{"id":"payroll-tax-assessment-act-2002","name":"Pay-roll Tax Assessment Act 2002","slug":"pay-roll-tax-assessment-act-2002","collection":"act","jurisdiction":"wa","status":"in_force","isInForce":true,"actNumber":null,"makingDate":null,"administeringDepartment":null,"currentVersion":{"id":105983,"registerId":"wa-payroll-tax-assessment-act-2002-current","compilationNumber":null,"startDate":"2026-04-03","status":"InForce","reasons":null,"registeredAt":null},"sections":[{"sectionNumber":"Part 1","sectionType":"part","heading":"Preliminary","content":"Part 1 — Preliminary\n\n1. Short title 2\n\n2. Commencement 2\n\n3. Relationship with other Acts 2\n\n4. Terms used 2\n\n5A. Notes in text 3\n\n","sortOrder":0},{"sectionNumber":"Part 2","sectionType":"part","heading":"Liability and assessment","content":"Part 2 — Liability and assessment\n\n","sortOrder":1},{"sectionNumber":"Div 1","sectionType":"division","heading":"Liability to pay‑roll tax","content":"Division 1 — Liability to pay‑roll tax\n\n5. Pay‑roll tax on WA taxable wages 4\n\n6A. Wages that are taxable in this jurisdiction 4\n\n6B. Jurisdiction in which person who performs services is based 7\n\n6C. Jurisdiction in which employer is based 8\n\n6D. Place and date of payment of wages 9\n\n6. Time for payment of pay‑roll tax 10\n\n7. Liability to pay‑roll tax 10\n\n7A. Tax thresholds and tapering value: half-years in financial year beginning 1 July 2019 10\n\n8. Tax thresholds and tapering value: financial years beginning on or after 1 July 2020 11\n\n","sortOrder":2},{"sectionNumber":"Div 2A","sectionType":"division","heading":"Wages","content":"Division 2A — Wages\n\n","sortOrder":3},{"sectionNumber":"Subdiv 1","sectionType":"subdivision","heading":"General concept of wages","content":"Subdivision 1 — General concept of wages\n\n9AA. Term used: wages 12\n\n","sortOrder":4},{"sectionNumber":"Subdiv 2","sectionType":"subdivision","heading":"Fringe benefits and specified taxable benefits","content":"Subdivision 2 — Fringe benefits and specified taxable benefits\n\n9BA. Wages include fringe benefits and specified taxable benefits 13\n\n9BB. Actual value of fringe benefit 14\n\n9BC. Basis for including value of fringe benefits in returns 14\n\n9BD. Eligibility to use estimated value method 15\n\n9BE. Returns (other than annual returns) using estimated value method 15\n\n9BF. Annual returns using estimated value method 16\n\n9BG. Final returns using estimated value method 16\n\n9BH. Changing method of valuing fringe benefits 17\n\n9BI. Value of specified taxable benefit 19\n\n","sortOrder":5},{"sectionNumber":"Subdiv 3","sectionType":"subdivision","heading":"Superannuation contributions","content":"Subdivision 3 — Superannuation contributions\n\n9CA. Terms used 19\n\n9CB. Wages include superannuation contributions and other similar amounts 20\n\n9CC. Superannuation contributions 22\n\n9CD. Notional contributions 22\n\n","sortOrder":6},{"sectionNumber":"Subdiv 4","sectionType":"subdivision","heading":"Shares and options","content":"Subdivision 4 — Shares and options\n\n9DA. Wages include shares and options granted to employees 23\n\n9DB. Relevant day: choice of 24\n\n9DC. Relevant day: special cases 25\n\n9DD. Value of shares and options 26\n\n9DE. Effect of rescission, cancellation etc. of share or option 27\n\n9DF. Grant of share under exercise of option 28\n\n9DG. Wages include certain shares and options granted to directors 28\n\n9DH. Place where wages (as shares or options) are payable 29\n\n","sortOrder":7},{"sectionNumber":"Subdiv 5","sectionType":"subdivision","heading":"Termination payments","content":"Subdivision 5 — Termination payments\n\n9EA. Wages include termination payments 30\n\n","sortOrder":8},{"sectionNumber":"Subdiv 6","sectionType":"subdivision","heading":"Allowances","content":"Subdivision 6 — Allowances\n\n9FA. Motor vehicle allowances 31\n\n9FB. Accommodation allowances 32\n\n","sortOrder":9},{"sectionNumber":"Subdiv 7","sectionType":"subdivision","heading":"Employment agents","content":"Subdivision 7 — Employment agents\n\n9GA. Wages include amounts paid by employment agents 33\n\n","sortOrder":10},{"sectionNumber":"Subdiv 8","sectionType":"subdivision","heading":"Miscellaneous provisions","content":"Subdivision 8 — Miscellaneous provisions\n\n9HA. Value of wages paid in kind 33\n\n9HB. GST excluded from wages 34\n\n9HC. Wages paid by or to third parties 34\n\n","sortOrder":11},{"sectionNumber":"Div 2","sectionType":"division","heading":"Non‑group employers’ liability","content":"Division 2 — Non‑group employers’ liability\n\n10. Annual tax liability: local non‑group employers 35\n\n11A. Apportioned threshold amounts for s. 10: local non‑group employers 38\n\n11. Tax payable with returns: local non‑group employer 38\n\n12. Apportioned threshold amounts for s. 11: local non‑group employers 40\n\n13. Annual tax liability: interstate non‑group employers 41\n\n14. Apportioned threshold amounts for s. 13: interstate non‑group employers 43\n\n15. Tax payable with progressive returns: interstate non‑group employers 44\n\n16. Annual reconciliation: non‑group employers 45\n\n","sortOrder":12},{"sectionNumber":"Div 3","sectionType":"division","heading":"Group employers’ liability","content":"Division 3 — Group employers’ liability\n\n17. Annual tax liability: groups 46\n\n18. Apportioned threshold amounts for s. 17: groups 49\n\n19. Tax payable with progressive returns: groups 50\n\n20. Annual reconciliation: groups 51\n\n","sortOrder":13},{"sectionNumber":"Div 4","sectionType":"division","heading":"Assessment generally","content":"Division 4 — Assessment generally\n\n21. Tax‑reducing arrangements 52\n\n22. Adjustments for changes in annual threshold amount 52\n\n23. Taxable wages not paid throughout assessment year 53\n\n","sortOrder":14},{"sectionNumber":"Div 5","sectionType":"division","heading":"Special provisions for period from 1 July 2018 to 30 June 2023","content":"Division 5 — Special provisions for period from 1 July 2018 to 30 June 2023\n\n23A. Nomination of estimates for determining rates for progressive return periods 54\n\n23B. Application for nomination under s. 23A 55\n\n23C. Determination of reduced rate where *Pay‑roll Tax Act 2002* s. 8(6) or 10(7) applied 56\n\n","sortOrder":15},{"sectionNumber":"Div 6","sectionType":"division","heading":"Special provisions for assessment year beginning 1 July 2019","content":"Division 6 — Special provisions for assessment year beginning 1 July 2019\n\n23D. Terms used 57\n\n23E. Application of Division 59\n\n23F. Annual tax liability: whole of assessment year beginning 1 July 2019 59\n\n23G. Annual tax liability for non‑group employers: part‑years in assessment year beginning 1 July 2019 60\n\n23H. Annual tax liability for groups: part‑years in assessment year beginning 1 July 2019 62\n\n23I. Tax payable with progressive returns in assessment year beginning 1 July 2019 64\n\n23J. Tax payable for return period portions: local non‑group employers 65\n\n23K. Modified application of relevant liability provisions 67\n\n23L. Adjustment for application of half‑year thresholds 69\n\n23M. Annual reconciliation for assessment year beginning 1 July 2019 70\n\n","sortOrder":16},{"sectionNumber":"Part 3","sectionType":"part","heading":"Registration and returns","content":"Part 3 — Registration and returns\n\n24. Applications for registration as employer 71\n\n25. Registration and cancellation of registration 71\n\n26. Monthly returns 72\n\n27. Additional returns for reconciliation purposes 73\n\n28. Further returns 74\n\n28A. Manner of lodging and paying in certain cases 74\n\n29. M, MC Exemptions from lodging monthly returns 75\n\n","sortOrder":17},{"sectionNumber":"Part 4","sectionType":"part","heading":"Constitution of business groups","content":"Part 4 — Constitution of business groups\n\n30. Grouping corporations 79\n\n31. Grouping where employees used in another business 79\n\n32. Grouping commonly controlled businesses 80\n\n33. Controlling interest in business 80\n\n34. Value of beneficial interest in discretionary trusts 82\n\n35A. Groups arising from tracing of interests in corporations 83\n\n35B. Direct interests 85\n\n35C. Indirect interests 85\n\n35D. Aggregate interests 86\n\n36. Smaller groups subsumed into larger groups 87\n\n37. Grouping provisions operate independently 87\n\n38. Exclusion from groups 87\n\n39. Designated group employer 88\n\n","sortOrder":18},{"sectionNumber":"Part 5","sectionType":"part","heading":"Exempt wages","content":"Part 5 — Exempt wages\n\n40. Exempt wages 90\n\n41A. Exempt wages: parental and adoption leave 93\n\n41B. Exempt wages: wages paid or payable for or in relation to services performed in other countries 94\n\n41C. Exempt wages: DSC disability support and disability wages subsidy 94\n\n41D. Exempt wages: apprentices under training contracts 96\n\n","sortOrder":19},{"sectionNumber":"Part 6","sectionType":"part","heading":"Miscellaneous","content":"Part 6 — Miscellaneous\n\n41. Exempting charitable bodies or organisations 98\n\n42A. What is a relevant body 99\n\n42B. Application for a beneficial body determination 100\n\n42C. Beneficial body determination 101\n\n42. Tax payable when employer leaves Australia 103\n\n43. Agents and trustees 103\n\n44. Keeping books and accounts 105\n\n45. Regulations 105\n\n46. Transitional provisions 107\n\n","sortOrder":20},{"sectionNumber":"Sch 1","sectionType":"schedule","heading":"Transitional provisions","content":"Schedule 1 — Transitional provisions\n\nDivision 1 — Provisions for the *Pay‑roll Tax Assessment Amendment Act 2010* in relation to taxable wages\n\n1. Liability to tax for assessment years commencing on 1 July 2009 and 1 July 2010 108\n\n2. Shares and options granted on or after 1 July 2009 and before *Pay‑roll Tax Assessment Amendment Act 2010* received Royal Assent 108\n\n3. Notices under *Pay‑roll Tax Assessment Regulations 2003* r. 26(1) or (2) 109\n\nDivision 2 — Provisions for the *Pay‑roll Tax Assessment Amendment Act 2010* in relation to grouping of employers\n\n4. Exclusion from group in force before 1 July 2012 109\n\n5. Exclusion from group granted on or after 1 July 2012 109\n\n6. Exclusion from group having effect before 1 July 2012 110\n\nDivision 3 — Provisions consequent on enactment of *Revenue Laws Amendment Act 2012* Part 5 Division 2\n\n7. Assessment and payment of pay‑roll tax in relation to employee shares and options 110\n\n8. Determination of vesting day and value of employee shares and options 110\n\n9. Shares and options granted on or after 1 July 2011 and before *Revenue Laws Amendment Act 2012* received Royal Assent 111\n\nDivision 4 — Provisions for the *Taxation Legislation Amendment Act (No. 2) 2015*\n\n10. Terms used 112\n\n11. Exemptions currently held by relevant bodies may be revoked 112\n\n12. Exemptions for periods before the commencement of the *Taxation Legislation Amendment Act (No. 2) 2015* Part 4 113\n\n13. A body or organisation given an exemption under clause 12 may apply for a beneficial body determination 114\n\nDivision 5 — Provisions for the *Taxation Legislation Amendment Act (No. 3) 2015* Part 4\n\n14. Changes relating to tax thresholds do not apply to assessment years commencing before 1 July 2015 115\n\nDivision 6 — Provisions for the *Pay‑roll Tax Assessment Amendment (Exemption for Trainees) Act 2018*\n\n15. Term used: commencement day 115\n\n17. Reassessment 115\n\n","sortOrder":21},{"sectionNumber":"Div 7","sectionType":"division","heading":"Provisions for the *Pay‑roll Tax Assessment Amendment Act 2019*","content":"Division 7 — Provisions for the *Pay‑roll Tax Assessment Amendment Act 2019*\n\n18. Terms used 116\n\n19. Application of amendments made by *Pay‑roll Tax Assessment Amendment Act 2019* 116\n\n20. Exemption for wages paid or payable: training contracts lodged for registration before 1 December 2017 116\n\n21. Exemption for wages paid or payable: training contracts lodged for registration between 1 December 2017 and 30 June 2019 117\n\n","sortOrder":22},{"sectionNumber":"Div 8","sectionType":"division","heading":"Provisions for *Pay‑roll Tax Assessment Amendment (Thresholds) Act 2020*","content":"Division 8 — Provisions for *Pay‑roll Tax Assessment Amendment (Thresholds) Act 2020*\n\n22. Amendments apply to financial years beginning on or after 1 July 2019 118\n\nGlossary\n\n1. M, MC Terms used 119\n\nNotes\n\nCompilation table 128\n\nOther notes 130\n\nDefined terms\n\n  \n\nPay‑roll Tax Assessment Act 2002\n\nAn Act relating to the assessment and collection of tax on wages paid by employers.\n\n## Part 1 — Preliminary\n\n##### 1. Short title\n\nThis Act may be cited as the *Pay‑roll Tax Assessment Act 2002*.\n\n##### 2. Commencement\n\nThis Act comes into operation on the day on which the *Taxation Administration Act 2003* comes into operation.\n\n##### 3. Relationship with other Acts\n\nThe *Taxation Administration Act 2003* and the *Pay‑roll Tax Act 2002* are to be read with this Act as if they formed a single Act.\n\n##### 4. Terms used\n\nThe Glossaries at the end of this Act and the *Taxation Administration Act 2003* respectively define or affect the meaning of some of the words and expressions used in this Act, and also affect the operation of other provisions.\n\n[**4A.**1M\tModification, to insert section 4A, to have effect under the Commonwealth Places (Mirror Taxes Administration) Act 1999 s. 7, see Commonwealth Places (Mirror Taxes Administration) Regulations 2007 r. 28 and endnote 1M.]\n\n[**4A.**1MC\tModification, to insert section 4A, to have effect under the Commonwealth Places (Mirror Taxes) Act 1998 (Commonwealth) s. 8, see Commonwealth Places (Mirror Taxes) (Modification of Applied Laws (WA)) Notice 2007 cl. 29 and endnote 1MC.]\n\n##### 5A. Notes in text\n\nA note included in this Act is explanatory and is not part of this Act.\n\n[Section 5A inserted: No. 15 of 2010 s. 4.]\n\n## Part 2 — Liability and assessment\n\n### Division 1 — Liability to pay‑roll tax\n\n[**5B.**1M Modification, to insert section 5B, to have effect under the Commonwealth Places (Mirror Taxes Administration) Act 1999 s. 7, see Commonwealth Places (Mirror Taxes Administration) Regulations 2007 r. 29 and endnote 1M.]\n\n[**5B.**1MC Modification, to insert section 5B, to have effect under the Commonwealth Places (Mirror Taxes) Act 1998 (Commonwealth) s. 8, see Commonwealth Places (Mirror Taxes) (Modification of Applied Laws (WA)) Notice 2007 cl. 30 and endnote 1MC.]\n\n##### 5. Pay‑roll tax on WA taxable wages\n\n(1) Pay‑roll tax is payable, in accordance with the pay‑roll tax Acts, on wages that are WA taxable wages.\n\n(2) WA taxable wages are wages, other than exempt wages, that are taxable in this jurisdiction.\n\n[Section 5 amended: No. 15 of 2010 s. 5.]\n\n##### 6A. Wages that are taxable in this jurisdiction\n\n(1) Wages are taxable in this jurisdiction if —\n\n(a) the wages are paid or payable by an employer for or in relation to services performed by a person wholly in this jurisdiction; or\n\n(b) the wages are paid or payable by an employer for or in relation to services performed by a person in 2 or more Australian jurisdictions, or partly in one or more Australian jurisdictions and partly outside all Australian jurisdictions, and —\n\n(i) the person is based in this jurisdiction; or\n\n(ii) the employer is based in this jurisdiction — in a case where the person is not based in an Australian jurisdiction; or\n\n(iii) the wages are paid or payable in this jurisdiction — in a case where both the person and the employer are not based in an Australian jurisdiction; or\n\n(iv) the wages are paid or payable for services performed mainly in this jurisdiction — in a case where both the person and employer are not based in an Australian jurisdiction and the wages are not paid or payable in an Australian jurisdiction;\n\nor\n\n(c) the wages are paid or payable by an employer for or in relation to services performed by a person wholly outside all Australian jurisdictions and are paid or payable in this jurisdiction.\n\nSection 41B provides an exemption for wages paid or payable for services performed wholly in one or more other countries for a continuous period of more than 6 months.\n\n(2) The question of whether wages are taxable in this jurisdiction is, subject to this section, to be determined by reference only to the services performed by the person in respect of the employer during the month in which the wages are paid or payable.\n\n(3) For that purpose, any wages paid or payable by an employer in respect of a person in a particular month are taken to be paid or payable for or in relation to the services performed by the person in respect of the employer during that month.\n\nFor example, if wages paid in a month are paid to a person for services performed over several months, the question of whether the wages are taxable in this jurisdiction is to be determined by reference only to services performed by the person in the month in which the wages are paid. The services performed in previous months are disregarded for this purpose.\n\n(4) If no services are performed by a person in respect of an employer during a month in which wages are paid or payable to or in relation to the person by the employer —\n\n(a) the question of whether the wages are taxable in this jurisdiction is to be determined by reference only to the services performed by the person in respect of the employer during the most recent prior month in which the person performed services in respect of the employer; and\n\n(b) the wages are taken to be paid or payable for or in relation to the services performed by the person in respect of the employer during that most recent prior month.