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Payroll Tax Act 2009 - South Australia
Page created by Leroy Fletcher
Version: 1.7.2013 [1.7.2013] This version is not published under the Legislation Revision and Publication Act 2002 1 South Australia Payroll Tax Act 2009 An Act to re-enact and modernise the law relating to payroll tax; to harmonise payroll tax law with other States; and for other purposes. Contents Part 1—Preliminary 1 Short title 3 Interpretation 4 Taxation Administration Act 1996 5 Act binds the Crown Part 2—Imposition of payroll tax Division 1—Imposition of tax 6 Imposition of payroll tax 7 Who is liable for payroll tax? 8 Amount of payroll tax 9 When must payroll tax be paid? Division 2—Taxable wages 10 What are taxable wages 11 Wages that are taxable in this jurisdiction 11A Jurisdiction in which employee is based 11B Jurisdiction in which employer is based 11C Place and date of payment of wages Division 3—Other 12 Liability for payroll tax not affected by subsequent amendment to Act Part 3—Wages Division 1—General concept of wages 13 What are wages?
Division 2—Fringe benefits 14 Wages include fringe benefits 15 Value of wages comprising fringe benefits 16 Employer election regarding taxable value of fringe benefits
Payroll Tax Act 2009—1.7.2013 Contents 2 This version is not published under the Legislation Revision and Publication Act 2002 [1.7.2013] Division 3—Superannuation contributions 17 Wages include superannuation contributions Division 4—Shares and options 18 Inclusion of grant of shares and options as wages 19 Choice of relevant day 20 Deemed choice of relevant day in special cases 21 Effect of rescission, cancellation of share or option 22 Grant of share pursuant to exercise of option 23 Value of shares and options 24 Inclusion of shares and options granted to directors as wages 26 Place where wages are payable Division 5—Termination payments 27 Definitions 28 Termination payments Division 6—Allowances 29 Motor vehicle allowances 30 Accommodation allowances Division 7—Contractor provisions 31 Definitions 32 What is a relevant contract? 33 Persons taken to be employers 34 Persons taken to be employees 35 Amounts under relevant contracts taken to be wages 36 Liability provisions Division 8—Employment agents 37 Definitions 38 Persons taken to be employers 39 Persons taken to be employees 40 Amounts taken to be wages 41 Liability provisions 42 Agreement to reduce or avoid liability to payroll tax Division 9—Other 43 Value of wages paid in kind 44 GST excluded from wages 45 Wages paid by group employers 46 Wages paid by or to third parties 47 Agreement etc to reduce or avoid liability to payroll tax Part 4—Exemptions Division 1—Non-profit organisations 48 Non-profit organisations Division 2—Education and training 49 Schools and educational services and training
1.7.2013—Payroll Tax Act 2009 Contents [1.7.2013] This version is not published under the Legislation Revision and Publication Act 2002 3 50 Community Development Employment Project Division 3—Health services providers 51 Health services providers 52 Division not to limit other exemptions Division 4—Maternity and adoption leave 53 Maternity and adoption leave 54 Administrative requirements for exemption Division 5—Volunteer firefighters and emergency service volunteers 55 Volunteer firefighters 56 Emergency service volunteers 57 Limitation of exemption Division 6—Local government 58 Councils 59 Limitation on local government exemptions 60 Specified activities Division 7—Other government and defence 61 State Governors 62 Defence personnel 63 War Graves Commission Division 8—Foreign government representatives and international agencies 64 Consular and non-diplomatic representatives 65 Trade commissioners 66 Australian–American Fulbright Commission Division 9—Services outside Australia 66A Wages paid or payable for or in relation to services performed in other countries Part 5—Grouping of employers Division 1—Interpretation 67 Definitions 68 Grouping provisions to operate independently Division 2—Business groups 69 Constitution of groups 70 Groups of corporations 71 Groups arising from the use of common employees 72 Groups of commonly controlled businesses 73 Groups arising from tracing of interests in corporations 74 Smaller groups subsumed by larger groups Division 3—Business groups—tracing of interests in corporations 75 Application 76 Direct interest 77 Indirect interest
Payroll Tax Act 2009—1.7.2013 Contents 4 This version is not published under the Legislation Revision and Publication Act 2002 [1.7.2013] 78 Aggregation of interests Division 4—Miscellaneous 79 Exclusion of persons from groups 80 Designated group employers 81 Joint and several liability Part 6—Adjustments of tax 82 Determination of correct amount of payroll tax 83 Annual adjustment of payroll tax 84 Adjustment of payroll tax when employer changes circumstances 85 Special provision where wages fluctuate Part 7—Registration and returns 86 Registration 87 Returns Part 8—Collection and recovery of tax Division 1—Agents and trustees generally 88 Application 89 Agents and trustees are answerable 90 Returns by agent or trustee 91 Liability to pay tax 92 Indemnity for agent or trustee Division 2—Special cases 93 Tax not paid during lifetime 94 Payment of tax by executors or administrators 95 Assessment if no probate within 6 months of death 96 Person in receipt or control of money for absentee 97 Agent for absentee principal winding-up business 98 Recovery of tax paid on behalf of another person 99 Liquidator to give notice Part 9—General 100 Returns etc to be completed in manner approved by Commissioner 101 Regulations Schedule 1—Calculation of payroll tax liability Part 1—Interpretation 1 Interpretation Part 2—Employers who are not members of a group 2 Application of Part 3 Interpretation 4 Payroll of employer under threshold 5 Payroll of employer over threshold
