Aged Care (Payroll Tax Supplement) Determination 2001 (Cth)
Aged Care (Payroll Tax Supplement) Determination 2001
as amended
made under subsection 44‑16 (3) of the
Aged Care Act 1997
This compilation was prepared on 20 March 2008
taking into account amendments up to Aged Care (Payroll Tax Supplement) Amendment Determination 2008 (No. 1)
Prepared by the Office of Legislative Drafting and Publishing,
Attorney-General’s Department, Canberra
Contents
Part 1Preliminary
1Name of Determination [see Note 1] 4
2Commencement 4
3Definitions 4
4Revocation 5
Part 2Working out the amount of the supplement — general
5How supplement is worked out 6
6Direct provider 6
7Indirect provider 6
8Definition of eligibility criteria 6
Part 3Working out the amount of the supplement — direct providers
Division 1Preliminary
9Steps to be followed 7
Division 2Total Commonwealth subsidy
10Determining subsidies paid 7
Division 3Tax free threshold
11Determining threshold amount 7
Division 4Rate of payroll tax
12Determining the rate 8
Division 5Resident days
13Determining resident days 8
Part 4Working out the amount of the supplement — indirect providers
Division 1Preliminary
14Steps to be followed 9
Division 2Total Commonwealth subsidy
15Determining subsidies paid 9
Division 3Rate of payroll tax
16Determining the rate 9
Division 4Resident days
17Determining resident days 10
Division 5Applicable portion
18Determining the applicable portion 10
Notes 12
Part 1 Preliminary
Name of Determination [see Note 1]
This Determination is the Aged Care (Payroll Tax Supplement) Determination 2001.
Commencement
This Determination commences on 1 January 2001.
Definitions
In this Determination:
ACFI classification means a classification, or renewal of a classification, of a care recipient under the Act and the Classification Principles 1997 as in force on or after the commencement of the Aged Care (Payroll Tax Supplement) Amendment Determination 2008 (No. 1).
Act means the Aged Care Act 1997.
direct provider means an approved provider that is taken, under subsection 6 (2), to have a direct payroll tax liability.
indirect provider means an approved provider that is taken, under subsection 7 (2), to have an indirect payroll tax liability.
Principles means the Residential Care Subsidy Principles 1997.
RCS classification means a classification, or renewal of a classification, of a care recipient under the Act and the Classification Principles 1997 as in force immediately before the commencement of the Aged Care (Payroll Tax Supplement) Amendment Determination 2008 (No. 1).
relevant care recipient means a care recipient in respect of whom an approval is in effect under Part 2.3 of the Act as a recipient of residential care, other than a care recipient classified at:
(a) for a care recipient with an RCS classification — classification level 8; or
(b) for a care recipient with an ACFI classification — the lowest applicable classification level.
supplement means payroll tax supplement.
Note A number of expressions used in this Determination are defined in the Aged Care Act 1997, including:
· approved provider
· care
· lowest applicable classification level
· payment period
· residential care
· residential care service.
Revocation
The Determination, in relation to payroll tax supplement, made under subsection 44‑16 (3) of the Act on 28 June 2000 is revoked.
Part 2 Working out the amount of the supplement — general
How supplement is worked out
The way in which the amount of the supplement is worked out will vary according to whether the approved provider is taken to have a direct or indirect payroll tax liability in relation to residential care given to relevant care recipients during the relevant payment period.
Direct provider
(1) If an approved provider is taken to have a direct payroll tax liability, the amount of the supplement is calculated in accordance with Part 3.
(2) An approved provider is taken to have a direct payroll tax liability if, under the eligibility criteria, the approved provider is a registered entity that has incurred a payroll tax liability.
Note See subsections 21.25 (3) and (4) of the Principles.
Indirect provider
(1) If an approved provider is taken to have an indirect payroll tax liability, the amount of the supplement is calculated in accordance with Part 4.
(2) An approved provider is taken to have an indirect payroll tax liability if, under the eligibility criteria, the approved provider is a non‑registered entity that has incurred a payroll tax liability.
Note See subsections 21.25 (3) and (5) of the Principles.
