Payroll Tax Act 2007 (NSW)
Sec 66F(11B) of this Act (sec 66F(11B) repeals sec 66F on 2.7.2033)
An Act to provide for a tax on employers in respect of certain wages, to harmonise payroll tax law with Victoria, to repeal the Pay-roll Tax Act 1971; and for other purposes.
This Act is the Payroll Tax Act 2007.
This Act commences or is taken to have commenced on 1 July 2007.
In this Act—
(a) a person who, in this jurisdiction, for or on behalf of another person outside this jurisdiction, holds or has the management or control of the business of that other person, and
(b) a person who, by an order of the Chief Commissioner, is declared to be an agent or the sole agent for any other person for the purposes of this Act and on whom notice of that order has been served.
(a) the Crown in any of its capacities, and
(b) a person taken to be an employer by or under this Act, and
(c) a public, local or municipal body or authority constituted under the law of the Commonwealth or of a State or Territory unless, being an authority constituted under the law of the Commonwealth, it is immune from the operation of this Act.
(a) a tax-exempt body entertainment fringe benefit within the meaning of that Act, or
(b) anything that is prescribed by the regulations under this Act not to be a fringe benefit for the purposes of this definition.
The Interpretation Act 1987 contains definitions and other provisions that affect the interpretation and application of this Act.
Notes included in this Act do not form part of this Act.
This Act is to be read together with the Taxation Administration Act 1996 which provides for the administration and enforcement of this Act and other taxation laws.
This Act binds the Crown in right of this jurisdiction and, so far as the legislative power of the Parliament permits, the Crown in all its other capacities.
Nothing in this Act makes the Crown in any of its capacities liable to be prosecuted for an offence.
Payroll tax is imposed on all taxable wages.
The employer by whom taxable wages are paid or payable is liable to pay payroll tax on the wages.
The amount of payroll tax payable by an employer is to be ascertained in accordance with Schedules 1 and 2.
A person who is liable to pay payroll tax on taxable wages must pay the tax—
(a) within 7 days after the end of the month in which those wages were paid or payable, other than the month of June, and
(b) within 28 days after the end of the month of June in relation to taxable wages paid or payable in the month of June.
However, if the Chief Commissioner has reason to believe that a person may leave Australia before any payroll tax becomes payable by the person, the tax is payable on the day fixed by the Chief Commissioner by notice served on the person.
For the purposes of this Act,
However, exempt wages are not taxable wages.
For the purposes of this Act, wages are taxable in this jurisdiction if—
(a) the wages are paid or payable by an employer for or in relation to services performed by an employee wholly in this jurisdiction, or
(b) the wages are paid or payable by an employer for or in relation to services performed by an employee in 2 or more Australian jurisdictions, or partly in one or more Australian jurisdictions and partly outside all Australian jurisdictions, and—
(i) the employee is based in this jurisdiction, or
(ii) the employer is based in this jurisdiction (in a case where the employee is not based in an Australian jurisdiction), or
(iii) the wages are paid or payable in this jurisdiction (in a case where both the employee and the employer are not based in an Australian jurisdiction), or
(iv) the wages are paid or payable for services performed mainly in this jurisdiction (in a case where both the employee and the employer are not based in an Australian jurisdiction and the wages are not paid or payable in an Australian jurisdiction), or
(c) the wages are paid or payable by an employer for or in relation to services performed by an employee wholly outside all Australian jurisdictions and are paid or payable in this jurisdiction.
Section 66A provides an exemption for wages paid or payable for services performed wholly in one or more other countries for a continuous period of more than 6 months.
The question of whether wages are taxable in this jurisdiction is to be determined by reference only to the services performed by the employee in respect of the employer during the month in which the wages are paid or payable, subject to this section.
Any wages paid or payable by an employer in respect of an employee in a particular month are taken to be paid or payable for or in relation to the services performed by the employee in respect of the employer during that month.
For example, if wages paid in a month are paid to an employee for services performed over several months, the question of whether the wages are taxable in this jurisdiction is to be determined by reference only to services performed by the employee in the month in which the wages are paid. The services performed in previous months are disregarded. (The services performed in previous months will be relevant to the question of whether wages paid in those previous months are taxable in this jurisdiction.)
If no services are performed by an employee in respect of an employer during the month in which wages are paid or payable to or in relation to the employee—
(a) the question of whether the wages are taxable in this jurisdiction is to be determined by reference only to the services performed by the employee in respect of the employer during the most recent prior month in which the employee performed services in respect of the employer, and
(b) the wages are taken to be paid or payable for or in relation to the services performed by the employee in respect of the employer during that most recent prior month.
If no services were performed by an employee in respect of an employer during the month in which wages are paid or payable to or in relation to the employee or in any prior month—
(a) the wages are taken to be paid or payable for or in relation to services performed by the employee in the month in which the wages are paid or payable, and
(b) the services are taken to have been performed at a place or places where it may be reasonably expected that the services of the employee in respect of the employer will be performed.
All amounts of wages paid or payable in the same month by the same employer in respect of the same employee are to be aggregated for the purposes of determining whether they are taxable in this jurisdiction (as if they were paid or payable for all services performed by the employee in the month in which the wages are paid or payable, or the most recent prior month, as the case requires).
For example, if one amount of wages is paid by an employer in a particular month for services performed in this jurisdiction, and another amount of wages is paid by the same employer in the same month for services performed by the same employee in another Australian jurisdiction, the wages paid are to be aggregated (as if they were paid for all services performed by the employee in that month). Accordingly, subsection (1) (b) would be applied for the purpose of determining whether the wages are taxable in this jurisdiction.
If wages are paid in a different month from the month in which they are payable, the question of whether the wages are taxable in this jurisdiction is to be determined by reference to the earlier of the relevant months.
For the purposes of this Act, the jurisdiction in which an employee is based is the jurisdiction in which the employee’s principal place of residence is located.
The jurisdiction in which an employee is based is to be determined by reference to the state of affairs existing during the month in which the relevant wages are paid or payable.
If more than one jurisdiction would qualify as the jurisdiction in which an employee is based during a month, the jurisdiction in which the employee is based is to be determined by reference to the state of affairs existing on the last day of that month.
An employee who does not have a principal place of residence is taken, for the purposes of this Act, to be an employee who is not based in an Australian jurisdiction.
In the case of wages paid or payable to a corporate employee, the jurisdiction in which the employee is based is to be determined in accordance with section 11B instead of this section (as if a reference in section 11B to an employer were a reference to an employee).
In this section, a
For the purposes of this Act, the jurisdiction in which an employer is based is—
(a) the jurisdiction in which the employer’s registered business address is located (if the employer has an ABN), or
(b) the jurisdiction in which the employer’s principal place of business is located (in any other case).
If wages are paid or payable in connection with a business carried on by an employer under a trust, the employer’s registered business address is the registered business address of the trust or, if the trust does not have an ABN, the registered business address of the trustee of the trust.
If an employer has registered business addresses located in different jurisdictions at the same point in time, the jurisdiction in which the employer is based at that point in time is the jurisdiction in which the employer’s principal place of business is located.
The jurisdiction in which an employer is based is to be determined by reference to the state of affairs existing during the month in which the relevant wages are paid or payable.
If more than one jurisdiction would qualify as the jurisdiction in which an employer is based during a month, the jurisdiction in which the employer is based is to be determined by reference to the state of affairs existing on the last day of that month.
An employer who has neither a registered business address nor a principal place of business is taken, for the purposes of this Act, to be an employer who is not based in an Australian jurisdiction.
For the purposes of this Act, wages are taken to have been paid at a place if, for the purpose of the payment of those wages—
(a) an instrument is sent or given or an amount is transferred by an employer to a person or a person’s agent at that place, or
(b) an instruction is given by an employer for the crediting of an amount to the account of a person or a person’s agent at that place.
The wages are taken to have been paid on the date that the instrument was sent or given, the amount was transferred or the account credited in accordance with the instruction (as the case requires).
Wages are taken to be payable at the place at which they are paid, subject to this section.
Wages that are not paid by the end of the month in which they are payable are taken to be payable at—
(a) the place where wages were last paid by the employer to the employee, or
(b) if wages have not previously been paid by the employer to the employee—the place where the employee last performed services in respect of the employer before the wages became payable.
If wages paid or payable in the same month by the same employer in respect of the same employee are paid or payable in more than one Australian jurisdiction, the wages paid or payable in that month are taken to be paid or payable in the Australian jurisdiction in which the highest proportion of the wages are paid or payable.
Section 11 requires all wages paid or payable in the same month by the same employer in respect of the same employee to be aggregated for the purpose of determining whether the wages are taxable in this jurisdiction. The above provision ensures only one Australian jurisdiction can be considered to be the jurisdiction in which the wages are paid or payable.