\n\n(5) If no services are performed by a person in respect of an employer during a month in which wages are paid or payable to or in relation to the person by the employer and no services were performed by the person in respect of the employer during any prior month —\n\n(a) the wages are taken to be paid or payable for or in relation to services performed by the person during the month in which the wages are paid or payable; and\n\n(b) the services are taken to have been performed at a place or places where it may be reasonably expected that the services of the person in respect of the employer will be performed.\n\n(6) All amounts of wages paid or payable in the same month by the same employer in respect of the same person are to be aggregated for the purposes of determining whether they are taxable in this jurisdiction.\n\nFor example, if one amount of wages is paid by an employer in a particular month for services performed in this jurisdiction, and another amount of wages is paid by the same employer in the same month for services performed by the same person in another Australian jurisdiction, the wages paid are to be aggregated as if they were paid for all the services performed by the person in that month.\n\n(7) If wages are paid in a different month from the month in which they are payable, the question of whether the wages are taxable in this jurisdiction is to be determined by reference to the earlier of the relevant months.\n\n(8) If an amount that is paid or payable to a company is, under section 9GA or 21, taken to be wages paid or payable to another person, subsection (1)(b) has effect as if references to the jurisdiction in which the person who performs the services is based were references to the jurisdiction in which the company is based and, for that purpose, the jurisdiction in which the company is based is to be worked out under section 6C as if the company were an employer.\n\n[Section 6A inserted: No. 15 of 2010 s. 6.]\n\n##### 6B. Jurisdiction in which person who performs services is based\n\n(1) The jurisdiction in which a person who performs services is based is the jurisdiction in which the person’s principal place of residence is located.\n\n(2) The jurisdiction in which the person is based is to be determined by reference to the state of affairs existing during the month in which the relevant wages are paid or payable.\n\n(3) If more than one jurisdiction would qualify as the jurisdiction in which the person is based during a month, the jurisdiction in which the person is based is to be determined by reference to the state of affairs existing on the last day of that month.\n\n(4) If the person does not have a principal place of residence, the person is taken to be a person who is not based in an Australian jurisdiction.\n\n[Section 6B inserted: No. 15 of 2010 s. 6.]\n\n##### 6C. Jurisdiction in which employer is based\n\n(1) The jurisdiction in which an employer is based is —\n\n(a) the jurisdiction in which the employer’s registered business address is located — if the employer has an ABN; or\n\n(b) the jurisdiction in which the employer’s principal place of business is located — in any other case.\n\n(2) If wages are paid or payable in connection with a business carried on by an employer under a trust, the employer’s registered business address is the registered business address of the trust or, if the trust does not have an ABN, the registered business address of the trustee of the trust.\n\n(3) If an employer has registered business addresses located in different jurisdictions at the same point in time, the jurisdiction in which the employer is based at that point in time is the jurisdiction in which the employer’s principal place of business is located.\n\n(4) The jurisdiction in which an employer is based is to be determined by reference to the state of affairs existing during the month in which the relevant wages are paid or payable.\n\n(5) If more than one jurisdiction would qualify as the jurisdiction in which an employer is based during a month, the jurisdiction in which the employer is based is to be determined by reference to the state of affairs existing on the last day of that month.\n\n(6) An employer who has neither a registered business address nor a principal place of business is taken to be an employer who is not based in an Australian jurisdiction.\n\n[Section 6C inserted: No. 15 of 2010 s. 6.]\n\n##### 6D. Place and date of payment of wages\n\ninstrument includes a cheque, bill of exchange, promissory note, money order or a postal order issued by a post office.\n\n(2) Wages are taken to have been paid at a place if, for the purpose of the payment of those wages —\n\n(a) an instrument is sent or given or an amount is transferred by an employer to a person or a person’s agent at that place; or\n\n(b) an instruction is given by an employer for the crediting of an amount to the account of a person or a person’s agent at that place.\n\n(3) The wages are taken to have been paid on the date that the instrument was sent or given, the amount was transferred or the account credited in accordance with the instruction (whichever is relevant).\n\n(4) Subject to this section, wages are taken to be payable at the place at which they are paid.\n\n(5) Wages that are not paid by the end of the month in which they are payable are taken to be payable at —\n\n(a) the place where wages were last paid by the employer for or in relation to services performed by the person; or\n\n(b) if wages have not previously been paid by the employer for or in relation to services performed by the person — the place where the person last performed services in respect of the employer before the wages became payable.\n\n(6) If wages paid or payable in the same month by the same employer in respect of the same person are paid or payable in more than one Australian jurisdiction, the wages paid or payable in that month are taken to be paid or payable in the Australian jurisdiction in which the highest proportion of the wages are paid or payable.\n\n[Section 6D inserted: No. 15 of 2010 s. 6.]\n\n##### 6. Time for payment of pay‑roll tax\n\nPay‑roll tax is due for payment on the last day for lodging the return of the wages on which the pay‑roll tax is payable.\n\n##### 7. Liability to pay‑roll tax\n\n(1) An employer who pays or is liable to pay WA taxable wages is liable to pay any pay‑roll tax payable on the wages.\n\n(2) Pay‑roll tax payable on wages by a member or members of a group is a debt due jointly and severally by each person who is a member of the group during the period in which the wages become payable.\n\n(3) A liability arising under subsection (2) does not affect the liability of an employer under subsection (1).\n\n(4) A person who is liable to pay pay‑roll tax is also liable to pay any penalties, interest or other amounts payable under a pay‑roll tax Act in connection with the pay‑roll tax.\n\n##### 7A. Tax thresholds and tapering value: half-years in financial year beginning 1 July 2019\n\n(1) The threshold amount for a half-year in the financial year beginning on 1 July 2019 is as follows —\n\n(a) for the half-year beginning on 1 July 2019 — $425 000;\n\n(b) for the half-year beginning on 1 January 2020 — $475 000.\n\n(2) The monthly threshold amount for a half-year in the financial year beginning on 1 July 2019 is as follows —\n\n(a) for the half-year beginning on 1 July 2019 — $70 833;\n\n(b) for the half-year beginning on 1 January 2020 — $79 167.\n\n(3) The upper threshold amount for a half-year in the financial year beginning on 1 July 2019 is $3 750 000.\n\n(4) The tapering value for a half-year in the financial year beginning on 1 July 2019 is to be calculated as follows —\n\nHT is the threshold amount for the half‑year;\n\nUT is the upper threshold amount for the half‑year.\n\nNote for this section:\n\nDivision 6 sets out special provisions for determining liability for pay‑roll tax using the tax thresholds and tapering values that apply to half‑years in the financial year beginning on 1 July 2019.\n\n[Section 7A inserted: No. 6 of 2020 s. 4.]\n\n##### 8. Tax thresholds and tapering value: financial years beginning on or after 1 July 2020\n\n(1) The annual threshold amount for a financial year beginning on or after 1 July 2020 is $1 000 000.\n\n(2) The monthly threshold amount for a financial year beginning on or after 1 July 2020 is $83 333.\n\n(3) The upper threshold amount for a financial year beginning on or after 1 July 2020 is $7 500 000.\n\n(4) The tapering value for a financial year beginning on or after 1 July 2020 is to be calculated as follows —\n\nUT is the upper threshold amount for the year.\n\n[Section 8 inserted: No. 6 of 2020 s. 4.]\n\n[**9.** Deleted: No. 40 of 2003 s. 13.]\n\n### Division 2A — Wages\n\n#### Subdivision 1 — General concept of wages\n\n##### 9AA. Term used: wages\n\n(1) In this Act —\n\nwages means —\n\n(a) wages, remuneration, salary, commission, bonuses or allowances paid or payable to or in relation to an employee; and\n\n(b) an amount paid or payable by way of remuneration to a person holding an office under, or in the service of, the Crown in right of the State of Western Australia; and\n\n(c) an amount paid or payable under a contract in a class of contract prescribed under section 45(2)(g), to the extent to which that payment is attributable to labour; and\n\n(d) an amount paid or payable by a company by way of remuneration to or in relation to a director of that company; and\n\n(e) an amount paid or payable by way of commission to an insurance or time‑payment canvasser or collector; and\n\n(f) an amount that is taken to be wages paid or payable by an employer to a person by another provision of this Division; and\n\n(g) a motor vehicle allowance paid or payable to an employee for a financial year, to the extent to which it exceeds the exempt component determined under section 9FA; and\n\n(h) an accommodation allowance paid or payable to an employee in a financial year in respect of a night’s absence from the person’s usual place of residence, to the extent to which it exceeds the exempt rate determined under section 9FB.\n\n(2) Wages, remuneration, salary, commission, bonuses, allowances or other amounts referred to in subsection (1) are wages —\n\n(a) whether paid or payable at piece work rates or otherwise; and\n\n(b) whether paid or payable in cash or in kind.\n\n[Section 9AA inserted: No. 15 of 2010 s. 7.]\n\n#### Subdivision 2 — Fringe benefits and specified taxable benefits\n\n##### 9BA. Wages include fringe benefits and specified taxable benefits\n\n(1) The value of a fringe benefit or a specified taxable benefit that is provided by an employer to or in relation to an employee is taken to be wages paid by the employer to the employee unless the benefit is a fringe benefit constituted by the grant of a share or an option that constitutes wages under Subdivision 4.\n\n(2) Subsection (1) does not apply to benefits that are exempt benefits for the purposes of the FBTA Act.\n\n[Section 9BA inserted: No. 15 of 2010 s. 7; amended: No. 29 of 2012 s. 17.]\n\n##### 9BB. Actual value of fringe benefit\n\n(1) The value of a fringe benefit (***V***) is to be calculated in accordance with the formula —\n\n ***FBT rate*** is the rate of fringe benefits tax, imposed for the purposes of the FBTA Act, that applies when the liability to pay‑roll tax under this Act arises;\n\n ***TV*** is the taxable value of the benefit as a fringe benefit for the purposes of the FBTA Act.\n\n(2) The value of a fringe benefit calculated in accordance with subsection (1) is the actual value of the fringe benefit.\n\n[Section 9BB inserted: No. 15 of 2010 s. 7.]\n\n##### 9BC. Basis for including value of fringe benefits in returns\n\n(1) If an employer is required to specify in a return WA taxable wages that include the value of fringe benefits provided by the employer, the employer may, instead of including the actual value of the fringe benefits, include a value of the fringe benefits calculated using the estimated value method, if the employer is eligible to do so.\n\n(2) An employer must use the same basis upon which to include the value of fringe benefits in returns for all returns for an assessment year unless the Commissioner allows a change during that year under section 9BH(4).\n\n[Section 9BC inserted: No. 15 of 2010 s. 7.]\n\n##### 9BD. Eligibility to use estimated value method\n\nAn employer is eligible to use the estimated value method to calculate the value of fringe benefits provided by the employer in an assessment year if the employer —\n\n(a) has provided WA fringe benefits for at least the 15 months ending immediately before the beginning of the assessment year; and\n\n(b) lodges monthly returns for the assessment year.\n\n[Section 9BD inserted: No. 15 of 2010 s. 7.]\n\n##### 9BE. Returns (other than annual returns) using estimated value method\n\n(1) If an employer, other than one who lodges an annual return, uses the estimated value method for an assessment year, the value of the fringe benefits (***V***) to be included in each return for the year except the last return is to be calculated in accordance with the formula —\n\n ***AV*** is the actual value of the fringe benefits provided by the employer in relation to the FBT year ending on 31 March in the financial year immediately before the assessment year;\n\n\t***N*** is the number of returns in the assessment year.\n\n(2) The value of the fringe benefits to be included in the employer’s last return for the assessment year is the amount equal to the difference between —\n\n(a) the actual value of the WA fringe benefits provided by the employer during the FBT year that ended on 31 March in the assessment year; and\n\n(b) the sum of the amounts included in each of the previous returns for the assessment year under subsection (1).\n\n[Section 9BE inserted: No. 15 of 2010 s. 7.]\n\n##### 9BF. Annual returns using estimated value method\n\nIf an employer who lodges an annual return for an assessment year uses the estimated value method for the assessment year, the value of the fringe benefits to be included in the return is the amount equal to the actual value of the WA fringe benefits provided by the employer for the FBT year that ended on 31 March in the assessment year.\n\n[Section 9BF inserted: No. 15 of 2010 s. 7.]\n\n##### 9BG. Final returns using estimated value method\n\nIf an employer who uses the estimated value method lodges a final return for an assessment year, the value of the fringe benefits to be included in the return is the amount equal to the difference between —\n\n(a) the sum of —\n\n(i) the WA fringe benefits provided by the employer for the FBT year that ended on 31 March in the assessment year; and\n\n(ii) the WA fringe benefits provided by the employer for April, May and June in the assessment year (if any);\n\nand\n\n(b) the sum of —\n\n(i) one quarter of the WA fringe benefits provided by the employer for the FBT year that ended in the first financial year for which the employer last chose to make returns using the estimated value method; and\n\n(ii) the total of the amounts of WA fringe benefits included in the returns for the assessment year.\n\n[Section 9BG inserted: No. 15 of 2010 s. 7.]\n\n##### 9BH. Changing method of valuing fringe benefits\n\n(1) An employer may commence using the estimated value method for an assessment year if the employer —\n\n(a) is eligible to use the estimated value method; and\n\n(b) gives the Commissioner notice of the intention to do so before the day on which the first or only return for the assessment year is required to be lodged by the employer.\n\n(2) An employer may cease using the estimated value method for an assessment year if the employer gives the Commissioner notice of the intention to do so before the day on which the first or only return for the assessment year is required to be lodged by the employer.\n\n(3) A notice under subsection (1) or (2) must be in a form approved by the Commissioner.\n\n(4) On the written application of an employer, the Commissioner may allow the employer to change the basis upon which to include the value of fringe benefits in returns during an assessment year if the Commissioner is satisfied that —\n\n(a) there is a compelling reason for making the change; and\n\n(b) where relevant — if the change were not made, the amount of pay‑roll tax paid by the employer during the assessment year would be substantially greater than the amount payable for the assessment year on the actual value of the fringe benefits provided by the employer for the assessment year.\n\n(5) If an employer ceases using the estimated value method during an assessment year, the value of the fringe benefits to be included in the last return lodged by the employer for the assessment year is the amount equal to the difference between —\n\n(a) the sum of —\n\n(i) the actual value of the WA fringe benefits provided by the employer for the FBT year ending on 31 March in the assessment year; and\n\n(ii) the actual value of the WA fringe benefits provided by the employer in April, May and June of the assessment year (if any);\n\nand\n\n(b) the sum of —\n\n(i) one quarter of the actual value of the WA fringe benefits provided by the employer for the FBT year that ended in the first financial year in which the employer last chose to make returns using the estimated value method; and\n\n(ii) the total of the amounts of the WA fringe benefits included in the employer’s returns for the assessment year.