Business Tax Review (Assessment) Act 2003 (WA)

Western Australia

Business Tax Review (Assessment) Act 2003

Western Australia

Business Tax Review (Assessment) Act 2003

CONTENTS

Part 1 — Preliminary

1.	Short title	2
2.	Commencement	2
Part 2 — Land tax exemption for

newly subdivided land

3.	The Act amended	3
4.	Section 13 amended	3
5.	Section 41 repealed	3
6.	Glossary amended	3
7.	Financial years before the commencement day	3
Part 3 — Land tax exemption for life

tenants

8.	Land Tax Assessment Act 2002 amended	5
9.	Land Tax Assessment Act 1976 amended	5
10.	Requirement to reassess	6
Part 4 — Single marginal rate of

pay-roll tax

11.	The Pay-roll Tax Assessment Act 2002 amended	7
12.	Section 8 amended	7
13.	Section 9 repealed	7
14.	Section 10 amended	7
15.	Section 11 amended	8
16.	Section 12 replaced	9

Business Tax Review (Assessment) Act 2003

Contents

12. Apportioned threshold amount — local

non-group employers

17.	Section 13 amended	10
18.	Section 14 replaced	11

14. Apportioned threshold amounts —

interstate non-group employers

19.	Section 15 amended	12
20.	Section 17 amended	13
21.	Section 18 replaced	14

18.

Apportioned threshold amounts — groups

22.	Section 19 amended	15
23.	Section 23 amended	16
24.	Section 27 amended	16
25.	Section 29 amended	17
26.	The Glossary amended	17
Part 5 — Eligible termination

payments

27.	The Pay-roll Tax Assessment Act 2002 amended	18
28.	The Glossary amended	18

Western Australia

Business Tax Review (Assessment) Act 2003

No. 40 of 2003

An Act to amend —

	the *Land Tax Assessment Act 2002*;
	the **Land Tax Assessment Act 1976; and**
	the *Pay-roll Tax Assessment Act 2002*,

and for related purposes.

[Assented to 30 June 2003]

The Parliament of Western Australia enacts as follows:

Business Tax Review (Assessment) Act 2003

Part 1	Preliminary
s. 1

Part 1 — Preliminary

1. Short title

This Act may be cited as the Business Tax Review (Assessment)

Act 2003.

2. Commencement

(1)

Subject to this section, this Act comes into operation on

1 July 2003.

(2)

Section 8 is taken to have come into operation immediately after

the Land Tax Assessment Act 2002 came into operation.

(3)

Section 9 is taken to have come into operation on 1 July 2002.

Business Tax Review (Assessment) Act 2003

Land tax exemption for newly subdivided land

Part 2

s. 3

Part 2 — Land tax exemption for newly subdivided

land

3. The Act amended

The amendments in this Part are to the Land Tax Assessment

Act 2002*.

[* Act No. 52 of 2002.]

4. Section 13 amended

Section 13(3) is repealed.

5. Section 41 repealed

Section 41 is repealed.

6. Glossary amended

Clause 1 of the Glossary is amended as follows:

(a)	by deleting the definitions of “concessional unimproved

value” and “original lot”;

(b)	in the definition of “unimproved value” —

(i) by inserting after paragraph (a) —

“ and ”;

(ii) at the end of paragraph (b) by deleting “; and”

and inserting a full stop instead; and

(iii) by deleting paragraph (c).

7. Financial years before the commencement day

(1)	Despite the amendments effected by this Part, the Land Tax Assessment Act 2002, as in force immediately before the commencement day, continues to apply in relation to land tax payable for financial years that commence before the commencement day.

Business Tax Review (Assessment) Act 2003

Part 2	Land tax exemption for newly subdivided land
s. 7

(2)	In this section —
“commencement day” means the day on which this Part comes

into operation.

Business Tax Review (Assessment) Act 2003

Land tax exemption for life tenants

Part 3

s. 8

Part 3 — Land tax exemption for life tenants

8. Land Tax Assessment Act 2002 amended

(1)

The amendments in this section are to the Land Tax Assessment

Act 2002*.

[* Act No. 52 of 2002.]

(2)

Section 22(b) and “and” after it are deleted and the following is

inserted instead —

“

(b)	an individual identified in the will —

(i) is entitled under the will to the property as a tenant for life; or

(ii) has a right under the will to use the property as a place of residence for as long as he or she wishes, but is not entitled under the will to any estate of freehold in possession of the property;

and

”.

9. Land Tax Assessment Act 1976 amended

(1)

The amendments in this section are to the Land Tax Assessment

Act 1976*.

