Revenue Laws Amendment (Taxation) Act 2001 (WA)

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Western Australia

Revenue Laws Amendment (Taxation) Act 2001

Western Australia

Revenue Laws Amendment (Taxation) Act 2001

CONTENTS

Part 1 — Preliminary

1.

Short title

2

2.

Commencement

2

Part 2 — Pay-roll Tax Act 1971

amended

3.

The Act amended by this Part

3

4.

Section 5 replaced

3

5.               Rates for employers other than group

employers or payers of interstate wages

3

5.

Section 6 amended

6

6.

Section 7 amended

9

7.

Existing rates and liabilities not affected

12

Part 3 — Stamp Act 1921 amended

8.

Second Schedule item 16 amended

13

Western Australia

Revenue Laws Amendment (Taxation) Act 2001

No. 4 of 2001

An Act to amend the —

Pay-roll Tax Act 1971; and

Stamp Act 1921.

[Assented to 26 June 2001]

The Parliament of Western Australia enacts as follows:

Revenue Laws Amendment (Taxation) Act 2001

Part 1

Preliminary

s. 1

Part 1 — Preliminary

1.             Short title

This Act may be cited as the Revenue Laws Amendment

(Taxation) Act 2001.

2.             Commencement

(1)

Subject to this section, this Act comes into operation on the day

on which it receives the Royal Assent.

(2)

If this Act receives the Royal Assent before or on 1 July 2001,

Part 2 comes into operation on 1 July 2001.

(3)

If this Act receives the Royal Assent after 1 July 2001, Part 2 is

deemed to have come into operation on 1 July 2001.

(4)

If this Act receives the Royal Assent before or on 30 June 2001,

Part 3 comes into operation on 30 June 2001.

(5)

If this Act receives the Royal Assent after 30 June 2001, Part 3

is deemed to have come into operation on 30 June 2001.

Revenue Laws Amendment (Taxation) Act 2001

Pay-roll Tax Act 1971 amended

Part 2

s. 3

Part 2 — Pay-roll Tax Act 1971 amended

3.             The Act amended by this Part

The amendments in this Part are to the Pay-roll Tax Act 1971*.

[* Reprinted as at 10 November 2000.]

4.             Section 5 replaced

Section 5 is repealed and the following section is inserted

instead —

“

5.             Rates for employers other than group employers or payers of interstate wages

(1)

This section applies in respect of each employer who,

during a financial year —

(a)

is not a member of a group; and

(b)

while not a member of a group, does not pay any interstate wages,

and declares the rate of pay-roll tax payable by each

such employer for the period that the employer is not a

member of a group to be the appropriate rate

ascertained in accordance with this section.

(2)

If the amount of taxable wages paid or payable by an

employer for a month after the month of June 2001, or

for part of that month, is —

(a)

not more than $225 000 x M, the rate of pay-roll tax payable for the month, or part of the month, is 3.65%;

Revenue Laws Amendment (Taxation) Act 2001

Part 2

Pay-roll Tax Act 1971 amended

s. 4

(b)

more than $225 000 x M but less than for the month, or part of the month, is R%,

where —

8

212

.

50

M

+

0

.

06025

(

W

-

225

000

M

)

R

=

100

W

(calculated to 4 decimal points)

W =

amount of taxable wages paid or payable

for the month or part of the month;

(c)

not less than $375 000 x M but less than for the month, or part of the month, is R%,

where —

17

250

.

00

M

+

0

.

0940

(

W

-

375

000

M

)

R

=

100

W

(calculated to 4 decimal points)

W =

amount of taxable wages paid or payable

for the month or part of the month;

(d)

$468 750 x M or more, the rate of pay-roll tax payable for the month, or part of the month, is 5.56%.

(3)

If the amount of taxable wages paid or payable by an

employer for a financial year commencing on

1 July 2001 or 1 July of a subsequent financial year, or

for part of that financial year, is —

(a)

not more than $2 700 000 x Y, the rate of pay-roll tax for the year, or part of the year, is 3.65%;

Revenue Laws Amendment (Taxation) Act 2001

Pay-roll Tax Act 1971 amended

Part 2

s. 4

(b)

more than $2 700 000 x Y but less than $4 500 000 x Y, the rate of pay-roll tax for the

year, or part of the year, is R%, where —

98

550

Y

+

0

.

06025

(

W

-

2

700

000

Y

)

R

=

100

W

(calculated to 4 decimal points)

W =

amount of taxable wages paid or payable

for the financial year or part of the financial

year;

(c)

not less than $4 500 000 x Y but less than $5 625 000 x Y, the rate of pay-roll tax for the

year, or part of the year, is R%, where —

207

000

Y

+

0

.

0940

(

W

-

4

500

000

Y

)

R

=

100

W

(calculated to 4 decimal points)

W =

amount of taxable wages paid or payable

for the financial year or part of the financial

year;

(d)

$5 625 000 x Y or more, the rate of pay-roll tax for the year, or part of the year, is 5.56%.

