and Victorian Acts. For example-- 6
· the phrase "in relation to" used in sections 13B to 13D, 13E(1), 13F, 7
13I and 13J(1) and (2)(a), is intended to have the same meaning as 8
the phrase "for or in relation to", or "to or in relation to", used in the 9
corresponding provisions; and 10
· the phrase "in connection with" used in sections 66 and 70(1), (2) 11
and (3)(a) is intended to have the same meaning as the phrase "for or 12
in connection with" used in the corresponding provisions. 13
`(2) However, this section does not apply to the extent-- 14
(a) the Pay-roll Tax (Harmonisation) Amendment Act 2008 15
inserted section 14(2)(k)(iii) of this Act; or 16
(b) section 14A, as inserted by the Pay-roll Tax 17
(Harmonisation) Amendment Act 2008, section 11, 18
applies to paternity leave. 19
`132 Application of amended Act 20
`This Act, as amended by the Pay-roll Tax (Harmonisation) 21
Amendment Act 2008, applies in relation to wages paid or 22
payable on or after 1 July 2008. 23
`133 Application of avoidance provision for employment 24
agency contracts 25
`Section 13L applies to employment agency contracts made 26
before, on or after the commencement of this section. 27
`134 Continuation of orders excluding person from group 28
`(1) This section applies if-- 29
(a) an order excluding a person from a group, made by the 30
commissioner under section 68, 69, 70 or 71, as it was in 31
Page 52
Pay-roll Tax (Harmonisation) Amendment Bill 2008
[s 19]
force before 1 July 2008, is in effect immediately before 1
1 July 2008; and 2
(b) the composition of the group is not changed, other than 3
the order mentioned in paragraph (a) no longer having 4
effect, because of the commencement of the Pay-roll 5
Tax (Harmonisation) Amendment Act 2008. 6
`(2) The order mentioned in paragraph (a) is taken to be an 7
exclusion order made by the commissioner under section 8
74(1).'. 9
Clause 19 Amendment of schedule (Dictionary) 10
(1) Schedule, definitions agent, client, death benefit ETP, 11
employment agent, ETP and taxable ETP-- 12
omit. 13
(2) Schedule-- 14
insert-- 15
`aggregate interest, for part 4, division 2A, see section 74B. 16
associated persons, for part 4, division 2A, see section 74B. 17
averaging method, for part 2, division 1D, subdivision 1, see 18
section 13X. 19
averaging period, for part 2, division 1D, subdivision 1, see 20
section 13X. 21
business, for part 4, see section 66. 22
business journey, for part 2, division 1D, subdivision 1, see 23
section 13X. 24
business vehicle, for part 2, division 1D, subdivision 1, see 25
section 13X. 26
continuous recording method, for part 2, division 1D, 27
subdivision 1, see section 13X. 28
contract, for part 2, division 1A, see section 13A. 29
direct interest, for part 4, division 2A, see section 74B. 30
Page 53
Pay-roll Tax (Harmonisation) Amendment Bill 2008
[s 19]
director-- 1
(a) of a company, includes a member of the governing body 2
of the company; and 3
(b) for part 2, division 1C, see section 13N. 4
employment agency contract see section 13G(1). 5
employment agent, under an employment agency contract, 6
see section 13G(1). 7
granted, for part 2, division 1C, see section 13N. 8
grantee, for part 2, division 1C, see section 13N. 9
grantor, for part 2, division 1C, see section 13N. 10
indirect interest, for part 4, division 2A, see section 74B. 11
number of exempt kilometres, for part 2, division 1D, 12
subdivision 1, see section 13X. 13
option means an option or right, whether actual, prospective 14
or contingent, of a person to-- 15
(a) acquire a share; or 16
(b) have a share transferred or allotted to the person. 17
private company, for part 4, division 2A, see section 74B. 18
related body corporate, for part 4, see section 66. 19
related persons, for part 4, division 2A, see section 74B. 20
relevant contract see section 13B. 21
relevant contract employee see section 13A. 22
relevant contract employer see section 13C(3). 23
relevant day, for part 2, division 1C, see section 13N. 24
relevant entity, for part 4, division 2A, see section 74B. 25
relevant percentage, for part 2, division 1D, subdivision 1, 26
see section 13X. 27
re-supply, for part 2, division 1A, see section 13A. 28
Page 54
Pay-roll Tax (Harmonisation) Amendment Bill 2008
[s 19]
return period, in relation to an employer, means each of the 1
following periods for which the employer is required under 2
this Act to lodge a return-- 3
(a) a periodic return period; 4
(b) a financial year; 5
(c) a final period. 6
service provider, in relation to an employment agency 7
contract, see section 13G(1). 8
services, for part 2, division 1A, see section 13A. 9
share-- 10
(a) means a share in a company; and 11
(b) includes a stapled security under the Income Tax 12
Assessment Act 1936 (Cwlth), section 139GCD. 13
supply, for part 2, division 1A, see section 13A. 14
termination payment see section 3A. 15
vesting day, for part 2, division 1C, see section 13N.'. 16
(3) Schedule, definition employer, from `and any person'-- 17
omit, insert-- 18
`and any person taken to be an employer under another 19
provision of this Act. 20
Note-- 21
For provisions under which persons are taken to be employers, see, for 22
example, sections 13C (relevant contract employers) and 13H 23
(employment agents under employment agency contracts).'. 24
(4) Schedule, definition wages, after `any wages,'-- 25
insert-- 26
`remuneration,'. 27
(5) Schedule, definition wages, from `, or in relation to' to 28
`employee's benefit'-- 29
omit, insert-- 30
`an employee as an employee'. 31
Page 55
Pay-roll Tax (Harmonisation) Amendment Bill 2008
[s 19]
(6) Schedule, definition wages, paragraph (c), `or member of the 1
governing body'-- 2
omit. 3
(7) Schedule, definition wages, paragraph (f)-- 4
omit. 5
(8) Schedule, definition wages, paragraph (h), from `other 6
than'-- 7
omit, insert-- 8
`other than a superannuation contribution-- 9
(i) paid or payable by a company for a director of the 10
company before 1 July 2008; or 11
(ii) for services performed or rendered by an employee 12
before 1 January 2000; and'. 13
(9) Schedule, definition wages, paragraph (i)-- 14
omit, insert-- 15
`(i) a termination payment; and 16
(j) an amount taken to be wages under another provision of 17
this Act; and 18
Note-- 19
See, for example, sections 13E (amounts paid or payable under a 20
relevant contract), 13J (amounts paid or payable under an 21
employment agency contract) and 51 (amounts paid or payable 22
by or to third parties). 23
(k) a share or option granted-- 24
(i) by an employer to an employee in respect of 25
services performed or rendered by the employee; 26
or 27
(ii) by a company to a director of the company by way 28
of remuneration for the appointment or services of 29
the director. 30
Note-- 31
See part 2, division 1C for provisions that apply for interpreting 32
this paragraph.'. 33
Page 56
Pay-roll Tax (Harmonisation) Amendment Bill 2008
[s 19]
(10) Schedule, definition wages, paragraphs (g) to (k)-- 1
renumber as paragraphs (f) to (j). 2
© State of Queensland 2008
Page 57
[Index] [Search] [Download] [Related Items] [Help]