For the purposes of ascertaining the payroll tax payable under this Act by an employer who during a return period pays taxable wages and Commonwealth place wages, there is to be deducted from the amount of payroll tax payable by the employer under this Act the amount of payroll tax payable by the employer under the corresponding applied law.
In this section—
For the purposes of this Act,
(a) an amount paid or payable by way of remuneration to a person holding an office under the Crown or in the service of the Crown, and
(b) an amount paid or payable under any prescribed classes of contracts to the extent to which that payment is attributable to labour, and
(c) an amount paid or payable by a company by way of remuneration to or in relation to a director of that company, and
(d) an amount paid or payable by way of commission to an insurance or time-payment canvasser or collector, and
(e) an amount that is included as or taken to be wages by any other provision of this Act.
For the purposes of this Act, wages, remuneration, salary, commission, bonuses or allowances are wages—
(a) whether paid or payable at piece work rates or otherwise, and
(b) whether paid or payable in cash or in kind.
This Act applies in respect of wages referred to in subsection (1) (a)–(e) that are paid or payable to or in relation to a person who is not an employee in the same way as it applies to wages paid or payable to an employee (as if a reference in this Act to an employee included a reference to any such person).
For the purposes of this Act,
Subsection (1) does not apply to benefits that are exempt benefits for the purposes of the FBTA Act (other than deposits to the Superannuation Holding Accounts Special Account within the meaning of the Small Superannuation Accounts Act 1995 of the Commonwealth).
For the purposes of this Act, the value of wages comprising a fringe benefit is to be determined in accordance with the formula—
where—
In this Act, a reference to taxable wages that were paid or payable by an employer during a month is, in relation to taxable wages comprising fringe benefits—
(a) a reference to the value of the fringe benefits paid or payable by the employer during the month, or
(b) if an election by the employer is in force under section 16, a reference to an amount calculated in accordance with that section.
In this Act, a reference to taxable wages that were paid or payable by an employer during a year is, in relation to taxable wages comprising fringe benefits, a reference to an amount calculated by adding together the amounts under subsection (2) (a) or (b) (or subsection (2) (a) and (b)) as the case requires, for the months of that year.
An employer who has paid or is liable to pay fringe benefits tax imposed by the FBTA Act in respect of a period of not less than 15 months before 30 June in any year may elect to include as the value of the fringe benefits paid or payable by the employer during the month concerned—
(a) in a return lodged in relation to each of the first 11 months occurring after 30 June in that year—1/12 of the amount determined in accordance with subsection (2) or that part of that amount as, in accordance with section 10, comprises taxable wages for the year of tax (within the meaning of the FBTA Act) ending on 31 March preceding the commencement of the current financial year, and
(b) in the return lodged in relation to the 12th month—the amount determined in accordance with subsection (2) or that part of that amount as, in accordance with section 10, comprises taxable wages for the year of tax (within the meaning of the FBTA Act) ending on 31 March preceding that month, less the total of the amounts of fringe benefits included in the returns for each of the preceding 11 months.
The amount determined in accordance with this subsection is to be determined in accordance with the formula—
where—
An election under subsection (1) takes effect when it is notified to the Chief Commissioner in the form approved by the Chief Commissioner.
After an employer has made an election under subsection (1), the employer must lodge returns containing amounts calculated in accordance with the election unless the Chief Commissioner approves, by notice in writing given to the employer, the termination of the election and allows the employer to include the value referred to in section 15 (2) (a).
If an employer ceases to be liable to pay payroll tax, the value of taxable wages comprising fringe benefits to be included in the employer’s final return is (irrespective of whether or not the employer has made an election under subsection (1)) the value of the fringe benefits paid or payable by the employer for the period commencing on and including the preceding 1 July until the date on which the employer ceases to be liable to payroll tax, less the value of the fringe benefits paid or payable by the employer during that period on which payroll tax has been paid.
For the purposes of this Act,
A
(a) to or as a superannuation fund within the meaning of the Superannuation Industry (Supervision) Act 1993 of the Commonwealth, or
(b) as a superannuation guarantee charge within the meaning of the Superannuation Guarantee (Administration) Act 1992 of the Commonwealth, or
(c) to or as any other form of superannuation, provident or retirement fund or scheme including—
(i) the Superannuation Holding Accounts Special Account within the meaning of the Small Superannuation Accounts Act 1995 of the Commonwealth, and
(ii) a retirement savings account within the meaning of the Retirement Savings Accounts Act 1997 of the Commonwealth, and
(iii) a wholly or partly unfunded fund or scheme.
Setting aside any money or anything that is worth money as, or as part of, a superannuation fund, superannuation guarantee charge or any other form of superannuation, provident or retirement fund or scheme is taken to be paying a superannuation contribution.
Making a superannuation contribution of anything that is worth money is taken to be paying a superannuation contribution of the amount equal to its value, and its value is to be worked out in accordance with section 43 as if that section referred to the contribution instead of to wages.
A superannuation, provident or retirement fund or scheme is unfunded to the extent that money paid or payable by an employer in respect of an employee covered by the fund or scheme is not paid or payable during the employee’s period of service with the employer.
In this section—
For the purposes of this Act,
A grant of a share or an option to an employee by an employer that is not an ESS interest will be taxable as a fringe benefit under Division 2 of this Part.
Any such wages are taken, for the purpose of the imposition of payroll tax, to be paid or payable on the relevant day.
For the purposes of this Division, the
To avoid doubt, the grant of a share or option is valuable consideration for the purposes of section 46.
The employer can elect to treat as the
A share or option is
(a) another person transfers the share or option to that person (other than, in the case of a share, by issuing the share to that person), or
(b) in the case of a share—another person allots the share to that person, or
(c) in the case of an option—another person confers the option on, or otherwise creates the option in, that person, or
(d) the person otherwise acquires a legal interest in the share or option from another person, or
(e) the person acquires a beneficial interest in the share or option from another person.
To avoid doubt, if an employee acquires a right to be granted a share or an option, or some other material benefit, at the election of the employer, the share or option is not granted until the employer elects to grant the share or option.
The
(a) the date on which the share vests in the employee (that is, when any conditions applying to the grant of the share have been met and the employee’s legal or beneficial interest in the share cannot be rescinded),
(b) the date at the end of the period of 7 years from the date on which the share is granted to the employee.
The
(a) the date on which the share to which the option relates is granted to the employee,
(b) the date on which the employee exercises a right under the option to have the share the subject of the option transferred to, allotted to or vested in him or her,
(c) the date at the end of the period of 7 years from the date on which the option is granted to the employee.
If an employer grants a share or an option to an employee and the value of the grant of the share or option is not included in the taxable wages of the employer for the financial year in which the share or option was granted, the employer is taken to have elected to treat the wages constituted by the grant of that share or option as being paid or payable on the vesting date.
If an employer grants a share or an option to an employee and the value of the grant of the share or option is nil or, if the employer were to elect to treat the date of grant as the relevant day, the wages constituted by the grant would not be liable to payroll tax, the employer is taken to have elected to treat the wages constituted by the grant of that share or option as being paid or payable on the date on which the share or option was granted.
If the grant of a share or option is withdrawn, cancelled or exchanged before the vesting date for any valuable consideration (other than the grant of other shares or options), the following provisions apply—
(a) the date of withdrawal, cancellation or exchange is taken to be the vesting date of the share or option,
(b) the market value of the share or option, on the vesting date, is taken to be the amount of the valuable consideration (and, accordingly, that amount is the amount paid or payable as wages on that date).
If an employer includes the value of a grant of a share or option in the taxable wages of the employer for a financial year and the grant is rescinded because the conditions attaching to the grant were not met, the taxable wages of the employer, in the financial year in which the grant is rescinded, are to be reduced by the value of the grant as previously included in the taxable wages of the employer.
Subsection (2) does not apply just because an employee fails to exercise an option or to otherwise exercise his or her rights in respect of a share or option.
The grant of the share by an employer does not constitute wages for the purposes of this Act if the employer is required to grant the share as a consequence of the exercise of an option by a person and—
(a) the grant of the option to the person constitutes wages for the purposes of this Act, or
(b) the option was granted to the person before 1 July 2003.
If the grant of a share or option constitutes wages under this Division, the amount paid or payable as wages is taken, for the purposes of this Act, to be the value of the share or option (expressed in Australian currency) on the relevant day, less the consideration (if any) paid or given by the employee in respect of the share or option (other than consideration in the form of services performed).
The value of a share or an option is—
(a) the market value, or
(b) the amount determined as provided for by the Commonwealth income tax provisions.
The employer may elect the method by which the value of a share or an option is determined in any return lodged under this Act.
However, the Chief Commissioner may determine the method by which the value of a share or an option is determined if the grant of the share or option is not included as wages in a return lodged by an employer as required by this Act.
In determining the market value of a share or option, anything that would prevent or restrict conversion of the share or option to money is to be disregarded.