1.7.2013—Payroll Tax Act 2009 Contents [1.7.2013] This version is not published under the Legislation Revision and Publication Act 2002 5 Part 3—Groups with a designated group employer 6 Application of Part 7 Interpretation 8 Payroll of group under threshold 9 Payroll of group over threshold Part 4—Motor vehicle allowances 10 Continuous recording method 11 Averaging method 12 Meaning of relevant 12-week period 13 Replacing 1 motor vehicle with another motor vehicle 14 Changing method of recording 15 Definition Schedule 2—South Australia specific provisions Part 1—Introduction 1 Introduction to Schedule 2 Interpretation Part 2—Calculation of monthly payroll tax Division 1—Rate of payroll tax 3 Rate of payroll tax Division 2—Employers who are not members of a group 4 Application of Division 5 Amount of payroll tax to be paid each month 6 Deductible amount from taxable wages Division 3—Groups with a designated group employer 7 Application of Division 8 Amount of payroll tax to be paid each month 9 Deductible amount for groups Part 3—Exemptions Division 1—Education and training 10 Education and training Division 2—Health services providers 11 What is a health services provider? Division 3—Other exemptions 12 Hospitals 13 Family planning 14 Kindergartens 15 Child care 16 Universities 17 Film production
Payroll Tax Act 2009—1.7.2013 Contents 6 This version is not published under the Legislation Revision and Publication Act 2002 [1.7.2013] Part 4—Returns and refunds 18 Further returns 19 Notification of change in circumstances 20 Time limit for refund applications Part 5—General 21 Disregarding cents Schedule 3—Transitional provisions Part 2—Transitional provisions 2 Interpretation 3 Savings and transitional provisions 4 Continuation of repealed Act and regulations 5 Application of this Act and repealed Act 6 Superannuation contributions not readily related to particular employees 7 Registration of employers 8 Designated group employers 9 References Part 3—Transitional provisions—Employee shares and options 10 Assessment and payment of payroll tax in relation to employee shares and options 11 Determination of vesting date and value of employee shares and options Legislative history The Parliament of South Australia enacts as follows: Part 1—Preliminary 1—Short title This Act may be cited as the Payroll Tax Act 2009.
3—Interpretation In this Act, unless the contrary intention appears— ABN means the ABN (Australian Business Number) for an entity within the meaning of the A New Tax System (Australian Business Number) Act 1999 of the Commonwealth; agent includes— (a) a person who, in this jurisdiction, for or on behalf of another person outside this jurisdiction, holds or has the management or control of the business of that other person; and (b) a person who, by an order of the Commissioner, is declared to be an agent or the sole agent for any other person for the purposes of this Act and on whom notice of that order has been served; Australia means the States of the Commonwealth and the Territories;
1.7.2013—Payroll Tax Act 2009 Preliminary—Part 1 [1.7.2013] This version is not published under the Legislation Revision and Publication Act 2002 7 Australian jurisdiction means a State or a Territory; coastal waters of South Australia has the same meaning as coastal waters of the State has in relation to South Australia in the Coastal Waters (State Powers) Act 1980 of the Commonwealth; the Commissioner means the person appointed or acting as the Commissioner of State Taxation, and includes a person appointed or acting as a Deputy Commissioner of State Taxation (see Part 9 of the Taxation Administration Act 1996); company includes all bodies and associations (corporate and unincorporate) and partnerships; corporation has the same meaning as in section 9 of the Corporations Act 2001 of the Commonwealth; corresponding law means a law in force in another State or a Territory relating to the imposition upon employers of a tax on wages paid or payable by them and the assessment and collection of that tax; council means a council or council subsidiary under the Local Government Act 1999; designated group employer means a member designated for a group in accordance with section 80; director of a company includes a member of the governing body of the company; employer means a person who pays or is liable to pay wages and includes— (a) the Crown in any of its capacities; and (b) a person taken to be an employer by or under this Act; and (c) a public, local or municipal body or authority constituted under the law of the Commonwealth or of a State or Territory unless, being an authority constituted under the law of the Commonwealth, it is immune from the operation of this Act; employment agency contract has the meaning given in section 37; employment agent has the meaning given in section 37; exempt wages mean wages that are declared by or under this Act to be exempt wages; FBTA Act means the Fringe Benefits Tax Assessment Act 1986 of the Commonwealth; financial year means each year commencing on 1 July; fringe benefit has the same meaning as in the FBTA Act but does not include— (a) a tax-exempt body entertainment fringe benefit within the meaning of that Act; or (b) anything that is prescribed by the regulations under this Act not to be a fringe benefit for the purposes of this definition; group has the meaning given in section 67;
