Pay-roll Tax Assessment Amendment Act 1993 (WA)

WESTERN AUSTRALIA

PAY-ROLL T ASSESS

ACT 1993

No. 22 of 1993

AN ACT to amend the Pay-roll Tax Assessment Act 1971

and for related purposes .

[Assented to 9 December 1993 .1

The Parliament of Western Australia enacts as follows:

Short title

1.   This Act may be cited as the Pay-roll Tax Assessment

Amendment Act 1993 .

No. 221 Pay-roll Tax Assessment Amendment

s.2 Act 1993

Commencement

Subject to subsections (2) and (3), this Act comes into

2.    (1)

operation on the day on which it receives the Royal Assent .

(2) Sections 4 (a) and 9 come into operation on 1 January

1994.

(3) Sections 4 (b) and 10 come into operation on such day as

is fixed by proclamation .

Principal Act

referred

3. In this Act the Pay-roll Tax Assessment Act 1971* is

to as the principal Act .

[* Reprinted as at 1 June 1988 .

For subsequent amendments see 1992 Index to Legislation of Western Australia, Table 1, p . 156 and Act No. 6 of 1993 .]

Section 10 amended

4.    Section 10 (1) of the principal Act is amended -

(a)	in paragraph 0) by deleting "in respect of the period of 12 months calculated from and including the first day of the person's employment as an apprentice, or of his earlier appointment on probation" ; and
(b)	in paragraph (m) by deleting "specified in Schedule 2" and substituting the following -

11

prescribed for the purposes of this

paragraph

Pay-roll Tax Assessment Amendment [No. 22

Act 1993 S.5

Section 13 amended

5.    Section 13 (4) of the principal Act is amended by deleting

"1 July 1992 to 30 November 1992" and substituting the

following -

1 July 1993 to 31 December 1993

Section 16D amended

6.   After section 16D (7) of the principal Act the following

subsections are inserted -

It

(8) For the purposes of subsection (7) -

(a) a controlling interest under subsection (3) (b) is to be regarded as conferring a degree of control equal to the percentage of the voting power attached to voting shares issued by the corporation that the person or persons with the controlling interest may exercise, control the exercise of, or substantially influence the exercise of;

(b)	a controlling interest under subsection (3) (c) (i) is to be regarded as conferring a degree of control equal to the percentage of the capital of the partnership owned by the person or persons with the controlling interest ;
(c)	a controlling interest under subsection (3) (c) (ii) is to be regarded as conferring a degree of control equal to the percentage of the profits of the partnership to which the person or persons with the controlling interest is or are entitled ;

No. 22] Pay-roll Tax Assessment Amendment

s.6 Act 1993

(d)	a controlling interest under subsection (3) (d) is to be regarded as conferring a degree of control equal to the percentage of the value of the interests in the trust in respect of which the person or persons with the controlling interest is or are the beneficiaries ;
(e)	a controlling interest under subsection (3) (e) is to be regarded as conferring a degree of control of more than 50 per centum.

Where a member of a group is included in, that group by reason of carrying on a business in which a person has, or persons have together, a controlling interest under subsection (3) (d) or subsection (6) as the beneficiary or beneficiaries under a discretionary trust, the Commissioner may, by order in writing served on the person or persons who is or are that member, exclude him or them from that group if after considering -

(9)

(a)	the nature and degree of ownership and control of the businesses;
(b)	the nature of the businesses ; and
(c)	any other matter that the Commissioner considers relevant,

the Commissioner is satisfied that the business is carried on by him or them substantially independently of the business carried on by any other member of the group and that it is just and reasonable for him or them to be excluded from the group .

The operation of subsection (9) is additional

to, and is not affected by, the operation of

subsection (7).

(10)

Pay-roll Tax Assessment Amendment [No. 22

Act 1993 s.7

Section 16G amended

7.    Section 16G of the principal Act is amended by deleting "this

Part" and substituting the following -

11

section 16D

Section 16H amended

8.    Section 16H (6) of the principal Act is amended by inserting

after "16D (7)" the following -

" , 16D (9)

Schedule 1 repealed and a schedule substituted

9.    Schedule 1 to the principal Act is repealed and the following

schedule is substituted -

SCHEDULE 1

[Sections 9E, 11A, 12 and 16J]

Prescribed amount for s. 9E

1 .    The amount specified for the purposes of the definition

of "prescribed amount" in section 9E (1) is $37 500.

Prescribed amount for 1993-94 for ss. 11A and 16J

2. For the purposes of sections 11A (2e) and 16J (6), the amount shall be calculated for the purposes of the financial year commencing on 1 July 1993 in accordance with the formulae set out in this clause . The amount shall be calculated separately for each period . If the calculated amount for a period, or part of a period, exceeds the total

No. 221 Pay-roll Tax Assessment Amendment

S.9 Act 1993

taxable wages for that period, or part of a period, the prescribed amount for that period is an amount equal to such total taxable wages .

Formula for the period 1 July 1993 to 31 December

1993-

_ 3 {A + B 18 0C

1840C

A A B 118 184

Formula for the period 1 January 1994 to 30 June 1994 -

A A [221 8000C _ 1 + B _ 2258000C

B

JA

Where -

A =	Taxable wages paid or payable during the period by an employer, or in the case of a group, by the members of that group .
B =	Interstate wages paid or payable during the period by an employer, or in the case of a group, by the members of that group .
C =	Number of days during the period in respect of which wages were paid or payable by an employer, or in the case of a group, by the members of that group .

Prescribed amounts for 1994-95 onwards for

as. 11A and 1&B

the

3.    For the purposes of sections 11A (2e) and 16J (6),

amount shall be calculated for the purposes of the financial

Pay-roll Tax Assessment Amendment [No. 22

Act 1993 8.10

year commencing on 1 July 1994 and every succeeding

financial year in accordance with the following formula -

AA x450 000C 1 B 450 000C

JA +

B

},

Where -

A =	Taxable wages paid or payable during the financial year by an employer, or in the case of a group, by the members of that group .
B =	Interstate wages paid or payable during the financial year by an employer, or in the case of a group, by the members of that group .
C =	Number of days during the financial year in which wages were paid or payable by an employer, or in the case of a group, by the members of that group .

D = Number of days in the financial year.

Prescribed amount for s . 12

4.    The amount per week prescribed for the purposes of

section 12 is $8 654.

Schedule 2 repealed

10.    Schedule 2 to the principal Act is repealed .

Saving

11. (1) Without limiting the operation of the Interpretation

Ad 1984 -

(a) clauses 1 and 4 of Schedule 1 as in force immediately before the commencement of section 9 continue to

No. 221 Pay-roll Tax Assessment Amendment

Act 1993

8.11

have effect with respect to months or other periods

before January 1994; and

(b) clause 2 of Schedule 1 as in force immediately before the commencement of section 9 continues to have effect with respect to the financial year that commenced on 1 July 1992.

(2) In subsection (1), "Schedule 1" means Schedule 1 to the

principal Act.