(4)

In this section —

“M” means —

the number of days in the month for which

taxable wages were paid or payable

;

the number of days in the month

“Y” means —

the number of days in the financial year for

which taxable wages were paid or payable

.

the number of days in the financial year

”.

Revenue Laws Amendment (Taxation) Act 2001

Part 2

Pay-roll Tax Act 1971 amended

s. 5

5.             Section 6 amended

(1)

Section 6(1) is repealed and the following subsection is inserted

instead —

“

(1)

This section applies in respect of each employer who,

during a financial year —

(a)

is not a member of a group; and

(b)

while not a member of a group, pays interstate wages,

and declares the rate of pay-roll tax payable by each

such employer for the period the employer is not a

member of a group to be the appropriate rate

ascertained in accordance with this section.

”.

(2)

Section 6(6) and (7) are repealed and the following subsections

are inserted instead —

“

(6)

If the estimated total interstate wages and taxable

wages paid or payable by an employer for a financial

year commencing on 1 July 2001 or 1 July of a

subsequent year, or part of that financial year, is —

(a)

not more than $2 700 000 x Y, the rate of pay-roll tax payable each month for the year, or part of the year, shall be determined as 3.65%;

Revenue Laws Amendment (Taxation) Act 2001

Pay-roll Tax Act 1971 amended

Part 2

s. 5

(b)

more than $2 700 000 x Y but less than each month for the year, or part of the year,

shall be determined as R%, where —

98

550

Y

+

0

.

06025

(

E

-

2

700

000

Y

)

R

=

100

E

(calculated to 2 decimal points)

E =

amount of total interstate wages and taxable wages estimated by the employer to be paid or payable for the financial year or part of

the financial year;

(c)

not less than $4 500 000 x Y but less than each month for the year, or part of the year,

shall be determined as R%, where —

207

000

Y

+

0

.

0940

(

E

-

4

500

000

Y

)

R

=

100

E

(calculated to 2 decimal points)

E =

amount of total interstate wages and taxable wages estimated by the employer to be paid or payable for the financial year or part of

the financial year;

(d)

$5 625 000 x Y or more, no determination shall be made under this subsection.

(7)

Subject to subsection (11), if the amount of total

interstate wages and taxable wages paid or payable by

an employer for a financial year commencing on

1 July 2001 or 1 July of a subsequent year, or part of

that financial year, is —

(a)

not more than $2 700 000 x Y, the rate of pay-roll tax for the year, or part of the year, is 3.65%;

Revenue Laws Amendment (Taxation) Act 2001

Part 2

Pay-roll Tax Act 1971 amended

s. 6

(b)

more than $2 700 000 x Y but less than $4 500 000 x Y, the rate of pay-roll tax for the

year, or part of the year, is R%, where —

98

550

Y

+

0

.

06025

(

W

-

2

700

000

Y

)

R

=

100

W

(calculated to 4 decimal points)

W =

amount of total interstate wages and taxable wages paid or payable for the financial year or part of the financial year;

(c)

not less than $4 500 000 x Y but less than $5 625 000 x Y, the rate of pay-roll tax for the

year, or part of the year, is R%, where —

207

000

Y

+

0

.

0940

(

W

-

4

500

000

Y

)

R

=

100

W

(calculated to 4 decimal points)

W =

amount of total interstate wages and taxable wages paid or payable for the financial year or part of the financial year;

(d)

$5 625 000 x Y or more, the rate of pay-roll tax for the year, or part of the year, is 5.56%.

(8)

In subsections (6) and (7) —

“Y” means —

the number of days in the financial year for which

interstate wages or taxable wages were paid or

payable or estimated to be paid or payable

.

the number of days in the financial year

”.

Revenue Laws Amendment (Taxation) Act 2001

Pay-roll Tax Act 1971 amended

Part 2

s. 6

6.             Section 7 amended

(1)

Section 7(1) is repealed and the following subsection is inserted

instead —

“

(1)

This section applies in respect of each employer who,

during a financial year —

(a)

pays interstate wages or taxable wages; and

(b)

is a member of a group at least one member of which pays taxable wages,

and declares the rate of pay-roll tax payable by each

such employer that pays taxable wages for the period

that the employer is a member of the group to be the

appropriate rate ascertained in accordance with this

section.

”.

(2)

Section 7(3) is amended by deleting “in Western Australia”.

(3)

Section 7(4) is amended by deleting “those members of the

group that pay taxable wages in Western Australia” and

inserting instead —

“ the members of the group ”.

(4)

Section 7(5) is amended as follows:

(a)

by deleting “that pays taxable wages in Western

Australia”;

(b)

in paragraph (b) by deleting “in Western Australia”;

(c)

in paragraph (c) by deleting “such”.

(5)

Section 7(6) is amended by deleting “in Western Australia”.

