Pay-roll Tax Assessment Act 1965

Legislation au C1965A00114 Not in force Act

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Pay-roll Tax Assessment

No. 114 of 1965

An Act to amend the Pay-roll Tax Assessment Act 1941–1963 in relation to Exemptions and Rebates.

[Assented to 18 December, 1965]

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 1965.

(2.) The Pay-roll Tax Assessment Act 1941–1963 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 1941–1965.

Commencement.

2. This Act shall come into operation on the day on which it receives the Royal Assent.

Exemption from tax.

3. Section 15 of the Principal Act is amended by omitting paragraph (e) and inserting in its stead the following paragraph:—

“(e) by the Commonwealth War Graves Commission;”.


Interpretation.

4. Section 16a of the Principal Act is amended—

(a) by inserting in sub-section (1.), after the definition of “commercial container”, the following definition:—

“‘complete motor vehicle’ includes a motor vehicle of a kind ordinarily used on roads for the transport of goods that has been assembled to a stage at which it is capable of being driven under its own power;”;

(b) by inserting in sub-section (1.), after the definition of “marketing authority”, the following definitions:—

“‘motor vehicle’ means a motor vehicle of a kind ordinarily used on roads for the transport of persons or of goods;

‘motor vehicle components’ means goods that—

(a) are components (including accessories and handbooks) for a motor vehicle; and

(b) are exported from Australia for use in the original manufacture or assembly, in the country to which the goods are exported, of a complete motor vehicle or for sale or disposal with such a vehicle,

and includes the containers in which such goods are exported;”;

(c) by inserting in sub-section (1.), after the definition of “the gross receipts for the financial year”, the following definition:—

“‘the Secretary’ means the Secretary to the Department of Trade and Industry;”; and

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

“(5.) For the purposes of the calculation of rebates in respect of tax imposed on wages paid or payable in respect of the financial year that commenced on the first day of July, One thousand nine hundred and sixty-five, or any subsequent financial year, where an employer who carried on the production of motor vehicles in Australia during the base period has, during the base period, exported from Australia motor vehicle components in relation to which he would not, but for this sub-section, have been a producer for export—

(a) the employer shall be deemed to have been a producer for export in relation to those components; and


(b) any other employer who would, but for this sub-section, have been a producer for export in relation to those components shall be deemed not to have been a producer for export in relation to those components.”.

5. After section 16a of the Principal Act the following section is inserted:—

Exports of motor vehicle components.

“16aa.—(1.) Where the Secretary or a person authorized by him certifies to the Treasurer that he is of opinion that, and the Treasurer is satisfied that, an employer who, during a specified period, being a period that commenced on or after the first day of July, One thousand nine hundred and sixty-five, carried on the production in Australia of, and the export from Australia of motor vehicle components for, motor vehicles of a specified kind has significantly assisted in the development of manufacturing in Australia, and of the export from Australia of goods manufactured in Australia, by following a policy of using for the purposes of that production and export, to such extent as is reasonably practicable, components manufactured in Australia, the Treasurer shall, by notice in writing to the Commissioner signed by or on behalf of the Treasurer, direct that the employer shall, for the purposes of this Division, be deemed to have been a producer for export in relation to motor vehicle components (being components in relation to which he would not otherwise have been a producer for export) that—

(a) were exported from Australia by the employer during the period specified in the certificate; and

(b) were components for motor vehicles of the kind specified in the certificate,

and, where such a direction is given, any other employer who would, but for this sub-section, have been a producer for export in relation to those components shall, for the purposes of this Division, be deemed not to have been a producer for export in relation to those components.

“(2.) Where, in relation to any motor vehicle components that were exported from Australia by an employer during a specified period, the Secretary or the Treasurer is satisfied that the employer should not be deemed, in accordance with the last preceding sub-section, to be a producer for export of those components, he shall cause the employer to be notified accordingly.”.

Determinations.

6. Section 16e of the Principal Act is amended by inserting in sub-section (3.), after the words “the provisions of”, the words “sub-section (5.) of section sixteen a,”.


Declarations regarding goods exported.

7. Section 16h of the Principal Act is amended—

(a) by omitting from paragraph (a) of sub-section (2.) the word “or” (last occurring); and

(b) by adding at the end of sub-section (2.) the following word and paragraph:—

“; or (c) that are motor vehicle components that have, on or after the first day of July, One thousand nine hundred and sixty-five, been exported from Australia by an employer who carried on the production of motor vehicles in Australia, not being components in respect of which a notification under sub-section (2.) of section sixteen aa of this Act has been given.”.

