PAY-ROLL TAX (TERRITORIES) ASSESSMENT AMENDMENT ACT 1978
No. 55 of 1978
An Act to amend the Pay-roll Tax (Territories) Assessment Act 1971.
BE IT ENACTED by the Queen, and the Senate and House of Representatives of the Commonwealth of Australia, as follows:
Short title, &c.
1. (1) This Act may be cited as the Pay-roll Tax (Territories) Assessment Amendment Act 1978.
(2) The Pay-roll Tax (Territories) Assessment Act 1971 is in this Act referred to as the Principal Act.
Commencement
2. This Act shall come into operation on the day on which it receives the Royal Assent.
General exemption
3. (1) Section 12 of the Principal Act is amended by omitting from sub-sections (3), (4) and (7) “$4,000” and substituting “$5,000”.
(2) The amendments of section 12 of the Principal Act made by sub-section (1) apply in relation to a return or assessment in respect of a month or other period that commences on or after 1 July 1978.
Refund or rebate of tax on annual adjustment
4. Section 14 of the Principal Act is amended—
(a) by omitting from paragraph (a) of sub-section (4a) “and” (last occurring);
(b) by omitting from paragraph (b) of sub-section (4a) “in respect of a financial year subsequent to the financial year that commenced on 1 July 1976” and substituting “in respect of the financial year that commenced on 1 July 1977”;
(c) by adding at the end of sub-section (4a) the following word and paragraph:
“and (c) in respect of a financial year subsequent to the financial year that commenced on 1 July 1977—the amount ascertained by deducting from $60,000 an amount of $2 for each amount of $3 included in the amount by which the amount of the total wages paid by the employer in respect of the financial year exceeds $60,000.”;
(d) by omitting from paragraph (a) of sub-section (4b) “and” (last occurring);
(e) by omitting from paragraph (b) of sub-section (4b) “in respect of a financial year subsequent to the financial year that commenced on 1 July 1976” and substituting “in respect of the financial year that commenced on 1 July 1977”; and
(f) by adding at the end of sub-section (4b) the following word and paragraph:
“and (c) in respect of a financial year subsequent to the financial year that commenced on 1 July 1977—the amount that would be the prescribed amount referred to in sub-section (4a) in respect of the financial year if the employer had been an employer in Australia during the whole of the financial year and if each reference in paragraph (c) of subsection (4a) to $60,000 were a reference to the amount that bears to $60,000 the same proportion as the part of the year during which the employer was an employer in Australia bears to the whole of that financial year.”.
Registration
5. (1) Section 16 of the Principal Act is amended by omitting from sub-section (1) “$900 “ and substituting “$1,150”.
(2) The amendment of section 16 of the Principal Act made by sub-section (1) applies in relation to the month commencing on 1 July 1978 and to each subsequent month.
Release of employers in cases of hardship
6. (1) Section 69 of the Principal Act is amended by omitting from sub-section (1) “Department of the Treasury” and substituting “Department of Finance”.
(2) The amendment of section 69 of the Principal Act made by sub-section (1) does not affect the jurisdiction of a Board constituted under that section in relation to any application made under that section the consideration of which had commenced before the commencement of this section.
Overview
The Pay-roll Tax (Territories) Assessment Amendment Act 1978 was enacted to make amendments to the Pay-roll Tax (Territories) Assessment Act 1971. This Act was introduced to address various issues and update the thresholds and provisions of the original Act. Enacted by the Queen, with the assent of both the Senate and the House of Representatives of the Commonwealth of Australia, the primary aim of this amendment was to adjust the tax thresholds and refine the application of payroll tax in the territories, ensuring that the legislation remains relevant and effective in its purpose. The Act includes amendments to the exemption thresholds, adjustments to the refund or rebate of tax on annual adjustments, changes to the registration thresholds, and a modification in the department responsible for handling cases of hardship, shifting from the Department of the Treasury to the Department of Finance.
Scope and Application
The Pay-roll Tax (Territories) Assessment Amendment Act 1978 amends the Pay-roll Tax (Territories) Assessment Act 1971. It applies to entities within the territories of Australia that are liable to pay payroll tax, primarily businesses and employers operating in the Australian Capital Territory and the Northern Territory. The Act modifies several provisions of the Principal Act, including increasing the exemption threshold for payroll tax, adjusting the calculation of refunds or rebates of tax on annual adjustments, and altering the registration threshold. The amendments apply to returns or assessments concerning periods that commence on or after 1 July 1978. The scope of the Act is limited to the territories of Australia, and the amendments do not extend to the states. The Act allows for further application and interpretation through subordinate instruments, but these are not specified within the text.
Key Provisions
The Pay-roll Tax (Territories) Assessment Amendment Act 1978 (section 1) amends the Pay-roll Tax (Territories) Assessment Act 1971 (section 2). The key changes include increasing the exemption threshold for pay-roll tax from $4,000 to $5,000 (section 3), altering the method for calculating refunds or rebates on annual adjustments for financial years commencing after 1 July 1977 (section 4), raising the monthly threshold for registration from $900 to $1,150 (section 5), and changing the responsible department from the Department of the Treasury to the Department of Finance for certain hardship cases (section 6). These amendments apply to financial years and months commencing on or after 1 July 1978.
Under the amended Act, employers with total wages paid in a financial year exceeding $60,000 are subject to specific adjustments for refunds or rebates of tax on annual adjustments. The calculation method for these adjustments has been revised, and employers must now account for a proportional amount if they were not employers in Australia for the entire financial year (section 4). Additionally, the monthly registration threshold for pay-roll tax has been increased from $900 to $1,150, effective from July 1978 onwards (section 5). The Act also transfers the responsibility for handling hardship cases from the Department of the Treasury to the Department of Finance, without affecting ongoing applications (section 6).
Failure to comply with the provisions of this Act can result in various consequences. Employers who do not register when required or who fail to meet the increased thresholds may face administrative penalties. The specific nature and extent of these penalties are not detailed in the provided text, but they could include fines or other enforcement actions. Additionally, incorrect calculations or misreporting of wages could lead to disputes over refunds or rebates, potentially resulting in audits or reassessments by the relevant tax authority.
There are no explicit references to specific offences, penalties, or civil/criminal consequences within the provided sections of the Act. However, non-compliance with tax laws generally can result in legal actions, including fines or legal proceedings. Employers are encouraged to seek advice from tax professionals to ensure they meet their obligations under this Act to avoid potential penalties.