Aged Care (Payroll Tax Supplement) Determination 2001

Aged Care (Payroll Tax Supplement) Determination 2001

as amended

made under subsection 44‑16 (3) of the

Aged Care Act 1997

This compilation was prepared on 20 March 2008
taking into account amendments up to Aged Care (Payroll Tax Supplement) Amendment Determination 2008 (No. 1)

Prepared by the Office of Legislative Drafting and Publishing,
Attorney-General’s Department, Canberra

Contents

Part 1 Preliminary 

 1 Name of Determination [see Note 1]

 2 Commencement 

 3 Definitions 

 4 Revocation 

Part 2 Working out the amount of the supplement — general 

 5 How supplement is worked out 

 6 Direct provider 

 7 Indirect provider 

 8 Definition of eligibility criteria

Part 3 Working out the amount of the supplement — direct providers             

Division 1 Preliminary 

 9 Steps to be followed 

Division 2 Total Commonwealth subsidy 

 10 Determining subsidies paid 

Division 3 Tax free threshold 

 11 Determining threshold amount 

Division 4 Rate of payroll tax 

 12 Determining the rate 

Division 5 Resident days 

 13 Determining resident days 

Part 4 Working out the amount of the supplement — indirect providers             

Division 1 Preliminary 

 14 Steps to be followed 

Division 2 Total Commonwealth subsidy 

 15 Determining subsidies paid 

Division 3 Rate of payroll tax 

 16 Determining the rate 

Division 4 Resident days 

 17 Determining resident days 

Division 5 Applicable portion 

 18 Determining the applicable portion 

Notes   

Part 1 Preliminary

1 Name of Determination [see Note 1]

  This Determination is the Aged Care (Payroll Tax Supplement) Determination 2001.

2 Commencement

  This Determination commences on 1 January 2001.

3 Definitions

  In this Determination:

ACFI classification means a classification, or renewal of a classification, of a care recipient under the Act and the Classification Principles 1997 as in force on or after the commencement of the Aged Care (Payroll Tax Supplement) Amendment Determination 2008 (No. 1).

Act means the Aged Care Act 1997.

direct provider means an approved provider that is taken, under subsection 6 (2), to have a direct payroll tax liability.

indirect provider means an approved provider that is taken, under subsection 7 (2), to have an indirect payroll tax liability.

Principles means the Residential Care Subsidy Principles 1997.

RCS classification means a classification, or renewal of a classification, of a care recipient under the Act and the Classification Principles 1997 as in force immediately before the commencement of the Aged Care (Payroll Tax Supplement) Amendment Determination 2008 (No. 1).

relevant care recipient means a care recipient in respect of whom an approval is in effect under Part 2.3 of the Act as a recipient of residential care, other than a care recipient classified at:

 (a) for a care recipient with an RCS classification — classification level 8; or

 (b) for a care recipient with an ACFI classification — the lowest applicable classification level.

supplement means payroll tax supplement.

Note   A number of expressions used in this Determination are defined in the Aged Care Act 1997, including:

 approved provider

 care

 lowest applicable classification level

 payment period

 residential care

 residential care service.

4 Revocation

  The Determination, in relation to payroll tax supplement, made under subsection 44‑16 (3) of the Act on 28 June 2000 is revoked.

Part 2 Working out the amount of the supplement — general

5 How supplement is worked out

  The way in which the amount of the supplement is worked out will vary according to whether the approved provider is taken to have a direct or indirect payroll tax liability in relation to residential care given to relevant care recipients during the relevant payment period.

6 Direct provider

 (1) If an approved provider is taken to have a direct payroll tax liability, the amount of the supplement is calculated in accordance with Part 3.

 (2) An approved provider is taken to have a direct payroll tax liability if, under the eligibility criteria, the approved provider is a registered entity that has incurred a payroll tax liability.

Note   See subsections 21.25 (3) and (4) of the Principles.

7 Indirect provider

 (1) If an approved provider is taken to have an indirect payroll tax liability, the amount of the supplement is calculated in accordance with Part 4.

 (2) An approved provider is taken to have an indirect payroll tax liability if, under the eligibility criteria, the approved provider is a non‑registered entity that has incurred a payroll tax liability.

Note   See subsections 21.25 (3) and (5) of the Principles.

8 Definition of eligibility criteria

  In this Part:

eligibility criteria, in relation to an approved provider, means the matters about which the Secretary must be satisfied under section 21.25 of the Principles.

Part 3 Working out the amount of the supplement — direct providers

Division 1 Preliminary

9 Steps to be followed

  Follow these steps to work out the amount of the supplement payable in the case of a direct provider:

  The result is the amount of daily supplement applicable to a relevant care recipient in respect of the payment period.

Division 2 Total Commonwealth subsidy

10 Determining subsidies paid

  Determine the total amount of Commonwealth subsidy payments (total subsidy) made to an approved provider in respect of the payment period by adding together all payments made by the Commonwealth to the approved provider in relation to a particular residential care service, in respect of residential care given to care recipients by the approved provider through that service, including all subsidies and supplements worked out in accordance with Steps 1 and 2 (and, where applicable, Step 3 in relation to extra service reductions) as set out in the residential care subsidy calculator in subsection 44‑2 (2) of the Act.

