Payroll Tax Act 2007 (Vic)
Version No. 040
Payroll Tax Act 2007
No. 26 of 2007
Version incorporating amendments as at
1 July 2025
TABLE OF PROVISIONS
Section Page
Part 1—Preliminary
1Purposes
2Commencement
3Definitions
3AMeaning of regional employer
3BMeaning of regional employee
4Taxation Administration Act 1997
5Act binds the Crown
Part 2—Imposition of payroll tax
Division 1—Imposition of tax
6Imposition of payroll tax
7Who is liable for payroll tax?
8Amount of payroll tax
9When must payroll tax be paid?
Division 2—Taxable wages
10What are taxable wages?
11Wages that are taxable in this jurisdiction
11AJurisdiction in which employee is based
11BJurisdiction in which employer is based
11CPlace and date of payment of wages
Division 3—Other
12Payroll tax paid under corresponding applied law
Part 3—Wages
Division 1—General concept of wages
13What are wages?
Division 2—Fringe benefits
14Wages include fringe benefits
15Value of wages comprising fringe benefits
16Employer election regarding taxable value of fringe benefits
Division 3—Superannuation contributions
17Wages include superannuation contributions
Division 4—Shares and options
18Inclusion of grant of shares and options as wages
19Choice of relevant day
20Deemed choice of relevant day in special cases
21Effect of rescission, cancellation of share or option
22Grant of share pursuant to exercise of option
23Value of shares and options
24Inclusion of shares and options granted to directors as wages
26Place where wages are payable
Division 5—Termination payments
27Definitions
28Termination payments
Division 6—Allowances
29Motor vehicle allowances
30Accommodation allowances
Division 7—Contractor provisions
31Definitions
32What is a relevant contract?
33Persons taken to be employers
34Persons taken to be employees
35Amounts under relevant contracts taken to be wages
36Liability provisions
Division 8—Employment agents
36ADivision not applicable to wages paid to common law employees
37Definitions
38Persons taken to be employers
39Persons taken to be employees
40Amounts taken to be wages
41Liability provisions
42Agreement to reduce or avoid liability to payroll tax
Division 9—Other
43Value of wages paid in kind
44GST excluded from wages
45Wages paid by group employers
46Wages paid by or to third parties
47Agreement etc. to reduce or avoid liability to payroll tax
Part 4—Exemptions
Division 1—Non-profit organisations
48Non-profit organisations
Division 2—Education and training
49Schools and educational services and training
50Community Development Employment Project
Division 3—Health care service providers
51Health care service providers
52Division not to limit other exemptions
Division 4—Parental leave
53Parental leave
Division 5—Volunteer firefighters and emergency service volunteers
55Volunteer firefighters
56Emergency service volunteers
57Limitation of exemption
Division 6—Local government
58Municipal councils
59Local government business entities
60Limitation on local government exemptions
Division 7—Other government and defence
61State Governors
62Defence personnel
63War Graves Commission
Division 8—Foreign government representatives and international agencies
64Consular and non-diplomatic representatives
65Trade commissioners
66Australian–American Fulbright Commission
Division 9—Services outside Australia
66AWages paid or payable for or in relation to services performed in other countries
Division 10—Miscellaneous
66BEmployment agents supplying their common law employees
Part 5—Grouping of employers
Division 1—Interpretation
67Definitions
68Grouping provisions to operate independently
Division 2—Business groups
69Constitution of groups
70Groups of corporations
71Groups arising from the use of common employees
72Groups of commonly controlled businesses
73Groups arising from tracing of interests in corporations
74Smaller groups subsumed by larger groups
Division 3—Business groups—tracing of interests in corporations
75Application
76Direct interest
77Indirect interest
78Aggregation of interests
Division 4—Miscellaneous
79Exclusion of persons from groups
80Designated group employers
81Joint and several liability
Part 6—Adjustments of tax
82Determination of correct amount of payroll tax
83Annual adjustment of payroll tax
84Adjustment of payroll tax when employer changes circumstances
85Special provision where wages fluctuate
Part 7—Registration and returns
86Registration
87Returns
Part 8—Collection and recovery of tax
Division 1—Agents and trustees generally
88Application
89Agents and trustees are answerable
90Returns by agent or trustee
91Liability to pay tax
92Indemnity for agent or trustee
Division 2—Special cases
93Tax not paid during lifetime
94Payment of tax by executors or administrators
95Assessment if no probate within 6 months of death
96Person in receipt or control of money for absentee
97Agent for absentee principal winding-up business
98Recovery of tax paid on behalf of another person
99Liquidator to give notice
Part 9—General
100Provisions specific to this jurisdiction
101Regulations
Part 10—Repeals, amendments and transitional provisions
Division 5—Transitional provisions
117Transitional provisions
Schedules
Schedule 1—Calculation of payroll tax liability
Schedule 2—Victoria specific provisions
Schedule 3—Transitional provisions
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Endnotes
1 General information
2 Table of Amendments
3 Explanatory details
Version No. 040
Payroll Tax Act 2007
No. 26 of 2007
Version incorporating amendments as at
1 July 2025
The Parliament of Victoria enacts:
PART 1—PRELIMINARY
1Purposes
The purposes of this Act are—
(a)to re-enact and modernise the law relating to payroll tax; and
(b)to harmonise payroll tax law with New South Wales; and
(c)to repeal the Pay-roll Tax Act 1971; and
(d)to amend the Taxation Administration Act 1997 and other Acts.
2Commencement
(1)This Act (except section 108) comes into operation on 1 July 2007.
(2)Section 108 comes into operation on the later of—
(a)1 July 2007;
(b)the day on which section 6.1.2 of the Education and Training Reform Act 2006 comes into operation.