\n\n(6) If an employer commences using the estimated value method during an assessment year, the value of the fringe benefits to be included in the last return lodged by the employer for the assessment year is the amount equal to the difference between —\n\n(a) the actual value of the WA fringe benefits provided by the employer for the FBT year ending on 31 March in the assessment year; and\n\n(b) the total of the amounts of the WA fringe benefits included in the employer’s returns for the assessment year.\n\n[Section 9BH inserted: No. 15 of 2010 s. 7.]\n\n##### 9BI. Value of specified taxable benefit\n\nThe value of a specified taxable benefit is the prescribed value, or the value calculated in the prescribed manner (whichever is relevant).\n\n[Section 9BI inserted: No. 15 of 2010 s. 7.]\n\n#### Subdivision 3 — Superannuation contributions\n\n##### 9CA. Terms used\n\nFor the purposes of this Subdivision —\n\n  employee includes —\n\n(a) any person to whom, because of paragraph (a), (b), (c), (d) or (e) of the definition of ***wages*** in section 9AA(1), an amount paid or payable in the circumstances referred to in that paragraph constitutes wages; and\n\n(b) a director of a company to whom paragraph (a) does not apply;\n\nemployer, of a director referred to in the definition of ***employee*** paragraph (b), means the company;\n\n  notional contribution has the meaning given in section 9CD;\n\n  superannuation contribution has the meaning given in section 9CC.\n\n[Section 9CA inserted: No. 15 of 2010 s. 7.]\n\n##### 9CB. Wages include superannuation contributions and other similar amounts\n\n(1) The amount of each of the following is taken to be wages paid by the employer to the employee in the return period —\n\n(a) a superannuation contribution made by an employer in respect of an employee in a return period of the employer;\n\n(b) a notional contribution taken to have been made by an employer in respect of an employee in a return period of the employer;\n\n(c) an individual superannuation guarantee shortfall that an employer has for an employee for a return period of the employer.\n\n(2) If a notional contribution is taken to have been made by an employer, in respect of an employee, to a superannuation fund in a return period, no contribution made to the fund by the employer, in respect of the employee, in the return period to make provision for the cost referred to in section 9CD(3) is taken to be wages under subsection (1).\n\n(3) If —\n\n(a) a superannuation contribution that was payable, but not paid, or was required to be credited as a contribution, but was not, by an employer in respect of an employee is taken to be wages paid by the employer to the employee in a return period under subsection (1); and\n\n(b) an individual superannuation guarantee shortfall results wholly or in part from the employer’s failure to pay or credit the contribution,\n\nthe amount of the individual superannuation guarantee shortfall is reduced (but not to below zero) by the amount of the superannuation contribution referred to in paragraph (a).\n\n(4) Section 6D(5) applies to —\n\n(a) a superannuation contribution that is payable but not paid or is or is required to be credited as a contribution; and\n\n(b) a notional contribution; and\n\n(c) an individual superannuation guarantee shortfall,\n\nas if —\n\n(d) it referred to contributions rather than wages; and\n\n(e) an amount that is or is required to be credited as a contribution, a notional contribution and an individual superannuation guarantee shortfall were contributions payable.\n\n(5) For the purposes of subsection (1)(c) —\n\n(a) the individual superannuation guarantee shortfall referred to is reduced by any amount of the shortfall arising under the Superannuation Guarantee Act section 19 because of contributions not made in compliance with the choice of fund requirements; and\n\n(b) if an employer has an individual superannuation guarantee shortfall for an employee for a quarter (within the meaning given in the Superannuation Guarantee Act section 6), the shortfall is taken to be for the last month of the quarter.\n\n[Section 9CB inserted: No. 15 of 2010 s. 7.]\n\n##### 9CC. Superannuation contributions\n\n(1) A superannuation contribution is made by an employer in respect of an employee if —\n\n(a) a contribution is paid or payable by an employer to or as a superannuation fund in respect of the employee; or\n\n(b) an amount, although not paid or payable, is or is required to be credited under a superannuation fund as an employer’s contribution in respect of an employee.\n\n(2) Subsection (1)(b) applies only in respect of an Australian superannuation fund that does not provide for any defined superannuation benefits in respect of any person.\n\n(3) Setting aside any money or anything that is worth money as, or as part of, a superannuation fund is taken to be paying a contribution.\n\n(4) Making a contribution of anything that is worth money is taken to be paying a contribution of the amount equal to its value, and its value is to be worked out in accordance with section 9HA as if that section referred to the contribution instead of to wages.\n\n[Section 9CC inserted: No. 15 of 2010 s. 7.]\n\n##### 9CD. Notional contributions\n\n(1) Notional contributions are taken to have been made by an employer in respect of an employee if —\n\n(a) the employee is a member of an Australian superannuation fund; and\n\n(b) the fund is a defined benefit fund.\n\n(2) For each return period of the employer in which the employee accrues an entitlement to a defined superannuation benefit from the fund, a notional contribution is taken to have been made to the fund in the return period by the employer in respect of the employee.\n\n(3) The amount of the notional contribution is the amount that an actuary determines would be sufficient to meet the expected long‑term cost to the employer of that benefit.\n\n(4) The regulations may include provisions about how an actuary is to determine an amount under subsection (3).\n\n[Section 9CD inserted: No. 15 of 2010 s. 7.]\n\n#### Subdivision 4 — Shares and options\n\n##### 9DA. Wages include shares and options granted to employees\n\n(1) For the purposes of this Act —\n\nwages include the grant of a share or an option to an employee by an employer in respect of services performed by the employee if the share or option —\n\n(a) is an ESS interest within the meaning of the *Income Tax Assessment Act 1997* (Commonwealth) section 83A‑10; and\n\n(b) is granted to the employee under an employee share scheme within the meaning of that section.\n\nA grant of a share or an option to an employee by an employer that is not an ESS interest will be taxable as a fringe benefit under Subdivision 2.\n\n(2) A share or an option is granted to a person if —\n\n(a) another person transfers the share or option to that person (other than, in the case of a share, by issuing the share to that person); or\n\n(b) in the case of a share — another person allots the share to that person; or\n\n(c) in the case of an option — another person confers the option on, or otherwise creates the option in, that person; or\n\n(d) the person otherwise acquires a legal interest in the share or option from another person; or\n\n(e) the person acquires a beneficial interest in the share or option from another person.\n\n(3A) To avoid doubt, if an employee acquires a right to be granted a share or an option, or some other material benefit, at the employer’s election, the share or option is not granted until the employer elects to grant the share or option.\n\n(3) Wages constituted by the value of a share or an option are taken to be paid on the relevant day.\n\n(4) The relevant day is the day that the employer elects, in accordance with this Subdivision, to treat as the day on which the wages are paid.\n\n(5) To avoid doubt, a share or an option is valuable consideration for the purposes of section 9HC.\n\n[Section 9DA inserted: No. 15 of 2010 s. 7; amended: No. 29 of 2012 s. 18.]\n\n##### 9DB. Relevant day: choice of\n\n(1) The employer may elect to treat as the relevant day either the day on which the share or option is granted to the employee or the vesting day.\n\n(2) The vesting day in respect of a share is the earlier of the following days —\n\n(a) the day on which the share vests in the employee (that is, when any conditions applying to the grant of the share have been met and the employee’s legal or beneficial interest in the share cannot be rescinded);\n\n(b) the day at the end of the period of 7 years from the day on which the share is granted to the employee.\n\n(3) The vesting day in respect of an option is the earlier of the following days —\n\n(a) the day on which the share to which the option relates is granted to the employee;\n\n(b) the day on which the employee exercises a right under the option to have the share the subject of the option transferred to, allotted to or vested in the employee;\n\n(c) the day at the end of the period of 7 years from the day on which the option is granted to the employee.\n\n[Section 9DB inserted: No. 15 of 2010 s. 7; amended: No. 29 of 2012 s. 19.]\n\n##### 9DC. Relevant day: special cases\n\n(1) If —\n\n(b) the value of the share or option is not specified as WA taxable wages in a return in the financial year in which the share or option was granted,\n\nthe employer is taken to have elected to treat the wages constituted by the value of that share or option as being paid on the vesting day.\n\n(2) If —\n\n(b) either —\n\n(i) the value of the share or option is nil; or\n\n(ii) if the employer were to elect to treat the day on which the share or option was granted as the relevant day — the wages constituted by the value of the share or option would not be liable to pay‑roll tax,\n\nthe employer is taken to have elected to treat the wages constituted by the value of the share or option as being paid or payable on the day on which the share or option was granted.\n\n[Section 9DC inserted: No. 15 of 2010 s. 7; amended: No. 29 of 2012 s. 20.]\n\n##### 9DD. Value of shares and options\n\nCommonwealth income tax provisions means the *Income Tax Assessment Act 1997* (Commonwealth) section 83A‑315 and the regulations made for the purposes of that section.\n\nSee the *Income Tax Assessment Regulations 1997* (Commonwealth) Division 83A for the relevant regulations.\n\n(2) The value of a share or an option is the value of the share or option (expressed in Australian currency) on the relevant day, less the consideration (if any) paid or given by the employee in respect of the share or option (other than consideration in the form of services performed).\n\n(3) The value of a share or an option is —\n\n(a) the market value; or\n\n(b) the amount determined as provided for by the Commonwealth income tax provisions.\n\n(4) The employer may elect the method by which the value of a share or an option is determined in any return lodged under this Act.\n\n(5) However, the Commissioner may determine the method by which the value of a share or an option is determined if the grant of the share or option is not included as wages in a return lodged by an employer as required by this Act.\n\n(6) In determining the market value of a share or an option, anything that would prevent or restrict conversion of the share or option to money is to be disregarded.\n\n(7) The Commonwealth income tax provisions apply with the following modifications, and any other necessary modifications —\n\n(a) the value of an option is to be determined as if it were a right to acquire a beneficial interest in a share;\n\n(b) a reference to the acquisition of a beneficial interest in a share or right is to be read as a reference to the grant of a share or an option.\n\n[Section 9DD inserted: No. 15 of 2010 s. 7; amended: No. 29 of 2012 s. 21.]\n\n##### 9DE. Effect of rescission, cancellation etc. of share or option\n\n(1) If an employer grants a share or an option to an employee and the grant of the share or option is withdrawn, cancelled or exchanged before the vesting day for any valuable consideration (other than the grant of other shares or options) —\n\n(a) the day of withdrawal, cancellation or exchange is taken to be the relevant day in relation to the share or option; and\n\n(b) the market value of the share or option, on the relevant day, is taken to be the amount of the valuable consideration.\n\n(2) If —\n\n(b) the value of the share or option is specified as WA taxable wages in a return; and\n\n(c) the grant is rescinded because the conditions attaching to the grant were not met,\n\nthe WA taxable wages of the employer, in the return period in which the grant is rescinded, are to be reduced by the value of the share or option as specified in the earlier return.\n\n(3) Subsection (2) does not apply just because an employee fails to exercise an option or to otherwise exercise his or her rights in respect of a share or an option.\n\n[Section 9DE inserted: No. 15 of 2010 s. 7; amended: No. 29 of 2012 s. 22.]\n\n##### 9DF. Grant of share under exercise of option\n\nThe grant of a share by an employer does not constitute wages for the purposes of this Act if —\n\n(a) the employer is required to grant the share as a consequence of the exercise of an option by a person; and\n\n(b) the grant of the option to the person constitutes wages for the purposes of this Act.\n\n[Section 9DF inserted: No. 29 of 2012 s. 23.]\n\n##### 9DG. Wages include certain shares and options granted to directors\n\n(1) For the purposes of this Act —\n\nwages include the grant of a share or an option by a company to a director of the company who is not an employee of the company by way of remuneration for the appointment or services of the director.\n\n(2) For that purpose, the other provisions of this Subdivision apply in respect of any such grant as if a reference to the employer were a reference to the company and a reference to the employee were a reference to the director of the company.\n\n(3) In this section, a reference to a director of the company includes a reference to the following —\n\n(a) a person who, under a contract or other arrangement, is to be appointed as a director of the company;\n\n(b) a former director of the company.\n\n(4) However, if wages referred to in this section are fringe benefits, the value of the wages is to be determined in accordance with Subdivision 2 and not this Subdivision.\n\n[Section 9DG inserted: No. 15 of 2010 s. 7; amended: No. 29 of 2012 s. 24.]\n\n##### 9DH. Place where wages (as shares or options) are payable\n\nlocal company means —\n\n(a) a company incorporated or taken to be incorporated under the Corporations Act that is taken to be registered in Western Australia for the purposes of that Act; or\n\n(b) any other body corporate that is incorporated under a written law.\n\n(2) Wages constituted by the value of a share or an option are taken to be paid in Western Australia if the share is a share in a local company or, in the case of an option, an option to acquire shares in a local company.\n\n(3) In any other case, wages constituted by the value of a share or an option are taken to be paid outside Western Australia.\n\n[Section 9DH inserted: No. 15 of 2010 s. 7.]\n\n#### Subdivision 5 — Termination payments\n\n##### 9EA. Wages include termination payments\n\n(1) The amount of a termination payment is taken to be wages paid or payable by the employer to the employee, or by the company (as an employer) to the director.\n\n(2) For the purposes of subsection (1) —\n\nemployment termination payment means —\n\n(a) an employment termination payment within the meaning of section 82‑130 of the ITA Act; or\n\n(b) a payment that would be an employment termination payment within the meaning of section 82‑130 of the ITA Act but for the fact that it was received later than 12 months after the termination of a person’s employment; or\n\n(c) a transitional termination payment within the meaning of section 82‑10 of the *Income Tax (Transitional Provisions) Act 1997* (Commonwealth);\n\ntermination payment means —\n\n(a) a payment made in consequence of the retirement from, or termination of, any office or employment of an employee, being —\n\n(i) an unused annual leave payment; or\n\n(ii) an unused long service leave payment; or\n\n(iii) so much of an employment termination payment paid or payable by an employer, whether or not paid to the employee or to any other person or body, that would be included in the assessable income of an employee under Part 2‑40 of the ITA Act if the whole of the employment termination payment had been paid to the employee;\n\nor\n\n(b) an amount paid or payable by a company as a consequence of the termination of the services or office of a director of the company, whether or not paid to the director or to any other person or body, that would be an employment termination payment if that amount had been paid or payable as a consequence of termination of employment;\n\n  unused annual leave payment has the meaning given in section 83‑10 of the ITA Act;\n\n  unused long service leave payment has the meaning given in section 83‑75 of the ITA Act.\n\n[Section 9EA inserted: No. 15 of 2010 s. 7.]\n\n#### Subdivision 6 — Allowances\n\n##### 9FA. Motor vehicle allowances\n\n(1) For the purposes of section 9AA(1)(g), the exempt component (***E***) of a motor vehicle allowance paid or payable in respect of a financial year is calculated in accordance with the formula —\n\n\t***K*** is the number of business kilometres travelled during the financial year under subsection (2);\n\n\t***R*** is the exempt rate under subsection (3).