(6)

Section 7(7) and (8) are repealed and the following subsections

are inserted instead —

“

(7)

If the estimated total interstate wages and taxable wages paid or payable by all members of a group

Revenue Laws Amendment (Taxation) Act 2001

Part 2

Pay-roll Tax Act 1971 amended

s. 6

throughout Australia for a financial year commencing on 1 July 2001 or 1 July of a subsequent year, or part

of that year, is —

(a)

not more than $2 700 000 x Y, the rate of pay-roll tax payable each month by each member of the group for the year, or part of the

year, shall be determined as 3.65%;

(b)

more than $2 700 000 x Y but less than each month by each member of the group for the year, or part of the year, shall be determined

as R%, where —

98

550

Y

+

0

.

06025

(

E

-

2

700

000

Y

)

R

=

100

E

(calculated to 2 decimal points)

E =

amount of total interstate wages and taxable

wages estimated to be paid or payable for

the financial year or part of the financial

year by all members of the group

throughout Australia;

(c)

not less than $4 500 000 x Y but less than each month by each member of the group for the year, or part of the year, shall be determined

as R%, where —

207

000

Y

+

0

.

0940

(

E

-

4

500

000

Y

)

R

=

100

E

(calculated to 2 decimal points)

E =

amount of total interstate wages and taxable

wages estimated to be paid or payable for

the financial year or part of the financial

year by all members of the group

throughout Australia;

Revenue Laws Amendment (Taxation) Act 2001

Pay-roll Tax Act 1971 amended

Part 2

s. 6

(d)

$5 625 000 x Y or more, no determination shall be made under this subsection.

(8)

Subject to subsection (12), if the amount of total

interstate wages and taxable wages paid or payable by

all members of a group throughout Australia for a

financial year commencing on 1 July 2001 or 1 July of

a subsequent year, or part of that financial year, is —

(a)

not more than $2 700 000 x Y, the rate of pay-roll tax for the year, or part of the year, is 3.65%;

(b)

more than $2 700 000 x Y but less than $4 500 000 x Y, the rate of pay-roll tax for the

year, or part of the year, is R%, where —

98

550

Y

+

0

.

06025

(

W

-

2

700

000

Y

)

R

=

100

W

(calculated to 4 decimal points)

W =

amount of total interstate wages and taxable wages paid or payable for the financial year or part of the financial year by all members of the group throughout Australia;

(c)

not less than $4 500 000 x Y but less than $5 625 000 x Y, the rate of pay-roll tax for the

year, or part of the year, is R%, where —

207

000

Y

+

0

.

0940

(

W

-

4

500

000

Y

)

R

=

100

W

(calculated to 4 decimal points)

W =

amount of total interstate wages and taxable wages paid or payable for the financial year or part of the financial year by all members of the group throughout Australia;

(d)

$5 625 000 x Y or more, the rate of pay-roll tax for the year, or part of the year, is 5.56%.

Revenue Laws Amendment (Taxation) Act 2001

Part 2

Pay-roll Tax Act 1971 amended

s. 7

(9)

In subsections (7) and (8) —

“Y ” means —

the number of days in the financial year for which

interstate wages or taxable wages were paid or

payable by a member of the group or estimated to

be paid or payable

the number of days in the financial year

.

”.

(7)

Section 7(12) is amended by deleting “that pays taxable wages

in Western Australia”.

7.             Existing rates and liabilities not affected

Without limiting the operation of the Interpretation Act 1984,

the provisions of the principal Act as in force immediately

before the commencement of this Act, insofar as they apply to a

period before that commencement, continue to have effect in

relation to the imposition of pay-roll tax under the principal Act

in respect of wages paid or payable for that period and the

assessment, collection and payment of any pay-roll tax imposed

in respect of such wages.

Revenue Laws Amendment (Taxation) Act 2001

Stamp Act 1921 amended

Part 3

s. 8

Part 3 — Stamp Act 1921 amended

8.             Second Schedule item 16 amended

(1)

The Second Schedule of the Stamp Act 1921* is amended by

deleting paragraph (a) of item 16(1) and “5%” in the third

column of the Schedule opposite paragraph (a) and inserting

instead —

“

(a)

against an employer’s liability

to pay compensation under the

Workers’ Compensation and

Rehabilitation Act 1981 —

(i)

if, in the 12 months

immediately preceding the cover period of the

policy the employer —

(A)

was liable to pay

pay-roll tax under

the Pay-roll Tax

Assessment Act

1971; or

(B)

paid wages that

under section 10 of

that Act were not

liable to pay-roll

tax and employed

an average of 15

(or such other

number as is

prescribed) full

time equivalent

employees or

more —

5% of the amount calculated

under section 96(2)

(ii)

in any other case —

3% of the amount calculated

under section 96(2)

”.

Revenue Laws Amendment (Taxation) Act 2001

Part 3

Stamp Act 1921 amended

s. 8

(2)

The Second Schedule of the Stamp Act 1921* is amended by inserting in the second column after item 16(1) the following

subitem —

“

(1a)

The average referred to in

subitem (1)(a)(i)(B) is to be calculated

on the basis of the number of full time

and part time employees as at the last

day of each calendar month with part

time employees being taken into

account as an appropriate fraction of

full time employees.

”.

[* Reprinted as at 22 October 1999.

For subsequent amendments see 2000 Index to Legislation of

Western Australia, Table 1, p.417-24.]

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