3Definitions
(1)In this Act—
ABN means the ABN (Australian Business Number) for an entity within the meaning of the A New Tax System (Australian Business Number) Act 1999 of the Commonwealth;
agent includes—
(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 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;
Australia means the States of the Commonwealth and the Territories;
Australian jurisdiction means a State or a Territory;
bushfire relief regional employer means a regional employer whose principal place of business is located in a state of disaster area;
coastal waters of Victoria has the same meaning as coastal waters of the State has in relation to Victoria in the Coastal Waters (State Powers) Act 1980 of the Commonwealth;
company includes all bodies and associations (corporate and unincorporate) and partnerships;
corporate collective investment vehicle or CCIV has the same meaning as in the Corporations Act;
corporation has the same meaning as in section 9 of the Corporations Act;
corresponding law means a law in force in another State or a Territory relating to the imposition upon employers of a tax on wages paid or payable by them and the assessment and collection of that tax;
designated group employer means a member designated for a group in accordance with section 80;
director of a company includes a member of the governing body of the company;
domestic partner of a person means—
(a)a person who is in a registered domestic relationship with the person; or
(b)a person to whom the person is not married but with whom the person is living as a couple on a genuine domestic basis (irrespective of gender);
employer means a person who pays or is liable to pay wages and includes—
(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;
employment agency contract has the meaning given in section 37;
employment agent has the meaning given in section 37;
exempt wages mean wages that are declared by or under this Act to be exempt wages;
FBTA Act means the Fringe Benefits Tax Assessment Act 1986 of the Commonwealth;
financial year means each year commencing on 1 July;
fringe benefit has the same meaning as in the FBTA Act but does not include—
(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;
group has the meaning given in section 67;
GSThas the same meaning as it has in the A New Tax System (Goods and Services Tax) Act 1999 of the Commonwealth except that it includes notional GST of the kind for which payments may be made under Part 3 of the National Taxation Reform (Consequential Provisions) Act 2000 by a person that is a State entity within the meaning of that Act;
instrument includes a cheque, bill of exchange, promissory note, money order or a postal order issued by a post office;
interstate wages means wages that are taxable wages within the meaning of a corresponding law;
ITAA means the Income Tax Assessment Act 1997 of the Commonwealth;
liquidator means the person who, whether or not appointed as liquidator, is the person required by law to carry out the winding-up of a company;
month means the month of January, February, March, April, May, June, July, August, September, October, November and December;
option means an option or right, whether actual, prospective or contingent, of a person to acquire a share or to have a share transferred or allotted to the person;
paid, in relation to wages, includes provided, conferred and assigned and pay and payable have corresponding meanings;
payroll tax means tax imposed by section 6;
perform, in relation to services, includes render;
regional employee has the meaning given in section 3B;
regional employer has the meaning given in section 3A;
regional Victoria has the same meaning as it has in section 18(8) of the First Home Owner Grant and Home Buyer Schemes Act 2000;
registered business address means an address for service of notices under the A New Tax System (Australian Business Number) Act 1999 of the Commonwealth on an entity that has an ABN, as shown in the Australian Business Register kept under that Act;
return period, in relation to an employer, means a period relating to which that employer is required to lodge a return under this Act;
service provider, in relation to an employment agency contract—see section 37;
sharemeans a share in a company and includes a stapled security;
spouse of a person means a person to whom the person is married;
state of disaster area means—
(a)the municipal districts of the following municipal councils—
(i)Alpine Shire Council;
(ii)East Gippsland Shire Council;
(iii)Mansfield Shire Council;
(iv)Towong Shire Council;
(v)Wangaratta Rural City Council;
(vi)Wellington Shire Council; and
(b)the following alpine resorts within the meaning of the Alpine Resorts Act 1983—
(i)Falls Creek Alpine Resort;
(ii)Mount Buller Alpine Resort;
(iii)Mount Hotham Alpine Resort;
(iv)Mount Stirling Alpine Resort;
superannuation contribution has the meaning given in section 17(2);
taxable wages has the meaning given in section 10;
termination payment has the meaning given in section 27;
Territories means the Australian Capital Territory (including the Jervis Bay Territory) and the Northern Territory;
this jurisdiction means Victoria and the coastal waters of Victoria;
voting share has the same meaning as in section 9 of the Corporations Act;
wages has the meaning given in Part 3.
(2)For the purposes of the definition of domestic partner in subsection (1)—
(a)registered domestic relationship has the same meaning as in the Relationships Act 2008; and
(b)in determining whether persons who are not in a registered domestic relationship are domestic partners of each other, all the circumstances of their relationship are to be taken into account, including any one or more of the matters referred to in section 35(2) of the Relationships Act 2008 as may be relevant in a particular case.
3AMeaning of regional employer
(1)A regional employer is an employer who meets the requirements specified in subsection (2).
(2)For the purposes of subsection (1), the specified requirements are—
(a)at least 85% of the total taxable wages that the employer pays, or are payable by the employer, to the employer's employees during a month, are paid or payable to the employer's regional employees; and
(b)for a financial year, at least 85% of the total taxable wages that the employer pays, or are payable by the employer, to the employer's employees, are paid or payable to the employer's regional employees during that year (the annual rate reduction threshold).
(3)For the purposes of determining the annual rate reduction threshold, it is not necessary for the employer to meet the specified requirement under subsection (2)(a) in every month during the financial year.
* * * * *
3BMeaning of regional employee
A person is a regional employee in a month if—
(a)wages are paid or payable to the person in that month by an employer for or in relation to services performed by the person in Victoria (whether or not wages are also paid or payable to that person in that month for services performed elsewhere); and
(b)the services performed by the person in Victoria are performed mainly in regional Victoria.
4Taxation Administration Act 1997
This Act is to be read together with the Taxation Administration Act 1997 which provides for the administration and enforcement of this Act and other taxation laws.
5Act binds the Crown
(1)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.
(2)Nothing in this Act makes the Crown in any of its capacities liable to be prosecuted for an offence.
PART 2—IMPOSITION OF PAYROLL TAX
Division 1—Imposition of tax
6Imposition of payroll tax
Payroll tax is imposed on all taxable wages.
7Who is liable for payroll tax?
The employer by whom taxable wages are paid or payable is liable to pay payroll tax on the wages.
8Amount of payroll tax
The amount of payroll tax payable by an employer is to be ascertained in accordance with Schedules 1 and 2.
9When must payroll tax be paid?
(1)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 21 days after the end of the month of June in relation to taxable wages paid or payable in the month of June.
(2)However, if the 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 Commissioner by notice served on the person.
Division 2—Taxable wages
10What are taxable wages?
(1)For the purposes of this Act, taxable wages are wages that are taxable in this jurisdiction.
(2)However, exempt wages are not taxable wages.
11Wages that are taxable in this jurisdiction
(1)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.
Note
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.
(2)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.
(3)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.
Note
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.)
(4)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.
(5)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.
(6)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).
Note
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.
(7)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.
11AJurisdiction in which employee is based
(1)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.
(2)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.
(3)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.
(4)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.
(5)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).
(6)In this section, a corporate employee is a company that is taken to be an employee under section 34 or 39 or a company to whom a payment is made that is taken to be wages payable to an employee under section 42 or 47.
11BJurisdiction in which employer is based
(1)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).
(2)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.
(3)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.
(4)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.
(5)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.
(6)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.
11CPlace and date of payment of wages
(1)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.
(2)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).
(3)Wages are taken to be payable at the place at which they are paid, subject to this section.
(4)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.
(5)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.
Note
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.
Division 3—Other
12Payroll tax paid under corresponding applied law
(1)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.
(2)In this section—
Commonwealth Act means the Commonwealth Places (Mirror Taxes) Act 1998 of the Commonwealth;
Commonwealth place wages means wages that would be taxable wages within the meaning of the corresponding applied law if the corresponding applied law applied in relation to each place in this jurisdiction that is a Commonwealth place;
corresponding applied law means the provisions of the Payroll Tax Act 2007 that would apply in relation to each place in this jurisdiction that is a Commonwealth place, pursuant to section 6(2) of the Commonwealth Act, if those provisions were excluded provisions within the meaning of section 6(1) of the Commonwealth Act.
* * * * *
PART 3—WAGES
Division 1—General concept of wages
13What are wages?
(1)For the purposes of this Act, wages mean wages, remuneration, salary, commission, bonuses or allowances paid or payable to an employee, including—
(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.
(2)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.
(3)This Act applies in respect of wages referred to in subsections (1)(a) to (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).
Division 2—Fringe benefits
14Wages include fringe benefits
(1)For the purposes of this Act, wages include a fringe benefit.
(2)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).
15Value of wages comprising fringe benefits
(1)For the purposes of this Act, the value of wages comprising a fringe benefit is to be determined in accordance with the formula—
where—
TVis the value that would be the taxable value of the benefit as a fringe benefit for the purposes of the FBTA Act;
FBT rateis the rate of fringe benefits tax imposed by the FBTA Act that applies when the liability to payroll tax under this Act arises.
(2)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.