Payroll Tax Act 2009—1.7.2013 Part 1—Preliminary 8 This version is not published under the Legislation Revision and Publication Act 2002 [1.7.2013] GST has the same meaning as it has in the A New Tax System (Goods and Services Tax) Act 1999 of the Commonwealth except that it includes notional GST of the kind for which payments may be made under Part 3 of the National Tax Reform (State Provisions) Act 2000 by a person that is an exempt entity within the meaning of that Act; instrument includes a cheque, bill of exchange, promissory note, money order or a postal order issued by a post office; interstate wages means wages that are taxable wages within the meaning of a corresponding law; ITAA means the Income Tax Assessment Act 1997 of the Commonwealth; liquidator means the person who, whether or not appointed as liquidator, is the person required by law to carry out the winding-up of a company; month means the month of January, February, March, April, May, June, July, August, September, October, November and December; option means an option or right, whether actual, prospective or contingent, of a person to acquire a share or to have a share transferred or allotted to the person; paid, in relation to wages, includes provided, conferred and assigned and pay and payable have corresponding meanings; payroll tax means tax imposed by section 6; perform, in relation to services, includes render; registered business address means an address for service of notices under the A New Tax System (Australian Business Number) Act 1999 of the Commonwealth on an entity that has an ABN, as shown in the Australian Business Register kept under that Act; return period, in relation to an employer, means a period relating to which that employer is required to lodge a return under this Act; share means a share in a company and includes a stapled security; superannuation contribution has the meaning given in section 17(2); taxable wages has the meaning given in section 10; termination payment has the meaning given in section 27; Territories means the Australian Capital Territory (including the Jervis Bay Territory) and the Northern Territory; this jurisdiction means South Australia and the coastal waters of South Australia; voting share has the same meaning as in section 9 of the Corporations Act 2001 of the Commonwealth; wages has the meaning given in Part 3.
4—Taxation Administration Act 1996 This Act is to be read together with the Taxation Administration Act 1996 which provides for the administration and enforcement of this Act and other taxation laws.
1.7.2013—Payroll Tax Act 2009 Preliminary—Part 1 [1.7.2013] This version is not published under the Legislation Revision and Publication Act 2002 9 5—Act binds the Crown (1) This Act binds the Crown in right of this jurisdiction and, so far as the legislative power of the Parliament permits, the Crown in all its other capacities. (2) Nothing in this Act makes the Crown in any of its capacities liable to be prosecuted for an offence. Part 2—Imposition of payroll tax Division 1—Imposition of tax 6—Imposition of payroll tax (1) Payroll tax is imposed on all taxable wages. (2) Payroll tax is levied and collected for the credit of the Consolidated Account at the Treasury.
7—Who is liable for payroll tax? The employer by whom taxable wages are paid or payable is liable to pay payroll tax on the wages. 8—Amount of payroll tax The amount of payroll tax payable by an employer is to be ascertained in accordance with Schedule 1 and Schedule 2. 9—When must payroll tax be paid? (1) A person who is liable to pay payroll tax on taxable wages must pay the tax— (a) within 7 days after the end of the month in which those wages were paid or payable, other than the month of June; and (b) within 21 days after the end of the month of June in relation to taxable wages paid or payable in the month of June.
(2) However, if the Commissioner has reason to believe that a person may leave Australia before any payroll tax becomes payable by the person, the tax is payable on the day fixed by the Commissioner by notice served on the person. Division 2—Taxable wages 10—What are taxable wages (1) For the purposes of this Act, taxable wages are wages that are taxable in this jurisdiction. (2) However, exempt wages are not taxable wages. 11—Wages that are taxable in this jurisdiction (1) For the purposes of this Act, wages are taxable in this jurisdiction if— (a) the wages are paid or payable by an employer for or in relation to services performed by an employee wholly in this jurisdiction; or
Payroll Tax Act 2009—1.7.2013 Part 2—Imposition of payroll tax Division 2—Taxable wages 10 This version is not published under the Legislation Revision and Publication Act 2002 [1.7.2013] (b) the wages are paid or payable by an employer for or in relation to services performed by an employee in 2 or more Australian jurisdictions, or partly in 1 or more Australian jurisdictions and partly outside all Australian jurisdictions, and— (i) the employee is based in this jurisdiction; or (ii) the employer is based in this jurisdiction (in a case where the employee is not based in an Australian jurisdiction); or (iii) the wages are paid or payable in this jurisdiction (in a case where both the employee and the employer are not based in an Australian jurisdiction); or (iv) the wages are paid or payable for services performed mainly in this jurisdiction (in a case where both the employee and the employer are not based in an Australian jurisdiction and the wages are not paid or payable in an Australian jurisdiction); or (c) the wages are paid or payable by an employer for or in relation to services performed by an employee wholly outside all Australian jurisdictions and are paid or payable in this jurisdiction.
