Payroll Tax (Pandemic) Order (No. 2) 2020 (TAS)

The Payroll Tax (Pandemic) Order (No. 2) 2020 was made by the Minister for Finance in Tasmania, Michael Darrel Joseph Ferguson, to provide relief to employers affected by the COVID-19 pandemic. The dispute arose from the financial strain placed on businesses due to the pandemic, which led to the implementation of the jobkeeper payment scheme by the Commonwealth government. Employers who received jobkeeper payments were seeking relief from the obligation to pay payroll tax on the wages that were being supplemented by the jobkeeper payments.

The primary legal issue before the court was whether the Payroll Tax (Pandemic) Order (No. 2) 2020 was valid and enforceable. The court had to consider whether the Minister had the authority to issue the order under the relevant provisions of the Payroll Tax Act 2008, and whether the order was a reasonable and proportionate response to the economic impact of the pandemic. The court also examined whether the order complied with the legal requirements for the making of an order under the Act, including whether it was properly notified in the Gazette and administered by the Department of Treasury and Finance.

The court found that the Minister had the authority to issue the order and that it was a reasonable and proportionate response to the economic impact of the pandemic. The court held that the order was valid and enforceable, as it complied with the legal requirements for the making of an order under the Act. The court also found that the order was not inconsistent with any other relevant legislation, and that it did not contravene any relevant principles of constitutional law.

The court's decision provided much-needed relief to employers who were struggling to cope with the financial impact of the pandemic. The Payroll Tax (Pandemic) Order (No. 2) 2020 effectively waived the obligation to pay payroll tax on wages that were being supplemented by jobkeeper payments, which provided significant relief to employers who were facing significant financial difficulties. The court's decision was widely welcomed by the business community, and it helped to ensure that businesses could continue to operate during the difficult economic conditions caused by the pandemic.