Pay-roll Tax (Termination of Commonwealth Tax) Act 1971

Administered by Department of the Treasury

Legislation au C1971A00076 Not in force Act

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Pay-roll Tax (Termination of Commonwealth Tax)

No. 76 of 1971

An Act to terminate the Tax imposed by the Pay-roll Tax Act 1941–1966, and for purposes related thereto.

[Assented to 6 October 1971]

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.

1. This Act may be cited as the Pay-roll Tax (Termination of Commonwealth Tax) Act 1971.

Commencement.

2.—(1.) This Act shall come into operation, or shall be deemed to have come into operation, as the case requires, on a date to be fixed by Proclamation.

(2.) The date fixed under the last preceding sub-section shall be the first day of September, One thousand nine hundred and seventy-one, or the first day of a subsequent month.

Interpretation.

3.—(1.) In this Act, unless the contrary intention appears—

“the Assessment Act” means the Pay-roll Tax Assessment Act 1941–1969;

“the terminating date” means the date immediately preceding the date of commencement of this Act;

“the terminating period” means the period commencing on the first day of July, One thousand nine hundred and seventy-one, and ending immediately before the commencement of this Act.

(2.) Unless the contrary intention appears, expressions used in this Act have the same respective meanings as they have in the Assessment Act.

Termination of tax.

4.—(1.) Subject to the next succeeding sub-section, the Pay-roll Tax Act 1941–1966 does not apply to wages paid or payable after the terminating date in respect of any period of time, including a period occurring, in whole or in part, before the commencement of this Act.

(2.) Where—

(a) wages became payable, but were not paid, on or before the terminating date;

(b) the wages were included in a return furnished under the Assessment Act before the day on which this Act receives the Royal Assent; and

(c) the wages are paid after the terminating date,


any tax imposed on those wages by the Pay-roll Tax Act 1941–1966 by virtue of those wages having become payable on or before the terminating date does not cease to be payable by virtue of the last preceding sub-section.

Adjustment of tax in respect of terminating period.

5. For the purposes of section 16 of the Assessment Act, the terminating period shall be deemed to be a financial year and, in the application of that section in relation to the terminating period—

(a) any reference in that section to a financial year or to a year shall be read as a reference to the terminating period; and

(b) any reference in that section to the amount prescribed in sub-section (2a.) of that section in respect of a financial year shall be read as a reference to such amount as bears to the amount of Twenty thousand eight hundred dollars the same proportion as the number of months in the terminating period bears to twelve.

Refund or rebate of excess tax.

6.—(1.) For the purposes of this section—

(a) the net tax applicable to an employer in respect of the terminating period is the amount of tax paid or payable by him in respect of that period after the deduction of any refund or rebate to which, under section 16 of the Assessment Act as affected by this Act, he is entitled in respect of that period; and

(b) the notional net tax applicable to an employer in respect of the financial year that commenced on the first day of July, One thousand nine hundred and seventy-one, is the amount of tax that would have been paid or payable by him in respect of that financial year if this Act had not been enacted after the deduction of any refund or rebate to which, under section 16 of the Assessment Act, he would have been entitled in respect of that financial year if this Act had not been enacted.

(2.) Where the net tax applicable to an employer in respect of the terminating period exceeds the notional tax applicable to that employer in respect of the financial year that commenced on the first day of July, One thousand nine hundred and seventy-one, the Commissioner shall, upon application by the employer, refund or rebate to the employer an amount equal to the excess.

Rebate of tax by reference to exports.

7. Notwithstanding the definition of “rebate year” in sub-section (1.) of section 16a of the Assessment Act, any reference in Division 2 of Part III. of the Assessment Act to a rebate year shall be read as not including a reference to a financial year subsequent to the financial year that ended on the thirtieth day of June, One thousand nine hundred and seventy-one.

Rebates under section 16f (3.) of Assessment Act.

8. A rebate is not allowable under sub-section (3.) of section 16f of the Assessment Act in respect of a financial year subsequent to the financial year that ended on the thirtieth day of June, One thousand nine hundred and seventy-one.


Claims.

9. A claim shall not be made under section 16j of the Assessment Act in respect of a year subsequent to the financial year that ended on the thirtieth day of June, One thousand nine hundred and seventy-one.

Registration.

10. Section 17 of the Assessment Act does not apply in relation to a month subsequent to the month that closes on the terminating date.

Returns.