\n\n(2) The number of business kilometres travelled during the financial year is to be determined —\n\n(a) if paragraph (b) does not apply to the employer — in accordance with the applicable recording method in the regulations; or\n\n(b) if the Commissioner has, by order in writing, approved the use, by an employer or class of employer, of another method (including the use of an estimate) of determining the number of business kilometres travelled during the financial year — in accordance with the method approved by the Commissioner.\n\n(3) The exempt rate for the financial year concerned is —\n\n(a) the rate determined by the Commissioner of Taxation of the Commonwealth under the ITA Act section 28‑25(4) as the rate of cents per kilometre for cars for the income year corresponding to the financial year immediately preceding the financial year in which the allowance is paid or payable; or\n\n(b) if no determination referred to in paragraph (a) is in force — the rate prescribed in the regulations.\n\n[Section 9FA inserted: No. 15 of 2010 s. 7; amended: No. 12 of 2019 s. 145.]\n\n##### 9FB. Accommodation allowances\n\nFor the purposes of section 9AA(1)(h), the exempt rate for the financial year concerned is —\n\n(a) the total reasonable amount for daily travel allowance expenses using the lowest capital city for the lowest salary band for the financial year determined by the Commissioner of Taxation of the Commonwealth; or\n\n(b) if no determination referred to in paragraph (a) is in force — the rate prescribed in the regulations.\n\n[Section 9FB inserted: No. 15 of 2010 s. 7.]\n\n#### Subdivision 7 — Employment agents\n\n##### 9GA. Wages include amounts paid by employment agents\n\nAn amount in respect of services that is paid or payable by an employment agent (directly or indirectly) to a person who was engaged to perform the services for a client of the employment agent, or to some other person, as a result of which engagement the employment agent receives payment (directly or indirectly, whether by way of a lump sum or an ongoing fee) in relation to the period during which the services are performed for the client by the person engaged to perform them is taken to be wages paid or payable by the agent (as an employer) to the person for or in relation to the services performed by the person.\n\n[Section 9GA inserted: No. 15 of 2010 s. 7.]\n\n#### Subdivision 8 — Miscellaneous provisions\n\n##### 9HA. Value of wages paid in kind\n\nThe value of wages (except fringe benefits or specified taxable benefits) that are paid or payable in kind is the greater of —\n\n(a) the value agreed or the value attributed to the wages in, or the value ascertainable for the wages from, arrangements between the employer and the employee, whichever is the greater of the 3 amounts; and\n\n(b) if the regulations prescribe how the value of wages of that type is to be determined — the value determined in accordance with the regulations.\n\n[Section 9HA inserted: No. 15 of 2010 s. 7.]\n\n##### 9HB. GST excluded from wages\n\n(1) If wages paid or payable to a person relate to a supply on which the person is liable to pay GST, the amount or value of the wages is reduced by the amount of GST payable by the person in respect of the services to which the wages relate.\n\n(2) Subsection (1) does not apply in respect of the value of wages comprising a fringe benefit.\n\n[Section 9HB inserted: No. 15 of 2010 s. 7.]\n\n##### 9HC. Wages paid by or to third parties\n\n(1) If any of the following amounts of money or other valuable consideration would, if paid or given directly by an employer to an employee, be or be taken to be wages paid or payable by the employer to the employee for the purposes of this Act, they are taken to be wages paid or payable by the employer to the employee —\n\n(a) any money or other valuable consideration paid or given, or to be paid or given, to an employee, for the employee’s services as an employee of an employer, by a person other than the employer;\n\n(b) any money or other valuable consideration paid or given, or to be paid or given, by an employer, for an employee’s services as the employee of the employer, to a person other than the employee;\n\n(c) any money or other valuable consideration paid or given, or to be paid or given, by a person other than an employer, for an employee’s services as an employee of the employer, to a person other than the employee.\n\n(2) If any of the following amounts of money or other valuable consideration would, if paid or given directly by a company to a director of the company, be or be taken to be wages paid or payable by the company to the director for the purposes of this Act, they are taken to be wages paid or payable by the company to the director —\n\n(a) any money or other valuable consideration paid or given, or to be paid or given, to a director of a company, by way of remuneration for the appointment or services of the director to the company, by a person other than the company;\n\n(b) any money or other valuable consideration paid or given, or to be paid or given, by a company, by way of remuneration for the appointment or services of the director to the company, to a person other than the director;\n\n(c) any money or other valuable consideration paid or given, or to be paid or given, by any person, by way of remuneration for the appointment or services of a director to the company, to a person other than the director.\n\n(3) In this section, a reference to a director of a company includes a reference to —\n\n(a) a person who, under a contract or other arrangement, is to be appointed as a director of the company; and\n\n(b) a former director of the company.\n\n[Section 9HC inserted: No. 15 of 2010 s. 7.]\n\n### Division 2 — Non‑group employers’ liability\n\n##### 10. Annual tax liability: local non‑group employers\n\n(1) If an employer is a local non‑group employer for the whole of an assessment year, the amount of pay‑roll tax payable by the employer for the year is —\n\n(a) if the total amount of WA taxable wages paid or payable by the employer during the year is less than or equal to the annual threshold amount for the year — nil;\n\n(b) if the total amount of WA taxable wages paid or payable by the employer during the year is equal to or greater than the upper threshold amount for the year — the amount calculated by applying the pay‑roll tax rate to the total amount of WA taxable wages paid or payable by the employer during the year;\n\n(i) the total amount of WA taxable wages paid or payable by the employer during the year; and\n\n(ii) the deductable amount for the employer for the year calculated in accordance with subsection (2).\n\n(2) For the purposes of subsection (1)(c)(ii), the deductable amount for the employer for the year is to be calculated as follows —\n\nW is the total amount of WA taxable wages paid or payable by the employer during the year.\n\n(3) If an employer is a local non‑group employer for only part of an assessment year (the part‑year), the amount of pay‑roll tax payable by the employer for the part‑year is —\n\n(a) if the total amount of WA taxable wages paid or payable by the employer during the part‑year is less than or equal to the apportioned annual threshold amount for the part‑year — nil;\n\n(b) if the total amount of WA taxable wages paid or payable by the employer during the part‑year is equal to or greater than the apportioned upper threshold amount for the part‑year — the amount calculated by applying the pay‑roll tax rate to the total amount of WA taxable wages paid or payable by the employer during the part‑year;\n\n(i) the total amount of WA taxable wages paid or payable by the employer during the part‑year; and\n\n(ii) the deductable amount for the employer for the part‑year calculated in accordance with subsection (4).\n\n(4) For the purposes of subsection (3)(c)(ii), the deductable amount for the employer for the part‑year is to be calculated as follows —\n\nW is the total amount of WA taxable wages paid or payable by the employer during the part‑year.\n\n(5) The apportioned annual threshold amount for part of an assessment year is calculated in accordance with section 11A(1).\n\n(6) The apportioned upper threshold amount for part of an assessment year is calculated in accordance with section 11A(2).\n\n[Section 10 inserted: No. 15 of 2015 s. 14; amended: No. 6 of 2020 s. 9.]\n\n##### 11A. Apportioned threshold amounts for s. 10: local non‑group employers\n\n(1) For the purposes of section 10, the apportioned annual threshold amount for part of an assessment year is to be calculated as follows —\n\n(2) For the purposes of section 10(3), the apportioned upper threshold amount for part of an assessment year is to be calculated as follows —\n\n[Section 11A inserted: No. 15 of 2015 s. 14; amended: No. 6 of 2020 s. 9.]\n\n##### 11. Tax payable with returns: local non‑group employer\n\n(1) The amount of pay‑roll tax payable by a local non‑group employer for a progressive return period or for part of a progressive return period in an assessment year (the period or part‑period) is —\n\n(a) if the total amount of WA taxable wages paid or payable by the employer during the period or part‑period is less than or equal to the apportioned threshold amount for the period or part‑period — nil;\n\n(b) if the total amount of WA taxable wages paid or payable by the employer during the period or part‑period is equal to or greater than the apportioned upper threshold amount for the period or part‑period — the amount calculated by applying the pay‑roll tax rate to the total amount of WA taxable wages paid or payable by the employer during the period or part‑period;\n\n(i) the total amount of WA taxable wages paid or payable by the employer during the period or part‑period; and\n\n(ii) the deductable amount for the employer for the period or part‑period calculated in accordance with subsection (2).\n\n(2) For the purposes of subsection (1)(c)(ii), the deductable amount for the employer for the period or part‑period is to be calculated as follows —\n\nAT is the apportioned threshold amount for the period or part‑period;\n\nW is the total amount of WA taxable wages paid or payable by the employer during the period or part‑period.\n\n(3) The apportioned threshold amount for a progressive return period or part of a progressive return period is calculated in accordance with section 12(1).\n\n(4) The apportioned upper threshold amount for a progressive return period or part of a progressive return period is calculated in accordance with section 12(2).\n\n[Section 11 inserted: No. 15 of 2015 s. 14.]\n\n##### 12. Apportioned threshold amounts for s. 11: local non‑group employers\n\n(1) For the purposes of section 11, the apportioned threshold amount for a progressive return period or part of a progressive return period is to be calculated as follows —\n\nN is the number of months in the progressive return period;\n\nMT is the monthly threshold amount for the year;\n\nD is the number of days in the progressive return period, or part of the progressive return period, during which WA taxable wages were paid or payable by the employer;\n\nP is the number of days in the progressive return period.\n\n(2) For the purposes of section 11, the apportioned upper threshold amount for a progressive return period or part of a progressive return period is to be calculated as follows —\n\nN is the number of months in the progressive return period;\n\nD is the number of days in the progressive return period, or part of the progressive return period, during which WA taxable wages were paid or payable by the employer;\n\nP is the number of days in the progressive return period.\n\n[Section 12 inserted: No. 15 of 2015 s. 14; amended: No. 6 of 2020 s. 9.]\n\n##### 13. Annual tax liability: interstate non‑group employers\n\n[(1) deleted]\n\n(2) If an employer is an interstate non‑group employer for the whole of an assessment year, the amount of pay‑roll tax payable by the employer for the year is —\n\n(a) if the total amount of Australian taxable wages paid or payable by the employer during the year is less than or equal to the annual threshold amount for the year — nil;\n\n(b) if the total amount of Australian taxable wages paid or payable by the employer during the year is equal to or greater than the upper threshold amount for the year — the amount calculated by applying the pay‑roll tax rate to the total amount of WA taxable wages paid or payable by the employer during the year;\n\n(i) the total amount of WA taxable wages paid or payable by the employer during the year; and\n\n(ii) the deductable amount for the employer for the year calculated in accordance with subsection (3).\n\n(3) For the purposes of subsection (2)(c)(ii), the deductable amount for the employer for the year is to be calculated as follows —\n\nTW is the total amount of Australian taxable wages paid or payable by the employer during the year;\n\nW is the total amount of WA taxable wages paid or payable by the employer during the year.\n\n(4) If an employer is an interstate non‑group employer for only part of an assessment year (the part‑year), the amount of pay‑roll tax payable by the employer for the part‑year is —\n\n(a) if the total amount of Australian taxable wages paid or payable by the employer during the part‑year is less than or equal to the apportioned annual threshold amount for the part‑year — nil;\n\n(b) if the total amount of Australian taxable wages paid or payable by the employer during the part‑year is equal to or greater than the apportioned upper threshold amount for the part‑year — the amount calculated by applying the pay‑roll tax rate to the total amount of WA taxable wages paid or payable by the employer during the part‑year;\n\n(i) the total amount of WA taxable wages paid or payable by the employer during the part‑year; and\n\n(ii) the deductable amount for the employer for the part‑year calculated in accordance with subsection (5).\n\n(5) For the purposes of subsection (4)(c)(ii), the deductable amount for the employer for the part‑year is to be calculated as follows —\n\nTW is the total amount of Australian taxable wages paid or payable by the employer during the part‑year;\n\nW is the total amount of WA taxable wages paid or payable by the employer during the part‑year.\n\n(6) The apportioned annual threshold amount for part of an assessment year is calculated in accordance with section 14(1).\n\n(7) The apportioned upper threshold amount for part of an assessment year is calculated in accordance with section 14(2).\n\n[Section 13 inserted: No. 15 of 2015 s. 14; amended: No. 20 of 2017 s. 4; No. 6 of 2020 s. 9.]\n\n##### 14. Apportioned threshold amounts for s. 13: interstate non‑group employers\n\n(1) For the purposes of section 13, the apportioned annual threshold amount for part of an assessment year is to be calculated as follows —\n\n(2) For the purposes of section 13, the apportioned upper threshold amount for part of an assessment year is to be calculated as follows —\n\n[Section 14 inserted: No. 15 of 2015 s. 14; amended: No. 6 of 2020 s. 9.]\n\n##### 15. Tax payable with progressive returns: interstate non‑group employers\n\n(1) The amount of pay‑roll tax payable by an interstate non‑group employer for a progressive return period is the amount calculated by applying the pay‑roll tax rate to the amount equal to the difference between —\n\n(a) the total amount of WA taxable wages paid or payable by the employer during the period; and\n\n(b) the amount of the employer’s nominated deduction under subsection (2).\n\n(2) The employer’s nominated deduction for an assessment year is —\n\n(a) the amount nominated by the Commissioner having regard to the amounts of WA taxable wages and Australian taxable wages previously paid or payable by the employer and any other relevant matters; or\n\n(b) any other amount nominated by the Commissioner, at his or her discretion, on the request of the employer under subsection (3).\n\n(3) The employer may ask the Commissioner to nominate a different amount if the employer expects that the amounts of WA taxable wages and Australian taxable wages payable by the employer for the assessment year will vary significantly from the amounts of WA taxable wages and Australian taxable wages previously paid or payable by the employer.\n\n[(4), (5) deleted]\n\n(6) The Commissioner must notify the employer as soon as practicable of the nomination of an amount or the cancellation of a nomination.\n\n(7) If there is no nominated amount for an employer, the nominated deduction for the employer is taken to be nil.\n\n(8) A nomination remains in force for each subsequent progressive return period in the assessment year unless it is cancelled.\n\n(9) The Commissioner may cancel a nomination at any time.\n\n[Section 15 amended: No. 40 of 2003 s. 19; No. 82 of 2004 s. 9; No. 20 of 2017 s. 5.]\n\n##### 16. Annual reconciliation: non‑group employers\n\n(1) If the sum of the amounts of pay‑roll tax paid or payable by a non‑group employer under section 11 or 15 for the progressive return periods in an assessment year is greater than the amount of pay‑roll tax payable by the employer for the year under section 10 or 13, the employer is entitled to a refund or rebate of the difference.\n\n(2) If the sum of the amounts of pay‑roll tax paid or payable by a non‑group employer under section 11 or 15 for the progressive return periods in an assessment year is less than the amount of pay‑roll tax payable by the employer for the year under section 10 or 13, the employer must pay the difference.