Pay-roll Tax (Territories) Assessment Amendment Act 1979

Administered by Department of the Treasury

Legislation au C2004A02020 Not in force Act

Legislation content

Pay-Roll Tax (Territories) Assessment Amendment Act 1979

No. 10 of 1979

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 1979.

(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, or shall be deemed to have come into operation, as the case requires, on the first day of the month in 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) “$5,000” and substituting “$5,500”.

(2) Subject to sub-section (3), 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 the date of commencement of this Act (in this sub-section referred to as the “commencement date”) or that commenced before, but ends on or after, the commencement date, but, for the purposes of the application of section 12 of the Principal Act as amended by sub-section (1) in relation to a return or assessment in respect of a month or other period (in this sub-section referred to as the “month or period of the return”) that commenced before, and ends on or after, the commencement date, the return or assessment shall be taken to relate to 2 periods, one period being the period that commenced on the commencement of the month or period of the return and ended on the day prior to the commencement date, and the other period being the period commencing on the commencement date and ending on the last day of the month or period of the return.

(3) Where a return or assessment relates to the whole of the financial year ending on 30 June 1979, sub-section (2) applies as if this Act had come into operation on 1 January 1979.

Refund or rebate of tax on annual adjustment

4. Section 14 of the Principal Act is amended—

(a) by omitting from paragraph (b) of sub-section (4a) “and” (last occurring);

(b) by omitting paragraph (c) of sub-section (4a) and substituting the following paragraphs:

“(c) in respect of the financial year that commenced on 1 July 1978—the amount ascertained by deducting from the aggregate of $30,000 and $33,000 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 the aggregate of $30,000 and $33,000; and

(d) in respect of a financial year subsequent to the financial year that commenced on 1 July 1978—the amount ascertained by deducting from $66,000 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 $66,000.”;

(c) by omitting from paragraph (b) of sub-section (4b) “and” (last occurring); and


(d) by omitting paragraph (c) of sub-section (4b) and substituting the following paragraphs:

“(c) in respect of the financial year that commenced on 1 July 1978—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—

(i) where the employer was an employer in Australia during a period (in this sub-paragraph referred to as the ‘employment period’) that is the whole or a part of the period that commenced on 1 July 1978 and ended on 31 December 1978 (whether or not the employer was an employer in Australia during any other part of the financial year)—each reference in paragraph (c) of sub-section (4a) to $30,000 were a reference to the amount that bears to $30,000 the same proportion as the employment period bears to 6 months; and

(ii) where the employer was an employer in Australia during a period (in this sub-paragraph referred to as the ‘employment period’) that is the whole or a part of the period that commenced on 1 January 1979 and ends on 30 June 1979 (whether or not the employer was an employer in Australia during any other part of the financial year)—each reference in paragraph (c) of sub-section (4a) to $33,000 were a reference to the amount that bears to $33,000 the same proportion as the employment period bears to 6 months; and

(d) in respect of a financial year subsequent to the financial year that commenced on 1 July 1978—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 (d) of sub-section (4a) to $66,000 were a reference to the amount that bears to $66,000 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) “$1,150” and substituting “$1,250”.

(2) The amendment of section 16 of the Principal Act made by sub-section (1) applies in relation to the month that commenced on the date of commencement of this Act and to each subsequent month.

 

Overview

The Pay-roll Tax (Territories) Assessment Amendment Act 1979 was enacted to make amendments to the Pay-roll Tax (Territories) Assessment Act 1971. This Act was passed by the Queen, and the Senate and House of Representatives of the Commonwealth of Australia. The legislation primarily addresses issues related to the assessment and adjustment of pay-roll tax in the territories, ensuring that tax calculations are fair and reflect changes in financial years and thresholds. The policy objective is to update the tax thresholds and provisions to maintain the integrity and effectiveness of the payroll tax system. The Act introduces amendments to the Principal Act by adjusting the exemption threshold from $5,000 to $5,500, modifies the refund or rebate of tax on annual adjustments, and updates the registration threshold from $1,150 to $1,250. These changes are designed to ensure that tax assessments remain accurate and relevant, accommodating shifts in financial years and providing clarity for employers in the territories. The amendments are applied prospectively to returns or assessments that commence on or after the Act's commencement date, ensuring a smooth transition and compliance with the updated provisions.

Scope and Application

The Pay-roll Tax (Territories) Assessment Amendment Act 1979 amends the Pay-roll Tax (Territories) Assessment Act 1971. This Act applies to employers operating within the territories of Australia and specifically targets payroll tax assessment. It adjusts the threshold for payroll tax exemption by increasing it from $5,000 to $5,500, effective for returns or assessments that commence on or after the date of the Act's commencement or those that began before but end on or after this date. Additionally, the Act modifies the refund or rebate of tax on annual adjustments, setting new parameters for the calculation based on the financial year starting on 1 July 1978 and subsequent years. The Act also increases the registration threshold for employers from $1,150 to $1,250, effective from the month of its commencement. The adjustments made by this Act are applicable nationally within the territories of Australia, extending its reach to all employers falling within the specified payroll thresholds.

Key Provisions

The Pay-roll Tax (Territories) Assessment Amendment Act 1979 (Act) primarily amends the Pay-roll Tax (Territories) Assessment Act 1971 (Principal Act). The Act increases the exemption threshold for pay-roll tax, modifies the calculation of refunds or rebates on annual adjustments, and changes the registration threshold for employers. Section 3 of the Act raises the exemption threshold from $5,000 to $5,500, applying to returns or assessments for periods commencing on or after the Act's commencement date, or periods ending after this date if they began before it. Section 4 revises the formula for calculating refunds or rebates on annual adjustments, adjusting the thresholds and calculation methods for specific financial years. Section 5 increases the registration threshold from $1,150 to $1,250, effective from the Act's commencement date and each subsequent month. The Act imposes specific obligations on employers within the territories to ensure compliance with the amended pay-roll tax provisions. Employers must adjust their tax calculations according to the new thresholds and formulas for exemption and refund or rebate calculations. They must also ensure they meet the updated registration threshold for tax purposes. These obligations necessitate that employers maintain accurate records of their wages paid and periods of employment, both within Australia and in the territories, to correctly apply the provisions of the Act. Breaches of the obligations set out in the Act may result in penalties. Although the Act does not specify particular penalties, breaches of tax legislation in Australia typically incur both civil and criminal penalties. Civil penalties can include fines based on the severity and frequency of the breach, while criminal penalties may involve imprisonment depending on the seriousness of the offence. Employers failing to register or incorrectly calculating their pay-roll tax could face these penalties, underscoring the importance of compliance with the Act's provisions.

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Taxation Law
Instrument
Act
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Commencement Provisions
Definitions & Interpretation
Repeal & Amendment
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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.