Definition of eligibility criteria
In this Part:
eligibility criteria, in relation to an approved provider, means the matters about which the Secretary must be satisfied under section 21.25 of the Principles.
Part 3 Working out the amount of the supplement — direct providers
Division 1 Preliminary
Steps to be followed
Follow these steps to work out the amount of the supplement payable in the case of a direct provider:
Step 1 Work out the total amount of Commonwealth subsidy payments for a particular residential care service using Division 2. Step 2 Subtract the amount of the prescribed tax free threshold using Division 3. Step 3 Multiply the amount from Step 2 by the prescribed rate of payroll tax using Division 4. Step 4 Divide the amount from Step 3 by the number of resident days using Division 5.
The result is the amount of daily supplement applicable to a relevant care recipient in respect of the payment period.
Division 2 Total Commonwealth subsidy
Determining subsidies paid
Determine the total amount of Commonwealth subsidy payments (total subsidy) made to an approved provider in respect of the payment period by adding together all payments made by the Commonwealth to the approved provider in relation to a particular residential care service, in respect of residential care given to care recipients by the approved provider through that service, including all subsidies and supplements worked out in accordance with Steps 1 and 2 (and, where applicable, Step 3 in relation to extra service reductions) as set out in the residential care subsidy calculator in subsection 44‑2 (2) of the Act.
Division 3 Tax free threshold
Determining threshold amount
(1) Determine, in accordance with this section, the amount of the payroll tax free threshold that is applicable in relation to the approved provider for the payment period (prescribed threshold).
(2) The prescribed threshold is determined in accordance with the laws of the State or Territory that apply for the purposes of calculating the amount of payroll tax paid or payable by the approved provider in that State or Territory.
(3) The amount of the prescribed threshold is calculated as follows:
(a) unless paragraph (b) applies, divide the prescribed threshold determined under subsection (2) by the number of payment periods included during the year, or part of the year, to which the prescribed threshold applies;
(b) if the approved provider is treated by the revenue office (however described) of the relevant State or Territory as a member of a business group of accredited residential care services for the purposes of assessing payroll tax liability of the approved provider, the relevant amount is determined by dividing the prescribed threshold determined under subsection (2) by the product of:
(i) the number of members in that business group; and
(ii) the number of payment periods included in the year, or part of the year, to which the prescribed threshold applies.
Division 4 Rate of payroll tax
Determining the rate
(1) Determine, in accordance with this section, the rate of payroll tax applicable in relation to the approved provider for the payment period (prescribed rate).
(2) The prescribed rate is determined in accordance with the laws of the State or Territory that apply for the purposes of calculating the amount of payroll tax paid or payable by the approved provider in that State or Territory.
Division 5 Resident days
Determining resident days
(1) Determine, in accordance with this section, the number of days of care provided to relevant care recipients in the payment period (resident days).
(2) For subsection (1), the number of resident days is the total number of days on which relevant care recipients received residential care during the payment period from a residential care service in relation to which an approved provider has accreditation.
Part 4 Working out the amount of the supplement — indirect providers
Division 1 Preliminary
Steps to be followed
Follow these steps to work out the amount of the supplement payable in the case of an indirect provider:
Step 1 Work out the total amount of Commonwealth subsidy payments for a particular residential care service using Division 2. Step 2 Multiply the amount obtained from Step 1 by the prescribed rate of payroll tax using Division 3. Step 3 Divide the amount obtained from Step 2 by the number of resident days using Division 4. Step 4 Multiply the amount from Step 3 by the applicable portion using Division 5.
The result is the amount of daily supplement applicable to a relevant care recipient in respect of the payment period.
Division 2 Total Commonwealth subsidy
Determining subsidies paid
Determine the total amount of Commonwealth subsidy payments (total subsidy) made to an approved provider in respect of the payment period by adding together all payments made by the Commonwealth to the approved provider in relation to a particular residential care service, in respect of residential care given to care recipients by the approved provider through that service, including all subsidies and supplements worked out in accordance with Steps 1 and 2 (and, where applicable, Step 3 in relation to extra service reductions) as set out in the residential care subsidy calculator in subsection 44‑2 (2) of the Act.