\n\n(3) Subject to section 17(4) of the *Taxation Administration Act 2003*, the Commissioner must make any reassessment necessary to give effect to this section.\n\n[Section 16 amended: No. 82 of 2004 s. 10.]\n\n[**16A.** 1M Modification, to insert section 16A, to have effect under the Commonwealth Places (Mirror Taxes Administration) Act 1999 s. 7, see Commonwealth Places (Mirror Taxes Administration) Regulations 2007 r. 30 and endnote 1M.]\n\n[**16A.** 1MC Modification, to insert section 16A, to have effect under the Commonwealth Places (Mirror Taxes) Act 1998 (Commonwealth) s. 8, see Commonwealth Places (Mirror Taxes) (Modification of Applied Laws (WA)) Notice 2007 cl. 31 and endnote 1MC.]\n\n### Division 3 — Group employers’ liability\n\n##### 17. Annual tax liability: groups\n\n[(1A) deleted]\n\n(1) The amount of pay‑roll tax payable by a group for an assessment year is to be worked out in accordance with subsection (2) if at all times during the assessment year there is at least one member of the group who pays or is liable to pay Australian taxable wages as a group member, whether or not any member of the group pays or is liable to pay Australian taxable wages as a group member throughout the whole assessment year.\n\n(2) The amount of pay‑roll tax payable by the group for the assessment year is —\n\n(a) if the total amount of Australian taxable wages paid or payable by the group members during the year is less than or equal to the annual threshold amount for the year — nil;\n\n(b) if the total amount of Australian taxable wages paid or payable by the group members during the year is equal to or greater than the upper threshold amount for the year — the amount calculated by applying the pay‑roll tax rate to the total amount of WA taxable wages paid or payable by the group members during the year;\n\n(i) the total amount of WA taxable wages paid or payable by the group members during the year; and\n\n(ii) the deductable amount for the group for the year calculated in accordance with subsection (3A).\n\n(3A) For the purposes of subsection (2)(c)(ii), the deductable amount for the group for the year is to be calculated as follows —\n\nTW is the total amount of Australian taxable wages paid or payable by the group members during the year;\n\nW is the total amount of WA taxable wages paid or payable by the group members during the year.\n\n(3) The amount of pay‑roll tax payable by a group for an assessment year is to be worked out in accordance with subsection (4) if —\n\n(a) during part only of the assessment year (the ***part‑year***) there is at least one member of the group who pays or is liable to pay Australian taxable wages as a group member, whether or not that member or any other member of the group pays or is liable to pay Australian taxable wages as a group member throughout that part of the assessment year; and\n\n(b) during the remainder of the assessment year there is no member of the group who pays or is liable to pay Australian taxable wages as a group member.\n\n(4) The amount of pay‑roll tax payable by the group for the assessment year is —\n\n(a) if the total amount of Australian taxable wages paid or payable by the group members during the part‑year is less than or equal to the apportioned annual threshold amount for the part‑year — nil;\n\n(b) if the total amount of Australian taxable wages paid or payable by the group members during the part‑year is equal to or greater than the apportioned upper threshold amount for the part‑year — the amount calculated by applying the pay‑roll tax rate to the total amount of WA taxable wages paid or payable by the group members during the part‑year;\n\n(i) the total amount of WA taxable wages paid or payable by the group members during the part‑year; and\n\n(ii) the deductable amount for the group for the part‑year calculated in accordance with subsection (5).\n\n(5) For the purposes of subsection (4)(c)(ii), the deductable amount for the group for the part‑year is to be calculated as follows —\n\nTW is the total amount of Australian taxable wages paid or payable by the group members during the part‑year;\n\nW is the total amount of WA taxable wages paid or payable by the group members during the part‑year.\n\n(6) The apportioned annual threshold amount for part of an assessment year is calculated in accordance with section 18(1).\n\n(7) The apportioned upper threshold amount for part of an assessment year is calculated in accordance with section 18(2).\n\n[Section 17 amended: No. 40 of 2003 s. 20; No. 15 of 2015 s. 15; No. 20 of 2017 s. 6; No. 6 of 2020 s. 9.]\n\n##### 18. Apportioned threshold amounts for s. 17: groups\n\n(1) For the purposes of section 17, the apportioned annual threshold amount for part of an assessment year is to be calculated as follows —\n\n(2) For the purposes of section 17, the apportioned upper threshold amount for part of an assessment year is to be calculated as follows —\n\n[Section 18 inserted: No. 15 of 2015 s. 16; amended: No. 6 of 2020 s. 9.]\n\n##### 19. Tax payable with progressive returns: groups\n\n(1) The amount of pay‑roll tax payable for a progressive return period by any member of a group except the DGE is the amount calculated by applying the pay‑roll tax rate to the amount equal to the total amount of WA taxable wages paid or payable by the member for the period.\n\n(2) The amount of pay‑roll tax payable for a progressive return period by the DGE of a group is the amount calculated by applying the pay‑roll tax rate to the difference between —\n\n(a) the amount equal to the total amount of WA taxable wages paid or payable by the DGE for the period; and\n\n(b) the amount of the group’s nominated deduction under subsection (3).\n\n(3) The group’s nominated deduction for an assessment year is —\n\n(a) the amount nominated by the Commissioner having regard to the amounts of WA taxable wages and Australian taxable wages previously paid or payable by the group and any other relevant matters; or\n\n(b) any other amount nominated by the Commissioner, at his or her discretion, on the request of a member of the group under subsection (4).\n\n(4) A member of the group may ask the Commissioner to nominate a different amount if the member expects that the amounts of WA taxable wages and Australian taxable wages payable by the group for the assessment year will vary significantly from the amounts of WA taxable wages and Australian taxable wages previously paid or payable by the group.\n\n[(5), (6) deleted]\n\n(7) The Commissioner must notify the DGE as soon as practicable of the nomination of an amount or the cancellation of a nomination.\n\n(8) If there is no nominated amount, the nominated deduction is taken to be nil.\n\n(9) The Commissioner may cancel a nomination at any time.\n\n[Section 19 amended: No. 40 of 2003 s. 22; No. 82 of 2004 s. 11; No. 20 of 2017 s. 7.]\n\n##### 20. Annual reconciliation: groups\n\n(1) If the sum of the amounts of pay‑roll tax paid or payable by the members of a group under section 19 for the progressive return periods in an assessment year is greater than the amount of pay‑roll tax payable by the group for the year under section 17, the group is entitled to a refund or rebate of the difference.\n\n(2) If the sum of the amounts of pay‑roll tax paid or payable by the members of a group under section 19 for the progressive return periods in an assessment year is less than the amount of pay‑roll tax payable by the group for the year under section 17, the group members must pay the difference.\n\n(3) Subject to section 17(4) of the *Taxation Administration Act 2003*, the Commissioner must make any reassessment necessary to give effect to this section.\n\n[Section 20 amended: No. 82 of 2004 s. 12.]\n\n[**20A.** 1M Modification, to insert section 20A, to have effect under the Commonwealth Places (Mirror Taxes Administration) Act 1999 s. 7, see Commonwealth Places (Mirror Taxes Administration) Regulations 2007 r. 31 and endnote 1M.]\n\n[**20A.** 1MC Modification, to insert section 20A, to have effect under the Commonwealth Places (Mirror Taxes) Act 1998 (Commonwealth) s. 8, see Commonwealth Places (Mirror Taxes) (Modification of Applied Laws (WA)) Notice 2007 cl. 32 and endnote 1MC.]\n\n### Division 4 — Assessment generally\n\n##### 21. Tax‑reducing arrangements\n\n(1) If a person is a party to a tax‑reducing arrangement, the Commissioner may —\n\n(a) disregard the arrangement; and\n\n(b) determine that any party to the arrangement is an employer for the purposes of this Act; and\n\n(c) determine that any payment made under the arrangement is wages paid or payable for or in relation to the services performed by the worker for the purposes of this Act.\n\n(2) If the Commissioner makes a determination, he or she must —\n\n(a) serve a notice to that effect on the person; and\n\n(b) set out in the notice the grounds on which the Commissioner relies and his or her reasons for making the determination.\n\n[Section 21 amended: No. 15 of 2010 s. 8.]\n\n##### 22. Adjustments for changes in annual threshold amount\n\n(1) If the Commissioner is satisfied that the total amount of pay‑roll tax paid or payable by a non‑group employer or a group for an assessment year exceeds by more than $10 the total amount of pay‑roll tax that would have been paid or payable for the year if the annual threshold amount had not been amended with respect to that year, the employer or group is eligible for a refund or rebate of the amount by which the first‑mentioned total amount exceeds the second‑mentioned total amount.\n\n(2) The non‑group employer or the group’s DGE may apply to the Commissioner for the rebate or refund.\n\n(3) An application may be made in the approved form before the end of the following financial year.\n\n(4) The Commissioner must reassess the amount of pay‑roll tax payable by the employer or the group for the year on receiving an application, and may do so on his or her initiative.\n\n[**22A.** Deleted: No. 15 of 2015 s. 17.]\n\n##### 23. Taxable wages not paid throughout assessment year\n\n(1) This section applies to a non‑group employer if —\n\n(a) the employer pays or is liable to pay WA taxable wages or interstate taxable wages for part only of an assessment year; and\n\n(b) the Commissioner is satisfied that, because of the nature of the employer’s trade or business, the employer’s liability to pay WA taxable wages or interstate taxable wages fluctuates with different periods of the assessment year.\n\n(2) If the employer conducted the trade or business in Australia during the whole of the assessment year, then the employer’s liability to pay pay‑roll tax is to be assessed as if the employer had paid or been liable to pay wages throughout the assessment year.\n\n(3) If the employer has conducted the trade or business in Australia during part only of the assessment year, then the employer’s liability is to be assessed as if the employer had paid or been liable to pay wages only during that part of the assessment year.\n\n[Section 23 amended: No. 40 of 2003 s. 23.]\n\n### Division 5 — Special provisions for period from 1 July 2018 to 30 June 2023\n\n[Heading inserted: No. 20 of 2017 s. 8.]\n\n##### 23A. Nomination of estimates for determining rates for progressive return periods\n\n(1) The Commissioner may —\n\n(a) for the purposes of the *Pay‑roll Tax Act 2002* section 9(a), nominate —\n\n(i) an amount of Australian taxable wages that it is estimated will be payable by an interstate non‑group employer during an assessment year in the sliding scale period; and\n\n(ii) a number of days in the assessment year during which it is estimated that Australian taxable wages will be payable by the employer;\n\nor\n\n(b) for the purposes of the *Pay‑roll Tax Act 2002* section 11(a), nominate —\n\n(i) an amount of Australian taxable wages that it is estimated will be payable by all members of a group during an assessment year in the sliding scale period; and\n\n(ii) a number of days in the assessment year during which it is estimated that Australian taxable wages will be payable by at least one member of the group.\n\n(2) The Commissioner may make or vary a nomination under this section —\n\n(a) on the Commissioner’s own initiative, having regard to the amounts of Australian taxable wages previously paid or payable by the employer, or by all members of the group, and any other relevant matters; or\n\n(b) on application by the interstate non‑group employer, or by a member of the group, having regard to the information included in the application and any other relevant matters.\n\n(3) The Commissioner may cancel a nomination under this section at any time.\n\n(4) As soon as practicable after making, varying or cancelling a nomination under this section, the Commissioner must notify the employer, or each member of the group, to which the nomination relates of —\n\n(a) the making, variation or cancellation of the nomination; and\n\n(b) in the case of the making or variation of a nomination — the first progressive return period to which the nomination, or the nomination as varied, applies (which may be any period in the assessment year, including a period that has ended).\n\n(5) Subject to any cancellation or variation, a nomination under this section applies to the progressive return period specified under subsection (4)(b) and each subsequent progressive return period in the assessment year.\n\n(6) Subject to the *Taxation Administration Act 2003* section 17, the Commissioner must make any reassessment necessary to give effect to the making or variation of a nomination under this section.\n\n[Section 23A inserted: No. 20 of 2017 s. 8.]\n\n##### 23B. Application for nomination under s. 23A\n\n(1) An application for the making or variation of a nomination under section 23A must —\n\n(b) include any relevant information required by the Commissioner.\n\n(2) An application for the variation of a nomination made under section 23A in relation to an interstate non‑group employer or a group cannot be made unless the applicant expects that —\n\n(a) the amount of Australian taxable wages that will be payable by the employer, or by all members of the group, during the assessment year will vary significantly from the nominated amount; or\n\n(b) the number of days in the assessment year during which Australian taxable wages will be payable by the employer, or by at least one member of the group, will vary significantly from the nominated number of days.\n\n[Section 23B inserted: No. 20 of 2017 s. 8.]\n\n##### 23C. Determination of reduced rate where *Pay‑roll Tax Act 2002* s. 8(6) or 10(7) applied\n\n(1) This section applies if —\n\n(a) an interstate non‑group employer, or the DGE of a group, fails to comply, within the period referred to in section 27(2)(c), with a requirement under section 27 to lodge an additional return in respect of an assessment year in the sliding scale period; and\n\n(b) as a result of the failure to comply, a pay‑roll tax rate of 6.5% applies to the employer or group and the assessment year or part of the assessment year (the part‑year) under the *Pay‑roll Tax Act 2002* section 8(6) or 10(7).\n\n(2) If the Commissioner has sufficient information to determine the pay‑roll tax rate that would, but for the application of the *Pay‑roll Tax Act 2002* section 8(6) or 10(7), have applied to the employer or group and the year or part‑year, the Commissioner may determine that the *Pay‑roll Tax Act 2002* section 8(6) or 10(7) (whichever is relevant) does not apply to the employer or group and the year or part‑year.\n\n(3) A determination under subsection (2) may be made on the Commissioner’s own initiative or on application by the interstate non‑group employer or a member of the group.\n\n(4) An application for a determination under subsection (2) must —\n\n(b) include any relevant information required by the Commissioner.\n\n(5) As soon as practicable after making a determination under subsection (2), the Commissioner must notify the employer, or each member of the group, to which the determination relates of the making of the determination.\n\n(6) Subject to the *Taxation Administration Act 2003* section 17, the Commissioner must make any reassessment necessary to give effect to a determination under subsection (2).\n\n[Section 23C inserted: No. 20 of 2017 s. 8.]\n\n### Division 6 — Special provisions for assessment year beginning 1 July 2019\n\n[Heading inserted: No. 6 of 2020 s. 5.]\n\n##### 23D. Terms used\n\n(1) In this Division, the relevant whole year liability provisions in relation to an employer or group are as set out in the Table.\n\n| **Employer or group** | **Relevant whole year liability provisions** |\n| Local non‑group employer | Section 10(1) and (2) |\n| Interstate non‑group employer | Section 13(2) and (3) |\n| Group | Section 17(1) to (3A) |\n\n(2) In this Division, the relevant part‑year liability provisions in relation to an employer or group are as set out in the Table.\n\n| **Employer or group** | **Relevant part‑year liability provisions** |\n| Local non‑group employer | Sections 10(3) to (6) and 11A |\n| Interstate non‑group employer | Sections 13(4) to (7) and 14 |\n| Group | Sections 17(3) to (7) and 18 |\n\n(3) In this Division, the relevant return period liability provisions in relation to an employer are as set out in the Table.