Pay-roll Tax Assessment Act 1942

Legislation au C1942A00048 Not in force Act

Legislation content

PAY-ROLL TAX ASSESSMENT.

 

No. 48 of 1942.

An Act to amend the Pay-roll Tax Assessment Act 1941.

[Assented to 6th October, 1942.]

BE it enacted by the King’s Most Excellent Majesty, the Senate, and the House of Representatives of the Commonwealth of Australia, as follows:—

Short title and citation.

1.—(1.) This Act may be cited as the Pay-roll Tax Assessment Act 1942.


(2.) The Pay-roll Tax Assessment Act 1941 is in this Act referred to as the Principal Act.

(3.) The Principal Act, as amended by this Act, may be cited as the Pay-roll Tax Assessment Act 1941–1942.

Commencement.

2.—(1.) This Act (except sections four and five thereof) shall come into operation on the first day of November, One thousand nine hundred and forty-two.

(2.) Sections four and five of this Act shall be deemed to have come into operation on the first day of July, One thousand nine hundred and forty-one.

3. Section fourteen of the Principal Act is repealed and the following section inserted in its stead:—

General exemption.

“14.—(1.) For the purpose of ascertaining the tax payable by an employer, there shall be deducted from the amount of the wages included in any return furnished in accordance with section eighteen or section nineteen of this Act, or from the amount of any wages assessed by the Commissioner in pursuance of section twenty-three of this Act—

(a) where the return or assessment relates to a calendar month—an amount of Eighty-six pounds thirteen shillings and fourpence; or

(b) where the return or assessment relates to a period of more than one calendar month—an amount of Eighty-six pounds thirteen shillings and fourpence for each calendar month included in that period:

Provided that where an employer is an employer for part only of any month, the amount to be deducted from the wages included in a return or assessment relating to that month shall be an amount which bears to Eighty-six pounds thirteen shillings and fourpence the same proportion as the number of days in that month during which the employer was an employer bears to the total number of days in that month.

“(2.) Where the amount to be deducted in pursuance of this section from the amount of any wages included in any return or assessment relating to a period included in any financial year exceeds the amount of the wages included in that return or assessment, the amount of the excess shall be deducted from the wages included in the return or assessment next made by or on the employer in respect of a period included in that financial year.”.

Exemption from tax.

4. Section fifteen of the Principal Act is amended—

(a) by omitting from paragraph (b) the word “and”; and


(b) by adding at the end thereof the following word and paragraph:—

“; or (d) to a person who is a member of—

(i) the Defence Force of the Commonwealth or of the armed forces of any other part of His Majesty’s dominions;

(ii) the Australian Army Nursing Service;

(iii) the Australian Women’s Army Service;

(iv) the Women’s Auxiliary Australian Air Force;

(v) a Voluntary Aid Detachment, and who has been called up for full-time service with the Defence Force of the Commonwealth;

(vi) the Women’s Royal Australian Naval Service: or

(vii) any other organization similar to any of those specified in sub-paragraphs (ii) to (vi) of this paragraph which is prescribed,

and who, by reason of his or her service as such a member, or of capture in the course of that service, does not, during the period in respect of which the wages are paid, render services in consideration of the payment of those wages.”

Annual adjustment of tax.

5. Section sixteen of the Principal Act is amended by omitting sub-section (2.) and inserting in its stead the following sub-sections:—

“(2.) Where the total amount deducted, in accordance with section fourteen of this Act, from the wages paid or payable by any employer in respect of any financial year

(a) in the case of an employer who was an employer during the whole of the financial year—is less than One thousand and forty pounds; or

(b) in the case of an employer who was an employer during part only of the financial year—is less than the amount which bears to One thousand and forty pounds the same proportion as that part of the year bears to a year,

the Commissioner shall, upon application by the employer, refund or rebate to him an amount equal to the tax paid or payable upon the amount of the deficiency.


“(3.) Where a person who, during any part of a year, did not pay, and was not liable to pay, wages satisfies the Commissioner that, by reason of the nature of his trade or business, the wages paid or payable by him fluctuate with different periods of the year, the Commissioner may treat him—

(a) if he has conducted that trade or business during the whole of the year—as an employer throughout the year; or

(b) if he has conducted that trade or business during part only of the year—as an employer during that part of the year.

“(4.) Notwithstanding anything contained in this section, the total amount refunded or rebated to any employer in pursuance of this section in respect of any financial year shall not exceed the amount of the tax paid or payable by him in respect of that financial year.”.

Returns.