11.—(1.) An employer is not required to furnish, under section 18 of the Assessment Act, a return of wages to which, by virtue of section 4 of this Act, the Pay-roll Tax Act 1941–1966 does not apply.

(2.) Where—

(a) there is in force, on the terminating date, a notice under sub-section (2.) of section 18 of the Assessment Act varying the periods in respect of which an employer is required to furnish returns in pursuance of sub-section (1.) of that section; and

(b) under the notice, a period commences on or before, but ends after, the terminating date,

that part of the period that occurs after the terminating date shall, for the purposes of that Act, be disregarded.

Secrecy.

12. Notwithstanding anything contained in section 11 of the Assessment Act, the Commissioner, a Second Commissioner or a Deputy Commissioner may communicate any matter that has come, or comes, to his knowledge in the performance of his official duties to an officer performing a function or a duty under a law of a State relating to the imposition upon employers of a tax on wages paid or payable by them and the assessment and collection of that tax.

 

Overview

The Pay-roll Tax (Termination of Commonwealth Tax) Act 1971 was enacted to formally terminate the payroll tax imposed by the Pay-roll Tax Act 1941–1966. This Act was brought into being by the Queen's Most Excellent Majesty, the Senate, and the House of Representatives of the Commonwealth of Australia. It was designed to address the need to cease the federal payroll tax, which was no longer deemed necessary or appropriate. The Act includes provisions for the cessation of tax application to wages paid after the specified termination date, adjustments to tax during the terminating period, refunds or rebates for excess tax paid, and modifications to rebate eligibility and claims. Its policy objective is to ensure a smooth transition by providing mechanisms for employers to either claim refunds for excess tax paid or to adjust their tax obligations during the specified terminating period.

Scope and Application

The Pay-roll Tax (Termination of Commonwealth Tax) Act 1971 applies to employers who were previously subject to the Pay-roll Tax Act 1941–1966, effectively terminating the Commonwealth's imposition of payroll tax. The Act is geographically and jurisdictionally applicable across the Commonwealth of Australia, impacting all employers within its territory. It terminates the application of the Pay-roll Tax Act 1941–1966 to wages paid or payable after the specified terminating date, which is set immediately before the commencement of this Act. However, it includes provisions that ensure any tax imposed on wages that became payable but were not paid on or before the terminating date remains payable. The Act provides mechanisms for the adjustment of tax in respect of the terminating period, ensuring that the tax liability is correctly calculated and any excess tax is refunded or rebated to employers. Additionally, it specifies that certain rebates and claims under the Pay-roll Tax Assessment Act 1941–1969 are no longer applicable for financial years subsequent to the one that ended on 30 June 1971. This Act extends its application through subordinate instruments that may further define the scope and specifics of the termination of the payroll tax.

Key Provisions

The Pay-roll Tax (Termination of Commonwealth Tax) Act 1971 (C1971A00076) terminates the payroll tax imposed by the Pay-roll Tax Act 1941–1966, effective from a date fixed by Proclamation, with the default being 1 September 1971 (sections 1, 2). This Act, which came into effect on a specified date, aims to cease the application of the payroll tax for wages paid or payable after the terminating date (section 4). This means that from the moment the Act commences, any payroll tax liability for wages earned after this date is nullified. Entities governed by the Act are relieved from certain obligations that would have otherwise applied under the Pay-roll Tax Assessment Act 1941–1969. For example, employers are no longer required to register or furnish returns of wages for periods after the terminating date (sections 10, 11). Additionally, the Act specifies that claims for tax refunds or rebates can only be made for financial years up to the one that ended on 30 June 1971 (sections 7, 8, 9). The Act also alters the interpretation of certain terms, such as “rebate year” and “financial year,” to exclude periods subsequent to the financial year ending on 30 June 1971 (sections 5, 7). The Act does not introduce new offences, but it does outline the consequences of non-compliance with its provisions. For instance, if an employer fails to adhere to the requirements set forth by the Act, such as incorrectly registering or furnishing returns, they may face civil or administrative penalties as per the relevant tax laws in place at the time. However, the specific penalties for non-compliance are not detailed in the Act itself, and would be governed by other applicable tax legislation (sections 10, 11).

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Area of Law
Taxation Law
Instrument
Act
Concepts
Commencement Provisions
Repeal & Amendment
Reporting & Disclosure Obligations
Refund or Rebate of Tax
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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.