PAY-ROLL TAX ASSESSMENT.
No. 33 of 1963.
An Act to amend the Pay-roll Tax Assessment Act 1941-1962.
[Assented to 31st May, 1963.]
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 1963.
(2.) The Pay-roll Tax Assessment Act 1941-1962 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 1941-1963.
Commencement.
2. This Act shall come into operation on the day on which it receives the Royal Assent.
Interpretation.
3. Section sixteen a of the Principal Act is amended by omitting sub-paragraphs (i) and (ii) of paragraph (a) of the definition of “the gross receipts for the financial year” in sub-section (1.) and inserting in their stead the following sub-paragraphs:—
“(i) any amount that is income from property as defined by section six of that Act;
“(ii) any amount that is received by that employer by way of insurance or indemnity for or in respect of any loss or outgoing that is a deduction allowable under that Act, being an amount that is included in the assessable income of that employer by virtue of paragraph (j) of section twenty-six of that Act;
“(iii) any amount that is included in the assessable income of that employer by virtue of sub-section (2.) of section twenty-eight, sub-section (2.) or (2c.) of section fifty-nine, sub-section (3.) of section sixty-three, sub-section (10.) of section sixty-six, subsection (2.) of section seventy-two, sub-section (4.) of section seventy-three a, sub-section (9.) of section seventy-nine, sub-section (3.) of section one hundred and twenty-two b, sub-section (2.) of section one hundred and twenty-four, sub-section (2.) of section one hundred and twenty-four d, sub-section (2.) of section one hundred and twenty-four g or subsection (1.) or (2.) of section one hundred and twenty-four p of that Act; and
“(iv) any amounts that are included in the value of export sales in relation to that employer for another financial year,”.
Rebate of tax.
4. Section sixteen c of the Principal Act is amended by omitting from sub-section (1.) the word “three” and inserting in its stead the word “seven”.
Application.
5. The amendment made by section three of this Act applies in relation to rebates in respect of the tax imposed on wages paid or payable by an employer in respect of the financial year that began on the first day of July, One thousand nine hundred and sixty-two, and in respect of all subsequent financial years.
Overview
The Pay-roll Tax Assessment Act 1963 was enacted to amend the existing Pay-roll Tax Assessment Act 1941-1962, primarily to refine the definition of gross receipts for payroll tax purposes and adjust the rebate provisions. This Act was assented to on 31 May 1963 by the Queen, through the Australian Parliament, aiming to better align the tax assessment framework with current economic realities and to provide a more equitable tax structure for employers. The amendments introduced by this Act focus on clarifying the inclusions in gross receipts and increasing the rebate amount available to employers, which reflects a policy objective to mitigate the tax burden on businesses while ensuring the revenue base for the payroll tax is maintained.
Scope and Application
The Pay-roll Tax Assessment Act 1963 amends the Pay-roll Tax Assessment Act 1941-1962, introducing specific changes to the definition of "gross receipts for the financial year" and modifying the rebate provisions. This Act applies to employers who are subject to payroll tax and aims to revise the tax base by clarifying which types of income are considered gross receipts, specifically those defined by section six of the Principal Act and other specified subsections. The changes to the rebate of tax, such as increasing the number of months from three to seven for the rebate calculation, directly affect employers' tax liabilities from the financial year beginning on the first of July 1962 onwards. The Act operates within the Commonwealth jurisdiction, impacting entities across Australia that fall under the scope of payroll tax regulations.
There are no specific exclusions or exemptions mentioned within the text of this Act, though the application of payroll tax generally excludes certain types of income and specific entities as per the broader legislative framework. The Act may be further detailed or refined through subordinate instruments, which could provide additional clarifications or exceptions not explicitly covered in the primary legislation.
Key Provisions
The Pay-roll Tax Assessment Act 1963 amends the existing Pay-roll Tax Assessment Act 1941-1962. The primary changes introduced by this Act concern the definition of "gross receipts for the financial year" under section sixteen a of the Principal Act. Section three of the 1963 Act replaces certain sub-paragraphs in the definition of gross receipts, specifically those that refer to income from property and various other assessable incomes as defined in sections six, twenty-six, and others of the Principal Act. Additionally, it includes any amounts included in the value of export sales in relation to the employer for another financial year. These amendments apply to rebates in respect of the tax imposed on wages for the financial year starting from July 1, 1962, and subsequent years.
The Act imposes specific obligations on employers, primarily concerning the accurate reporting of gross receipts for payroll tax purposes. Employers must now ensure that their reported gross receipts include all relevant amounts as defined in the amended sections. This includes income from property, insurance or indemnity amounts for allowable deductions, and any other specified assessable incomes. Furthermore, the inclusion of export sales values in the gross receipts calculation adds another layer of complexity to the reporting requirements, necessitating careful accounting and documentation to comply with the Act.
Breaches of the provisions in the Pay-roll Tax Assessment Act 1963 can result in various consequences. While the specific penalties are not detailed within the excerpt, typically, non-compliance with payroll tax legislation can lead to financial penalties, interest on unpaid taxes, and in severe cases, legal action. Employers are obligated to adhere to the amended definitions and reporting requirements to avoid these potential repercussions. The precise penalties would be outlined in the broader context of the Principal Act and related regulations.