[* Reprinted as at 23 Feb 2001.

For subsequent amendments see 2001 Index to Legislation of

Western Australia, Table 1, p. 200.

The Land Tax Assessment Act 1976 is to be repealed by the

Taxation Administration (Consequential Provisions)

Act 2002. However the amendments effected by this section

are to operate retrospectively from a date prior to that

repeal.]

Business Tax Review (Assessment) Act 2003

Part 3	Land tax exemption for life tenants
s. 10

(2)	The Schedule is amended as follows:

(a)	by inserting the following paragraph after

clause 9(a)(x) —

“

(xa)

the owner of which is an executor as trustee, or the owners of which are executors as trustees, of a will under which a natural person whose identity is

specified in the will is entitled to the property as a

tenant for life and that person uses the land solely or

principally as his or her sole or principal place of

residence;

”;

(b)	in clause 9(a)(xi)(I) by inserting after “paragraph (x)” —

“ or (xa) ”;

(c)	in clause 9(b)(ib)(III) by inserting after

“paragraph (a)(x),” —

“ (xa), ”;

(d)	in clause 9(b)(iva)(I) by inserting after

“paragraph (a)(x)” —

“ or (xa) ”.

10. Requirement to reassess

The Commissioner of State Revenue must make any

reassessment necessary to give effect to the amendments

effected by this Part.

Business Tax Review (Assessment) Act 2003

Single marginal rate of pay-roll tax	Part 4
s. 11

Part 4 — Single marginal rate of pay-roll tax

11. The Pay-roll Tax Assessment Act 2002 amended

The amendments in this Part are to the Pay-roll Tax Assessment

Act 2002*.

[* Act No. 48 of 2002.]

12. Section 8 amended

(1)	Section 8(1) is amended by deleting “ 2002 is $675 000” and inserting instead —
“ 2003 is $750 000 ”.
(2)	Section 8(2) is amended by deleting “2002 is $56 250” and inserting instead —
“ 2003 is $62 500 ”.

13. Section 9 repealed

Section 9 is repealed.

14. Section 10 amended

(1)	Section 10(1) is amended as follows:

(a)	by deleting “appropriate rate of pay-roll tax” and

inserting instead —

“ pay-roll tax rate ”;

(b)	by deleting paragraph (b) and inserting the following

paragraph instead —

“

(b)	the annual threshold amount for the assessment year.

”.

Business Tax Review (Assessment) Act 2003

Part 4	Single marginal rate of pay-roll tax
s. 15

(2)	Section 10(2) is amended as follows:

(a)	by deleting “appropriate rate of pay-roll tax” and

inserting instead —

“ pay-roll tax rate ”;

(b)	by deleting paragraph (b) and inserting the following

paragraph instead —

“

(b)	the apportioned threshold amount for that part of the assessment year calculated in accordance with section 12(1).

”.

15. Section 11 amended

Section 11 is amended as follows:

(a)	by deleting “appropriate rate of pay-roll tax” and

inserting instead —

“ pay-roll tax rate ”;

(b)	by deleting paragraph (b) and inserting the following

paragraph instead —

“

(b)	the apportioned threshold amount for the month or part of the month calculated in accordance with section 12(2).

”.

Business Tax Review (Assessment) Act 2003

Single marginal rate of pay-roll tax	Part 4
s. 16

16. Section 12 replaced

Section 12 is repealed and the following section is inserted

instead —

“

12. Apportioned threshold amount — local non-group

employers

(1)

For the purposes of section 10(2)(b), the apportioned

threshold amount for part of an assessment year is A in

the formula —

















where —

is the annual threshold amount for the

assessment year;

is the number of days in that part of the

assessment year;

is the number of days in the assessment year.

(2)

For the purposes of section 11(b), the apportioned

threshold amount for a month or part of a month is A in

the formula —

















where —

is the monthly threshold amount for the

assessment year;

is the number of days in the month, or part of

the month, during which WA taxable wages

were paid or payable by the employer;

is the number of days in the month.

”.

Business Tax Review (Assessment) Act 2003

Part 4	Single marginal rate of pay-roll tax
s. 17

17. Section 13 amended

(1)	Section 13(1) is amended as follows:

(a)	by deleting “appropriate rate of pay-roll tax” and

inserting instead —

“ pay-roll tax rate ”;

(b)	by deleting paragraph (b) and inserting instead the

following paragraph —

“

(b)	the apportioned threshold amount for the assessment year calculated in accordance with section 14(1).

”.