Export Certificates.

8. Section 16l of the Principal Act is amended by adding at the end thereof the following sub-section:—

“(6.) In this section—

(a) a reference to goods shall be read as not including a reference to motor vehicle components—

(i) that have, on or after the first day of July, One thousand nine hundred and sixty-five, been exported from Australia by an employer who carried on the production of motor vehicles in Australia; and

(ii) in relation to which the exporter is not a producer for export,

unless and until a notification under sub-section (2.) of section sixteen aa of this Act has been given in respect of the components; and

(b) a reference to the increase in export sales for a financial year shall be read as not including a reference to such part (if any) of that increase as is attributable to motor vehicle components in relation to which the last preceding paragraph applies.”.

 

Overview

The Pay-roll Tax Assessment Act 1965, enacted on 18 December 1965, amends the Pay-roll Tax Assessment Act 1941–1963 to address gaps related to exemptions and rebates in payroll tax for employers involved in the production and export of motor vehicle components. This Act was enacted by the Queen’s Most Excellent Majesty, the Senate, and the House of Representatives of the Commonwealth of Australia. The policy objective of this amendment is to encourage the use of locally manufactured components in the production of motor vehicles for export, thereby promoting the development of the Australian manufacturing industry and boosting exports. This is achieved by providing specific exemptions and rebates for employers who utilise Australian-made components in their production and export activities.

Scope and Application

The Pay-roll Tax Assessment Act 1965 amends the Pay-roll Tax Assessment Act 1941–1963, introducing changes related to exemptions and rebates, particularly concerning the export of motor vehicle components. This legislation applies to employers who are involved in the production and export of motor vehicles and their components, with a specific focus on those who have significantly contributed to the development of manufacturing in Australia and the export of Australian-made goods. The Act extends its reach to employers who produce and export motor vehicle components from Australia on or after July 1, 1965, and provides exemptions or specific treatments for such employers, provided they follow certain criteria such as using locally manufactured components to the extent reasonably practicable. Additionally, the Act allows for the Secretary or the Treasurer to make determinations regarding the status of employers as producers for export, subject to the conditions outlined in the legislation. The Act does not specify exclusions or exemptions beyond those related to motor vehicle components, and it allows for further regulation through subordinate instruments, such as certificates issued by the Secretary or the Treasurer.

Key Provisions

The Pay-roll Tax Assessment Act 1965 makes several key amendments to the Pay-roll Tax Assessment Act 1941–1963, primarily focusing on exemptions and rebates. Section 3 amends Section 15 of the Principal Act by removing the exemption for certain Commonwealth activities and inserting a new exemption for the Commonwealth War Graves Commission (Section 3(e)). This means that the Commonwealth War Graves Commission is now exempt from the payroll tax imposed under the Act. Under Section 4, several definitions are added to Section 16a of the Principal Act to clarify terms used within the legislation. For instance, "complete motor vehicle" is defined as a motor vehicle capable of being driven under its own power, while "motor vehicle components" are defined as components for a motor vehicle exported from Australia for use in the original manufacture or assembly of a complete motor vehicle in another country. Furthermore, Section 4(5) provides that employers involved in the production of motor vehicles in Australia and who export motor vehicle components can be deemed producers for export, affecting the calculation of rebates for payroll tax. Employers are obligated to adhere to the definitions and conditions set out in the amended sections. Specifically, Section 5 introduces a new section, 16aa, which allows the Treasurer to deem employers who significantly assist in the development of manufacturing and export of Australian goods by using locally manufactured components as producers for export. This requires employers to follow certain policies and procedures to qualify for such designation. Additionally, Section 7 modifies Section 16h of the Principal Act to include declarations regarding the export of motor vehicle components, ensuring transparency and compliance. Failure to comply with the requirements or misdeclaration of exported goods can lead to serious consequences. Although the specific penalties are not detailed in the provided text, it is understood that breaches of the Act can result in both civil and criminal penalties, depending on the severity and intent of the violation. Employers must ensure they are aware of and adhere to the provisions to avoid potential legal repercussions.

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Taxation Law
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Definitions & Interpretation
Exemptions & Exclusions
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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.