Division 3 Rate of payroll tax
Determining the rate
(1) Determine, in accordance with this section, the rate of payroll tax applicable in relation to the amount of indirect payroll tax paid or payable by the approved provider for the payment period (the prescribed rate).
(2) The prescribed rate is determined in accordance with the laws of the State or Territory that apply for the purposes of calculating the amount of indirect payroll tax paid or payable by the approved provider in that State or Territory.
(3) In this section:
indirect payroll tax means the amount of the payroll tax component paid or payable by the approved provider as mentioned in subsection 21.25 (5) of the Principles.
Division 4 Resident days
Determining resident days
(1) Determine, in accordance with this section, the number of days of care provided to relevant care recipients in the payment period (resident days).
(2) For subsection (1), the number of resident days is the total number of days on which relevant care recipients received residential care during the payment period from a residential care service in relation to which an approved provider has accreditation.
Division 5 Applicable portion
Determining the applicable portion
(1) Determine, in accordance with this section, the applicable portion, if any, to be used in working out the supplement.
(2) Identify, from a column of the table below, the relevant range (band) that includes the portion of indirect salary and wages paid or payable by the approved provider, expressed as a percentage of the total payroll of the provider.
(3) The applicable portion is the number specified in the column of the table that corresponds with the relevant band identified under subsection (2).
Table
Bands showing percentage of total payroll incurred for indirect salary and wages
more than 0% to 5% more than 5% to 15% more than 15% to 25% more than 25% to 35% more than 35% to 45% more than 45% to 55% more than 55% to 65% more than 65% Applicable portion
0.025 0.10 0.20 0.30 0.40 0.50 0.60 1.00
Examples
1 If the provider’s portion is 0.001%, the applicable portion is 0.025.
2 If the amount of the provider’s portion is 65% or more, the applicable portion is 1.00.
(4) In this section:
indirect salary and wages, in respect of a payment period, means the amount of salary and wages:
(a) incurred by an organisation contracted by the approved provider to supply services for the purposes of a residential care service in relation to which the approved provider has accreditation; and
(b) identified, in addition to the payroll tax payable on that amount, in an invoice issued by the organisation for payment by the approved provider.
total payroll, in respect of a payment period, means the aggregate of:
(a) the amount of salary and wages paid or payable by the approved provider for services supplied directly by the approved provider for the purposes of a residential care service in relation to which the approved provider has accreditation; and
(b) the amount of indirect salary and wages paid or payable by the approved provider in connection with that residential care service.
Notes to the Aged Care (Payroll Tax Supplement) Determination 2001
Note 1
The Aged Care (Payroll Tax Supplement) Determination 2001 (in force under subsection 44‑16 (3) of the Aged Care Act 1997) as shown in this compilation is amended as indicated in the Tables below.
Under the Legislative Instruments Act 2003, which came into force on 1 January 2005, it is a requirement for all non-exempt legislative instruments to be registered on the Federal Register of Legislative Instruments.
Table of Instruments
| Title | Date made or FRLI registration | Date of | Application, saving or |
| Aged Care (Payroll Tax Supplement) Determination 2001 | 21 Dec 2000 | 1 Jan 2001 | |
| Aged Care (Payroll Tax Supplement) Amendment Determination 2008 (No. 1) | 18 Mar 2008 (see F2008L00816) | 20 Mar 2008 (see s. 2) | — |
Table of Amendments
| ad. = added or inserted am. = amended rep. = repealed rs. = repealed and substituted | |
| Provision affected | How affected |
| Part 1 | |
| S. 3......................................... | am. No. 1 2008 |
| Part 2 | |
| S. 5......................................... | am. No. 1 2008 |
| S. 6......................................... | am. No. 1 2008 |
| S. 7......................................... | am. No. 1 2008 |
| Part 3 | |
| Division 1 | |
| S. 9......................................... | am. No. 1 2008 |
| Division 2 | |
| S. 10....................................... | am. No. 1 2008 |
| Division 5 | |
| S. 13....................................... | am. No. 1 2008 |
| Part 4 | |
| Division 1 | |
| S. 14....................................... | am. No. 1 2008 |
| Division 2 | |
| S. 15....................................... | am. No. 1 2008 |
| Division 4 | |
| S. 17....................................... | am. No. 1 2008 |
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