Note— Section 66A provides an exemption for wages paid or payable for services performed wholly in 1 or more other countries for a continuous period of more than 6 months. (2) The question of whether wages are taxable in this jurisdiction is to be determined by reference only to the services performed by the employee in respect of the employer during the month in which the wages are paid or payable, subject to this section. (3) Any wages paid or payable by an employer in respect of an employee in a particular month are taken to be paid or payable for or in relation to the services performed by the employee in respect of the employer during that month.
Note— For example, if wages paid in a month are paid to an employee for services performed over several months, the question of whether the wages are taxable in this jurisdiction is to be determined by reference only to services performed by the employee in the month in which the wages are paid. The services performed in previous months are disregarded. (The services performed in previous months will be relevant to the question of whether wages paid in those previous months are taxable in this jurisdiction.) (4) If no services are performed by an employee in respect of an employer during the month in which wages are paid or payable to or in relation to the employee— (a) the question of whether the wages are taxable in this jurisdiction is to be determined by reference only to the services performed by the employee in respect of the employer during the most recent prior month in which the employee performed services in respect of the employer; and (b) the wages are taken to be paid or payable for or in relation to the services performed by the employee in respect of the employer during that most recent prior month.
1.7.2013—Payroll Tax Act 2009 Imposition of payroll tax—Part 2 Taxable wages—Division 2 [1.7.2013] This version is not published under the Legislation Revision and Publication Act 2002 11 (5) If no services were performed by an employee in respect of an employer during the month in which wages are paid or payable to or in relation to the employee or in any prior month— (a) the wages are taken to be paid or payable for or in relation to services performed by the employee in the month in which the wages are paid or payable; and (b) the services are taken to have been performed at a place or places where it may be reasonably expected that the services of the employee in respect of the employer will be performed.
(6) All amounts of wages paid or payable in the same month by the same employer in respect of the same employee are to be aggregated for the purposes of determining whether they are taxable in this jurisdiction (as if they were paid or payable for all services performed by the employee in the month in which the wages are paid or payable, or the most recent prior month, as the case requires). Note— For example, if 1 amount of wages is paid by an employer in a particular month for services performed in this jurisdiction, and another amount of wages is paid by the same employer in the same month for services performed by the same employee in another Australian jurisdiction, the wages paid are to be aggregated (as if they were paid for all services performed by the employee in that month).
Accordingly, subsection (1)(b) would be applied for the purpose of determining whether the wages are taxable in this jurisdiction.
(7) If wages are paid in a different month from the month in which they are payable, the question of whether the wages are taxable in this jurisdiction is to be determined by reference to the earlier of the relevant months. 11A—Jurisdiction in which employee is based (1) For the purposes of this Act, the jurisdiction in which an employee is based is the jurisdiction in which the employee’s principal place of residence is located. (2) The jurisdiction in which an employee is based is to be determined by reference to the state of affairs existing during the month in which the relevant wages are paid or payable.
(3) If more than 1 jurisdiction would qualify as the jurisdiction in which an employee is based during a month, the jurisdiction in which the employee is based is to be determined by reference to the state of affairs existing on the last day of that month. (4) An employee who does not have a principal place of residence is taken, for the purposes of this Act, to be an employee who is not based in an Australian jurisdiction. (5) In the case of wages paid or payable to a corporate employee, the jurisdiction in which the employee is based is to be determined in accordance with section 11B instead of this section (as if a reference in section 11B to an employer were a reference to an employee).
(6) In this section, a corporate employee is a company that is taken to be an employee under section 34 or 39 or a company to whom a payment is made that is taken to be wages payable to an employee under section 42 or 47.
Payroll Tax Act 2009—1.7.2013 Part 2—Imposition of payroll tax Division 2—Taxable wages 12 This version is not published under the Legislation Revision and Publication Act 2002 [1.7.2013] 11B—Jurisdiction in which employer is based (1) For the purposes of this Act, the jurisdiction in which an employer is based is— (a) the jurisdiction in which the employer’s registered business address is located (if the employer has an ABN); or (b) the jurisdiction in which the employer’s principal place of business is located (in any other case).
(2) If wages are paid or payable in connection with a business carried on by an employer under a trust, the employer’s registered business address is the registered business address of the trust or, if the trust does not have an ABN, the registered business address of the trustee of the trust. (3) If an employer has registered business addresses located in different jurisdictions at the same point in time, the jurisdiction in which the employer is based at that point in time is the jurisdiction in which the employer’s principal place of business is located. (4) The jurisdiction in which an employer is based is to be determined by reference to the state of affairs existing during the month in which the relevant wages are paid or payable.
