Pay-roll Tax Assessment Act 1953

Legislation au C1953A00040 Not in force Act

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PAY-ROLL TAX ASSESSMENT.

 

No. 40 of 1953.

An Act to amend the Pay-roll Tax Assessment Act 1941-1942, as amended by the Taxation Administration Act 1953.

[Assented to 2nd October, 1953.]

BE it enacted by the Queen’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 1953.

(2.) The Pay-roll Tax Assessment Act 1941-1942, as amended by the Taxation Administration Act 1953, is in this Act referred to as the Principal Act.

(3.) The Second Schedule to the Taxation Administration Act 1953 is amended by omitting the words—

“Pay-roll Tax Assessment Act 1941-1942

Pay-roll Tax Assessment Act 1941-1953”.


(4.) The Principal Act, as amended by this Act, may be cited as the Pay-roll Tax Assessment Act 1941-1953.

Commencement.

2. This Act shall be deemed to have come into operation on the first day of October, One thousand nine hundred and fifty-three.

General exemption.

3. Section fourteen of the Principal Act is amended by omitting sub-section (1.) and inserting in its stead the following sub-sections:—

“(1.) For the purpose of ascertaining the tax payable by an employer, there shall, subject to the next succeeding sub-section, be deducted from the amount of the wages included in a 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 month—the amount prescribed in sub-section (1b.) of this section in respect of that month; or

(b) where the return or assessment relates to a period of more than one month—for each month included in that period the amount prescribed in sub-section (1b.) of this section in respect of that month.

“(1a.) For the purpose of ascertaining the tax payable by an employer who was an employer during part only of a month, the amount to be deducted for that month from the amount of the wages included in a return or assessment relating to that month shall be the amount which bears to the amount prescribed in the next succeeding sub-section in respect of that month 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.

“(1b.) For the purpose of the last two preceding sub-sections—

(a) the amount prescribed in respect of the month of September, One thousand nine hundred and fifty-three, or in respect of a previous month, is Eighty-six pounds thirteen shillings and fourpence; and

(b) the amount prescribed in respect of the month of October, One thousand nine hundred and fifty-three, or in respect of a subsequent month, is Three hundred and forty-six pounds thirteen shillings and fourpence.”.

Exemption from tax.

4.—(1.) Section fifteen of the Principal Act is amended—

(a) by omitting from paragraph (c) the word “or” (last occurring);

(b) by omitting sub-paragraphs (iii) and (iv) of paragraph (d) and inserting in their stead the following sub-paragraphs:—

“(iii) The Women’s Royal Australian Army Corps;

(iv) The Women’s Royal Australian Air Force;”; and


(c) by adding at the end thereof the following paragraphs:—

“(e) by the Imperial War Graves Commission;

(f) by a specialized agency as defined by section one 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 twenty-first day of November, One thousand nine hundred and forty-seven;

(g) by the South Pacific Commission; or

(h) by the United States Educational Foundation in Australia.”.

(2.) The provisions of Part III. of the Pay-roll Tax Assessment Act 1941, or of that Act as amended by the Pay-roll Tax Assessment Act 1942, shall be deemed not to have applied to wages paid by an authority, body or agency specified in paragraph (e), (f), (g) or (h) of section fifteen of the Principal Act as amended by this Act.

Annual adjustment of tax.

5. Section sixteen of the Principal Act is amended by omitting sub-sections (1.) and (2.) and inserting in their stead the following sub-sections:—

“(1.) Where the wages paid or payable by an employer in respect of a financial year—

(a) in the case of an employer who was an employer during the whole of that financial year—do not exceed the amount prescribed in sub-section (2a.) of this section in respect of that financial year; or

(b) in the case of an employer who was an employer during part only of that financial year—do not exceed an amount which bears to the amount prescribed in sub-section (2a.) of this section in respect of that financial year the same proportion as that part of the year bears to a year,

the Commissioner shall refund or rebate to that employer the amount of tax paid or payable, as the case may be, by him in respect of that year or part.

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

(a) in the case of an employer who was an employer during the whole of that financial year—is less than the amount prescribed in the next succeeding sub-section in respect of that financial year; or

(b) in the case of an employer who was an employer during part only of that financial year—is less than an amount which bears to the amount prescribed in the next succeeding sub-section in respect of that financial year 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 the employer an amount equal to the tax paid or payable upon the amount of the deficiency.