(3)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.
16Employer election regarding taxable value of fringe benefits
(1)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—1/12th 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.
(2)The amount determined in accordance with this subsection is to be determined in accordance with the formula—
where—
AFBAis the aggregate fringe benefits amount within the meaning of section 136 of the FBTA Act;
FBT rateis the rate of fringe benefits tax imposed by the FBTA Act that applies when the liability to payroll tax under this Act arises.
(3)An election under subsection (1) takes effect when it is notified to the Commissioner in the form approved by the Commissioner.
(4)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 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).
(5)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.
Division 3—Superannuation contributions
17Wages include superannuation contributions
(1)For the purposes of this Act, wages include a superannuation contribution.
(2)A superannuation contribution is a contribution paid or payable by an employer in respect of an employee—
(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.
(3)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.
(4)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.
(5)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.
(6)In this section—
employee includes any person to whom, by virtue of a paragraph of the definition of wages in section 13(1), an amount paid or payable in the circumstances referred to in that paragraph constitutes wages.
Division 4—Shares and options
18Inclusion of grant of shares and options as wages
(1)For the purposes of this Act, wages include the grant of a share or an option to an employee by an employer in respect of services performed by the employee if the share or option is an ESS interest (within the meaning of section 83A-10 of the ITAA) and is granted to the employee under an employee share scheme (within the meaning of that section).
Note
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.
(2)Any such wages are taken, for the purpose of the imposition of payroll tax, to be paid or payable on the relevant day.
(3)For the purposes of this Division, the relevant day is the day that the employer elects in accordance with this Division to treat as the day on which the wages are paid or payable.
(4)To avoid doubt, the grant of a share or option is valuable consideration for the purposes of section 46.
19Choice of relevant day
(1)The employer can elect to treat as the relevant day either the date on which the share or option is granted to the employee or the vesting date.
(2)A share or option is granted to a person if—
(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.
(2A)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.
(3)The vesting date in respect of a share is one of the following dates (whichever happens first)—
(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.
(4)The vesting date in respect of an option is one of the following dates (whichever happens first)—
(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.
20Deemed choice of relevant day in special cases
(1)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.
(2)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.
21Effect of rescission, cancellation of share or option
(1)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).
(2)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.
(3)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.
22Grant of share pursuant to exercise of 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 2007.
23Value of shares and options
(1)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).
(2)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.
(3)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.
(4)However, the Commissioner may determine the method by which the value of a share or 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.
(5)In determining the market value of a share or an option, anything that would prevent or restrict conversion of the share or option to money is to be disregarded.
(6)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.
(7)In this section—
Commonwealth income tax provisions means section 83A-315 of the ITAA and the regulations made for the purposes of that section.
Note
See Division 83A of the Income Tax Assessment Regulations 1997 of the Commonwealth for the relevant regulations.
24Inclusion of shares and options granted to directors as wages
(1)For the purposes of this Act, wages include the grant of a share or an option by a company to a director of the company who is not an employee of the company by way of remuneration for the appointment or services of the director.
(2)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.
(3)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.
(4)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).
Note
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 payable. See also section 11, which deems the wages to be paid or payable for services performed.
* * * * *
26Place where wages are payable
(1)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.
(2)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.
Note
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.
(3)In this section—
local company means—
(a)a company incorporated or taken to be incorporated under the Corporations Act 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.
Division 5—Termination payments
27Definitions
In this Division—
employment termination payment means—
(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;
termination payment means—
(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;
unused annual leave payment has the same meaning as in section 83-10 of the ITAA;
unused long service leave payment has the same meaning as in section 83-75 of the ITAA.
28Termination payments
For the purposes of this Act, wages include a termination payment.
Division 6—Allowances
29Motor vehicle allowances
(1)For the purposes of this Act, wages, in respect
of a financial year, do not include the exempt component of a motor vehicle allowance paid or payable in respect of that year.
(2)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 wages for the purposes of this Act.
(3)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 wages for the purposes of this Act.
(4)The exempt component of a motor vehicle allowance paid or payable in respect of a financial year is calculated in accordance with the formula—
E = K ´ R
where—
Eis the exempt component;
Kis the number of business kilometres travelled during the financial year;
Ris the exempt rate.
(5)The number of business kilometres travelled during the financial year ("K") is to be determined in accordance with the continuous recording method, or the averaging method, whichever method is selected and used by the employer in accordance with Part 5 of Schedule 1.
(6)The 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 Commissioner.
(7)For the purposes of this section, the exempt rate for the financial year concerned is—
(a)the rate of cents per kilometre determined under subsection 28-25(4) of the ITAA for the purposes of subsection (1) of that section in the financial year immediately preceding the financial year in which the allowance is paid or payable; or
(b)if no rate of cents per kilometre referred
to in paragraph (a) is prescribed, the rate prescribed by the regulations under this Act.
30Accommodation allowances
(1)For the purposes of this Act, wages do not include an accommodation allowance paid or payable to an employee in respect of a night's absence from the person's usual place of residence that does not exceed the exempt rate.
(2)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, wages include that allowance only to the extent that it exceeds the exempt rate.
(3)For the purposes of this section, the exempt rate for the financial year concerned is—
(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.
Division 7—Contractor provisions
31Definitions
In this Division—
contract includes an agreement, arrangement or undertaking, whether formal or informal and whether express or implied;
relevant contract has the meaning given in section 32;
re-supply of goods acquired from a person includes—
(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;
services includes results (whether goods or services) of work performed;
supply includes supply by way of sale, exchange, lease, hire or hire-purchase, and in relation to services includes the providing, granting or conferring of services.
32What is a relevant contract?
(1)In this Division, a relevant contract in relation to a financial year is a contract under which a person (the designated person) during that financial year, in the course of a business carried on by the designated person—
(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.
(2)However, a relevant contract does not include a contract of service or a contract under which a person (the designated person) during a financial year in the course of a business carried on by the designated person—
(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) to (iii) do not apply and the 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—
(i)services solely for or ancillary to the conveyance of goods by means of a vehicle provided by the person conveying them; or
(ii)services solely for or in relation to the procurement of persons desiring to be insured by the designated person; or
(iii)services for or in relation to the door‑to-door sale of goods solely for domestic purposes on behalf of the designated person.
(2A)Subsection (2)(a), (2)(b)(i), (2)(b)(iv) or (2)(d) does not apply to a contract under which services not referred to in that subsection are supplied in addition to services referred to in that subsection.
(2B)Subsection (2)(b)(ii) or (iii) does not apply to—
(a)a contract under which services not referred to in that subsection are supplied in addition to services referred to in that subsection; or
(b)a contract under which services referred to in that subsection are provided for a period exceeding a period referred to in that subsection.
(2C)Subsection (2)(c) does not apply to a contract under which work is performed in a manner other than a manner referred to in that subsection, in addition to work performed in a manner referred to in that subsection.
(2D)Subsection (2) does not apply if the Commissioner determines that the contract 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.
(3)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.
33Persons taken to be employers
(1)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.
(2)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.
34Persons taken to be employees
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.
35Amounts under relevant contracts taken to be wages
(1)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.
(2)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 Commissioner.
(3)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.
36Liability provisions
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.
Division 8—Employment agents
36ADivision not applicable to wages paid to common law employees
This Division does not apply in relation to wages that are exempt wages under section 66B and clause 19A of Schedule 2.