(5) If more than 1 jurisdiction would qualify as the jurisdiction in which an employer is based during a month, the jurisdiction in which the employer is based is to be determined by reference to the state of affairs existing on the last day of that month. (6) An employer who has neither a registered business address nor a principal place of business is taken, for the purposes of this Act, to be an employer who is not based in an Australian jurisdiction. 11C—Place and date of payment of wages (1) For the purposes of this Act, wages are taken to have been paid at a place if, for the purpose of the payment of those wages— (a) an instrument is sent or given or an amount is transferred by an employer to a person or a person’s agent at that place; or (b) an instruction is given by an employer for the crediting of an amount to the account of a person or a person’s agent at that place.
(3) Wages are taken to be payable at the place at which they are paid, subject to this section. (4) Wages that are not paid by the end of the month in which they are payable are taken to be payable at— (a) the place where wages were last paid by the employer to the employee; or (b) if wages have not previously been paid by the employer to the employee—the place where the employee last performed services in respect of the employer before the wages became payable.
1.7.2013—Payroll Tax Act 2009 Imposition of payroll tax—Part 2 Taxable wages—Division 2 [1.7.2013] This version is not published under the Legislation Revision and Publication Act 2002 13 (5) If wages paid or payable in the same month by the same employer in respect of the same employee are paid or payable in more than 1 Australian jurisdiction, the wages paid or payable in that month are taken to be paid or payable in the Australian jurisdiction in which the highest proportion of the wages are paid or payable.
Note— Section 11 requires all wages paid or payable in the same month by the same employer in respect of the same employee to be aggregated for the purpose of determining whether the wages are taxable in this jurisdiction. The above provision ensures only 1 Australian jurisdiction can be considered to be the jurisdiction in which the wages are paid or payable.
Division 3—Other 12—Liability for payroll tax not affected by subsequent amendment to Act A liability for payroll tax arises and will be assessed in accordance with the provisions of this Act as in force at the time the liability arises and such a liability, once having arisen, is not affected by a subsequent amendment to this Act (except to the extent that the amendment operates retrospectively). Part 3—Wages Division 1—General concept of wages 13—What are wages? (1) For the purposes of this Act, wages mean wages, remuneration, salary, commission, bonuses or allowances paid or payable to an employee, including— (a) an amount paid or payable by way of remuneration to a person holding an office under the Crown or in the service of the Crown; and (b) an amount paid or payable under any prescribed classes of contracts to the extent to which that payment is attributable to labour; and (c) an amount paid or payable by a company by way of remuneration to or in relation to a director of that company; and (d) an amount paid or payable by way of commission to an insurance or time payment canvasser or collector; and (e) an amount or benefit that is included as or taken to be wages by any other provision of this Act.
(2) For the purposes of this Act, wages, remuneration, salary, commission, bonuses or allowances are wages— (a) whether paid or payable at piece work rates or otherwise; and (b) whether paid or payable in cash or in kind. (2a) This Act applies in respect of wages referred to in subsection (1)(a) to (e) that are paid or payable to or in relation to a person who is not an employee in the same way as it applies to wages paid or payable to an employee (as if a reference in this Act to an employee included a reference to any such person).
Payroll Tax Act 2009—1.7.2013 Part 3—Wages Division 1—General concept of wages 14 This version is not published under the Legislation Revision and Publication Act 2002 [1.7.2013] (3) Wages do not include anything that is prescribed by the regulations not to be wages for the purposes of this Act.
Division 2—Fringe benefits 14—Wages include fringe benefits (1) For the purposes of this Act, wages include a fringe benefit. (2) Subsection (1) does not apply to benefits that are exempt benefits for the purposes of the FBTA Act (other than deposits to the Superannuation Holding Accounts Special Account within the meaning of the Small Superannuation Accounts Act 1995 of the Commonwealth).
15—Value of wages comprising fringe benefits (1) For the purposes of this Act, the value of wages comprising a fringe benefit is to be determined in accordance with the formula— 1 1 TV FBT rate × − where— FBT rate is the rate of fringe benefits tax imposed by the FBTA Act that applies when the liability to payroll tax under this Act arises TV is the value that would be the taxable value of the benefit as a fringe benefit for the purposes of the FBTA Act. (2) In this Act, a reference to taxable wages that were paid or payable by an employer during a month is, in relation to taxable wages comprising fringe benefits— (a) a reference to the value of the fringe benefits paid or payable by the employer during the month; or (b) if an election by the employer is in force under section 16, a reference to an amount calculated in accordance with that section.
