Australian Medical Council Ltd v Commissioner for Act Revenue (Administrative Review)

The Australian Medical Council Ltd applied to the Administrative Appeals Tribunal for an extension of time to lodge objections to payroll tax assessments issued by the Commissioner for State Revenue. The applicant claimed charitable status for the relevant financial years, which would have exempted it from the imposition of payroll tax. The Tribunal was required to consider whether the applicant had a reasonable excuse for the delay in lodging objections and whether it was entitled to the charitable status exemption.

The Tribunal determined that the applicant had failed to provide a reasonable explanation for the delay in lodging objections. However, it found that the applicant was entitled to the charitable status exemption for the relevant financial years. The Tribunal held that the applicant’s activities were charitable in nature, as they were directed towards the promotion of the health and well-being of the community. The Tribunal also found that the applicant had not undertaken any commercial activities that would have disqualified it from charitable status.

The Tribunal set aside the reviewable decision and ordered that the applicant may lodge objections to payroll tax assessments for the financial years ending 30 June 2010, 2011, 2012 and 2013. The Tribunal held that the applicant had established a reasonable excuse for the delay in lodging objections, as it had relied on advice from the Commissioner that it was not liable for payroll tax due to its charitable status. The Tribunal also found that the applicant had acted promptly in seeking to regularise its position once it became aware of the error in the advice.

The Tribunal’s decision provides guidance on the factors that may be considered in determining whether an applicant has a reasonable excuse for the delay in lodging objections to payroll tax assessments. It also confirms that organisations that promote the health and well-being of the community may be entitled to the charitable status exemption from payroll tax.