“(2a.) For the purpose of the last two preceding sub-sections—

(a) the amount prescribed in respect of the financial year which ended on the thirtieth day of June, One thousand nine hundred and fifty-three, or in respect of a previous financial year, is the amount of One thousand and forty pounds;

(b) the amount prescribed in respect of the financial year ending on the thirtieth day of June, One thousand nine hundred and fifty-four, is Three thousand three hundred and eighty pounds; and

(c) the amount prescribed in respect of the financial year ending on the thirtieth day of June, One thousand nine hundred and fifty-five, or in respect of a subsequent financial year, is Four thousand one hundred and sixty pounds.”.

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

Registration.

“17. An employer (not being an employer who is registered as an employer) who, in respect of a month, pays or is liable to pay wages at a rate in excess of Eighty pounds per week shall, within seven days after the close of that month, apply to the Commissioner, in the prescribed form and manner, for registration as an employer.”.

 

Overview

The Pay-roll Tax Assessment Act 1953 was enacted to amend the Pay-roll Tax Assessment Act 1941-1942, as further amended by the Taxation Administration Act 1953. The Act, assented to on 2 October 1953, was passed by the Queen’s Most Excellent Majesty, the Senate, and the House of Representatives of the Commonwealth of Australia. Its primary purpose is to modify the payroll tax assessment process, including exemptions, tax calculations, and adjustments. The Act introduces changes to ensure more accurate tax assessments and provides exemptions for certain entities, reflecting evolving economic and administrative needs. It aims to streamline and update the payroll tax framework to better serve the tax obligations of employers and the revenue requirements of the Commonwealth.

Scope and Application

The Pay-roll Tax Assessment Act 1953 amends the Pay-roll Tax Assessment Act 1941-1942, establishing specific parameters for the calculation and exemption of payroll tax for employers within the Commonwealth of Australia. This Act applies to employers who are liable for payroll tax, specifically those who pay wages exceeding a prescribed threshold, requiring them to register with the Commissioner. The amendments include adjustments to the annual exemption limits, with specific amounts prescribed for each financial year, and modifications to the exemptions from payroll tax, adding entities such as the Imperial War Graves Commission and the South Pacific Commission to the list of exempt organisations. The application of this Act is nationwide, as it operates within the jurisdiction of the Commonwealth of Australia, and it supersedes previous provisions by repealing certain sections and inserting new ones. Notably, this legislation does not apply to wages paid by certain specified authorities and agencies, as outlined in the amended sections.

Key Provisions

The Pay-roll Tax Assessment Act 1953 amends the Pay-roll Tax Assessment Act 1941-1942, introducing several key provisions. Section 1 provides the title and citation of the Act, referring to the amended Principal Act as the Pay-roll Tax Assessment Act 1941-1953. Section 2 specifies that the Act comes into operation on 1 October 1953. Section 3 revises section fourteen of the Principal Act, detailing the deductions to be made from wages to ascertain the tax payable by an employer, including adjustments for employers who are employed for part of a month. The Act imposes several obligations on employers. Firstly, under section 3(1), employers must deduct specified amounts from the wages they pay. Employers who pay wages at a rate exceeding £80 per week for any month must register with the Commissioner within seven days after the close of that month, as stipulated in section 17. Additionally, section 4 amends section fifteen of the Principal Act to provide exemptions from tax for certain employers, such as the Women’s Royal Australian Army Corps, the Women’s Royal Australian Air Force, the Imperial War Graves Commission, and others. These entities are deemed not to be subject to the provisions of Part III of the Principal Act. Failure to comply with the obligations and requirements set out in the Act may result in various consequences. For instance, non-compliance with the registration requirement in section 17 could lead to penalties. Although specific penalties are not detailed in the provided text, the Act generally allows for enforcement actions against those who fail to comply with its provisions. The Commissioner is empowered to take necessary actions to ensure compliance, which could include financial penalties, legal proceedings, or other administrative measures.

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Taxation Law
Instrument
Act
Concepts
Definitions & Interpretation
Commencement Provisions
Repeal & Amendment
Exemptions & Exclusions
Reporting & Disclosure Obligations
Administrative Discretion

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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.