\n\n| **Employer** | **Relevant return period liability provisions** |\n| Local non‑group employer | Sections 11 and 12 |\n| Interstate non‑group employer | Section 15 |\n| Member of a group | Section 19 |\n\n[Section 23D inserted: No. 6 of 2020 s. 5.]\n\n##### 23E. Application of Division\n\n(1) The amount of pay-roll tax payable by an employer or group for the assessment year beginning on 1 July 2019, for part of that assessment year, or for a progressive return period or part of a progressive return period in that assessment year, is to be calculated under this Division.\n\n(2) Divisions 2 and 3 apply for the purposes of a calculation referred to in subsection (1) only to the extent and with the modifications provided for in this Division.\n\n[Section 23E inserted: No. 6 of 2020 s. 5.]\n\n##### 23F. Annual tax liability: whole of assessment year beginning 1 July 2019\n\n(1) This section applies if the amount of pay‑roll tax payable by an employer or group for the assessment year beginning on 1 July 2019 would, but for this Division, be calculated under the relevant whole year liability provisions.\n\n(2) The amount of pay‑roll tax payable by the employer or group for the assessment year is to be calculated by —\n\n(a) calculating the amount of pay‑roll tax payable for each half‑year in the assessment year in accordance with the relevant whole year liability provisions, as modified by section 23K; and\n\n(3) Despite subsection (2), the amount of pay‑roll tax payable by the employer or group for the assessment year is, instead, to be calculated by applying the pay‑roll tax rate to the total amount of WA taxable wages paid or payable by the employer or by the group members during the year if —\n\n(a) for a local non‑group employer — the total amount of WA taxable wages paid or payable by the employer during the year is equal to or greater than $7 500 000; or\n\n(b) for an interstate non‑group employer — the total amount of Australian taxable wages paid or payable by the employer during the year is equal to or greater than $7 500 000; or\n\n(c) for a group — the total amount of Australian taxable wages paid or payable by the group members during the year is equal to or greater than $7 500 000.\n\n[Section 23F inserted: No. 6 of 2020 s. 5.]\n\n##### 23G. Annual tax liability for non‑group employers: part‑years in assessment year beginning 1 July 2019\n\n(1) This section applies if the amount of pay‑roll tax payable by a non‑group employer for part of the assessment year beginning on 1 July 2019 (the part‑year) would, but for this Division, be calculated under the relevant part‑year liability provisions.\n\n(2) If the whole of the part‑year is within 1 of the half‑years in the assessment year, the amount of pay‑roll tax payable by the employer for the part‑year is to be calculated in accordance with —\n\n(a) if the part‑year is the whole of the half‑year — the relevant whole year liability provisions, as modified by section 23K; or\n\n(b) otherwise — the relevant part‑year liability provisions, as modified by section 23K.\n\n(3) If part of the part‑year (the first half‑year portion) is within the first half‑year in the assessment year and the remainder of the part‑year (the second half‑year portion) is within the second half‑year in the assessment year, the amount of pay‑roll tax payable by the employer for the part‑year is to be calculated by —\n\n(a) calculating the amount of pay‑roll tax payable for each of the first half‑year portion and the second half‑year portion in accordance with —\n\n(i) for a half‑year portion that is the whole of a half‑year — the relevant whole year liability provisions, as modified by section 23K; or\n\n(ii) otherwise — the relevant part‑year liability provisions, as modified by section 23K;\n\nand\n\n(4) Despite subsections (2) and (3), the amount of pay‑roll tax payable by the employer for the part‑year is, instead, to be calculated by applying the pay‑roll tax rate to the total amount of WA taxable wages paid or payable by the employer during the part‑year if —\n\n(a) for a local non‑group employer — the total amount of WA taxable wages paid or payable by the employer during the part‑year is equal to or greater than the relevant apportioned amount; or\n\n(b) for an interstate non‑group employer — the total amount of Australian taxable wages paid or payable by the employer during the part‑year is equal to or greater than the relevant apportioned amount.\n\n(5) For the purposes of subsection (4), the relevant apportioned amount is to be calculated as follows —\n\nP is the number of days in the part‑year;\n\n[Section 23G inserted: No. 6 of 2020 s. 5.]\n\n##### 23H. Annual tax liability for groups: part‑years in assessment year beginning 1 July 2019\n\n(1) This section applies if the amount of pay‑roll tax payable by a group for the assessment year beginning on 1 July 2019 would, but for this Division, be calculated under the relevant part‑year liability provisions by reference to the part of the assessment year (the part‑year) during which at least 1 member of the group pays or is liable to pay Australian taxable wages as a group member.\n\n(2) If the whole of the part‑year is within 1 of the half‑years in the assessment year, the amount of pay‑roll tax payable by the group for the assessment year is to be calculated by calculating the amount of pay‑roll tax payable for the half‑year in accordance with —\n\n(a) if the part‑year is the whole of the half‑year — the relevant whole year liability provisions, as modified by section 23K; or\n\n(b) otherwise — the relevant part‑year liability provisions, as modified by section 23K.\n\n(3) If part of the part‑year is within the first half‑year in the assessment year and the remainder of the part‑year is within the second half‑year in the assessment year, the amount of pay‑roll tax payable by the group for the assessment year is to be calculated by —\n\n(a) calculating the amount of pay‑roll tax payable for each half‑year in the assessment year in accordance with —\n\n(i) for a half-year that is wholly included in the part‑year — the relevant whole year liability provisions, as modified by section 23K; or\n\n(ii) otherwise — the relevant part‑year liability provisions, as modified by section 23K;\n\nand\n\n(4) Despite subsections (2) and (3), if the total amount of Australian taxable wages paid or payable by the group members during the part‑year is equal to or greater than the relevant apportioned amount, the amount of pay‑roll tax payable by the group for the assessment year is, instead, to be calculated by applying the pay‑roll tax rate to the total amount of WA taxable wages paid or payable by the group members during the part‑year.\n\n(5) For the purposes of subsection (4), the relevant apportioned amount is to be calculated as follows —\n\nP is the number of days in the part‑year;\n\n[Section 23H inserted: No. 6 of 2020 s. 5.]\n\n##### 23I. Tax payable with progressive returns in assessment year beginning 1 July 2019\n\n(1) The amount of pay‑roll tax payable by a local non‑group employer for a progressive return period or for part of a progressive return period (the period or part‑period) in the assessment year beginning on 1 July 2019 is to be calculated under whichever of subsection (2) or (3) is applicable.\n\n(2) If the whole of the period or part‑period is within 1 of the half‑years in the assessment year, the amount of pay‑roll tax payable by the employer for the period or part‑period is to be calculated in accordance with the relevant return period liability provisions, as modified by section 23K.\n\n(3) If part of the period or part‑period (the first return period portion) is within the first half‑year in the assessment year and the remainder of the period or part‑period (the second return period portion) is within the second half‑year in the assessment year, the amount of pay‑roll tax payable by the employer for the period or part‑period is to be calculated by —\n\n(a) calculating the amount of pay‑roll tax payable for each of the first return period portion and the second return period portion in accordance with section 23J; and\n\n(4) The amount of pay‑roll tax payable by an interstate non‑group employer or a member of a group for a progressive return period in the assessment year beginning on 1 July 2019 is to be calculated in accordance with the relevant return period liability provisions, as modified by section 23K.\n\n[Section 23I inserted: No. 6 of 2020 s. 5.]\n\n##### 23J. Tax payable for return period portions: local non‑group employers\n\n(1) For the purposes of section 23I(3), the amount of pay‑roll tax payable by a local non‑group employer for a part of a period or part‑period referred to in that section (the return period portion) that is within a half‑year in the assessment year beginning on 1 July 2019 is —\n\n(a) if the total amount of WA taxable wages paid or payable by the employer during the return period portion is less than or equal to the apportioned threshold amount for the return period portion — nil; or\n\n(b) if the total amount of WA taxable wages paid or payable by the employer during the return period portion is equal to or greater than the apportioned upper threshold amount for the return period portion — the amount calculated by applying the pay‑roll tax rate to the total amount of WA taxable wages paid or payable by the employer during the return period portion; or\n\n(i) the total amount of WA taxable wages paid or payable by the employer during the return period portion; and\n\n(ii) the deductable amount for the employer for the return period portion calculated in accordance with subsection (2).\n\n(2) For the purposes of subsection (1)(c)(ii), the deductable amount for the employer for the return period portion is to be calculated as follows —\n\nAT is the apportioned threshold amount for the return period portion;\n\nTV is the tapering value for the half‑year;\n\nW is the total amount of WA taxable wages paid or payable by the employer during the return period portion.\n\n(3) For the purposes of subsections (1) and (2), the apportioned threshold amount for a return period portion is to be calculated as follows —\n\nN is the number of months in the relevant progressive return period that are within the half‑year;\n\nMT is the monthly threshold amount for the half‑year;\n\nD is the number of days in the return period portion during which WA taxable wages were paid or payable by the employer;\n\nP is the number of days in the relevant progressive return period that are within the half‑year.\n\n(4) For the purposes of subsection (1)(b), the apportioned upper threshold amount for a return period portion is to be calculated as follows —\n\nN is the number of months in the relevant progressive return period that are within the half‑year;\n\nUT is the upper threshold amount for the half‑year;\n\nD is the number of days in the return period portion during which WA taxable wages were paid or payable by the employer;\n\nP is the number of days in the relevant progressive return period that are within the half‑year.\n\n[Section 23J inserted: No. 6 of 2020 s. 5.]\n\n##### 23K. Modified application of relevant liability provisions\n\nrelevant liability provisions means the relevant whole year liability provisions, the relevant part‑year liability provisions and the relevant return period liability provisions.\n\n(2) For the purposes of sections 23F(2), 23G(2) and (3), 23H(2) and (3) and 23I(2) and (4), the relevant liability provisions apply as if a reference to a period or amount set out in an item of the Table in column 1 were a reference to the period or amount set out in column 2 opposite that item.\n\n| **Column 1** | **Column 2** |\n| an assessment year | a half‑year in the assessment year beginning on 1 July 2019 |\n| the assessment year | the half‑year |\n| the year | the half‑year |\n| the part‑year | the half‑year portion |\n| the whole assessment year | the whole half‑year |\n| the annual threshold amount for the year | the threshold amount for the half‑year |\n| the monthly threshold amount for the year | the monthly threshold amount for the half‑year |\n| the upper threshold amount for the year | the upper threshold amount for the half‑year |\n| the tapering value for the year | the tapering value for the half‑year |\n\n(3) Despite subsection (2), section 12(2) applies for the purposes of section 23I(2) as if a reference in that section to the upper threshold amount for the year were a reference to $7 500 000.\n\n(4) Subsection (5) applies if —\n\n(a) an interstate non‑group employer or a member of a group is required to lodge a return for a progressive return period that is in the assessment year beginning on 1 July 2019; and\n\n(b) the progressive return period is partly within the first half‑year in the assessment year and partly within the second half‑year in the assessment year.\n\n(5) Despite subsection (2), sections 15 and 19 apply for the purposes of section 23I(4) as if they required the Commissioner to nominate a deduction for the employer or group in relation to the progressive return period rather than in relation to a half‑year.\n\n[Section 23K inserted: No. 6 of 2020 s. 5.]\n\n##### 23L. Adjustment for application of half‑year thresholds\n\n(1) This section applies if —\n\n(a) a calculation is made under section 23F, 23G or 23H of the amount of pay‑roll tax (the relevant amount) payable by an employer or group for the assessment year beginning on 1 July 2019 or part of that assessment year; and\n\n(b) the relevant amount is greater than the amount of pay‑roll tax that would have been payable for the year or part‑year if —\n\n(i) the amount payable had been calculated under the applicable provisions of Division 2 or 3 and not under section 23F, 23G or 23H; and\n\n(ii) the threshold amounts used for the purposes of that calculation were the applicable amounts set out in the Table.\n\n| Annual threshold amount | $850 000 |\n| Monthly threshold amount | $70 833 |\n| Upper threshold amount | $7 500 000 |\n\n(2) Despite whichever of section 23F, 23G or 23H is applicable, the amount of pay‑roll tax payable by the employer or group for the assessment year or part‑year is the amount calculated as referred to in subsection (1)(b).\n\n(3) Section 22 does not apply in relation to the assessment year beginning on 1 July 2019.\n\n[Section 23L inserted: No. 6 of 2020 s. 5.]\n\n##### 23M. Annual reconciliation for assessment year beginning 1 July 2019\n\n(1) Section 16 applies in relation to the assessment year beginning on 1 July 2019 as if —\n\n(a) the references to section 11 or 15 were references to section 23I; and\n\n(b) the references to section 10 or 13 were references to section 23F or 23G or (if applicable) section 23L.\n\n(2) Section 20 applies in relation to the assessment year beginning on 1 July 2019 as if —\n\n(a) the references to section 19 were references to section 23I; and\n\n(b) the references in section 20(1) and (2) to section 17 were references to section 23F or 23H or (if applicable) section 23L.\n\n[Section 23M inserted: No. 6 of 2020 s. 5.]\n\n[**23N.** 1M Modification, to insert section 23N, to have effect under the Commonwealth Places (Mirror Taxes Administration) Act 1999 s. 7, see Commonwealth Places (Mirror Taxes Administration) Regulations 2007 r. 31A and endnote 1M.]\n\n[**23N.** 1MC Modification, to insert section 23N, to have effect under the Commonwealth Places (Mirror Taxes) Act 1998 (Commonwealth) s. 8, see Commonwealth Places (Mirror Taxes) (Modification of Applied Laws (WA)) Notice 2007 cl. 32A and endnote 1MC.]\n\n## Part 3 — Registration and returns\n\n##### 24. Applications for registration as employer\n\n(1) A non‑group employer who is not registered must apply to the Commissioner for registration if —\n\n(a) the employer pays or is liable to pay any WA taxable wages during a month; and\n\n(b) the total amount of the WA taxable wages and any interstate taxable wages that the employer pays or is liable to pay during the month exceeds the monthly threshold amount.\n\n(2) A group member who is not registered must apply for registration if the member pays or is liable to pay any WA taxable wages during a month.\n\n(3) A non‑group employer whose registration is cancelled in an assessment year but who in any later month of the year pays or is liable to pay WA taxable wages may apply for registration even if the amount of wages paid or payable by the employer during the month is less than the monthly threshold amount.\n\n(4) An application must be made in the approved form.\n\n(5) An application under subsection (1) or (2) must be made to the Commissioner within 7 days after the end of the month.\n\n[Section 24 amended: No. 15 of 2010 s. 19.]\n\n##### 25. Registration and cancellation of registration\n\n(1) On receiving an application under section 24, the Commissioner must register the applicant as an employer for the purposes of this Act if it appears to the Commissioner that the employer is, or is likely to become, liable to pay pay‑roll tax.\n\n(2A) The Commissioner may register an employer, although the employer has not applied for registration under section 24, if it appears to the Commissioner that the employer is, or is likely to become, liable to pay pay‑roll tax.\n\n(2B) If the Commissioner registers an employer under subsection (2A), the Commissioner must give the employer notice of the registration.\n\n(2C) The Commissioner is taken always to have been entitled to register an employer on his or her own initiative under this Act or the *Pay‑roll Tax Assessment Act 1971* 1, and any such registration before the coming into operation of the *Revenue Laws Amendment Act 2012* section 27 is, and is taken always to have been, a valid and effective registration.