37Definitions
(1)For the purposes of this Act, an employment agency contract is a contract, whether formal or informal and whether express or implied, under which a person (an employment agent) procures the services of another person (a service provider) for a client of the employment agent.
(2)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.
(3)In this section—
contract includes agreement, arrangement and undertaking.
38Persons taken to be employers
For the purposes of this Act, the employment agent under an employment agency contract is taken to be an employer.
39Persons taken to be employees
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.
40Amounts taken to be wages
(1)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.
(2)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 Division 4 or 5 of that Part, section 50 or clause 16 or 16A of Schedule 2) had the service provider been paid by the client as an employee, if the client has given a declaration to that effect, in the form approved by the Commissioner, to the employment agent.
41Liability provisions
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.
42Agreement to reduce or avoid liability to payroll tax
(1)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 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.
(2)If the Commissioner makes a determination under subsection (1), the Commissioner must serve a notice of the determination on the person taken to be an employer for the purposes of this Act.
(3)The notice must set out the facts on which the Commissioner relies and the reasons for the determination.
(4)This section has effect in relation to agreements, transactions and arrangements made before, on or after the commencement of this section.
Division 9—Other
43Value of wages paid in kind
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.
44GST excluded from wages
(1)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.
(2)Subsection (1) does not apply in respect of the value of wages comprising a fringe benefit.
(3)In this section—
consideration has the same meaning as in the A New Tax System (Goods and Services Tax) Act 1999 of the Commonwealth;
relevant proportion, in relation to GST payable on a supply to which wages relate, means the proportion that the amount or value of the wages bears to the consideration for the supply to which the wages relate.
45Wages paid by group employers
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.
46Wages paid by or to third parties
(1)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.
(2)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.
(3)In this section, director of a company includes—
(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.
47Agreement etc. to reduce or avoid liability to payroll tax
(1)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 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.
(2)If the Commissioner makes a determination under subsection (1), the Commissioner must serve a notice to that effect on the person taken to be an employer for the purposes of this Act.
(3)The notice must set out the facts on which the Commissioner relies and the reasons for the determination.
(4)This section has effect in relation to agreements, transactions and arrangements made before, on or after the commencement of this section.
PART 4—EXEMPTIONS
Division 1—Non-profit organisations
48Non-profit organisations
(1)Wages are exempt wages if the Commissioner is satisfied that the wages are paid or payable—
(a)by any of the following—
(i)a religious institution; or
(ii)a public benevolent institution (but not including an instrumentality of the State); or
(iii)a non-profit organisation having as its whole 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); and
(b)to a person engaged exclusively in work
of a religious, charitable, benevolent, philanthropic or patriotic nature for the institution or non-profit organisation.
* * * * *
(3)For the purposes of subsection (1)(a)(iii), an educational company is a company—
(a)in which an educational institution has a controlling interest; and
(b)that provides, promotes or supports the educational services of that institution.
(4)For the purposes of subsection (3), an educational institution has a controlling interest in an educational company if—
(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.
(5)In this section—
educational institution means an entity that provides education above secondary level.
Division 2—Education and training
49Schools and educational services and training
Wages are exempt wages as provided for in Division 1 of Part 3 of Schedule 2.
50Community Development Employment Project
(1)Wages are exempt wages if they are paid or payable to an Aboriginal person who is employed under an employment project.
(2)An employment project is an employment project under the Community Development Employment Project funded by the Department of Employment and Workplace Relations of the Commonwealth or the Torres Strait Regional Authority.
Division 3—Health care service providers
51Health care service providers
(1)Subject to subsection (2), wages paid or payable by a health care service provider are exempt wages.
(2)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.
(3)For the purposes of this section, health care service provider has the meaning given in Division 2 of Part 3 of Schedule 2.
52Division not to limit other exemptions
(1)Nothing in this Division limits the application of any other Division of this Part.
(2)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.
Division 4—Parental leave
53Parental leave
Wages are exempt wages as provided for in Division 2A of Part 3 of Schedule 2.
Division 5—Volunteer firefighters and emergency service volunteers
55Volunteer firefighters
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 officer or member of a brigade within the meaning of the Country Fire Authority Act 1958.
56Emergency service volunteers
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 activities within the meaning of the Emergency Management Act 1986 as a volunteer emergency worker within the meaning of that Act.
57Limitation of exemption
An exemption under this Division does not apply to wages paid or payable as recreation leave, annual leave, long service leave or sick leave.
Division 6—Local government
58Municipal councils
Subject to section 60, wages are exempt wages if they are paid or payable by—
(a)a municipal council; or
(b)a union or partnership of which all the members are municipal councils.
59Local government business entities
(1)Subject to section 60, wages are exempt wages if they are paid or payable—
(a)by a wholly-owned subsidiary (within the meaning of the Corporations Act) of a municipal council; and
(b)to a person for or in connection with an activity that is conducted for the council under a written arrangement between the subsidiary and the council.
(2)The written arrangement referred to in subsection (1)(b) must include a provision for the payment by the subsidiary to the council of an amount approximately equivalent to the amount of tax that would be payable by the subsidiary under this Act but for the exemption.
60Limitation on local government exemptions
(1)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).
(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.
Division 7—Other government and defence
61State Governors
Wages paid or payable by the Governor of a State are exempt wages.
62Defence personnel
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.
63War Graves Commission
Wages paid or payable by the Commonwealth War Graves Commission are exempt wages.
Division 8—Foreign government representatives and international agencies
64Consular and non-diplomatic representatives
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.
65Trade commissioners
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.
66Australian–American Fulbright Commission
Wages paid or payable by the Australian–American Fulbright Commission are exempt wages.
Division 9—Services outside Australia
66AWages paid or payable for or in relation to services performed in other countries
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.
Division 10—Miscellaneous
66BEmployment agents supplying their common law employees
Wages are exempt wages as provided for in clause 19A of Schedule 2.
PART 5—GROUPING OF EMPLOYERS
Division 1—Interpretation
67Definitions
In this Part—
business includes—
(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 for or 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;
group means a group constituted under this Part, but does not include any member of the group in respect of whom a determination under Division 4 is in force.
68Grouping provisions to operate independently
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.
Division 2—Business groups
69Constitution of groups
A group is constituted by all the persons or bodies forming a group that is not a part of any larger group.
70Groups of corporations
(1)Corporations constitute a group if they are related bodies corporate within the meaning of the Corporations Act.
* * * * *
* * * * *
71Groups arising from the use of common employees
(1)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.
(2)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.
(3)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.
(2)In this clause—
ambulance service means an ambulance service created under section 23 of the Ambulance Services Act 1986;
* * * * *
denominational hospital means a hospital listed in Schedule 2 to the Health Services Act 1988;
multi-purpose service means—
(a)a body referred to in section 115V(2) of the Health Services Act 1988; or
(b)a body declared under Part 4A of that Act to be a multi-purpose service;
non-profit hospital means a hospital carried on by a body corporate, society or association (otherwise than for the purpose of profit or gain to the individual members of the body corporate, society or association);
public health service means a public health service listed in Schedule 5 to the Health Services Act 1988;
public hospital means a hospital listed in Schedule 1 to the Health Services Act 1988;
registered community health centre means a community health centre registered under Division 6 of Part 3 of the Health Services Act 1988.