(3) In this Act, a reference to taxable wages that were paid or payable by an employer during a year is, in relation to taxable wages comprising fringe benefits, a reference to an amount calculated by adding together the amounts under subsection (2)(a) or (b) (or subsection (2)(a) and (b)) as the case requires, for the months of that year. 16—Employer election regarding taxable value of fringe benefits (1) An employer who has paid or is liable to pay fringe benefits tax imposed by the FBTA Act in respect of a period of not less than 15 months before 30 June in any year may elect to include as the value of the fringe benefits paid or payable by the employer during the month concerned— (a) in a return lodged in relation to each of the first 11 months occurring after 30 June in that year—1/12th of the amount determined in accordance with subsection (2) or that part of that amount as, in accordance with section 10, comprises taxable wages for the year of tax (within the meaning of the FBTA Act) ending on 31 March preceding the commencement of the current financial year; and
1.7.2013—Payroll Tax Act 2009 Wages—Part 3 Fringe benefits—Division 2 [1.7.2013] This version is not published under the Legislation Revision and Publication Act 2002 15 (b) in the return lodged in relation to the 12th month—the amount determined in accordance with subsection (2) or that part of that amount as, in accordance with section 10, comprises taxable wages for the year of tax (within the meaning of the FBTA Act) ending on 31 March preceding that month, less the total of the amounts of fringe benefits included in the returns for each of the preceding 11 months.
(2) The amount determined in accordance with this subsection is to be determined in accordance with the formula— 1 1 AFBA FBT rate × − where— AFBA is the aggregate fringe benefits amount within the meaning of section 136 of the FBTA Act FBT rate is the rate of fringe benefits tax imposed by the FBTA Act that applies when the liability to payroll tax under this Act arises.
(4) After an employer has made an election under subsection (1), the employer must lodge returns containing amounts calculated in accordance with the election unless the Commissioner approves, by notice in writing given to the employer, the termination of the election and allows the employer to include the value referred to in section 15(2)(a). (5) If an employer ceases to be liable to pay payroll tax, the value of taxable wages comprising fringe benefits to be included in the employer's final return is (irrespective of whether or not the employer has made an election under subsection (1)) the value of the fringe benefits paid or payable by the employer for the period commencing on and including the preceding 1 July until the date on which the employer ceases to be liable to payroll tax, less the value of the fringe benefits paid or payable by the employer during that period on which payroll tax has been paid.
Division 3—Superannuation contributions 17—Wages include superannuation contributions (1) For the purposes of this Act, wages include a superannuation contribution. (2) A superannuation contribution is a contribution paid or payable by an employer in respect of an employee— (a) to or as a superannuation fund within the meaning of the Superannuation Industry (Supervision) Act 1993 of the Commonwealth; or (b) as a superannuation guarantee charge within the meaning of the Superannuation Guarantee (Administration) Act 1992 of the Commonwealth; or (c) to or as any other form of superannuation, provident or retirement fund or scheme including—
Payroll Tax Act 2009—1.7.2013 Part 3—Wages Division 3—Superannuation contributions 16 This version is not published under the Legislation Revision and Publication Act 2002 [1.7.2013] (i) the Superannuation Holding Accounts Special Account within the meaning of the Small Superannuation Accounts Act 1995 of the Commonwealth; and (ii) a retirement savings account within the meaning of the Retirement Savings Accounts Act 1997 of the Commonwealth; or (d) involving— (i) the crediting of an account of an employee, or any other allocation to the benefit of an employee (other than the actual payment of a contribution), so as to increase the entitlement or contingent entitlement of the employee under any form of superannuation, provident or retirement fund or scheme; or (ii) the crediting or the debiting of any other account, or any other allocation or deduction, so as to increase the entitlement or contingent entitlement of an employee under any form of superannuation, provident or retirement fund or scheme.
(3) The Treasurer may estimate the contingent liability of an employer for contributions that will be payable to or in respect of an employee who is a member of the old or new scheme of superannuation under the Superannuation Act 1988 or of any other unfunded or partly funded scheme of superannuation, and the Treasurer's estimate is to be treated as a contribution paid or payable by an employer in respect of an employee for the purposes of the definition of superannuation contribution in subsection (2).
(4) For the purposes of this Act, wages that are comprised of the Treasurer's estimate of an employer's contingent liability for superannuation contributions will be taken to be payable as soon as the contingent liability accrues. (5) The Treasurer's estimate must be based on an actuary's assessment of the employer's cost of the accruing liability for the employee. (6) Setting aside any money or anything that is worth money as, or as part of, a superannuation fund, superannuation guarantee charge or any other form of superannuation, provident or retirement fund or scheme is taken to be paying a superannuation contribution.
(7) Making a superannuation contribution of anything that is worth money is taken to be paying a superannuation contribution of the amount equal to its value, and its value is to be worked out in accordance with section 43 as if that section referred to the contribution instead of to wages. (8) For the purposes of this Act, where a superannuation contribution arises under this Act because of subsection (2)(d)— (a) subject to paragraphs (b) and (c), the amount of wages attributable to that superannuation contribution will be taken to be the value of the increase of the entitlement or contingent entitlement of the relevant employee;
1.7.2013—Payroll Tax Act 2009 Wages—Part 3 Superannuation contributions—Division 3 [1.7.2013] This version is not published under the Legislation Revision and Publication Act 2002 17 (b) if that superannuation contribution can be directly attributed to a payment or setting apart of money within the ambit of paragraphs (a), (b) or (c) of subsection (2), the value of the superannuation contribution under paragraph (d) of subsection (2) (and therefore the relevant amount of wages) will only be the amount (if any) by which the value of that contribution exceeds the amount of the payment or setting apart of money (as the case may be); (c) if that superannuation contribution can be directly attributed to an increase in the capital of the relevant fund or scheme or to the payment of interest, over and above any contribution that the employer is required to make, or would be required to make but for the increase in capital or the payment of interest, the value of the superannuation contribution (to the extent that it exceeds any contribution that the employer is required, or would be required, to make as mentioned above), will be taken to be nil; (d) if there is a crediting or a debiting of an account, or any other allocation or deduction, and a corresponding debiting or crediting, or deduction or allocation, then liability for payroll tax will only arise with respect to 1 crediting or debiting, or allocation or deduction, so as to avoid double taxation.