The Commonwealth income tax provisions apply with the following modifications, and any other necessary modifications—
(a) the value of an option is to be determined as if it were a right to acquire a beneficial interest in a share,
(b) a reference to the acquisition of a beneficial interest in a share or right is to be read as a reference to the grant of a share or an option.
In this section,
See Division 83A of the Income Tax Assessment (1997 Act) Regulations 2021 of the Commonwealth for the relevant regulations.
For the purposes of this Act,
For that purpose, the other provisions of this Division apply in respect of any such grant as if a reference to the employer were a reference to the company and a reference to the employee were a reference to the director of the company.
In this section, a reference to a director of the company includes a reference to the following—
(a) a person who, under a contract or other arrangement, is to be appointed as a director of the company,
(b) a former director of the company.
However, if wages referred to in this section are fringe benefits, the value of the wages is to be determined in accordance with Division 2 of this Part (and not this Division).
Section 13 provides that a reference to an employee in this Act includes a reference to any person to whom any amount that is treated as wages under this Act is paid or payable. See also section 11, which deems the wages to be paid or payable for services performed.
(Repealed)
The wages constituted by the grant of the share or option are taken to be paid or payable in this jurisdiction if the share is a share in a local company or, in the case of an option, an option to acquire shares in a local company.
In any other case, the wages constituted by the grant of the share or option are taken to be paid or payable outside this jurisdiction.
The place where wages are paid or payable is sometimes relevant to determining whether the wages are liable to payroll tax under this Act. See section 11.
In this section—
(a) a company incorporated or taken to be incorporated under the Corporations Act 2001 of the Commonwealth that is taken to be registered in this jurisdiction for the purposes of that Act, or
(b) any other body corporate that is incorporated under an Act of this jurisdiction.
In this Division—
(a) an employment termination payment within the meaning of section 82-130 of the ITAA, or
(b) a payment that would be an employment termination payment within the meaning of section 82-130 of the ITAA but for the fact that it was received later than 12 months after the termination of a person’s employment, or
(c) a transitional termination payment within the meaning of section 82-10 of the Income Tax (Transitional Provisions) Act 1997 of the Commonwealth.
(a) a payment made in consequence of the retirement from, or termination of, any office or employment of an employee, being—
(i) an unused annual leave payment, or
(ii) an unused long service leave payment, or
(iii) so much of an employment termination payment paid or payable by an employer, whether or not paid to the employee or to any other person or body, that would be included in the assessable income of an employee under Part 2-40 of the ITAA if the whole of the employment termination payment had been paid to the employee, or
(b) an amount paid or payable by a company as a consequence of the termination of the services or office of a director of the company, whether or not paid to the director or to any other person or body, that would be an employment termination payment if that amount had been paid or payable as a consequence of termination of employment, or
(c) an amount paid or payable by a person who is an employer under a relevant contract (within the meaning of section 32) as a consequence of the termination of the supply of the services of an employee under the contract, whether or not paid to the employee or to any other person, if the amount would be an employment termination payment if that amount had been paid or payable as a consequence of termination of employment.
For the purposes of this Act,
For the purposes of this Act,
Accordingly, if the total motor vehicle allowance paid or payable to an employee in respect of a financial year does not exceed the exempt component, the motor vehicle allowance is not
If the total motor vehicle allowance paid or payable to an employee in respect of a financial year exceeds the exempt component (if any), only that amount that exceeds the exempt component of the motor vehicle allowance is included as
The
where—
The
The Chief Commissioner, by order in writing, may approve the use, by an employer or class of employer, of another method of determining the number of business kilometres travelled during the financial year (including the use of an estimate). If so, the number of business kilometres travelled during the financial year is to be determined in accordance with the method approved by the Chief Commissioner.
For the purposes of this section, the
(a) the rate determined by legislative instrument under section 28-25 of the ITAA for calculating a deduction for car expenses using the cents per kilometre method in the financial year immediately preceding the financial year in which the allowance is paid or payable, or
(b) if there is more than one rate under the determination referred to in paragraph (a), the highest of those rates, or
(c) if no rate is determined as referred to in paragraph (a), the rate prescribed by the regulations under this Act.
For the purposes of this Act,
If the accommodation allowance paid or payable to an employee in respect of a night’s absence from the person’s usual place of residence exceeds the exempt rate,
For the purposes of this section, the
(a) the total reasonable amount for daily travel allowance expenses using the lowest capital city for the lowest salary band for the financial year determined by the Commissioner of Taxation of the Commonwealth, or
(b) if no determination referred to in paragraph (a) is in force, the rate prescribed by the regulations.
In this Division—
(a) a supply to the person of goods in an altered form or condition, and
(b) a supply to the person of goods in which the first-mentioned goods have been incorporated.
In this Division, a
(a) supplies to another person services for or in relation to the performance of work, or
(b) has supplied to the designated person the services of persons for or in relation to the performance of work, or
(c) gives out goods to natural persons for work to be performed by those persons in respect of those goods and for re-supply of the goods to the designated person or, where the designated person is a member of a group, to another member of that group.
However, a
(a) is supplied with services for or in relation to the performance of work that are ancillary to the supply of goods under the contract by the person by whom the services are supplied or to the use of goods which are the property of that person, or
(b) is supplied with services for or in relation to the performance of work where—
(i) those services are of a kind not ordinarily required by the designated person and are performed by a person who ordinarily performs services of that kind to the public generally, or
(ii) those services are of a kind ordinarily required by the designated person for less than 180 days in a financial year, or
(iii) those services are provided for a period that does not exceed 90 days or for periods that, in the aggregate, do not exceed 90 days in that financial year and are not services—
(A) provided by a person by whom similar services are provided to the designated person, or
(B) for or in relation to the performance of work where any of the persons who perform the work also perform similar work for the designated person,
for periods that, in the aggregate, exceed 90 days in that financial year, or
(iv) those services are supplied under a contract to which subparagraphs (i)–(iii) do not apply and the Chief Commissioner is satisfied that those services are performed by a person who ordinarily performs services of that kind to the public generally in that financial year, or
(c) is supplied by a person (the
contractor ) with services for or in relation to the performance of work under a contract to which paragraphs (a) and (b) do not apply where the work to which the services relate is performed—(i) by two or more persons employed by, or who provide services for, the contractor in the course of a business carried on by the contractor, or
(ii) where the contractor is a partnership of two or more natural persons, by one or more of the members of the partnership and one or more persons employed by, or who provide services for, the contractor in the course of a business carried on by the contractor, or
(iii) where the contractor is a natural person, by the contractor and one or more persons employed by, or who provide services for, the contractor in the course of a business carried on by the contractor, or
(d) is supplied with services solely for or ancillary to the conveyance of goods by means of a vehicle provided by the person conveying them.
Subsection (2) does not apply if the Chief Commissioner determines that the contract or arrangement under which the services are supplied was entered into with an intention either directly or indirectly of avoiding or evading the payment of tax by any person.
Subsection (2) (a), (b), (c) or (d) does not apply to a contract under which any additional services or work (of a kind not covered by the relevant paragraph) are supplied or performed under the contract.
For the purposes of this section, an employment agency contract under which services are supplied by an employment agent, or a service provider is procured by an employment agent, is not a relevant contract.
For the purposes of this Act, a person—
(a) who during a financial year, under a relevant contract, supplies services to another person, or
(b) to whom during a financial year, under a relevant contract, the services of persons are supplied for or in relation to the performance of work, or
(c) who during a financial year, under a relevant contract, gives out goods to other persons,
is taken to be an employer in respect of that financial year.
If a contract is a relevant contract under both section 32 (1) (a) and (b)—
(a) the person to whom, under the contract, the services of persons are supplied for or in relation to the performance of work is taken to be an employer, and
(b) despite subsection (1) (a), the person who under the contract supplies the services is taken not to be an employer.
For the purposes of this Act, a person who during a financial year—
(a) performs work for or in relation to which services are supplied to another person under a relevant contract, or
(b) being a natural person, under a relevant contract, re-supplies goods to an employer,
is taken to be an employee in respect of that financial year.
For the purposes of this Act, amounts paid or payable by an employer during a financial year for or in relation to the performance of work relating to a relevant contract or the re-supply of goods by an employee under a relevant contract are taken to be wages paid or payable during that financial year.
If an amount referred to in subsection (1) is included in a larger amount paid or payable by an employer under a relevant contract during a financial year, that part of the larger amount which is not attributable to the performance of work relating to the relevant contract or the re-supply of goods by an employee under the relevant contract is as determined by the Chief Commissioner.
An amount paid or payable for or in relation to the performance of work under a relevant contract is taken to include—
(a) any payment made by a person who is taken to be an employer under a relevant contract in relation to a person who is taken to be an employee under the relevant contract that would be a superannuation contribution if made in relation to a person in the capacity of an employee, and
(b) the value of any share or option (not otherwise included as wages under this Act) provided or liable to be provided by a person who is taken to be an employer under a relevant contract in relation to a person who is taken to be an employee under the relevant contract that would be included as wages under Division 4 if provided to a person in the capacity of an employee.