6. Section eighteen of the Principal Act is amended—

(a) by omitting the proviso; and

(b) by adding at the end thereof the following sub-sections:—

“(2.) Where the Commissioner is of opinion that it would be unduly onerous to require an employer to furnish returns in respect of the periods or within the time specified in the last preceding sub-section, he may, by notice in writing, vary the periods in respect of which, or the time within which, that employer is required to furnish returns in pursuance of that sub-section, and the employer shall, while that notice remains unrevoked, furnish returns accordingly.

“(3.) The Commissioner may, at any time, by notice in writing, revoke any notice given in pursuance of the last preceding sub-section.”.

Powers of Board.

7. Section thirty-eight of the Principal Act is amended by omitting the words “sub-section (6.) of section forty” and inserting in their stead the words “sub-section (5.) of section forty”.

Release of employers in cases of hardship.

8. Section seventy of the Principal Act is amended—

(a) by inserting in sub-section (9.), after the word “Board” (first occurring), the words “of Review”; and

(b) by adding at the end thereof the following sub-section:—

“(10.) In lieu of referring any application to a member of a Board of Review in accordance with sub-section (3.) of this section, the Board constituted under this section may refer the application to the Chairman of a Valuation Board constituted under the Land Tax Assessment Act 1910 (or under that Act as amended), in which case sub-sections (5.) to (9.) of this section shall apply as if the inferences to the member of the Board of Review were references to the Chairman of the Valuation Board.”.

Overview

The Pay-roll Tax Assessment Act 1942, enacted by the Australian Parliament, serves as an amendment to the Pay-roll Tax Assessment Act 1941. It addresses the need for adjustments in payroll tax calculations, exemptions for certain members of the Defence Force and related services, and procedural changes to facilitate tax assessments. The primary objective of this Act is to provide relief and adjustments to the payroll tax system to support the war effort during World War II. The Act introduces specific exemptions for members of various defence forces and auxiliary services, ensuring they are not taxed on wages earned during their service, especially if they do not render services in exchange for those wages. Additionally, it modifies the process for calculating and refunding payroll tax deficiencies and allows for adjustments in the periods and times for submitting tax returns to alleviate undue burdens on employers.

Scope and Application

The Pay-roll Tax Assessment Act 1942 applies to employers within the Commonwealth of Australia who are liable for payroll tax. This Act amends the Pay-roll Tax Assessment Act 1941, establishing a framework for the assessment, collection, and administration of payroll tax. The Act applies to all employers regardless of the industry or entity type, except those explicitly exempted under the Act. Exemptions include members of the Defence Force of the Commonwealth or other prescribed services who do not render services in consideration of their wages. The geographic reach of the Act is national, applying across all states and territories of Australia. The Act provides for an annual adjustment of tax and allows the Commissioner to refund or rebate tax to employers under certain conditions. Additionally, the Commissioner has the authority to vary or revoke the periods and timelines for return submissions if deemed unduly onerous. Subordinate instruments may further extend or restrict the application of this Act.

Key Provisions

The Pay-roll Tax Assessment Act 1942 makes several key amendments to the Pay-roll Tax Assessment Act 1941. Section 3 introduces a new general exemption (section 14) which allows a specific amount to be deducted from wages to ascertain the tax payable by an employer (section 14(1)). If this exemption exceeds the wages for a particular period, the excess can be deducted from wages for the next return (section 14(2)). Section 4 amends the Principal Act by expanding the exemptions to include members of various military services and similar organizations who do not render services in consideration of wages due to their service (section 15(d)). Section 5 revises the annual adjustment of tax (section 16), allowing refunds or rebates to employers if the total deductions are less than specified thresholds and enabling the Commissioner to treat employers with fluctuating wages as continuous employers under certain conditions (section 16(2)-(4)). Section 6 updates the return requirements (section 18), giving the Commissioner the authority to vary or revoke the periods and times for return submissions if deemed unduly onerous (section 18(2)-(3)). The Act imposes obligations on employers to correctly calculate tax deductions based on the provisions outlined in sections 14 and 15, and to submit returns as per the Commissioner’s requirements, which may be varied under section 18. Employers are required to apply for refunds or rebates if eligible under section 16, and to provide any necessary information to the Commissioner to facilitate the assessment and adjustment of taxes. Employers with fluctuating wages must notify the Commissioner of their circumstances to potentially benefit from special treatment under section 16(3). Breaches of the provisions outlined in this Act may lead to various consequences. While the Act does not explicitly list offences or penalties, it is reasonable to infer that failure to comply with tax assessment, return submission, or refund application requirements could lead to civil or administrative penalties. The severity of these penalties would be determined in accordance with other relevant tax legislation and administrative guidelines. Additionally, any fraudulent or deliberate non-compliance might be subject to further criminal or civil penalties under broader tax laws.

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Taxation Law
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Commencement Provisions
Repeal & Amendment
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Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.