Exempt organisations Wages are generally exempt for PRT purposes if paid by organisations with the following characteristics: Public Benevolent Institution Religious Charitable Public hospitals The following organisations are specifically not exempt: - charitable organisations with an educational purpose (above secondary level) The following organisations are specifically not exempt: - certain schools - educational institutions (above secondary level) - educational companies (above secondary level) - an instrumentality of the State The following organisations are specifically not exempt: - entities who pay wages to employees engaged in commercial or business activities The following organisations are specifically not exempt: - tertiary education providers Wages paid by some kindergartens, child care centres and film production companies are exempt subject to conditions. The following organisations are specifically not exempt: - schools (for profit) - colleges (for profit) - educational institutions other than those affiliated with the University of Adelaide or Flinders University of SA - educational companies (above secondary level) - an instrumentality of the State The following organisations are specifically not exempt: - schools (save those who provide education at or below the secondary level (s49 & Div 1, Part 3, Sched 2) - educational institutions (above secondary level) - educational companies (above secondary level) - an instrumentality of the State - technical schools and colleges The following organisations are specifically not exempt: - certain schools - educational institutions (above secondary level) - educational companies (above secondary level) - an instrumentality of the State The following organisations are specifically not exempt: - tertiary education providers; -, is, a professional association a college or other vocational education and training institution under the Vocational Education and Training Act 1996; - a charitable organisation that is a relevant body *, political party, an industrial association or a 4th limb charity* that has as a purpose the promotion of trade, industry or commerce. *the Minister has the power to reinstate the exemption. - wages paid by a Health Service Provider in connection with a commercial activity as set out in section 35 of the Health ATO: NCAC registration WorkCover: N/A
threshold is applied to those employers with taxable wages between $1,100,000 to $5,500,000 No deductions are available to those employers with taxable wages greater than or equal to $5,500,000 PRT rate: 4.75% applied to employers with taxable wages between $850,000 to $7,500,000 No threshold is available to those employers with taxable wages greater than or equal to $7,500,000 PRT rate: 5.50%
Attachment C: stamp duty and land tax inconsistencies between States and Territories as at 30 March 2017 STAMP DUTY TREATMENT ACT NSW NT QLD SA TAS VIC WA Legislation Duties Act 1999 Duties Act 1997 Stamp Duty Act Duties Act 2001 Stamp Duties Act 1923 Duties Act 2001 Duties Act 2000 Duties Act 2008 Max Duty Rate (commercial property) 5.09% 5.5% 5.45% 5.75% 3.67% 4.5% (on all property) 5.5% 5.15% Full abolition of duty 20 year timeframe Phased abolition of duty on commercial property - duty rates reduced by a third from 7 December 2015, will reduce by a further third from 1 July 2017, before the duty is abolished from 1 July 2018 (excludes residential and primary production) . Additional taxes on foreign property 9.5% surcharge rate on foreign purchases of residential land 2.75% land tax for foreign owned residential land (ordinary 2%) 3% additional duty on the dutiable value of foreign purchases of residential land N/A 7% additional duty on the dutiable value of land on foreign purchases of residential land Premium property duty 7% duty on houses above $3m 11% for foreigners N/A
Acquisitions in entities Different treatment of companies and unit trusts for landholder duty purposes and different rules and thresholds between States Acquisition thresholds: Company and trusts – 50% Company and trusts – 50% Listed corporation or listed unit trust scheme – 90% All other entities 50% Public landholders (listed corporations and listed unit trusts): 90% Private landholders (unlisted corporations): 50% Private landholders (private companies or trusts): 50% Public landholders (listed companies or public unit trust schemes): 90% Separate treatment of “voluntary disposition inter vivos” for unit trusts – no threshold Private companies and unit trust schemes – 50% Listed companies and public unit trust schemes – 90% Private unit trusts – 20% Private company and wholesale unit trust – 50% Public landholder (listed companies and public unit trusts) - 90% Listed company and trust 90% Private company and trust – 50% Landholding threshold No minimum $2m of land $500,000 of land $2m of land $1m of land until 30 June 2018. No minimum from 1 July 2018 $500,000 of land $1m of land $2m of land Tracing threshold for land of subsidiaries 50% ownership 50% ownership 20% ownership Corporations / listed unit trusts: if a subsidiary under the Corporations Act 2001. Corporate beneficiaries: 50% or more. Trustees: any beneficial interest. 50% ownership 50% entitlement to property distributed 20% ownership Listed entities – 90% ownership Unlisted entities -50% ownership Discretionary trustee – entity is potential beneficiary Partnership – 50% contribution / losses Inconsistent duty base for landholder duty Duty is payable on: Land only Land and P&E Land only : which include anything fixed on the land that may be separately owned and certain rights Land and land assets which includes anything fixed on the land that may be separately owned and certain rights Land and goods Land, which includes anything fixed to the land whether or not the item is a fixture at law, owned separately Land and P&E *Certain P&E are exempt
or interests in the land. or interests in the land from the land or considered to be legally separate to the land. (Discretion to ignore the fixed item in certain Corporate Reconstruction Relief Inconsistent treatment of unit trusts and requirements to keep group in place in some jurisdictions Relief extends to unit trusts: Yes Yes Companies only Companies, but a limited exemption for fixed trusts only Yes Yes Yes Yes Inconsistent pre or post-association tests that limit availability where groups have not been in place 12 month pre- and tests None 3 years pre- and tests 3 years pre- and tests None 12 month pre- and tests 3 year test None Top hatting/consolidation relief for interposing entity between shareholders and existing entity None Yes Yes Yes, companies and listed unit trusts and widely held unit trusts only Limited relief via ex gratia (refer to Information Circular 35) Yes Limited relief Yes Duty on business property Retained duty on goodwill, IP and P&E transferred with business P&E only Goodwill, IP, P&E Goodwill, IP, P&E + trading stock and debts Duty on goodwill and intellectual property abolished 1 July 2008. No specific exemption for P&E and duty payable on certain goods transferred as part of a transaction involving dutiable property. P & E only if transferred together with land. Duty not charged on goodwill or IP. Goodwill, IP, P&E* *Certain P&E are exempt