If, in respect of a payment for or in relation to the performance of work that is taken to be wages under this Division, payroll tax is paid by a person taken under this Division to be an employer—
(a) no other person is liable to payroll tax in respect of that payment, and
(b) if another person is liable to make a payment for or in relation to that work, that person is not liable to payroll tax in respect of that payment unless it or the payment by the first-mentioned person is made with an intention either directly or indirectly of avoiding or evading the payment of tax whether by the first-mentioned person or another person.
This Division does not apply in relation to wages that are exempt wages under section 66B and clause 13B of Schedule 2.
For the purposes of this Act, an
However, a contract is not an employment agency contract for the purposes of this Act if it is, or results in the creation of, a contract of employment between the service provider and the client.
In this section—
For the purposes of this Act, the employment agent under an employment agency contract is taken to be an employer.
For the purposes of this Act, the person who performs work for or in relation to which services are supplied to the client under an employment agency contract is taken to be an employee of the employment agent.
For the purposes of this Act, the following are taken to be wages paid or payable by the employment agent under an employment agency contract—
(a) any amount paid or payable to or in relation to the service provider in respect of the provision of services in connection with the employment agency contract,
(b) the value of any benefit provided for or in relation to the provision of services in connection with the employment agency contract that would be a fringe benefit if provided to a person in the capacity of an employee,
(c) any payment made in relation to the service provider that would be a superannuation contribution if made in relation to a person in the capacity of an employee.
Subsection (1) does not apply to an employment agency contract to the extent that an amount, benefit or payment referred to in that subsection would be exempt from payroll tax under Part 4 (other than under section 50 or Division 4 or 5 of that Part), or Part 3 of Schedule 2 (other than clause 5 or 13A), had the service provider performed the services as an employee of the client, if the client has given a declaration to that effect, in the form approved by the Chief Commissioner, to the employment agent.
Subject to section 42, if an employment agent under an employment agency contract—
(a) by arrangement procures the services of a service provider for a client of the employment agent, and
(b) pays payroll tax in respect of an amount, benefit or payment that is, under section 40, taken to be wages paid or payable by the employment agent in respect of the provision of those services in connection with that contract,
no other person (including any other person engaged to procure the services of the service provider for the employment agent’s client as part of the arrangement) is liable to pay payroll tax in respect of wages paid or payable for the procurement or performance of those services by the service provider for the client.
If the effect of an employment agency contract is to reduce or avoid the liability of any party to the contract to the assessment, imposition or payment of payroll tax, the Chief Commissioner may—
(a) disregard the contract, and
(b) determine that any party to the contract is taken to be an employer for the purposes of this Act, and
(c) determine that any payment made in respect of the contract is taken to be wages for the purposes of this Act.
If the Chief Commissioner makes a determination under subsection (1), the Chief Commissioner must serve a notice of the determination on the person taken to be an employer for the purposes of this Act.
The notice must set out the facts on which the Chief Commissioner relies and the reasons for the determination.
This section has effect in relation to agreements, transactions and arrangements made before, on or after the commencement of this section.
The value of wages (except fringe benefits and shares and options) that are paid or payable in kind is the greater of—
(a) the value agreed or attributed to the wages in, or ascertainable for the wages from, arrangements between the employer and the employee, whichever is the greater, and
(b) if the regulations prescribe how the value of wages of that type is to be determined—the value determined in accordance with the regulations.
If a person is liable to pay GST on the supply to which wages paid or payable to the person relate, the amount or value of those wages on which payroll tax is payable is the amount or value of the wages paid or payable to the person minus the relevant proportion of the amount of GST payable by the person on the supply to which the wages relate.
Subsection (1) does not apply in respect of the value of wages comprising a fringe benefit.
In this section—
A reference in this Act to wages paid or payable by a member of a group includes wages that would be taken to be paid or payable by a member of a group if the member were the employer of the employee to whom the wages were paid.
If any of the following amounts of money or other valuable consideration would, if paid or given or to be paid or given directly by an employer to an employee, be or be included as wages paid or payable by the employer to the employee for the purposes of this Act, they are taken to be wages paid or payable by the employer to the employee—
(a) any money or other valuable consideration paid or given, or to be paid or given, to an employee, for the employee’s services as an employee of an employer, by a person other than the employer,
(b) any money or other valuable consideration paid or given, or to be paid or given, by an employer, for an employee’s services as the employee of the employer, to a person other than the employee,
(c) any money or other valuable consideration paid or given, or to be paid or given, by a person other than an employer, for an employee’s services as an employee of the employer, to a person other than the employee.
If any of the following amounts of money or other valuable consideration would, if paid or given or to be paid or given directly by a company to a director of the company, be or be included as wages paid or payable by the company to the director for the purposes of this Act, they are taken to be wages paid or payable by the company to the director—
(a) any money or other valuable consideration paid or given, or to be paid or given, to a director of a company, by way of remuneration for the appointment or services of the director to the company, by a person other than the company,
(b) any money or other valuable consideration paid or given, or to be paid or given, by a company, by way of remuneration for the appointment or services of the director to the company, to a person other than the director,
(c) any money or other valuable consideration paid or given, or to be paid or given, by any person, by way of remuneration for the appointment or services of a director to the company, to a person other than the director.
In this section,
(a) a person who, under a contract or other arrangement, is to be appointed as a director of the company, and
(b) a former director of the company.
If any person enters into any agreement, transaction or arrangement, whether in writing or otherwise, under which a natural person performs, for or on behalf of another person, services in respect of which any payment is made to some other person related or connected to the natural person performing the services and the effect of the agreement, transaction or arrangement is to reduce or avoid the liability of any person to the assessment, imposition or payment of payroll tax, the Chief Commissioner may—
(a) disregard the agreement, transaction or arrangement, and
(b) determine that any party to the agreement, transaction or arrangement is taken to be an employer for the purposes of this Act, and
(c) determine that any payment made in respect of the agreement, transaction or arrangement is taken to be wages for the purposes of this Act.
If the Chief Commissioner makes a determination under subsection (1), the Chief Commissioner must serve a notice to that effect on the person taken to be an employer for the purposes of this Act.
The notice must set out the facts on which the Chief Commissioner relies and the reasons for the determination.
This section has effect in relation to agreements, transactions and arrangements made before, on or after the commencement of this section.
Subject to subsection (2), wages are exempt wages if they are paid or payable by any of the following—
(a) a religious institution,
(b) a public benevolent institution (but not including an instrumentality of the State),
(c) a non-profit organisation having as its sole or dominant purpose a charitable, benevolent, philanthropic or patriotic purpose (but not including a school, an educational institution, an educational company or an instrumentality of the State).
The wages must be paid or payable—
(a) for work of a kind ordinarily performed in connection with the religious, charitable, benevolent, philanthropic or patriotic purposes of the institution or body, and
(b) to a person engaged exclusively in that kind of work.
For the purposes of subsection (1) (c), an
(a) in which an educational institution has a controlling interest, and
(b) that provides, promotes or supports the educational services of that institution.
For the purposes of subsection (3), an educational institution has a
(a) members of the board of management of the company who are entitled to exercise a majority in voting power at meetings of the board of management are accustomed or under an obligation, whether formal or informal, to act in accordance with the directions, instructions or wishes of the educational institution, or
(b) the educational institution may (whether directly or indirectly) exercise, control the exercise of, or substantially influence the exercise of, more than 50% of the voting power attached to voting shares, or any class of voting shares, issued by the company, or
(c) the educational institution has power to appoint more than 50% of the members of the board of management of the company.
In this section—
Wages are exempt wages as provided for in Division 1 of Part 3 of Schedule 2.
Wages are exempt wages if they are paid or payable to an Aboriginal person who is employed under an employment project.
An
Subject to subsection (2), wages paid or payable by a health care service provider are exempt wages.
The wages must be paid or payable—
(a) for work of a kind ordinarily performed in connection with the conduct of a health care service provider, and
(b) to a person engaged exclusively in that kind of work.
For the purposes of this section,
Nothing in this Division limits the application of any other Division of this Part.
For example, if a health care service provider is also a non-profit organisation, the exemption for non-profit organisations referred to in section 48 may still apply.
Wages are exempt wages if they are paid or payable to an employee in respect of—
(a) maternity leave, being leave given to a female employee in connection with her pregnancy or the birth of her child (other than sick leave, recreation leave, annual leave or any similar leave), or
(b) adoption leave, being leave given to an employee in connection with the adoption of a child by him or her (other than sick leave, recreation leave, annual leave or any similar leave).
It is immaterial whether the leave is taken during or after the pregnancy or before or after the adoption.