\n\n(2) The Commissioner may cancel the registration of a person as an employer if —\n\n(a) the person has ceased to be an employer paying wages as mentioned in section 24(1); or\n\n(b) the person —\n\n(i) ceases to be a member of a group; and\n\n(ii) does not pay and is not liable to pay wages as mentioned in section 24(1).\n\n[Section 25 amended: No. 29 of 2012 s. 27.]\n\n##### 26. Monthly returns\n\n(1) An employer who is registered or required to apply for registration under section 24 must lodge a return for each month specifying the amount of the WA taxable wages paid or payable by the employer during the month, unless the employer is exempted under section 29.\n\n(2) A monthly return must be in the approved form.\n\n(3) A monthly return must —\n\n(a) for a month other than June — be lodged within 7 days after the end of the month, or within any further time allowed by the Commissioner in a particular case; and\n\n(b) for June — be lodged within 21 days after the end of the month, or within any further time allowed by the Commissioner in a particular case.\n\n[Section 26 amended: No. 15 of 2010 s. 9.]\n\n##### 27. Additional returns for reconciliation purposes\n\n(1) If a non‑group employer who lodges returns for progressive return periods pays or is liable to pay any interstate taxable wages for an assessment year, then the employer must also lodge an additional return for the assessment year specifying the amount of interstate taxable wages paid or payable by the employer for the whole assessment year.\n\n(1a) If any member of a group pays or is liable to pay interstate taxable wages for an assessment year, the DGE of the group must lodge an additional return for the assessment year specifying the amount of interstate taxable wages paid or payable by each member of the group for the whole assessment year.\n\n(2) The additional return must —\n\n(b) contain any information required by the Commissioner; and\n\n(c) be lodged within 21 days after the end of the assessment year or within any further time allowed by the Commissioner.\n\n[Section 27 amended: No. 40 of 2003 s. 24; No. 82 of 2004 s. 13; No. 15 of 2010 s. 10 and 19.]\n\n##### 28. Further returns\n\n(1) The Commissioner may, by notice to a person (whether as principal or as an agent or trustee and whether or not the person is an employer) require the person to lodge a return or a further or fuller return.\n\n(2) The person must lodge the return in accordance with any requirements set out in the notice and within the time specified in the notice.\n\n[Section 28 amended: No. 15 of 2010 s. 19.]\n\n##### 28A. Manner of lodging and paying in certain cases\n\n(1) In a circumstance described in subsection (2), a return referred to in that subsection must be lodged, and payment of any pay‑roll tax that is due on the last day for lodging the return must be made, in the manner prescribed in the regulations.\n\n(2) Subsection (1) applies if —\n\n(a) an employer —\n\n(i) has, or is a member of a group that has, an expected pay‑roll tax liability for an assessment year that is not less than the amount applying under section 29(1aa)(a) or (b); and\n\n(ii) is required to lodge a return for a progressive return period in that assessment year or, to lodge an additional return under section 27 for that year;\n\nor\n\n(b) a condition of an exemption under section 29 requires a return to be lodged in accordance with this section.\n\n(3) In subsection (2)(a)(i) —\n\n  expected pay‑roll tax liability has the meaning given to that term in section 29(1b).\n\n[Section 28A inserted: No. 82 of 2004 s. 14.]\n\n##### 29. 1M, 1MC Exemptions from lodging monthly returns\n\n(1) A non‑group employer may, or a DGE on behalf of all the members of a group may, apply to the Commissioner for exemption from the requirement to lodge monthly returns for an assessment year.\n\n(1a) Except as stated in subsection (1c) or (1d), the Commissioner has to give an exemption on receiving an application from an employer having, or the DGE of a group having, an expected pay‑roll tax liability for the assessment year that is less than —\n\n(a) $20 000; or\n\n(b) a greater amount prescribed for the purpose of this subsection by the regulations.\n\n(1aa) Except as stated in subsection (1c) or (1d), the Commissioner has to give an exemption on receiving an application from an employer having, or the DGE of a group having, an expected pay‑roll tax liability for the assessment year that is not less than the amount applying under subsection (1a)(a) or (b) but is less than —\n\n(a) $100 000; or\n\n(b) a greater amount prescribed for the purpose of this subsection by the regulations.\n\n(1b) In subsections (1a) and (1aa) —\n\n  expected pay‑roll tax liability means the amount of pay‑roll tax for which the employer or group would be liable in the assessment year if, during that year, the employer, or the employers of the group between them, paid or were liable to pay Australian taxable wages —\n\n(a) equal to those that the employer paid or was liable to pay, or the employers of the group between them paid or were liable to pay, during the immediately preceding assessment year; or\n\n(b) if the Commissioner is satisfied that applying paragraph (a) would not result in a reasonable approximation of the wages to be paid in the assessment year, as reasonably assessed by the employer or, in the case of a group, the DGE.\n\n(1c) The Commissioner may decline to give an exemption until the applicant provides to the Commissioner sufficient information to justify any assessment under paragraph (b) of the definition of ***expected pay‑roll tax liability*** in subsection (1b).\n\n(1d) The Commissioner may decline to give an exemption if the Commissioner considers that the effect of the exemption would create an unacceptable risk of a person failing to satisfy a liability in accordance with this Act.\n\n(2) The Commissioner may, in any other circumstances, exempt an employer from the requirement to lodge monthly returns.\n\n(3) The Commissioner may give an exemption on receiving an application or on his or her initiative.\n\n(4) An exemption is subject to the conditions (if any) prescribed in the regulations and to the conditions specified in the notice (if any).\n\n(4a) An exemption for the members of a group has to apply to every member of the group, and has to result in each member of the group lodging returns at the same frequency.\n\n(4b) An exemption under subsection (1a) cannot exclude the operation of subsection (8)(a).\n\n(4c) Without limiting any other conditions that can be prescribed or specified, an exemption under subsection (1aa) is on the conditions that —\n\n(a) a return is lodged for each quarter, and the lodging of the return, the form of it, and the information specified in it, are as section 26 would describe if a reference in that section to a month referred to a quarter; and\n\n(b) the return is lodged in accordance with section 28A; and\n\n(c) any return under section 27 is also lodged in accordance with section 28A.\n\n(4d) In subsection (4c) —\n\n  quarter means a period of 3 months commencing on 1 July, 1 October, 1 January or 1 April.\n\n(5) An exemption continues in force until it is revoked.\n\n(6) The Commissioner may revoke an exemption at any time by giving the employer notice of the revocation except that the Commissioner cannot revoke an exemption that subsection (1a) or (1aa) would oblige the Commissioner to give if an application were made for the exemption unless —\n\n(a) the person having the benefit of the exemption consents; or\n\n(b) the Commissioner considers that the effect of the exemption would create an unacceptable risk of a person failing to satisfy a liability in accordance with this Act.\n\n(7) Granting an exemption does not exempt the employer from any liability to pay‑roll tax, even if it has the effect of postponing the time for payment of the pay‑roll tax.\n\n(8) A person who is exempted from lodging monthly returns for an assessment year must —\n\n(a) lodge an annual return within 21 days after the end of the assessment year, unless a condition of the exemption otherwise provides; or\n\n(b) if a condition of the exemption requires returns to be lodged more frequently than annually, lodge returns as the condition requires.\n\n(9) An annual return must —\n\n(b) specify the WA taxable wages and the interstate taxable wages that the employer paid or became liable to pay during the assessment year.\n\n[Section 29 amended: No. 40 of 2003 s. 25; No. 82 of 2004 s. 5 and 15(1)-(6); No. 15 of 2010 s. 19; No. 20 of 2017 s. 9.]\n\n[Modification, to section 29, to have effect under the Commonwealth Places (Mirror Taxes Administration) Act 1999 s. 7, see Commonwealth Places (Mirror Taxes Administration) Regulations 2007 r. 32 and endnote 1M.]\n\n[Modification, to section 29, to have effect under the Commonwealth Places (Mirror Taxes) Act 1998 (Commonwealth) s. 8, see Commonwealth Places (Mirror Taxes) (Modification of Applied Laws (WA)) Notice 2007 cl. 33 and endnote 1MC.]\n\n[**29A.** 1M Modification, to insert section 29A, to have effect under the Commonwealth Places (Mirror Taxes Administration) Act 1999 s. 7, see Commonwealth Places (Mirror Taxes Administration) Regulations 2007 r. 33 and endnote 1M.]\n\n[**29A.** 1MC Modification, to insert section 29A, to have effect under the Commonwealth Places (Mirror Taxes) Act 1998 (Commonwealth) s. 8, see Commonwealth Places (Mirror Taxes) (Modification of Applied Laws (WA)) Notice 2007 cl. 34 and endnote 1MC.]\n\n## Part 4 — Constitution of business groups\n\n##### 30. Grouping corporations\n\nFor the purposes of a pay‑roll tax Act, corporations constitute a group if they are related bodies corporate.\n\n[Section 30 amended: No. 32 of 2012 s. 36.]\n\n##### 31. Grouping where employees used in another business\n\n(1) An employer and another person or other persons constitute a group if one or more of the employer’s employees performs duties solely or mainly for or in connection with one or more businesses carried on by the employer and the other person or persons (separately, together or in any other combination), or carried on by the other person or persons (separately, together or in any other combination).\n\n(2) An employer and another person or other persons constitute a group if —\n\n(a) the employer has an agreement, arrangement or undertaking with that person or those persons in relation to one or more businesses carried on by the person or persons (separately, together or in any other combination), whether or not with another person or other persons; and\n\n(b) the agreement, arrangement or undertaking relates to the employment of, or the performance of duties by, one or more of the employer’s employees.\n\n(3) Subsection (2) applies in relation to an agreement, arrangement or undertaking whether it is formal or informal, whether it is express or implied, whether or not it includes provisions in respect of the supply of goods or services or goods and services, and whether or not it provides for duties to be performed by the employees or specifies the duties to be performed by them.\n\n(4) The Commissioner may exclude a person from a group in accordance with section 38.\n\n[Section 31 amended: No. 11 of 2005 s. 4; No. 15 of 2010 s. 11 and 20.]\n\n##### 32. Grouping commonly controlled businesses\n\n[(1) deleted]\n\n(2) If the same person has, or the same persons have together, a controlling interest in each of 2 businesses, the persons who carry on those businesses constitute a group.\n\n(3) The Commissioner may exclude a person from a group in accordance with section 38.\n\n[Section 32 amended: No. 15 of 2010 s. 21; No. 32 of 2012 s. 37.]\n\n##### 33. Controlling interest in business\n\n(1) A person has, or persons have together, a controlling interest in a business carried on by a corporation if —\n\n(a) the person, or each of the persons, is a director of the corporation and the person is, or the persons are together, entitled to exercise more than 50% of the voting power at meetings of the directors of the corporation; or\n\n(b) a director that is, or directors that are together, entitled to exercise more than 50% of the voting power at meetings of the directors of the corporation is or are under an obligation, whether formal or informal, to act in accordance with the directions, instructions or wishes of the person or of those persons acting together.\n\n(2A) A person has, or persons have together, a controlling interest in a business carried on by a body corporate or unincorporate if the person or persons constitute more than 50% of the board of management (by whatever name called) of the body or control the composition of that board.\n\n(2) A person has, or persons have together, a controlling interest in a business carried on by a corporation that has a share capital if the person, or those persons acting together, may (whether directly or indirectly) exercise, control the exercise of or substantially influence the exercise of, more than 50% of the voting power attached to voting shares issued by the corporation.\n\n(3) A person has, or persons have together, a controlling interest in a business carried on by a partnership, if the person or persons —\n\n(a) owns, or own together (whether beneficially or not) more than 50% of the capital of the partnership; or\n\n(b) is, or are together, entitled (whether beneficially or not) to more than 50% of any profits of the partnership.\n\n(4) A beneficiary under a trust has, or beneficiaries under a trust together have, (whether or not as the trustee or trustees of another trust) a controlling interest in a business carried on under the trust if the beneficiary has, or the beneficiaries together have, a beneficial interest in respect of more than 50% of the value of the interests in the trust.\n\n(5) A person has a controlling interest in a business if the person is the sole owner of the business, whether as trustee or otherwise.\n\n(6) Two or more persons together have a controlling interest in a business if the persons own the business as trustees.\n\n(7) If —\n\n(a) 2 corporations are related bodies corporate; and\n\n(b) one of the corporations has a controlling interest in a business,\n\nthe other corporation has a controlling interest in the business.\n\n(8) Where —\n\n(a) a person has, or persons have together, a controlling interest in a business; and\n\n(b) the person or persons who carries or carry on the business has or have a controlling interest in another business,\n\nthen the person or persons referred to in paragraph (a) has or have a controlling interest in the other business referred to in paragraph (b).\n\n(9) A beneficiary under a trust has, or beneficiaries under a trust have, a controlling interest in a business if —\n\n(a) the trustee or trustees of the trust has or have a controlling interest in the business; and\n\n(b) the beneficiary has, or the beneficiaries together, have a beneficial interest in more than 50% of the value of the interests in the trust.\n\n[Section 33 amended: No. 15 of 2010 s. 22; No. 29 of 2012 s. 28; No. 32 of 2012 s. 38.]\n\n##### 34. Value of beneficial interest in discretionary trusts\n\n(1) For the purposes of this Part, a person who may benefit under a discretionary trust as a result of the exercise of a power or discretion, or a failure to exercise the power or discretion, by the trustee or by another person, or by the trustee and another person, is taken to be a beneficiary of the trust who has a beneficial interest in respect of more than 50% of the value of the interests in the trust.\n\n(2) For the purposes of this Part, 2 or more persons who may benefit under a discretionary trust as a result of the exercise of a power or discretion, or a failure to exercise the power or discretion, by the trustee or by another person, or by the trustee and another person, are taken to be beneficiaries of the trust who together have a beneficial interest in respect of more than 50% of the value of the interests in the trust.\n\n[Section 34 amended: No. 32 of 2012 s. 39.]\n\n##### 35A. Groups arising from tracing of interests in corporations\n\n(1) For the purposes of this section —\n\n  associated person means a person who is associated with another person in accordance with any of the following —\n\n(a) persons are associated persons if they are related persons;\n\n(b) individuals are associated persons if they are partners in a partnership;\n\n(c) private companies are associated persons if common shareholders have a majority interest in each private company;\n\n(d) trustees are associated persons if any person is a beneficiary common to the trusts (not including a public unit trust scheme) of which they are trustees;\n\n(e) a private company and a trustee are associated persons if a related body corporate of the company is a beneficiary of the trust (not including a public unit trust scheme) of which the trustee is a trustee;\n\n  entity means —\n\n(a) a person; or\n\n(b) 2 or more persons who are associated persons;\n\n  private company means a company that is not limited by shares, or whose shares are not quoted on the Australian Stock Exchange or any exchange of the World Federation of Exchanges;\n\n  related person means a person who is related to another person in accordance with any of the following —\n\n(a) individuals are related persons if —\n\n(i) one is the spouse or de facto partner of the other; or\n\n(ii) the relationship between them is that of parent and child, brothers, sisters, or brother and sister;\n\n(b) private companies are related persons if they are related bodies corporate;\n\n(c) an individual and a private company are related persons if the individual is a majority shareholder or director of the company or of another private company that is a related body corporate of the company;\n\n(d) an individual and a trustee are related persons if the individual is a beneficiary of the trust (not being a public unit trust scheme) of which the trustee is a trustee;\n\n(e) a private company and a trustee are related persons if the company, or a majority shareholder or director of the company, is a beneficiary of the trust (not being a public unit trust scheme) of which the trustee is a trustee.