Division 2A—Parental leave
17AMeaning of primary caregiver and secondary caregiver
(1)For the purposes of this Division—
(a)the primary caregiver for a child is—
(i)in the case of a child yet to be born, the person who is pregnant with the child; or
(ii)otherwise, the parent of the child who has the principal role of providing care and attention to the child; and
(b)the secondary caregiver for a child is a spouse, or domestic partner, of a primary caregiver for the child.
(2)For the purposes of this Division there can only be one primary caregiver for a child at any one time.
17BParental leave
(1)Wages are exempt wages if they are paid or payable to an employee in respect of leave for the employee's role as primary caregiver or secondary caregiver for a child (other than sick leave, recreation leave, annual leave or any similar leave).
(2)It is immaterial whether the leave is taken before or after the child is born or, in the case of adoption, before or after the child is adopted.
(3)The exemption is limited to wages paid or payable in respect of a maximum of 14 weeks leave in relation to any one child.
(4)In subclause (3)—
(a)a reference to 14 weeks 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.
Example
For a part-time employee, the exemption may apply to wages paid or payable for leave that extends to 28 weeks at half of the part-time rate of pay that would normally apply to the employee.
(5)The exemption does not apply to any part of wages paid or payable in respect of leave for the employee's role as primary caregiver or secondary caregiver that comprises a fringe benefit.
17CAdministrative requirements for exemption
(1)An employer wishing to claim an exemption under this Division for an employee in respect of leave for the employee's role as a primary caregiver must obtain and keep a statutory declaration by the employee stating—
(a)that the employee is a primary caregiver for a child; and
(b)that the employee—
(i)is pregnant with the child; or
(ii)was pregnant with the child and the date of birth of the child; or
(iii)is the parent of the child who has the principal role of providing care and attention to the child.
(2)An employer wishing to claim an exemption under this Division for an employee in respect of leave for the employee's role as a secondary caregiver must obtain and keep a statutory declaration by the employee stating—
(a)that the employee is a secondary caregiver for a child; and
(b)that the employee is a spouse, or domestic partner, of the person who is the primary caregiver for the child.
Note
Section 55 of the Taxation Administration Act 1997 requires these records to be kept for at least 5 years unless the Commissioner of State Revenue authorises earlier destruction.
Division 3—Local government
18Limitation on local government exemptions
For the purposes of section 60(2)(e), the following activities are specified—
(a)quarrying;
(b)conduct of ice works;
(c)cement pipe manufacture;
(d)operation of port and harbour facilities;
(e)provision of public transport facilities.
Division 4—Other exemptions
19Specialized agencies
(1)Wages paid or payable by a specialized agency are exempt wages.
(2)A specialized agency has the same meaning as in section 1 of the Convention on the Privileges and Immunities of the Specialized Agencies, which was adopted by the General Assembly of the United Nations on the 21 November 1947.
19AEmployment agents supplying their common law employees
(1)Wages are exempt wages if—
(a)they are paid or payable for services that were performed under an employment agency contract by a service provider for a client of an employment agent; and
(b)the service provider performed the services as an employee of the employment agent; and
(c)the wages would be exempt wages under Part 4 (other than section 50 or Division 4 or 5 of that Part), or Part 3 of this Schedule (other than clause 16 or 16A), had the service provider performed the services as an employee of the client; and
(d)the client has given a declaration to the effect of paragraph (c), in the form approved by the Commissioner, to the employment agent.
(2)Wages are also exempt wages if—
(a)they are paid or payable for services that were performed in the prescribed circumstances by a prescribed person or a person who is member of a class that is prescribed; and
(b)the wages would be exempt wages under Part 4 (other than section 50 or Division 4 or 5 of that Part), or Part 3 of this Schedule (other than clause 16 or 16A), had the person referred to in paragraph (a) performed the services as an employee of the person for whom they were performed; and
(c)the person for whom the services are performed has given a declaration to the effect of paragraph (b), in the form approved by the Commissioner, to a prescribed entity or an entity that is of a class that is prescribed.
(3)A reference in this clause to an employee does not include a reference to a person who is an employee only because the person is taken to be an employee by Division 8 of Part 3 or any other provision of this Act.
19BGP medical businesses
(1)GP medical business wages paid or payable by a relevant person during a period are exempt wages to the extent that the GP medical business wages are paid or payable for or in relation to the performance of fully‑funded items of GP work.
(2)For the purposes of subsection (1), the amount of GP medical business wages paid or payable by the relevant person during a period that are exempt wages is determined by the following formula—
where—
Eis the amount of exempt wages for the period;
Ais the total amount of GP medical business wages paid or payable by the relevant person during the period for or in relation to the performance of GP work;
Bis the total amount paid to the relevant person, or to any other person associated with the GP medical business, during the period for fully‑funded items of GP work (excluding amounts paid for consumable items);
Cis the total amount paid to the relevant person, or to any other person associated with the GP medical business, during the period for items of GP work (excluding amounts paid for consumable items).
(3)In this clause—
bulk-billed has the same meaning as in clause 7.1.1 of Part 7 of Schedule 1 to the Health Insurance (General Medical Services Table) Regulations 2021 of the Commonwealth;
fully-funded, in relation to an item of GP work, means that the amount paid or payable for the item of GP work to a relevant person, or to any other person associated with a GP medical business, is no more than the total of—
(a)any medicare benefit paid or payable in respect of the item of GP work; and
(b)any amount that has been claimed or may be claimed, in addition to a medicare benefit referred to in paragraph (a), as an incentive for a patient of the GP medical business being bulk-billed; and
(c)the reasonable cost of any consumable item used to administer a vaccination as part of the item of GP work; and
(d)any amount paid or payable in respect of the item of GP work for the purposes of, or in connection with, treatment under Part V of the Veterans' Entitlements Act 1986 of the Commonwealth; and
(e)any amount paid or payable in respect of the item of GP work as compensation under the Transport Accident Act 1986, the Workplace Injury Rehabilitation and Compensation Act 2013 or the Accident Compensation Act 1985;
GP medical business means a business in the course of which the services of either of the following are supplied other than at a hospital—
(a)one or more relevant GPs;
(b)one or more relevant prescribed medical practitioners;
GP medical business wages means amounts paid or payable by a person for or in relation to the performance of work relating to—
(a)a GP medical business; or
(b)a contract under which a person carries on a GP medical business;
GP work means—
(a)work by a relevant GP; or
(b)work by a relevant prescribed medical practitioner that is of a kind ordinarily performed by a relevant GP;
medicare benefit has the same meaning as in section 3(1) of the Health Insurance Act 1973 of the Commonwealth;
prescribed medical practitioner has the same meaning as in clause 7.1.1 of Part 7 of Schedule 1 to the Health Insurance (General Medical Services Table) Regulations 2021 of the Commonwealth;
relevant GP means—
(a)a medical practitioner registered under the Health Practitioner Regulation National Law in the specialty of general practice; or
(b)a medical practitioner specified in clause 1.1.3 of the Health Insurance (General Medical Services Table) Regulations 2021 of the Commonwealth;
relevant person means a person carrying on a GP medical business;
relevant prescribed medical practitioner means a prescribed medical practitioner who predominantly performs work of a kind ordinarily performed by a relevant GP.
Part 4—Returns, reassessments and refunds
20Further returns
The Commissioner may, by notice in writing, call upon any employer or person to lodge, within the time specified in the notice, a return or further or fuller return as the Commissioner requires, whether on the person's own behalf or as an agent or trustee.