The exemption is limited to wages paid or payable in respect of a maximum of 14 weeks maternity leave in respect of any one pregnancy and 14 weeks adoption leave in respect of any one adoption.
In subsection (3)—
(a) a reference to 14 weeks maternity leave or 14 weeks adoption leave includes a reference to an equivalent period of leave at a reduced rate of pay, and
(b) a reference to wages paid or payable in respect of a period of leave is a reference to the total wages that would normally have been paid or payable for that period of leave.
For a part-time employee, the exemption may apply to wages paid or payable for maternity leave or adoption leave that extends to 28 weeks at half of the part-time rate of pay that would normally apply to the employee.
The exemption does not apply to any part of wages paid or payable in respect of maternity or adoption leave that comprises fringe benefits.
Clause 13A of Schedule 2 provides for a similar exemption for paternity leave given to a male employee. That exemption is not included in some corresponding laws.
An employer wishing to claim an exemption under section 53 in respect of maternity leave must obtain and keep a medical certificate in respect of, or declaration in writing by, the employee—
(a) stating that the employee is or was pregnant, or
(b) stating that the employee has given birth and the date of birth.
An employer wishing to claim an exemption under section 53 in respect of adoption leave must obtain and keep a declaration in writing by the employee stating—
(a) that a child has been placed in the custody of the employee pending the making of an adoption order, or
(b) that an adoption order has been made or recognised in favour of the employee.
Section 53 of the Taxation Administration Act 1996 requires these records to be kept for at least 5 years unless the Chief Commissioner authorises earlier destruction.
Subject to section 57, wages are exempt wages if they are paid or payable to an employee in respect of any period when he or she was taking part in bushfire fighting activities as a volunteer member of a rural fire brigade under the Rural Fires Act 1997.
Subject to section 57, wages are exempt wages if they are paid or payable to an employee in respect of any period when he or she was engaging in emergency operations as a volunteer member of an emergency services organisation under the State Emergency and Rescue Management Act 1989.
An exemption under this Division does not apply to wages paid or payable as recreation leave, annual leave, long service leave or sick leave.
Subject to section 60, wages are exempt wages if they are paid or payable by a council, a county council or a joint organisation, within the meaning of the Local Government Act 1993.
Subject to section 60, wages are exempt wages if they are paid or payable—
(a) by a wholly-owned subsidiary of a council or of 2 or more councils, and
(b) to a person for or in connection with an activity that is conducted for the council or councils under a written arrangement between the subsidiary and the council or councils.
The written arrangement referred to in subsection (1) (b) must include a provision for the payment by the subsidiary to the council or councils of an amount approximately equivalent to the amount of tax that would be payable by the subsidiary under this Act but for the exemption.
In this section—
In this section, a reference to a wholly-owned subsidiary of 2 or more councils is a reference to a body corporate that, if the councils were a single council, would be a wholly-owned subsidiary of the single council.
An exemption under this Division does not apply to wages paid or payable for or in connection with—
(a) any of the activities referred to in subsection (2), or
(b) the construction of any buildings or works, or the installation of plant, machinery or equipment for use in any of the activities referred to in subsection (2).
Subsection (1) applies to the following activities—
(a) the supply of electricity or gas,
(b) water supply,
(c) sewerage,
(d) the conduct of—
(i) abattoirs,
(ii) public markets,
(iii) parking stations,
(iv) cemeteries or crematoria,
(v) hostels,
(vi) an activity prescribed by the regulations,
(e) an activity specified in Schedule 2.
Wages paid or payable by the Governor of a State are exempt wages.
Wages are exempt wages if they are paid or payable to an employee in respect of any period when he or she was on leave from employment because of being a member of—
(a) the Defence Force of the Commonwealth, or
(b) the armed forces of any part of the Commonwealth of Nations.
Wages paid or payable by the Commonwealth War Graves Commission are exempt wages.
Wages paid or payable to members of his or her official staff by a consular or other representative of any country in Australia (other than a diplomatic representative) are exempt wages.
Wages paid or payable to members of his or her official staff by a Trade Commissioner representing any other part of the Commonwealth of Nations in Australia are exempt wages.
Wages paid or payable by the Australian-American Fulbright Commission are exempt wages.
Wages are exempt wages if they are paid or payable for or in relation to services performed by an employee wholly in one or more other countries for a continuous period of more than 6 months beginning on the day on which wages were first paid or payable to that employee for the services so performed.
Wages are exempt wages as provided for in clause 13B of Schedule 2.
Wages are exempt wages to the extent that they are reimbursed by the Commonwealth under the Supporting Leave for Living Organ Donors Programme.
This section applies in relation to an employee (a
The wages paid to a jobkeeper subsidised employee are exempt wages, but only to the extent of the difference between—
(a) the amount of jobkeeper payments paid or payable to the employer in respect of the employee, and
(b) the amount of wages that would have been paid to the employee but for those jobkeeper payments.
Subsection (2) applies only in respect of wages paid during the period—
(a) commencing on 30 March 2020, and
(b) ending on the day the scheme for jobkeeper payments ends.
For the purposes of this section, any overpayment of jobkeeper payments is to be disregarded in calculating the amount of jobkeeper payments paid or payable to an employer in respect of an employee.
To avoid doubt, this section does not apply in relation to an employee if the wages paid or payable to the employee are greater than the jobkeeper payments paid or payable to the employer in respect of the employee.
In this section—
Wages paid or payable on or after 1 June 2020 are exempt wages to the extent that they are funded by any payment (an
Any overpayment of Aged Care Workforce payments is to be disregarded in calculating the amount of Aged Care Workforce payments for the purposes of subsection (1).
Wages paid or payable on or after 1 February 2022 are exempt wages to the extent that they are funded by a payment (an
An overpayment of Aged Care Workforce Bonus payments is to be disregarded in calculating the amount of Aged Care Workforce Bonus payments for the purposes of subsection (1).
The relevant Minister is authorised on behalf of the State—
(a) before 1 July 2024 to enter into an agreement with an employer that is expressed to be for the purposes of this section (a
Jobs Plus agreement ), and(b) to give effect to the agreement.
To avoid doubt, a variation, agreed on or after 1 July 2024, of a Jobs Plus agreement entered into before that date must not be regarded as the entry into a new Jobs Plus agreement, unless the variation results in an increase in the number of positions that are entitled to a wages exemption under this section.
Without limiting the matters that may be specified by a Jobs Plus agreement, the agreement must specify—
(a) the kinds of wages that are exempt wages under this section, and
(b) the grounds on which, or the circumstances in which, the relevant Minister may revoke an exemption under this section, and
(c) for an agreement with an employer whose registered business address is outside the metropolitan area—that the exemption cannot be revoked merely because the employer has only created between 20 and 29 new jobs (inclusive).
Subject to this section, wages are exempt wages if—
(a) they are paid or payable by an employer who enters into a Jobs Plus agreement, and
(a1) they are paid or payable to a person in relation to a period—
(i) before 1 October 2028, and
(ii) within the first 4 years of the exemption applying to wages for the person’s position, and
(b) they are wages of a kind that is specified by the agreement to be exempt wages under this section.
The relevant Minister may, by written notice issued to an employer who enters into a Jobs Plus agreement, revoke the exemption under this section on the grounds, or in the circumstances, specified by the agreement.
The effect of the revocation is as follows—
(a) the wages referred to in subsection (3) are taken never to have been exempt wages under this section,
(b) the employer is liable to pay payroll tax on the wages even if the relevant Minister revokes the exemption under this section after the employer relies on the exemption as the reason for not paying payroll tax on the wages,
(c) the Chief Commissioner must assess or reassess the employer’s liability to pay payroll tax on the wages accordingly.
For the purposes of the Taxation Administration Act 1996, section 9(3)(c), the Chief Commissioner is authorised to make a reassessment under this section until 1 July 2033.
An employer who enters into a Jobs Plus agreement cannot lodge an objection with the Chief Commissioner under the Taxation Administration Act 1996, Part 10, Division 1 to an assessment or reassessment under this section on the grounds that the relevant Minister has revoked an exemption under this section.
Without limiting the Taxation Administration Act 1996, section 82(b)(i), a Jobs Plus administrator may disclose to another Jobs Plus administrator information in relation to a Jobs Plus agreement, including personal information within the meaning of the Privacy and Personal Information Protection Act 1998 and confidential information—
(a) to assist a Jobs Plus administrator to exercise a function under this section, including to assist the relevant Minister to give effect to the agreement, or
(b) in connection with the administration of a taxation law.
The relevant Minister may delegate a function of the relevant Minister under this section to another Jobs Plus administrator, subject to the following—
(a) the relevant Minister cannot delegate a function to a tax officer,
(b) the relevant Minister cannot delegate a function under subsection (1)(a) or (4) to any person other than the Chief Executive Officer of Investment NSW,
(c) the relevant Minister cannot delegate this power of delegation.