(9) In this section— employee includes any person to whom, by virtue of a paragraph of the definition of wages in section 13(1), an amount paid or payable in the circumstances referred to in that paragraph constitutes wages; partly funded scheme of superannuation means a scheme of superannuation (including a provident or retirement fund or scheme) under which the employer's liability for superannuation contributions is partly satisfied by a payment within the meaning of paragraphs (a) to (d) of the definition of superannuation contribution; unfunded scheme of superannuation means a scheme of superannuation (including a provident or retirement fund or scheme) under which no payment within the meaning of paragraphs (a) to (d) of the definition of superannuation contribution is made by the employer in total or partial satisfaction of his, her or its liability for superannuation contributions.
Division 4—Shares and options 18—Inclusion of grant of shares and options as wages (1) For the purposes of this Act, wages include the grant of a share or an option to an employee by an employer in respect of services performed by the employee if the share or option is an ESS interest (within the meaning of section 83A–10 of the Income Tax Assessment Act 1997 of the Commonwealth) and is granted to the employee under an employee share scheme (within the meaning of that section). Note— A grant of a share or an option to an employee by an employer that is not an ESS interest will be taxable as a fringe benefit under Division 2 of this Part.
Payroll Tax Act 2009—1.7.2013 Part 3—Wages Division 4—Shares and options 18 This version is not published under the Legislation Revision and Publication Act 2002 [1.7.2013] (3) For the purposes of this Division, the relevant day is the day that the employer elects in accordance with this Division to treat as the day on which the wages are paid or payable. (4) To avoid doubt, the grant of a share or option is valuable consideration for the purposes of section 46. 19—Choice of relevant day (1) The employer can elect to treat as the relevant day either the date on which the share or option is granted to the employee or the vesting date.
(2) A share or option is granted to a person if— (a) another person transfers the share or option to that person (other than, in the case of a share, by issuing the share to that person); or (b) in the case of a share—another person allots the share to that person; or (c) in the case of an option—another person confers the option on, or otherwise creates the option in, that person; or (d) the person otherwise acquires a legal interest in the share or option from another person; or (e) the person acquires a beneficial interest in the share or option from another person.
(2a) To avoid doubt, if an employee acquires a right to be granted a share or an option, or some other material benefit, at the election of the employer, the share or option is not granted until the employer elects to grant the share or option.
(3) The vesting date in respect of a share is one of the following dates (whichever happens first): (a) the date on which the share vests in the employee (that is, when any conditions applying to the grant of the share have been met and the employee's legal or beneficial interest in the share cannot be rescinded); (b) the date at the end of the period of 7 years from the date on which the share is granted to the employee.
(4) The vesting date in respect of an option is one of the following dates (whichever happens first): (a) the date on which the share to which the option relates is granted to the employee; (b) the date on which the employee exercises a right under the option to have the share the subject of the option transferred to, allotted to or vested in him or her; (c) the date at the end of the period of 7 years from the date on which the option is granted to the employee.
1.7.2013—Payroll Tax Act 2009 Wages—Part 3 Shares and options—Division 4 [1.7.2013] This version is not published under the Legislation Revision and Publication Act 2002 19 20—Deemed choice of relevant day in special cases (1) If an employer grants a share or an option to an employee and the value of the grant of the share or option is not included in the taxable wages of the employer for the financial year in which the share or option was granted, the employer is taken to have elected to treat the wages constituted by the grant of that share or option as being paid or payable on the vesting date.
(2) If an employer grants a share or an option to an employee and the value of the grant of the share or option is nil or, if the employer were to elect to treat the date of grant as the relevant day, the wages constituted by the grant would not be liable to payroll tax, the employer is taken to have elected to treat the wages constituted by the grant of that share or option as being paid or payable on the date on which the share or option was granted. 21—Effect of rescission, cancellation of share or option (1) If the grant of a share or option is withdrawn, cancelled or exchanged before the vesting date for any valuable consideration (other than the grant of other shares or options), the following provisions apply: (a) the date of withdrawal, cancellation or exchange is taken to be the vesting date of the share or option; (b) the market value of the share or option, on the vesting date, is taken to be the amount of the valuable consideration (and, accordingly, that amount is the amount paid or payable as wages on that date).