21Notification of change in circumstances
An employer must give the Commissioner written notice within 14 days—
(a)after any change in the employer's—
(i)name; or
(ii)trading name; or
(iii)location of head office; or
(iv)postal address; or
(v)members, if the employer is a partnership; or
(b)after the employer ceases to—
(i)pay wages as referred to in section 86(1)(a); or
(ii)be a member of a group referred to in section 86(1)(b); or
(c)after the employer becomes a member of a group referred to in section 86(1)(b).
Penalty:20 penalty units.
Note
Section 130A of the Taxation Administration Act 1997 applies to an offence against this clause.
21AReassessment of payroll tax liability—underpayment of wages
The Commissioner may make a reassessment of an employer's payroll tax liability in respect of a financial year, being a reassessment more than 5 years after the initial assessment for that financial year, if the Commissioner is satisfied that there was an underpayment of wages by the employer in respect of that financial year.
Note
Section 9(3)(c) of the Taxation Administration Act 1997 allows a reassessment to be made more than 5 years after the initial assessment if this is authorised by a taxation law.
22Time limit for refund applications
An application for a refund due under section 83 must be made before the end of the financial year next following the financial year in respect of which the refund is due.
Part 5—General
23Disregarding cents
If, for the purposes of this Act, it is necessary—
(a)to calculate the proportion that one amount bears to another amount; or
(b)to calculate an amount in accordance with a formula—
and, but for this clause, one or more of those amounts or an amount included in the formula would be amounts of dollars and cents—the cents are to be disregarded.
24Emergency tax relief
The amendments made to this Act by Part 4 of the State Taxation Acts Amendment (Relief Measures) Act 2020 are legislated emergency tax relief for the purposes of Part 9A of the Taxation Administration Act 1997.
SCHEDULE 3—TRANSITIONAL PROVISIONS
Section 117
1Definition
In this Schedule—
old Act means the Pay-roll Tax Act 1971 as in force immediately before its repeal.
Note
The Pay-roll Tax Act 1971 is repealed by section 102 of this Act, which comes into operation on 1 July 2007.
2Savings and transitional regulations
(1)The regulations may contain provisions of a savings and transitional nature consequent on the enactment of this Act.
(2)Any such provision may, if the regulations so provide, take effect from the date of assent to the Act concerned or a later date.
(3)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.
3Application of Interpretation of Legislation Act 1984
Except where the contrary intention appears, this Schedule does not affect or take away from the Interpretation of Legislation Act 1984.
4Continuation of old Act and regulations
If a provision of the old Act continues to apply by force of this Schedule, the following provisions also continue to apply in relation to that provision—
(a)any other provision of the old Act necessary to give effect to that continued provision;
(b)any regulation made under the old Act for the purposes of that continued provision.
5Application of this Act and old Act
(1)This Act applies to payroll tax on taxable wages that are paid or payable on or after 1 July 2007.
(2)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.
(3)The following enactments, as in force immediately before 1 July 2007, continue to apply on and after that day in respect of any matter to which the old Act continues to apply on and after that day—
(a)Taxation Administration Act 1997 and regulations made under that Act;
(b)Taxation (Reciprocal Powers) Act 1987;
(c)Victorian Civil and Administrative Tribunal Act 1998 and regulations and rules made under that Act.
6Fringe benefits
(1)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 day for the purposes of this Act as if it were an election made by the employer under section 16(1) of this Act.
(2)If an employer is a prescribed sporting club, a reference in section 16(1) to the amount determined in accordance with subsection (2) in relation to that employer is taken to be a reference to the sum of the type 1 aggregate fringe benefits amount and the type 2 aggregate fringe benefits amount (within the meaning of the FBTA Act) in relation to that employer.
(3)In this clause—
competitive sporting activity includes the playing of a sport, but does not include—
(a)the umpiring or refereeing of a sporting activity; or
(b)the administration of a sporting activity; or
(c)the non-competitive practice of a sport;
prescribed sporting club means—
(a)a prescribed sporting club referred to in the Schedule to the Pay-roll Tax (Prescribed Sporting Club) Regulations 2001 as in force immediately before 1 July 2007 (other than the body referred to in item 1 in that Schedule); or
(b)North Melbourne Kangaroos Limited A.C.N. 065 251 489; or
(c)a body prescribed by the regulations, being an association, club or other body—
(i)an object of which is to participate in, facilitate or promote a sporting activity; and
(ii)that employs persons who play for the body in a competitive sporting activity; and
(iii)that pays more than 50% of its total wages in a financial year to persons referred to in subparagraph (ii) in respect of services performed by those players being the playing of a sport.
(4)Subclauses (2) and (3) and this subclause are repealed on 1 July 2008.
7Superannuation contributions relating to pre-1 July 1997 service
(1)Despite anything in section 11 or 17, wages do not include a superannuation contribution paid or payable in respect of services performed by an employee before 1 July 1997.
(2)A superannuation contribution that is alleged by an employer to be paid in respect of services performed by an employee before 1 July 1997 must be evidenced to the satisfaction of the Commissioner in the employer's records for payroll tax purposes.
(3)In particular, the employer's records must show the manner of calculation of the contribution and any actuarial basis for it.
(4)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.
(5)If records are not kept as required by this clause, the Commissioner is entitled to assume that a payment of money by an employer as a superannuation contribution on or after 1 July 1997 is an amount payable in respect of services performed by an employee on or after that day.
8Superannuation contributions not readily related to particular employees
For the purposes of an assessment of payroll tax, the 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;
(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.
9Employment agents
A declaration under section 5(3) 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.
10Exemption continues for certain schools
For the purposes of Division 1 of Part 3 of Schedule 2, a school includes—
(a)a school or college that—
(i)is carried on by a body corporate, society or association for no profit or gain to the individual members of the body corporate, society or association and is not carried on by or on behalf of the State; and
(ii)provides education at or below the secondary level of education and to students, the majority of whom are aged under 19 years of age; and
(iii)was in existence as such a college before 27 May 1997; and
(b)a school or college within the meaning of section 10(1)(da) of the Pay-roll Tax Act 1971 as in force immediately before
the commencement of section 19(a) of the State Taxation Legislation (Further Amendment) Act 2002.
11Approved training schemes
(1)A notice in force under section 10(1)(k)(ii) of the old Act immediately before 1 July 2007 remains in force on and after that day for the purposes of clause 16 of Schedule 2 to this Act as if it were a notice published under clause 16(2) of that Schedule.
(2)A notice in force under clause 16(2) of Schedule 2 immediately before the commencement of section 108 of this Act remains in force on and after that commencement as if it had been made under that clause as amended by that section 108.
12Exemption continues for public hospitals
For the purposes of Division 2 of Part 3 of Schedule 2, a public hospital includes a public hospital within the meaning of section 10(1)(bc) of the Pay-roll Tax Act 1971 as in force immediately before the commencement of section 14(1) of the State Taxation Legislation (Miscellaneous Amendments) Act 2006.
13Registration of employers
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.
14Designated group employers
A member of a group who was the nominated or appointed member for the group under section 9A(4) of the old Act immediately before 1 July 2007 is taken, on and after that day, to be the designated group employer for the group as if the member had been designated under section 80 of this Act.
15State Taxation Acts Amendment Act 2008
Schedule 1, as amended by section 24 of the State Taxation Acts Amendment Act 2008, applies to the financial year commencing on 1 July 2007 and any subsequent financial year.
