Pay‑roll Tax (State Taxation of Commonwealth Authorities) Act 1971
No. 104 of 1971
An Act relating to Liability for State Pay‑roll Tax of certain Commonwealth authorities
Contents
1 Short title
2 Commencement
3 Interpretation
4 Liability of Commonwealth authorities for State pay‑roll tax
Pay‑roll Tax (State Taxation of Commonwealth Authorities) Act 1971
No. 104 of 1971
An Act relating to Liability for State Pay‑roll Tax of certain Commonwealth authorities
[Assented to 30 November 1971]
The Parliament of Australia enacts:
1 Short title
This Act may be cited as the Pay‑roll Tax (State Taxation of Commonwealth Authorities) Act 1971.
2 Commencement
This Act shall be deemed to have come into operation on the date of commencement of the Pay‑roll Tax (Termination of Commonwealth Tax) Act 1971.
3 Interpretation
(1) In this Act:
Commonwealth authority means an authority or body constituted or established by an Act.
Commonwealth authority subject to Commonwealth pay‑roll tax means a Commonwealth authority:
(a) that was registered as an employer under the Pay‑roll Tax Assessment Act 1941‑1969; or
(b) in respect of which an application for registration as an employer under that Act was pending, immediately before the commencement of this Act.
pay‑roll tax law, in relation to a State, means a law of that State that relates to the imposition, assessment and collection of a tax on wages.
(2) For the purposes of this Act, an authority or body continued in existence by an Act shall be deemed to be constituted by that Act.
4 Liability of Commonwealth authorities for State pay‑roll tax
Where the Act that constitutes or establishes a Commonwealth authority, being a Commonwealth authority subject to Commonwealth pay‑roll tax, contains provision:
(a) to the effect that the Commonwealth authority is not subject to taxation under a law of a State to which the Commonwealth is not subject; or
(b) to the effect that the Commonwealth authority is not, except with respect to stamp duty, subject to taxation under a law of a State to which the Commonwealth is not subject,
that provision does not have effect in relation to taxation under the pay‑roll tax law of that State.
Overview
The Pay-roll Tax (State Taxation of Commonwealth Authorities) Act 1971 was enacted by the Parliament of Australia to address the issue of Commonwealth authorities being exempt from state payroll tax. This Act specifies the liability of certain Commonwealth authorities for state payroll tax, countering provisions in their constituting Acts that exempt them from such taxation. The policy objective behind this legislation is to ensure that these authorities contribute to state payroll tax, aligning their financial obligations with those of other employers within the state. The Act came into operation on the same date as the Pay-roll Tax (Termination of Commonwealth Tax) Act 1971, effectively clarifying the tax responsibilities of Commonwealth authorities in relation to state payroll tax laws.
Scope and Application
The Pay-roll Tax (State Taxation of Commonwealth Authorities) Act 1971 applies to Commonwealth authorities that were registered as employers under the Pay-roll Tax Assessment Act 1941-1969 or had an application for registration pending before the commencement of this Act. This includes authorities or bodies established or constituted by an Act of the Commonwealth. These entities, which are subject to Commonwealth payroll tax, are liable for State payroll tax regardless of any provisions in their constituting Acts that exempt them from State taxation. The Act's jurisdictional reach pertains to the Commonwealth's payroll tax obligations in relation to State payroll tax laws. The Act does not create any exclusions or exemptions from State payroll tax for these Commonwealth authorities. The scope of the Act may be extended or further defined through subordinate instruments, but the primary text of the Act itself sets out the specific conditions under which Commonwealth authorities are liable for State payroll tax.
Key Provisions
The Pay-roll Tax (State Taxation of Commonwealth Authorities) Act 1971 (the "Act") establishes the liability of certain Commonwealth authorities for state payroll tax. This Act specifically applies to Commonwealth authorities that were registered as employers under the Pay-roll Tax Assessment Act 1941-1969 or had pending applications for registration immediately before the Act's commencement. Under Section 4, the Act overrides any provisions in the constituting or establishing Act of a Commonwealth authority that would exempt the authority from state payroll tax. This means that if a Commonwealth authority was previously exempt from state taxation, it is now liable for state payroll tax under the payroll tax laws of the relevant state.
The Act imposes an obligation on Commonwealth authorities that fall under its purview to pay state payroll tax as if they were not exempt. This includes authorities that were previously registered under the Pay-roll Tax Assessment Act 1941-1969 or had pending applications for registration. By overriding any exemptions provided in the authority's establishing Act, the legislation ensures that these entities contribute to state payroll tax, aligning their tax liabilities with those of other employers in the state.
In terms of consequences for non-compliance, the Act does not explicitly outline specific offences, penalties, or consequences for breach within its text. However, the obligation to pay state payroll tax implies that failure to do so could result in legal action under the relevant state's payroll tax laws. The penalties for non-compliance would typically be governed by those state laws, which may include fines, interest on unpaid tax, and potential legal proceedings. The maximum penalties would depend on the specific state laws applicable to the Commonwealth authority in question.