The State, or a Jobs Plus administrator, does not incur civil liability in connection with the exercise of a function under this section.
The relevant Minister must, until 1 July 2029, cause to be tabled in each House of Parliament an annual report containing the following for each financial year—
(a) the total number of employers who entered into Jobs Plus agreements,
(b) the total number of new jobs the employers agreed to create, as specified by the agreements,
(c) the total number of new jobs in fact created by the employers, whether created in that financial year or an earlier financial year,
(d) the total amount of payroll tax from which the employers were exempt under this section, whether in relation to that financial year or an earlier financial year.
To avoid doubt, this section prevails over the provisions of a Jobs Plus agreement to the extent of an inconsistency.
This section is repealed on 2 July 2033.
In this section—
(a) comply with an obligation of the State under the agreement, and
(b) exercise or enforce a right or power under the agreement.
(a) the relevant Minister,
(b) a tax officer,
(c) a person employed in the Premier’s Department,
(d) a person employed in Investment NSW.
(a) the Greater Sydney Region within the meaning of the Greater Sydney Commission Act 2015, and
(b) the local government areas of Newcastle, Shellharbour and Wollongong.
In this Part—
(a) a profession or trade, and
(b) any other activity carried on for fee, gain or reward, and
(c) the activity of employing one or more persons who perform duties in connection with another business, and
(d) the carrying on of a trust (including a dormant trust), and
(e) the activity of holding any money or property used for or in connection with another business,
whether carried on by 1 person or 2 or more persons together.
The fact that a person is not a member of a group constituted under a provision of this Part does not prevent that person from being a member of a group constituted under another provision of this Part.
A
Corporations constitute a group if they are related bodies corporate within the meaning of the Corporations Act 2001 of the Commonwealth.
(Repealed)
If one or more employees of an employer perform duties for or in connection with one or more businesses carried on by the employer and one or more other persons, the employer and each of those other persons constitute a group.
If one or more employees of an employer are employed solely or mainly to perform duties for or in connection with one or more businesses carried on by one or more other persons, the employer and each of those other persons constitute a group.
If one or more employees of an employer perform duties for or in connection with one or more businesses carried on by one or more other persons, being duties performed in connection with, or in fulfilment of the employer’s obligation under, an agreement, arrangement or undertaking for the provision of services to any one or more of those other persons in connection with that business or those businesses, the employer and each of those other persons constitute a group.
Subsection (3) applies to an agreement, arrangement or undertaking—
(a) whether the agreement, arrangement or undertaking is formal or informal, express or implied, and
(b) whether or not the agreement, arrangement or undertaking provides for duties to be performed by the employees or specifies the duties to be performed by them.
Section 79 (Exclusion of persons from groups) allows the Chief Commissioner, for payroll tax purposes, to exclude persons from a group constituted under this section in certain circumstances.
If a person or set of persons has a controlling interest in each of 2 businesses, the persons who carry on those businesses constitute a group.
Section 79 (Exclusion of persons from groups) allows the Chief Commissioner, for payroll tax purposes, to exclude persons from a group constituted under this section in certain circumstances.
For the purposes of this section, a person or set of persons has a controlling interest in a business if—
Each member of the group is liable to pay as payroll tax for the relevant period the amount of dollars calculated in accordance with the following formula—
(Section 103)
The regulations may contain provisions of a savings or transitional nature consequent on the enactment of the following Acts—
• this Act
• State Revenue and Other Legislation Amendment (Budget) Act 2008
• State Revenue Legislation Amendment Act 2008
• State Revenue Legislation Further Amendment Act (No 2) 2009
• State Revenue Legislation Amendment Act 2010
• State Revenue Legislation Further Amendment Act 2010
• State Revenue Legislation Amendment Act 2012
• Any Act that amends this Act
Any such provision may, if the regulations so provide, take effect from the date of assent to the Act concerned or a later date.
To the extent to which any such provision takes effect from a date that is earlier than the date of its publication in the Gazette, the provision does not operate so as—
(a) to affect, in a manner prejudicial to any person (other than the State or an authority of the State), the rights of that person existing before the date of its publication, or
(b) to impose liabilities on any person (other than the State or an authority of the State) in respect of anything done or omitted to be done before the date of its publication.
In this Part—
This Act applies to payroll tax on taxable wages that are paid or payable on or after 1 July 2007.
Despite its repeal, the old Act continues to apply to payroll tax on taxable wages (within the meaning of the old Act) paid or payable before 1 July 2007.
The Taxation Administration Act 1996, as in force immediately before 1 July 2007, continues to apply on an after that day in respect of any matter to which the old Act continues to apply on and after that day.
The old Act applies to payroll tax on taxable wages (within the meaning of the old Act) paid or payable before 1 July 2007 as if section 3AG of the old Act had never been enacted.
An election by an employer under section 13A (2) of the old Act that was in force immediately before 1 July 2007 remains in force on and after that date for the purposes of this Act as if it were an election made by the employer under section 16 (1) of this Act.
Despite anything in section 11 or 17,
A superannuation contribution that is alleged by an employer to be paid in respect of services performed by an employee before 1 July 1996 must be evidenced to the satisfaction of the Chief Commissioner in the employer’s records for payroll tax purposes.
In particular, the employer’s records must show the manner of calculation of the contribution and any actuarial basis for it.
For the purposes of subclause (3) and of any assessment of payroll tax to which that subclause is material, the certificate of a fellow or accredited member of the Institute of Actuaries of Australia to the effect that the actuarial basis on which an amount is calculated is justified is evidence and, in the absence of evidence to the contrary, proof of that fact.
If records are not kept as required by this clause, the Chief Commissioner is entitled to assume that a payment of money by an employer as a superannuation contribution on or after 1 July 1996 is an amount payable in respect of services performed by an employee on or after that day.
For the purposes of an assessment of payroll tax, the Chief Commissioner may determine—
(a) whether, and the extent to which, any monetary or non-monetary contribution paid or payable by an employer to a superannuation, provident or retirement fund or scheme that is not identified by the employer as paid or payable in respect of a particular employee (and whether or not purporting to be so paid or payable on any actuarial basis) is to be regarded as a superannuation contribution paid or payable in respect of a particular employee, and
(b) the portion of any monetary or non-monetary contribution paid by an employer as a superannuation contribution to a wholly or partly unfunded fund or scheme, being money paid in respect of an employee (or that is to be regarded under paragraph (a) to have been so paid) who performed services to the employer on or after, as well as before, 1 July 1997, that is to be regarded as having been paid in respect of services performed before that date.
A declaration under section 3C (4) (b) of the old Act that was in force immediately before 1 July 2007 remains in force on and after that day for the purposes of this Act as if it were a declaration made under section 40 (2) of this Act.
The designation of an employer as a designated group employer that had effect under the old Act immediately before its repeal has effect as the designation of a designated group employer under this Act.
A certificate in force or deemed to be in force under section 14 (Exemption from furnishing returns) of the old Act immediately before its repeal is taken to be an approval under Division 2 (Approval of special tax return arrangements) of Part 6 of the Taxation Administration Act 1996, and for that purpose is taken to be in terms appropriate to give it the same effect as it had as a certificate under that section of the old Act.
A contribution to a redundancy benefit scheme or portable long service leave fund that was paid or payable after 30 June 2006 and that would (but for this clause) have constituted wages under the old Act because of the operation of section 3AG of that Act is taken not to have constituted wages for the purposes of the old Act.
An employer who was registered under section 12 of the old Act immediately before 1 July 2007 is taken, on and after that day, to be registered under section 86 of this Act.
Sections 42 and 47 extend to an agreement, transaction or arrangement entered into before the commencement of those sections.
Part 5 of Schedule 2 extends to contracts entered into before the commencement of that Part.
Any act, matter or thing that had effect under or for the purposes of a provision of the old Act, or a provision of another Act repealed by this Act, immediately before the repeal of the provision continues to have effect under or for the purposes of the corresponding provision of this Act, subject to any other provision of this Part or the regulations under this Part.
The amendments made to Schedule 1 by the State Revenue Legislation Amendment Act 2008 apply to the financial year commencing on 1 July 2007 and any subsequent financial year.
Clause 22 of Schedule 2, as inserted by the State Revenue Legislation Further Amendment Act 2009, has effect on and from 1 July 2007.
Anything done or omitted to be done by the Hardship Review Board, on or after 1 July 2007, that would have been validly done or omitted had clause 22 of Schedule 2 been in force at the time that it was done or omitted is taken to have been validly done or omitted.
In this clause, the
The amendments made to this Act by the State Revenue Legislation Further Amendment Act (No 2) 2009 apply in respect of taxable wages that are paid or payable on or after 1 July 2009.