(2)	Section 13(2) is amended as follows:

(a)	by deleting “appropriate rate of pay-roll tax” and

inserting instead —

“ pay-roll tax rate ”;

(b)	by deleting paragraph (b) and inserting instead the

following paragraph —

“

(b)	the apportioned threshold amount for that part of the assessment year worked out in accordance with section 14(2).

”.

Business Tax Review (Assessment) Act 2003

Single marginal rate of pay-roll tax	Part 4
s. 18

18. Section 14 replaced

Section 14 is repealed and the following section is inserted

instead —

“

14. Apportioned threshold amounts — interstate

non-group employers

(1)

For the purposes of section 13(1)(b), the apportioned

threshold amount for an assessment year is A in the

formula —











 

	W		I


where —

is the annual threshold amount for the

assessment year;

is the total amount of WA taxable wages paid

or payable by the employer during the

assessment year;

I	is the total amount of interstate taxable wages paid or payable by the employer during the assessment year.

(2)

For the purposes of section 13(2)(b), the apportioned

threshold amount for a part of the assessment year is A

in the formula —

































where —

is the annual threshold amount for the

assessment year;

is the total amount of WA taxable wages paid or payable by the employer during that part of the assessment year;

Business Tax Review (Assessment) Act 2003

Part 4	Single marginal rate of pay-roll tax
s. 19

is the total amount of interstate taxable wages

paid or payable by the employer during that

part of the assessment year;

is the number of days in that part of the

assessment year;

is the number of days in the assessment year.

”.

19. Section 15 amended

(1)	Section 15(1) is amended as follows:

(a)	by deleting “appropriate rate of pay-roll tax” and

inserting instead —

“ pay-roll tax rate ”;

(b)	in paragraph (b) by deleting “or (4)”.

(2)	Section 15(2), (3), (4) and (5) are repealed and the following
subsections are inserted instead —

“

(2)	The employer’s nominated deduction for an assessment
year is —

(a)

the amount nominated by the Commissioner having regard to the amounts of WA taxable wages and interstate taxable wages previously

paid or payable by the employer and any other

relevant matters; or

(b)

any other amount nominated by the Commissioner, at his or her discretion, on the request of the employer under subsection (3).

(3)	The employer may ask the Commissioner to nominate a different amount if the employer expects that the amounts of WA taxable wages and interstate taxable wages payable by the employer for the assessment year will vary significantly from the amounts of WA taxable

Business Tax Review (Assessment) Act 2003

Single marginal rate of pay-roll tax	Part 4
s. 20

wages and interstate taxable wages previously paid or

payable by the employer.

”.

20. Section 17 amended

(1)	Section 17(2) is amended as follows:

(a)	by deleting “appropriate rate of pay-roll tax” and

inserting instead —

“ pay-roll tax rate ”;

(b)	by deleting paragraph (b) and inserting instead the

following paragraph —

“

(b)	the apportioned threshold amount for the assessment year calculated in accordance with section 18(1).

”.

(2)	Section 17(4) is amended as follows:

(a)	by deleting “appropriate rate of pay-roll tax” and

inserting instead —

“ pay-roll tax rate ”;

(b)	by deleting paragraph (b) and inserting the following

paragraph instead —

“

(b)	the apportioned threshold amount for that part of the assessment year calculated in accordance with section 18(2).

”.

Business Tax Review (Assessment) Act 2003

Part 4	Single marginal rate of pay-roll tax
s. 21

21. Section 18 replaced

Section 18 is repealed and the following section is inserted

instead —

“

18. Apportioned threshold amounts — groups

(1)

For the purposes of section 17(2)(b), the apportioned

threshold amount for an assessment year is A in the

formula —











 

	W		I


where —

is the annual threshold amount for the

assessment year;

is the total amount of WA taxable wages paid

or payable by the group for the assessment

year;

I	is the total amount of interstate taxable wages paid or payable by the group during the assessment year.

(2)	For the purposes of section 17(4)(b), the apportioned threshold amount for part of the assessment year is A
in the formula —

































where —

is the annual threshold amount for the

assessment year;

is the total amount of WA taxable wages paid

or payable by the group for that part of the

assessment year;

I	is the total amount of interstate taxable wages paid or payable by the group during that part of the assessment year;

Business Tax Review (Assessment) Act 2003

Single marginal rate of pay-roll tax	Part 4
s. 22

is the number of days in that part of the

assessment year;

is the number of days in the assessment year.

”.

22. Section 19 amended

(1)

Section 19(1) is amended by deleting “appropriate rate of

pay-roll tax” and inserting instead —

“ pay-roll tax rate ”.