(2) If an employer includes the value of a grant of a share or option in the taxable wages of the employer for a financial year and the grant is rescinded because the conditions attaching to the grant were not met, the taxable wages of the employer, in the financial year in which the grant is rescinded, are to be reduced by the value of the grant as previously included in the taxable wages of the employer. (3) Subsection (2) does not apply just because an employee fails to exercise an option or to otherwise exercise his or her rights in respect of a share or option. 22—Grant of share pursuant to exercise of option The grant of the share by an employer does not constitute wages for the purposes of this Act if the employer is required to grant the share as a consequence of the exercise of an option by a person and— (a) the grant of the option to the person constitutes wages for the purposes of this Act; or (b) the option was granted to the person before 1 July 2008.
23—Value of shares and options (1) If the grant of a share or option constitutes wages under this Division, the amount paid or payable as wages is taken, for the purposes of this Act, to be the value of the share or option (expressed in Australian currency) on the relevant day, less the consideration (if any) paid or given by the employee in respect of the share or option (other than consideration in the form of services performed).
Payroll Tax Act 2009—1.7.2013 Part 3—Wages Division 4—Shares and options 20 This version is not published under the Legislation Revision and Publication Act 2002 [1.7.2013] (2) The value of a share or an option is— (a) the market value; or (b) the amount determined as provided for by the Commonwealth income tax provisions. (3) The employer may elect the method by which the value of a share or an option is determined in any return lodged under this Act. (4) However, the Commissioner may determine the method by which the value of a share or an option is determined if the grant of the share or option is not included as wages in a return lodged by an employer as required by this Act.
(5) In determining the market value of a share or option, anything that would prevent or restrict conversion of the share or option to money is to be disregarded. (6) The Commonwealth income tax provisions apply with the following modifications, and any other necessary modifications: (a) the value of an option is to be determined as if it were a right to acquire a beneficial interest in a share; (b) a reference to the acquisition of a beneficial interest in a share or right is to be read as a reference to the grant of a share or an option.
(7) In this section— Commonwealth income tax provisions means section 83A–315 of the Income Tax Assessment Act 1997 of the Commonwealth and the regulations made for the purposes of that section.
Note— See Division 83A of the Income Tax Assessment Regulations 1997 of the Commonwealth for the relevant regulations. 24—Inclusion of shares and options granted to directors as wages (1) For the purposes of this Act, wages include the grant of a share or an option by a company to a director of the company who is not an employee of the company by way of remuneration for the appointment or services of the director. (2) For that purpose, the other provisions of this Division apply in respect of any such grant as if a reference to the employer were a reference to the company and a reference to the employee were a reference to the director of the company.
(3) In this section, a reference to a director of the company includes a reference to the following: (a) a person who, under a contract or other arrangement, is to be appointed as a director of the company; (b) a former director of the company. Note— Section 13 provides that a reference to an employee in this Act includes a reference to any person to whom any amount that is treated as wages under this Act is paid or payable. See also section 11, which deems the wages to be paid or payable for services performed.
1.7.2013—Payroll Tax Act 2009 Wages—Part 3 Shares and options—Division 4 [1.7.2013] This version is not published under the Legislation Revision and Publication Act 2002 21 (4) However, if wages referred to in this section are fringe benefits, the value of the wages is to be determined in accordance with Division 2 of this Part (and not this Division). 26—Place where wages are payable (1) The wages constituted by the grant of the share or option are taken to be paid or payable in this jurisdiction if the share is a share in a local company or, in the case of an option, an option to acquire shares in a local company.
(2) In any other case, the wages constituted by the grant of the share or option are taken to be paid or payable outside this jurisdiction. Note— The place where wages are paid or payable is sometimes relevant to determining whether the wages are liable to payroll tax under this Act. See section 11. (3) In this section— local company means— (a) a company incorporated or taken to be incorporated under the Corporations Act 2001 of the Commonwealth that is taken to be registered in this jurisdiction for the purposes of that Act; or (b) any other body corporate that is incorporated under an Act of this jurisdiction.
Division 5—Termination payments 27—Definitions In this Division— employment termination payment means— (a) an employment termination payment within the meaning of section 82—130 of the ITAA; or (b) a payment that would be an employment termination payment within the meaning of section 82—130 of the ITAA but for the fact that it was received later than 12 months after the termination of a person's employment; or (c) a transitional termination payment within the meaning of section 82—10 of the Income Tax (Transitional Provisions) Act 1997 of the Commonwealth; termination payment means— (a) a payment made in consequence of the retirement from, or termination of, any office or employment of an employee, being— (i) an unused annual leave payment; or (ii) an unused long service leave payment; or (iii) so much of an employment termination payment paid or payable by an employer, whether or not paid to the employee or to any other person or body, that would be included in the assessable income of an employee under Part 2—40 of the ITAA if the whole of the employment termination payment had been paid to the employee; or