Division 3 Tax free threshold

11 Determining threshold amount

 (1) Determine, in accordance with this section, the amount of the payroll tax free threshold that is applicable in relation to the approved provider for the payment period (prescribed threshold).

 (2) The prescribed threshold is determined in accordance with the laws of the State or Territory that apply for the purposes of calculating the amount of payroll tax paid or payable by the approved provider in that State or Territory.

 (3) The amount of the prescribed threshold is calculated as follows:

 (a) unless paragraph (b) applies, divide the prescribed threshold determined under subsection (2) by the number of payment periods included during the year, or part of the year, to which the prescribed threshold applies;

 (b) if the approved provider is treated by the revenue office (however described) of the relevant State or Territory as a member of a business group of accredited residential care services for the purposes of assessing payroll tax liability of the approved provider, the relevant amount is determined by dividing the prescribed threshold determined under subsection (2) by the product of:

 (i) the number of members in that business group; and

 (ii) the number of payment periods included in the year, or part of the year, to which the prescribed threshold applies.

Division 4 Rate of payroll tax

12 Determining the rate

 (1) Determine, in accordance with this section, the rate of payroll tax applicable in relation to the approved provider for the payment period (prescribed rate).

 (2) The prescribed rate is determined in accordance with the laws of the State or Territory that apply for the purposes of calculating the amount of payroll tax paid or payable by the approved provider in that State or Territory.

Division 5 Resident days

13 Determining resident days

 (1) Determine, in accordance with this section, the number of days of care provided to relevant care recipients in the payment period (resident days).

 (2) For subsection (1), the number of resident days is the total number of days on which relevant care recipients received residential care during the payment period from a residential care service in relation to which an approved provider has accreditation.

Part 4 Working out the amount of the supplement — indirect providers

Division 1 Preliminary

14 Steps to be followed

  Follow these steps to work out the amount of the supplement payable in the case of an indirect provider:

  The result is the amount of daily supplement applicable to a relevant care recipient in respect of the payment period.

Division 2 Total Commonwealth subsidy

15 Determining subsidies paid

  Determine the total amount of Commonwealth subsidy payments (total subsidy) made to an approved provider in respect of the payment period by adding together all payments made by the Commonwealth to the approved provider in relation to a particular residential care service, in respect of residential care given to care recipients by the approved provider through that service, including all subsidies and supplements worked out in accordance with Steps 1 and 2 (and, where applicable, Step 3 in relation to extra service reductions) as set out in the residential care subsidy calculator in subsection 44‑2 (2) of the Act.

Division 3 Rate of payroll tax

16 Determining the rate

 (1) Determine, in accordance with this section, the rate of payroll tax applicable in relation to the amount of indirect payroll tax paid or payable by the approved provider for the payment period (the prescribed rate).

 (2) The prescribed rate is determined in accordance with the laws of the State or Territory that apply for the purposes of calculating the amount of indirect payroll tax paid or payable by the approved provider in that State or Territory.

 (3) In this section:

indirect payroll tax means the amount of the payroll tax component paid or payable by the approved provider as mentioned in subsection 21.25 (5) of the Principles.

Division 4 Resident days

17 Determining resident days

 (1) Determine, in accordance with this section, the number of days of care provided to relevant care recipients in the payment period (resident days).

 (2) For subsection (1), the number of resident days is the total number of days on which relevant care recipients received residential care during the payment period from a residential care service in relation to which an approved provider has accreditation.

Division 5 Applicable portion

18 Determining the applicable portion

 (1) Determine, in accordance with this section, the applicable portion, if any, to be used in working out the supplement.

 (2) Identify, from a column of the table below, the relevant range (band) that includes the portion of indirect salary and wages paid or payable by the approved provider, expressed as a percentage of the total payroll of the provider.

 (3) The applicable portion is the number specified in the column of the table that corresponds with the relevant band identified under subsection (2).

Table

Examples

1   If the provider’s portion is 0.001%, the applicable portion is 0.025.

2   If the amount of the provider’s portion is 65% or more, the applicable portion is 1.00.

 (4) In this section:

indirect salary and wages, in respect of a payment period, means the amount of salary and wages:

 (a) incurred by an organisation contracted by the approved provider to supply services for the purposes of a residential care service in relation to which the approved provider has accreditation; and

 (b) identified, in addition to the payroll tax payable on that amount, in an invoice issued by the organisation for payment by the approved provider.

total payroll, in respect of a payment period, means the aggregate of:

 (a) the amount of salary and wages paid or payable by the approved provider for services supplied directly by the approved provider for the purposes of a residential care service in relation to which the approved provider has accreditation; and

 (b) the amount of indirect salary and wages paid or payable by the approved provider in connection with that residential care service. 

Notes to the Aged Care (Payroll Tax Supplement) Determination 2001

Note 1

The Aged Care (Payroll Tax Supplement) Determination 2001 (in force under subsection 44‑16 (3) of the Aged Care Act 1997) as shown in this compilation is amended as indicated in the Tables below.

Under the Legislative Instruments Act 2003, which came into force on 1 January 2005, it is a requirement for all non-exempt legislative instruments to be registered on the Federal Register of Legislative Instruments.

Table of Instruments

Table of Amendments