The amendments made to this Act by the State Revenue Legislation Further Amendment Act (No 2) 2009 are to be applied for the purpose of determining the correct amount of payroll tax (within the meaning of section 82) payable by an employer in respect of the financial year commencing on 1 July 2009 (including in respect of expired months).
However, section 9 continues to apply in respect of an expired month as if the amendments made to this Act by the State Revenue Legislation Further Amendment Act (No 2) 2009 had not been made.
In this clause, an
The amendments to Schedule 2 made by the State Revenue Legislation Amendment Act 2010 apply to wages paid or payable on or after 1 July 2010.
Anything done or omitted to be done by an employer in connection with the assessment and payment of payroll tax, in respect of a month occurring after June 2009 and before July 2011, that would have been validly done or omitted to be done had the amendments made to this Act by the State Revenue Legislation Further Amendment Act 2010 been in force, is taken to have been validly done or omitted.
This provision validates a decision by an employer to treat the grant of a share or an option to an employee that is not an ESS interest as a fringe benefit under Division 2 of Part 3 of this Act and to determine the value of those fringe benefits in accordance with those provisions, rather than by reference to Division 4 of Part 3 of this Act.
Division 4 of Part 3 of this Act continues to apply in respect of a share or an option granted before 1 July 2011 that constituted wages under old section 18, whether or not the grant of the share or option would constitute wages under new section 18, if the relevant day in relation to the grant of the share or option is not a day occurring before 1 July 2011.
For example, a share granted before 1 July 2011 that is not an ESS interest continues to be treated as wages under Division 4 of Part 3 of this Act if the vesting date for the share did not occur before 1 July 2011 and the employer did not elect to treat the date of the grant as the relevant day.
The assessment amendments apply in respect of any such share or option.
Accordingly, the vesting date and the value of the share or option are to be determined in accordance with the assessment amendments.
This clause does not apply in respect of a share or an option granted before 1 July 2011 if the liability for payroll tax in respect of the grant is determined in accordance with Division 2 of Part 3 (as permitted by clause 20).
In this clause—
The amendments made to this Act by the State Revenue Legislation Amendment Act 2012 have effect in respect of wages paid or payable on or after 1 July 2012.
An amendment made to this Act by the State Revenue Legislation Further Amendment Act 2014 has effect in respect of any amount, benefit or payment referred to in section 40 that is paid, payable, provided or made on or after the date of commencement of the amendment, except as provided by subclause (2).
An amendment does not apply to any amount, benefit or payment paid, payable, provided or made for work performed before the date of commencement of the amendment.
The Payroll Tax Rebate Scheme (Disability Employment) Act 2011, as in force immediately before its repeal, continues to apply—
(a) in relation to the employment of a person if the employment commenced before the repeal of that Act, and
(b) in relation to a claim for a rebate, or a rebate, in respect of such employment.
The amendment to section 29 made by the State Revenue Legislation Amendment Act 2017 is taken to have effect in respect of wages paid or payable on or after 1 July 2016.
Section 66C, as inserted by the State Revenue Legislation Amendment Act 2017, is taken to have effect in respect of wages paid or payable on or after 1 July 2013.
In this Part—
The amendment made to section 9 by the amending Act has effect in respect of wages paid or payable in the month of June 2019, or in the month of June in any subsequent year.
The amendment made to section 87 by the amending Act has effect in respect of—
(a) a return relating to the month of June 2019, or to the month of June in any subsequent year, and
(b) the adjustment of payroll tax paid or payable during the financial year ending on the close of the month of June 2019 or paid or payable during any subsequent financial year ending on the close of the month of June in that year.
The amendments made to Schedule 1, clause 1 by the amending Act must be applied for the purpose of determining the correct amount of payroll tax, within the meaning of section 82, payable by an employer for the financial year commencing on 1 July 2020 as if the amendments were in force on 30 June 2020.
In this clause—
The amendment of section 66E by the amending Act is taken to have had effect from the beginning of 1 January 2021.
An agreement with an employer that is entered into by the Minister for Jobs, Investment, Tourism and Western Sydney, or by a delegate of the Minister, and that is expressed to be for the purposes of section 66F of this Act is taken, for all purposes, to be a Jobs Plus agreement under section 66F, as inserted by the amending Act, even if the agreement was entered into before the commencement of that section on 1 July 2021.
In this clause—
If Schedule 2, clause 10B applies only for part of a financial year, the reference to financial year in clause 10B(1)(c) is taken to be a reference to the part of the financial year.
The Subordinate Legislation Act 1989, Part 2 does not apply to a regulation made under this Act if the regulation is made after the date of assent to the Revenue Legislation Amendment Act 2024 and before 4 September 2024.
The amendments made to Schedule 2, clauses 10A and 10B by the Revenue Legislation Further Amendment Act 2024 are taken to have commenced on 4 September 2024.
(Repealed)
Payroll Tax Act 2007 No 21. Assented to 4.7.2007. Date of commencement, 1.7.2007, sec 2. This Act has been amended as follows—
No 94 | Miscellaneous Acts (Local Court) Amendment Act 2007. Assented to 13.12.2007. Date of commencement of Sch 2, 6.7.2009, sec 2 and 2009 (314) LW 3.7.2009. | |
No 48 | State Revenue and Other Legislation Amendment (Budget) Act 2008. Assented to 30.6.2008. Date of commencement of Sch 2, 1.7.2008, sec 2 (2) (a). | |
No 62 | Statute Law (Miscellaneous Provisions) Act 2008. Assented to 1.7.2008. Date of commencement of Sch 1.21, 1.7.2008, Sch 1.21; date of commencement of Sch 4, assent, sec 2 (1). | |
No 67 | State Revenue Legislation Amendment Act 2008. Assented to 2.7.2008. Date of commencement of Sch 5 [1]–[3], 1.7.2008, sec 2 (2) (b); date of commencement of Sch 5 [4]–[7], assent, sec 2 (1). | |
No 51 | State Revenue Legislation Further Amendment Act 2009. Assented to 26.6.2009. Date of commencement of Sch 7.4, 1.7.2009, sec 2 (2) (b). | |
No 91 | State Revenue Legislation Further Amendment Act (No 2) 2009. Assented to 19.11.2009. Date of commencement of Sch 3, assent, sec 2 (1). | |
No 46 | State Revenue Legislation Amendment Act 2010. Assented to 28.6.2010. Date of commencement of Sch 8, 1.7.2010, Sch 8. | |
No 97 | Health Services Amendment (Local Health Networks) Act 2010. Assented to 16.11.2010. Date of commencement of Sch 2, 1.1.2011, sec 2 (1) and 2010 (716) LW 17.12.2010. | |