16Application of amendments
(1)The amendments made to this Act by the State Taxation Acts Further Amendment Act 2009 apply in respect of taxable wages that are paid or payable on or after 1 July 2009.
(2)The amendments made to this Act by the State Taxation Acts Further Amendment Act 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).
(3)However, section 9 continues to apply in respect of an expired month as if the amendments made to this Act by the State Taxation Acts Further Amendment Act 2009 had not been made.
(4)In this clause, an expired month is a month occurring after June 2009 that ended before the date on which the State Taxation Acts Further Amendment Act 2009 received the Royal Assent.
17State Taxation Acts Amendment Act 2011
(1)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 Taxation Acts Amendment Act 2011 been in force, is taken to have been validly done or omitted.
Note
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.
(2)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.
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.
(3)The assessment amendments apply in respect of any such share or option.
(4)Accordingly, the vesting date and the value of the share or option are to be determined in accordance with the assessment amendments.
(5)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 subclause (1)).
(6)In this clause—
assessment amendments means the amendments made by the State Taxation Acts Amendment Act 2011;
new section 18 means section 18 as amended by the State Taxation Acts Amendment Act 2011;
old section 18 means section 18 as in force immediately before 1 July 2011;
relevant day has the same meaning as it has in section 18(3).
18State Tax Laws Amendment (Budget and Other Measures) Act 2013
(1)Section 32, as amended by section 44 of the State Tax Laws Amendment (Budget and Other Measures) Act 2013, applies in respect of work performed on or after 1 July 2013 irrespective of when amounts are paid or become payable in respect of the work.
(2)Section 32 as in force immediately before the commencement of section 44 of the State Tax Laws Amendment (Budget and Other Measures) Act 2013 continues to apply in respect of work performed before 1 July 2013 irrespective of when amounts are paid or become payable in respect of the work.
19State Taxation Acts Further Amendment Act 2015
(1)A notice to which clause 11 of this Schedule applies that is in force immediately before the commencement day is taken, on that day, to be a notice under clause 13B of Schedule 2.
(2)A notice under clause 16(2) of Schedule 2 that is in force immediately before the commencement day is taken, on that day, to be a notice under clause 13B of that Schedule.
(3)A person who was a new entrant within the meaning of clause 13 of Schedule 2 as in force immediately before the commencement day and whose wages were exempt wages under clause 16 of Schedule 2 as in force immediately before that day is taken, on that day, to be a new entrant within the meaning of clause 13A of Schedule 2.
(4)In this clause—
commencement day means the day on which Part 3 of the State Taxation Acts Further Amendment Act 2015 comes into operation.
20State Taxation Acts Amendment Act 2019
(1)The exemption under Division 2A of Part 3 of Schedule 2 does not apply to wages paid to an employee on or after 1 July 2019 in respect of any period of leave taken by the employee before that date.
(2)The exemption under Division 4 of Part 4 continues to apply despite its repeal to wages paid to an employee on or after 1 July 2019 in respect of any period of leave taken by the employee before that date.
21State Taxation and Mental Health Acts Amendment Act 2021—determination of mental health and wellbeing surcharge between 1 January 2022 and 30 June 2022
(1)For the purposes of calculating the mental health and wellbeing surcharge in relation to the 6-month period beginning on 1 January 2022 and ending on 30 June 2022, Schedules 1 and 2 apply as if—
(a)a reference to a financial year were a reference to that 6-month period; and
(b)a reference to $10 million were a reference to $5 million; and
(c)a reference to $100 million were a reference to $50 million.
(2)In this clause—
mental health and wellbeing surcharge has the meaning given by clause 1 of Schedule 1.
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ENDNOTES
1 General information
See for Victorian Bills, Acts and current Versions of legislation and up-to-date legislative information.
Minister's second reading speech—
Legislative Assembly: 23 May 2007
Legislative Council: 7 June 2007
The long title for the Bill for this Act was "A Bill for an Act to re-enact and modernise the law relating to payroll tax, to harmonise payroll tax law with New South Wales, to repeal the Pay-roll Tax Act 1971, to amend the Taxation Administration Act 1997 and other Acts and for other purposes."
The Payroll Tax Act 2007 was assented to on 26 June 2007 and came into operation as follows:
Sections 1–107, 109–117 and Schedules 1–3 on 1 July 2007: section 2(1); section 108 on 1 July 2007: section 2(2)(b).
INTERPRETATION OF LEGISLATION ACT 1984 (ILA)
Style changes
Section 54A of the ILA authorises the making of the style changes set out in Schedule 1 to that Act.
References to ILA s. 39B
Sidenotes which cite ILA s. 39B refer to section 39B of the ILA which provides that where an undivided section or clause of a Schedule is amended by the insertion of one or more subsections or subclauses, the original section or clause becomes subsection or subclause (1) and is amended by the insertion of the expression "(1)" at the beginning of the original section or clause.
Interpretation
As from 1 January 2001, amendments to section 36 of the ILA have the following effects:
• Headings
All headings included in an Act which is passed on or after 1 January 2001 form part of that Act. Any heading inserted in an Act which was passed before 1 January 2001, by an Act passed on or after 1 January 2001, forms part of that Act. This includes headings to Parts, Divisions or Subdivisions in a Schedule; sections; clauses; items; tables; columns; examples; diagrams; notes or forms. See section 36(1A)(2A).
• Examples, diagrams or notes
All examples, diagrams or notes included in an Act which is passed on or after 1 January 2001 form part of that Act. Any examples, diagrams or notes inserted in an Act which was passed before 1 January 2001, by an Act passed on or after 1 January 2001, form part of that Act. See section 36(3A).
• Punctuation
All punctuation included in an Act which is passed on or after 1 January 2001 forms part of that Act. Any punctuation inserted in an Act which was passed before 1 January 2001, by an Act passed on or after 1 January 2001, forms part of that Act. See section 36(3B).
• Provision numbers
All provision numbers included in an Act form part of that Act, whether inserted in the Act before, on or after 1 January 2001. Provision numbers include section numbers, subsection numbers, paragraphs and subparagraphs. See section 36(3C).
• Location of "legislative items"
A "legislative item" is a penalty, an example or a note. As from 13 October 2004, a legislative item relating to a provision of an Act is taken to be at the foot of that provision even if it is preceded or followed by another legislative item that relates to that provision. For example, if a penalty at the foot of a provision is followed by a note, both of these legislative items will be regarded as being at the foot of that provision. See section 36B.
• Other material
Any explanatory memorandum, table of provisions, endnotes, index and other material printed after the Endnotes does not form part of an Act.
See section 36(3)(3D)(3E).
2 Table of Amendments
This publication incorporates amendments made to the Payroll Tax Act 2007 by Acts and subordinate instruments.