(2)

Section 19(2) is amended as follows:

(a)

by deleting “appropriate rate of pay-roll tax” and

inserting instead —

“ pay-roll tax rate ”;

(b)

in paragraph (b) by deleting “or 5”.

(3)	Section 19(3), (4), (5) and (6) are repealed and the following
subsections are inserted instead —

“

(3)	The group’s nominated deduction for an assessment
year is —

(a)

the amount nominated by the Commissioner having regard to the amounts of WA taxable wages and interstate taxable wages previously

paid or payable by the group and any other

relevant matters; or

(b)

any other amount nominated by the Commissioner, at his or her discretion, on the request of a member of the group under subsection (4).

(4)	A member of the group may ask the Commissioner to nominate a different amount if the member expects that the amounts of WA taxable wages and interstate taxable wages payable by the group for the assessment

Business Tax Review (Assessment) Act 2003

Part 4

Single marginal rate of pay-roll tax

s. 23

year will vary significantly from the amounts of WA

taxable wages and interstate taxable wages previously

paid or payable by the group.

”.

23. Section 23 amended

Section 23(2) and (3) are repealed and the following subsections

are inserted instead —

“

(2)	If the employer conducted the trade or business in Australia during the whole of the assessment year, then
the employer’s liability to pay pay-roll tax is to be
assessed as if the employer had paid or been liable to pay wages throughout the assessment year.
(3)	If the employer has conducted the trade or business in Australia during part only of the assessment year, then
the employer’s liability is to be assessed as if the
employer had paid or been liable to pay wages only during that part of the assessment year.

”.

24. Section 27 amended

Section 27(1) is repealed and the following subsections are

inserted instead —

“

(1)

If a non-group employer who lodges monthly returns

pays or is liable to pay any interstate taxable wages for

an assessment year, then the employer must also lodge

an additional return for the assessment year specifying

the amount of interstate taxable wages paid or payable

by the employer for the whole assessment year.

(1a)

If any member of a group pays or is liable to pay

interstate taxable wages for an assessment year, the

DGE of the group must lodge an additional return for

Business Tax Review (Assessment) Act 2003

Single marginal rate of pay-roll tax	Part 4
s. 25

the assessment year specifying the amount of interstate

taxable wages paid or payable by each member of the

group for the whole assessment year.

”.

25. Section 29 amended

Section 29(2) is amended by deleting all the words and

punctuation after “lodge” and inserting instead —

“ monthly returns. ”.

26. The Glossary amended

The Glossary is amended in clause 1 as follows:

(a)	by deleting the definitions of “allowable deduction” and

“appropriate rate”;

(b)	by inserting the following definitions in their

appropriate alphabetical positions —

“

“apportioned threshold amount” means —

(a)	in relation to a group — the amount calculated in

accordance with section 18;

(b)	in relation to an interstate non-group

employer — the amount calculated in accordance

with section 14;

(c)	in relation to a local non-group employer — the

amount calculated in accordance with section 12;

“pay-roll tax rate”, in relation to an assessment year or

return period, means the rate of pay-roll tax fixed for

the year or the return period by the Pay-roll Tax

Act 2002;

”.

Business Tax Review (Assessment) Act 2003

Part 5	Eligible termination payments
s. 27

Part 5 — Eligible termination payments

27. The Pay-roll Tax Assessment Act 2002 amended

The amendments in this Part are to the Pay-roll Tax Assessment

Act 2002*.

[* Act No. 48 of 2002.]

28. The Glossary amended

(1)	The Glossary is amended in clause 1 by inserting the following
definitions in their appropriate alphabetical positions —
“

“assessable income”, in relation to an eligible termination

payment paid or payable to a person, means the assessable income of the person under Part III, Division 2, Subdivision AA of the Income Tax Assessment Act 1936 of the Commonwealth;

“eligible termination payment” has the meaning given in

section 27A of the Income Tax Assessment Act 1936 of

the Commonwealth;

”.

(2)	The Glossary is amended in clause 2(1) as follows:

(a)	after paragraph (h) by deleting “and”;
(b)	after paragraph (i) by deleting the full stop and

inserting —

“

; and

(j)	so much of an eligible termination payment that is paid or payable by an employer as a consequence of the retirement from, or termination of, any office or employment of a

person (the “retiree”), (whether or not the

payment is made to the retiree or to any other

person or body) as would be included in the

assessable income of the retiree if the whole of

Business Tax Review (Assessment) Act 2003

Eligible termination payments	Part 5
s. 28

the eligible termination payment had been paid

to the retiree.

”.