No 118 | State Revenue Legislation Further Amendment Act 2010. Assented to 29.11.2010. Date of commencement, 1.7.2011, sec 2 (2) (d). | |
No 4 | Health Services Amendment (Local Health Districts and Boards) Act 2011. Assented to 16.5.2011. Date of commencement, 1.7.2011, sec 2 and 2011 (313) LW 1.7.2011. | |
No 20 | State Revenue Legislation Amendment Act 2012. Assented to 11.4.2012. Date of commencement, 1.7.2012, sec 2 (2) (b). | |
No 97 | Miscellaneous Acts Amendment (Directors’ Liability) Act 2012. Assented to 26.11.2012. Date of commencement, 11.1.2013, sec 2 and 2012 (629) LW 14.12.2012. | |
No 50 | State Revenue and Other Legislation Amendment (Budget Measures) Act 2013. Assented to 26.6.2013. Date of commencement of Sch 4, 1.7.2013, Sch 4. | |
No 37 | State Revenue and Other Legislation Amendment (Budget Measures) Act 2014. Assented to 24.6.2014. Date of commencement of Sch 3, 1.7.2014, sec 2 (1). | |
No 56 | State Revenue Legislation Further Amendment Act 2014. Assented to 23.10.2014. Date of commencement of Sch 3 [1]–[3] and [5]–[7], 1.7.2014, sec 2 (2) (a); date of commencement of Sch 3 [4], 1.1.2016, sec 2 (2) (b) and 2015 (733) LW 4.12.2015. | |
No 14 | State Revenue Legislation Amendment Act 2016. Assented to 11.5.2016. Date of commencement of Sch 4, assent, sec 2 (1). | |
No 27 | Statute Law (Miscellaneous Provisions) Act 2016. Assented to 7.6.2016. |
Date of commencement of Sch 5, 28.6.2017, sec 2 (4) and 2017 (293) LW 28.6.2017. | ||
No 11 | State Revenue Legislation Amendment Act 2017. Assented to 11.4.2017. Date of commencement, assent, sec 2. | |
No 25 | Electronic Transactions Legislation Amendment (Government Transactions) Act 2017. Assented to 27.6.2017. Date of commencement, assent, sec 2. | |
No 65 | Local Government Amendment (Regional Joint Organisations) Act 2017. Assented to 30.11.2017. Date of commencement, 15.12.2017, sec 2 and 2017 (730) LW 15.12.2017. | |
No 11 | State Debt Recovery Act 2018. Assented to 21.3.2018. Date of commencement of Sch 3.11, 27.8.2018, sec 2 and 2018 (462) LW 24.8.2018. | |
No 39 | State Revenue Legislation Amendment Act 2018. Assented to 27.6.2018. Date of commencement of Sch 2, 1.7.2018, sec 2 (2). | |
No 70 | Government Sector Finance Legislation (Repeal and Amendment) Act 2018. Assented to 22.11.2018. Date of commencement of Sch 4.80, 1.7.2021, sec 2(1) and 2021 (305) LW 25.6.2021. | |
No 8 | State Revenue and Other Legislation Amendment Act 2019. Assented to 1.7.2019. Date of commencement, 1.7.2019, sec 2 (1). | |
No 2 | Treasury Legislation Amendment (COVID-19) Act 2020. Assented to 25.3.2020. Date of commencement, assent, sec 2. | |
No 6 | COVID-19 Legislation Amendment (Emergency Measures—Treasurer) Act 2020. Assented to 14.5.2020. Date of commencement, assent, sec 2. | |
No 19 | State Revenue Legislation Amendment (COVID-19 Housing Response) Act 2020. Assented to 11.8.2020. Date of commencement, assent, sec 2. | |
No 43 | Payroll Tax Amendment Act 2020. Assented to 27.11.2020. Date of commencement, assent, sec 2. | |
No 12 | Payroll Tax Amendment (Jobs Plus) Act 2021. Assented to 24.5.2021. Date of commencement, except Sch 1[2], assent, sec 2(1); date of commencement of Sch 1[2], 1.7.2021, sec 2(2). | |
No 29 | Payroll Tax Amendment (Payroll Tax Waiver) Act 2021. Assented to 18.11.2021. Date of commencement, assent, sec 2. | |
No 32 | State Revenue Legislation Amendment Act 2022. Assented to 27.6.2022. Date of commencement, 1.7.2022, sec 2. | |
No 59 | Statute Law (Miscellaneous Provisions) Act (No 2) 2022. Assented to 26.10.2022. Date of commencement, 13.1.2023, sec 2. | |
No 18 | Revenue, Fines and Other Legislation Amendment Act 2023. Assented to 4.9.2023. Date of commencement, assent, sec 2. | |
No 26 | Treasury and Revenue Legislation Amendment Act 2023. Assented to 27.9.2023. Date of commencement of Sch 4, 4.9.2023, sec 2(c). | |
No 35 | Statute Law (Miscellaneous Provisions) Act (No 2) 2023. Assented to 30.10.2023. Date of commencement of Sch 4, assent, sec 2(c). | |
No 38 | Revenue Legislation Amendment Act 2024. Assented to 24.6.2024. Date of commencement of Sch 5, assent, sec 2(c). | |
No 90 | Revenue Legislation Further Amendment Act 2024. Assented to 2.12.2024. Date of commencement, assent, sec 2. | |
No 37 | Revenue and Other Legislation Amendment Act 2025. Assented to 1.7.2025. Date of commencement of Sch 5, assent, sec 2(c). | |
No 48 | Statute Law (Miscellaneous Provisions) Act 2025. Assented to 15.8.2025. Date of commencement of Sch 4, assent, sec 2(e). |
Sec 3 | Am 2009 No 91, Sch 3 [1]; 2010 No 118, Sch 4 [1]; 2017 No 11, Sch 3 [1]. |
Sec 9 | Am 2019 No 8, Sch 3 [1]. |
Secs 10, 11 | Subst 2009 No 91, Sch 3 [2]. |
Secs 11A–11C | Ins 2009 No 91, Sch 3 [2]. |
Sec 13 | Am 2009 No 91, Sch 3 [3]. |
Sec 18 | Am 2010 No 118, Sch 4 [2]. |
Sec 19 | Am 2010 No 118, Sch 4 [3] [4]. |
Sec 23 | Am 2010 No 118, Sch 4 [5] [6]; 2022 No 59, Sch 1.28[1]. |
Sec 24 | Am 2009 No 91, Sch 3 [4]; 2010 No 118, Sch 4 [7] [8]. |
Sec 25 | Rep 2009 No 91, Sch 3 [5]. |
Sec 26 | Am 2009 No 91, Sch 3 [6]. |
Sec 29 | Am 2017 No 11, Sch 3 [2]. |
Sec 32 | Am 2014 No 56, Sch 3 [1]–[6]. |
Sec 36A | Ins 2017 No 11, Sch 3 [3]. |
Sec 40 | Am 2017 No 11, Sch 3 [4]. |
Sec 48 | Am 2008 No 67, Sch 5 [1]. |
Sec 53 | Am 2010 No 46, Sch 8 [1]; 2012 No 20, Sch 3 [1]. |
Sec 54 | Am 2017 No 25, Sch 2.9. |
Sec 58 | Am 2017 No 65, Sch 2.21. |
Sec 59 | Am 2016 No 14, Sch 4 [1]–[3]. |
Part 4, Div 9 (sec 66A) | Ins 2009 No 91, Sch 3 [7]. |
Part 4, Div 10 (secs 66B, 66C) | Ins 2017 No 11, Sch 3 [5]. |
Sec 66D | Ins 2020 No 6, Sch 1.3. |
Sec 66E | Ins 2020 No 19, Sch 4. Am 2021 No 12, Sch 1[1]. |
Sec 66EA | Ins 2022 No 32, Sch 3. |
Sec 66F | Ins 2021 No 12, Sch 1[2]. Am 2023 No 35, Sch 4.32; 2025 No 37, Sch 5[1]–[5]. |
Sec 70 | Am 2008 No 67, Sch 5 [2]. |
Sec 74 | Am 2008 No 67, Sch 5 [3]. |
Sec 74A | Ins 2023 No 18, Sch 5[1]. Am 2023 No 26, Sch 4[1][2]; 2024 No 90, Sch 6[1]. |
Sec 79 | Am 2023 No 18, Sch 5[2]. |
Sec 80 | Am 2009 No 51, Sch 7.4 [1]. |
Sec 81 | Am 2023 No 18, Sch 5[3]; 2024 No 90, Sch 6[2] [3]. |
Sec 86 | Am 2008 No 48, Sch 2 [1]. |
Sec 87 | Am 2019 No 8, Sch 3 [2]. |
Sec 99A | Ins 2020 No 2, Sch 1.2[1]. Am 2021 No 29, Sch 1[1]. |
Sec 99B | Ins 2021 No 29, Sch 1[2]. |
Sec 102 | Am 2007 No 94, Sch 2. |
Sec 105 | Am 2008 No 62, Sch 4. |
Sch 1 | Am 2008 No 48, Sch 2 [2]–[4]; 2008 No 62, Sch 1.21; 2008 No 67, Sch 5 [4] [5]; 2010 No 46, Sch 8 [2]; 2013 No 50, Sch 4 [1]–[4]; 2018 No 39, Sch 2; 2020 No 2, Sch 1.2[2]; 2020 No 43, cl 3(1) (2). |
Sch 2 | Am 2008 No 48, Sch 2 [5]; 2009 No 51, Sch 7.4 [2]; 2010 No 46, Sch 8 [3] [4]; 2010 No 97, Sch 2.24; 2011 No 4, Sch 2.27; 2012 No 20, Sch 3 [2]; 2012 No 97, Sch 1.30; 2016 No 14, Sch 4 [4]–[8]; 2016 No 27, Sch 5.6; 2017 No 11, Sch 3 [6] [7]; 2018 No 11, Sch 3.11; 2018 No 70, Sch 4.80; 2019 No 8, Sch 3 [3]–[5]; 2022 No 59, Sch 1.28[2]; 2024 No 38, Sch 5[1]; 2024 No 90, Sch 6[4]–[6]; 2025 No 48, Sch 4.8. |
Sch 2A | Ins 2008 No 48, Sch 2 [6]. Am 2010 No 46, Sch 8 [5]. |
Sch 3 | Am 2008 No 48, Sch 2 [7]; 2008 No 67, Sch 5 [6] [7]; 2009 No 51, Sch 7.4 [3] [4]; 2009 No 91, Sch 3 [8] [9]; 2010 No 46, Sch 8 [6] [7]; 2010 No 118, Sch 4 [9] [10]; 2012 No 20, Sch 3 [3] [4]; 2014 No 37, Sch 3.2; 2014 No 56, Sch 3 [7]; 2017 No 11, Sch 3 [8]; 2019 No 8, Sch 3 [6]; 2020 No 43, cl 3(3); 2021 No 12, Sch 1[3]; 2024 No 38, Sch 5[2]; 2024 No 90, Sch 6[7]. |
Sch 4 | Am 2008 No 62, Sch 4. |
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