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Payroll Tax Act 2007, No. 26/2007
Assent Date: 26.6.07 Commencement Date: S. 108 on 1.7.07: s. 2(2) Current State: This information relates only to the provision/s amending the Payroll Tax Act 2007
Relationships Act 2008, No. 12/2008
Assent Date: 15.4.08 Commencement Date: S. 73(1)(Sch. 1 item 45) on 1.12.08: s. 2(2) Current State: This information relates only to the provision/s amending the Payroll Tax Act 2007
State Taxation Acts Amendment Act 2008, No. 31/2008
Assent Date: 17.6.08 Commencement Date: Ss 24–27 on 18.6.08: s. 2(1); ss 20–23 on 1.7.08: s. 2(3) Current State: This information relates only to the provision/s amending the Payroll Tax Act 2007
Health Services Legislation Amendment Act 2008, No. 79/2008
Assent Date: 11.12.08 Commencement Date: S. 20 on 31.3.09: Government Gazette 19.2.09 p. 328 Current State: This information relates only to the provision/s amending the Payroll Tax Act 2007
Relationships Amendment (Caring Relationships) Act 2009, No. 4/2009
Assent Date: 10.2.09 Commencement Date: S. 37(Sch. 1 item 19) on 1.12.09: s. 2(2) Current State: This information relates only to the provision/s amending the Payroll Tax Act 2007
State Taxation Acts Further Amendment Act 2009, No. 83/2009
Assent Date: 8.12.09 Commencement Date: Ss 15–22 on 1.7.09: s. 2(5) Current State: This information relates only to the provision/s amending the Payroll Tax Act 2007
State Taxation Acts Amendment Act 2010, No. 36/2010
Assent Date: 15.6.10 Commencement Date: S. 13 on 1.7.10: s. 2(2) Current State: This information relates only to the provision/s amending the Payroll Tax Act 2007
State Taxation Acts Amendment Act 2011, No. 28/2011
Assent Date: 21.6.11 Commencement Date: Ss 33–39 on 1.7.11: s. 2(3) Current State: This information relates only to the provision/s amending the Payroll Tax Act 2007
Statute Law Revision Act 2011, No. 29/2011
Assent Date: 21.6.11 Commencement Date: S. 3(Sch. 1 item 66) on 22.6.11: s. 2(1) Current State: This information relates only to the provision/s amending the Payroll Tax Act 2007
State Taxation Acts Further Amendment Act 2011, No. 69/2011
Assent Date: 29.11.11 Commencement Date: Ss 3, 4 on 1.7.12: s. 2(2) Current State: This information relates only to the provision/s amending the Payroll Tax Act 2007
Statute Law Amendment (Directors' Liability) Act 2013, No. 13/2013
Assent Date: 13.3.13 Commencement Date: S. 57 on 14.3.13: s. 2 Current State: This information relates only to the provision/s amending the Payroll Tax Act 2007
State Tax Laws Amendment (Budget and Other Measures) Act 2013, No. 41/2013
Assent Date: 28.6.13 Commencement Date: Ss 44, 45 on 1.7.13: s. 2(4) Current State: This information relates only to the provision/s amending the Payroll Tax Act 2007
Mental Health Act 2014, No. 26/2014
Assent Date: 8.4.14 Commencement Date: S. 455(Sch. item 22) on 1.7.14: s. 2(1) Current State: This information relates only to the provision/s amending the Payroll Tax Act 2007
Building a Better Victoria (State Tax and Other Legislation Amendment) Act 2014, No. 40/2014
Assent Date: 17.6.14 Commencement Date: S. 29 on 18.6.14: s. 2(1) Current State: This information relates only to the provision/s amending the Payroll Tax Act 2007
State Taxation Acts Further Amendment Act 2015, No. 67/2015 (as amended by No. 40/2016)
Assent Date: 1.12.15 Commencement Date: Ss 4–7 on 1.7.16: s. 2(5) Current State: This information relates only to the provision/s amending the Payroll Tax Act 2007
State Taxation and Other Acts Amendment Act 2016, No. 40/2016
Assent Date: 28.6.16 Commencement Date: Ss 32–43 on 1.7.16: s. 2(5) Current State: This information relates only to the provision/s amending the Payroll Tax Act 2007
State Taxation Acts Further Amendment Act 2016, No. 66/2016
Assent Date: 15.11.16 Commencement Date: S. 6 on 1.7.16: s. 2(3); s. 7 on 16.11.16: s. 2(1) Current State: This information relates only to the provision/s amending the Payroll Tax Act 2007
State Taxation Acts Amendment Act 2017, No. 28/2017
Assent Date: 27.6.17 Commencement Date: Ss 68–78 on 28.6.17: s. 2(2) Current State: This information relates only to the provision/s amending the Payroll Tax Act 2007
State Taxation Acts Further Amendment Act 2017, No. 67/2017
Assent Date: 19.12.17 Commencement Date: S. 26 on 1.7.18: s. 2(3) Current State: This information relates only to the provision/s amending the Payroll Tax Act 2007
State Taxation Acts Amendment Act 2018, No. 22/2018
Assent Date: 13.6.18 Commencement Date: Ss 20–22 on 1.7.18: s. 2(3) Current State: This information relates only to the provision/s amending the Payroll Tax Act 2007
State Taxation Acts Amendment Act 2019, No. 17/2019
Assent Date: 18.6.19 Commencement Date: Ss 47–55 on 1.7.19: s. 2(2) Current State: This information relates only to the provision/s amending the Payroll Tax Act 2007
State Taxation Acts Amendment (Relief Measures) Act 2020, No. 14/2020
Assent Date: 28.4.20 Commencement Date: Ss 7–10 on 29.4.20: s. 2 Current State: This information relates only to the provision/s amending the Payroll Tax Act 2007
State Taxation and Mental Health Acts Amendment Act 2021, No. 22/2021 (as amended by No. 52/2021)
Assent Date: 16.6.21 Commencement Date: Ss 39–43 on 1.7.19: s. 2(2); ss 21, 44–52 on 1.7.21: s. 2(1); ss 53–69 on 1.1.22: s. 2(3) Current State: This information relates only to the provision/s amending the Payroll Tax Act 2007
State Taxation and Treasury Legislation Amendment Act 2022, No. 23/2022
Assent Date: 15.6.22 Commencement Date: Ss 27–30 on 16.6.22: s. 2(1) Current State: This information relates only to the provision/s amending the Payroll Tax Act 2007
Mental Health and Wellbeing Act 2022, No. 39/2022
Assent Date: 6.9.22 Commencement Date: S. 852 on 1.9.23: s. 2(2) Current State: This information relates only to the provision/s amending the Payroll Tax Act 2007
State Taxation Acts Amendment Act 2023, No. 18/2023
Assent Date: 27.6.23 Commencement Date: S. 58 on 1.7.22: s. 2(2); ss 56, 57, 83 on 28.6.23: s. 2(3); ss 59–72 on 1.7.23: s. 2(4); ss 73–82 on 1.7.24: s. 2(5) Current State: This information relates only to the provision/s amending the Payroll Tax Act 2007
State Taxation Amendment Act 2024, No. 22/2024
Assent Date: 4.6.24 Commencement Date: Ss 15–17 on 1.7.24: s. 2(4) Current State: This information relates only to the provision/s amending the Payroll Tax Act 2007
State Taxation Further Amendment Act 2024, No. 50/2024
Assent Date: 3.12.24 Commencement Date: Ss 44, 45 on 4.12.24: s. 2(1); s. 43 on 1.7.25: s. 2(3) Current State: This information relates only to the provision/s amending the Payroll Tax Act 2007
State Taxation Acts Amendment Act 2025, No. 24/2025
Assent Date: 24.6.25 Commencement Date: Ss 26–28 on 1.7.25: s. 2(2) Current State: This information relates only to the provision/s amending the Payroll Tax Act 2007
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3 Explanatory details
No entries at date of publication.
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