\n\n(2) An entity and a corporation form part of a group if the entity has a controlling interest in the corporation.\n\n(3) An entity has a controlling interest in a corporation if the corporation has share capital and —\n\n(a) the entity has a direct interest in the corporation the value of which exceeds 50%; or\n\n(b) the entity has an indirect interest in the corporation the value of which exceeds 50%; or\n\n(c) the entity has an aggregate interest in the corporation the value of which exceeds 50%.\n\n(4) The Commissioner may exclude an entity from a group in accordance with section 38.\n\n[Section 35A inserted: No. 15 of 2010 s. 23.]\n\n##### 35B. Direct interests\n\n(1) An entity has a direct interest in a corporation if —\n\n(a) in the case of an entity that is a person — the person can, directly or indirectly, exercise, control the exercise of, or substantially influence the exercise of, the voting power attached to any voting shares issued by the corporation; or\n\n(b) in the case of an entity that is 2 or more persons who are associated persons — each of the associated persons can, directly or indirectly, exercise, control the exercise of, or substantially influence the exercise of, the voting power attached to any voting shares issued by the corporation.\n\n(2) The value of the direct interest of the entity in the corporation is the proportion (expressed as a percentage) of the voting power of all voting shares issued by the corporation that —\n\n(a) in the case of an entity that is a person — the person can directly or indirectly exercise, control the exercise of, or substantially influence the exercise of; or\n\n(b) in the case of an entity that is 2 or more persons who are associated persons — the associated persons can, if acting together, directly or indirectly exercise, control the exercise of, or substantially influence the exercise of.\n\n[Section 35B inserted: No. 15 of 2010 s. 23.]\n\n##### 35C. Indirect interests\n\n(1) An entity has an indirect interest in a corporation if the corporation is linked to another corporation (the directly controlled corporation) in which the entity has a direct interest.\n\n(2) A corporation is linked to a directly controlled corporation if the corporation is part of a chain of corporations —\n\n(a) that starts with the directly controlled corporation; and\n\n(b) in which a link in the chain is formed if a corporation has a direct interest in the next corporation in the chain.\n\n(3) The value of the indirect interest of an entity in a corporation (an indirectly controlled corporation) that is linked to a directly controlled corporation is calculated by multiplying together the following —\n\n(a) the value of the direct interest of the entity in the directly controlled corporation;\n\n(b) the value of each direct interest that forms a link in the chain of corporations by which the indirectly controlled corporation is linked to the directly controlled corporation.\n\n(4) If an entity has more than one indirect interest in a corporation, the value of those interests is worked out under section 35D.\n\n[Section 35C inserted: No. 15 of 2010 s. 23.]\n\n##### 35D. Aggregate interests\n\n(1) An entity has an aggregate interest in a corporation if —\n\n(a) the entity has a direct interest and one or more indirect interests in the corporation; or\n\n(b) the entity has more than one indirect interest in the corporation.\n\n(2) The value of the aggregate interest of an entity in a corporation is the sum of the following —\n\n(a) the value of the direct interest (if any) of the entity in the corporation;\n\n(b) the value of each indirect interest of the entity in the corporation.\n\n[Section 35D inserted: No. 15 of 2010 s. 23.]\n\n[**35.** Deleted: No. 15 of 2010 s. 23.]\n\n##### 36. Smaller groups subsumed into larger groups\n\n(1) Where a person is a member of 2 or more groups (each of which is called a ***smaller group*** for the purposes of subsection (3)), the members of those groups together constitute one group for the purposes of this Act.\n\n(2) If 2 or more members of a group (called a ***smaller group*** for the purposes of subsection (3)) have together a controlling interest in a business, all the members of the group and the person or persons who carry on the business together constitute one group for the purposes of this Act.\n\n(3) When the members of a smaller group are members of a group constituted under subsection (1) or (2), the smaller group is no longer treated as a group for the purposes of this Act.\n\n(4) The Commissioner may exclude a person from a group in accordance with section 38.\n\n[Section 36 amended: No. 15 of 2010 s. 24; No. 29 of 2012 s. 29.]\n\n##### 37. Grouping provisions operate independently\n\nThe fact that a person is not a member of a group constituted under a provision of this Part does not prevent that person from being a member of a group constituted under another provision of this Part.\n\n##### 38. Exclusion from groups\n\n(1) The Commissioner may, by written notice, exclude a person from a group under section 31(4), 32(3), 35A(4) or 36(4) in relation to a business carried on by the person if satisfied that the business is carried on independently of, and is not connected with the carrying on of, a business carried on by any other member of the group, having regard to —\n\n(a) the nature and degree of ownership and control of the businesses; and\n\n(b) the nature of the businesses; and\n\n(c) any other matters the Commissioner considers relevant.\n\n(2) However, a corporation cannot be excluded from a group if it and another corporation which is a member of the group are related bodies corporate.\n\n(3) An application for exclusion must —\n\n(a) set out the grounds on which it is made; and\n\n(b) include a statement of the circumstances giving rise to those grounds.\n\n(4) An exclusion takes effect on the date specified in the notice of exclusion and continues in force until it is revoked.\n\n(5) The date specified as the date on which the exclusion takes effect may be the date of the notice or an earlier date.\n\n(6) The Commissioner may revoke an exclusion at any time by giving notice of the revocation to the person or persons excluded from a group.\n\n(7) A person who is excluded from a group must notify the Commissioner immediately if there is a material change in the circumstances set out in the statement under subsection (3)(b).\n\n[Section 38 amended: No. 15 of 2010 s. 25; No. 32 of 2012 s. 40.]\n\n##### 39. Designated group employer\n\n(1) The members of a group may designate one of the members as the designated group employer (DGE) for the group for the purposes of the pay‑roll tax Acts.\n\n(2) A designation must —\n\n(b) be accompanied by any information required by the Commissioner; and\n\n(c) be executed by or for each member of the group; and\n\n(d) be served on the Commissioner.\n\n(3) If the members of a group do not designate a DGE for the group, the Commissioner may on his or her initiative designate one of the members to be the DGE for the group for the purposes of a pay‑roll tax Act.\n\n(4) A designation by the Commissioner is to be made by notice served on the member designated as the DGE.\n\n(5) An employer who is the DGE for a group stops or is taken to have stopped being the group’s DGE on the first day of a return period of the employer during which either of the following happens —\n\n(a) the employer leaves the group; or\n\n(b) the designation is revoked.\n\n(6) The members of a group may revoke the designation by giving the Commissioner notice in the approved form.\n\n(7) The members of a group are not entitled to revoke a designation unless —\n\n(a) the members designate another member to be the DGE; or\n\n(b) the Commissioner consents to the revocation.\n\n(8) If the Commissioner designated a member of a group as the DGE, the Commissioner may revoke the designation by giving notice of the revocation to the member.\n\n## Part 5 — Exempt wages\n\n[Heading inserted: No. 15 of 2010 s. 12.]\n\n##### 40. Exempt wages\n\n(1) The following wages are exempt from pay‑roll tax —\n\n(a) wages of a kind listed in subsection (2);\n\n[(b) deleted]\n\n(c) wages prescribed under subsection (4);\n\n(d) specified exempt allowances;\n\n(e) benefits that are exempt benefits under any provision of the FBTA Act except section 58W and that are not specified taxable benefits.\n\n(2) For the purposes of subsection (1)(a), wages paid or payable during an assessment year are exempt from pay‑roll tax if the wages are paid or payable —\n\n(a) by the Governor of a State; or\n\n(b) by a religious institution for doing the religious work of the institution; or\n\n(c) by a public benevolent institution for doing work of a public benevolent nature; or\n\n(d) to a person who is staff member as defined in the *Health Services Act 2016* section 6 of a health service provider, in connection with that person’s employment in, or engagement under a contract for services by, the health service provider under that Act; or\n\n(e) by a hospital carried on by a non‑profit organisation for doing work of a kind ordinarily performed in connection with the conduct of hospitals; or\n\n(f) by a school or college (except a college under the *Vocational Education and Training Act 1996*) that is carried on by a non‑profit organisation that provides education at or below, but not above, the secondary level of education, for doing work of a kind ordinarily performed in connection with the conduct of such schools or colleges; or\n\n(g) by a local government, a regional local government, a regional subsidiary or one of the associations constituted under section 9.58 of the *Local Government Act 1995*; or\n\n(h) by a consular or other representative (except a diplomatic representative) in Australia of the government of another country to members of his or her official staff; or\n\n(i) by a Trade Commissioner representing in Australia the government of a country of the British Commonwealth of Nations, to members of his or her official staff; or\n\n(j) by the Commonwealth War Graves Commission; or\n\n(k) by the Australian‑American Educational Foundation; or\n\n(l) to a person who is a member of the Defence Force of the Commonwealth or of the armed force of a country that is a member of the British Commonwealth of Nations, being wages paid or payable by the employer from whose employment the person is on leave because of his or her being a member of the force; or\n\n[(m) deleted]\n\n(n) by a charitable body or organisation exempted under section 41 for doing work of the kind ordinarily performed in connection with a charitable purpose for which the body or organisation is established or carried on; or\n\n[(o) deleted]\n\n(p) subject to subsection (3), by an employer to or in relation to a person for a period when the person is —\n\n(i) performing functions as a volunteer member of a FES Unit, an SES Unit or a VMRS Group under the *Fire and Emergency Services Act 1998*; or\n\n(ii) performing functions as a member of a volunteer fire brigade under the *Fire Brigades Act 1942*; or\n\n(iii) performing functions as a volunteer member of a bush fire brigade under the *Bush Fires Act 1954*;\n\nor\n\n(q) out of moneys expended for the purpose of a division or portion of a division referred to in the annual estimates of expenditure from the Consolidated Account prepared by the Treasurer in respect of the assessment year, being a division or portion in respect of a department or other organisation prescribed for the purposes of this paragraph or the division in respect of special Acts to the extent that the estimates of expenditure in that division relate to the department or other organisation; or\n\n(r) as wages of a prescribed kind to a person for services performed by the person at a remote location.\n\n(2A) The exemption provided for by subsection (2)(d) does not apply to wages that are paid or payable to a staff member to the extent that the person’s employment or engagement is in connection with a commercial activity referred to in the *Health Services Act 2016* section 35 unless the commercial activity is, or is in a class of commercial activity, prescribed in the regulations for the purposes of this subsection.\n\n(3) The exemption provided for by subsection (2)(p) does not apply to wages paid or payable as annual leave, long service leave, recreation leave or sick leave.\n\n(4) Regulations may prescribe, as exempt wages, the whole or part of wages paid or payable by an employer where the employer is entitled to recover an amount in respect of those wages from a fund, contributions to which are specified taxable benefits.\n\n[Section 40 amended: No. 77 of 2006 s. 4; No. 44 of 2008 s. 59; No. 15 of 2010 s. 13; No. 22 of 2012 s. 131; No. 11 of 2016 s. 298; No. 26 of 2016 s. 80; No. 7 of 2018 s. 4.]\n\n##### 41A. Exempt wages: parental and adoption leave\n\nadoption leave means leave given to an employee in connection with the adoption of a child by the employee, other than annual leave, recreation leave, sick leave or similar leave;\n\nmaternity leave means leave given to a female employee in connection with her pregnancy or the birth of her child, other than annual leave, recreation leave, sick leave or similar leave;\n\nparental leave means leave given to an employee in connection with the pregnancy of a female carrying the employee’s unborn child or the birth of the employee’s child, other than annual leave, recreation leave, sick leave or similar leave.\n\n(2) Wages paid or payable to or in relation to an employee for maternity leave, parental leave or adoption leave are exempt from pay‑roll tax.\n\n(3) It is immaterial whether the leave is taken during or after the pregnancy or before or after the adoption.\n\n(4) The exemption in subsection (2) is limited to wages paid or payable for not more than 14 weeks’ worth of leave at the rate of pay per pay period that the employee would ordinarily be paid, irrespective of the actual period of leave.\n\nFor example, the exemption may apply to wages paid or payable for a 28 week period of maternity leave if the wages are paid at half the rate at which the wages would normally be paid or payable to the employee.\n\n(5) The exemption in subsection (2) does not apply to wages comprising a fringe benefit under the FBTA Act.\n\n[Section 41A inserted: No. 15 of 2010 s. 14; amended: No. 29 of 2012 s. 30.]\n\n##### 41B. Exempt wages: wages paid or payable for or in relation to services performed in other countries\n\n(1) Wages are exempt from pay‑roll tax if they are paid or payable for or in relation to services performed by a person wholly in one or more other countries for a continuous period of more than 6 months beginning on the day on which wages were first paid or payable to that person for the services so performed.\n\n(2) The Commissioner must make any reassessment necessary to give effect to this section.\n\n[Section 41B inserted: No. 15 of 2010 s. 14.]\n\n##### 41C. Exempt wages: DSC disability support and disability wages subsidy\n\nDisability Services Commission means the Disability Services Commission referred to in the *Disability Services Act 1993* section 6;\n\ndisability wages subsidy means —\n\n(a) a wages subsidy provided by the Commonwealth to employers who employ persons with a disability, under the Wages Subsidy Scheme carried on in accordance with the deed entitled “Disability Employment Services Deed 2010‑2012”; or\n\n(b) a wages subsidy provided by the Commonwealth (directly or indirectly) to employers who employ persons with a disability, that is prescribed for the purposes of this definition;\n\nDSC disability support means a disability service, within the meaning of paragraph (a) of the definition of ***disability service*** in the *Disability Services Act 1993* section 3, provided by or under an arrangement with the Disability Services Commission;\n\nnew employee has the meaning given in subsection (4).\n\n(2) Wages paid or payable to or in relation to a new employee in respect of a period during the 24 months commencing on the day on which the employee first commenced employment with the employer are, or are to be treated as if they were, exempt from pay‑roll tax if —\n\n(a) the employer received or was entitled to receive a disability wages subsidy in respect of the employee on or before the day on which the employee first commenced employment with the employer; or\n\n(b) the employee was eligible for some form of DSC disability support on the day on which the employee first commenced employment with the employer, and the following apply —\n\n(i) the employee was, on that day, of or above the minimum age necessary to engage in that employment;\n\n(ii) the employee is employed and remunerated in accordance with a binding award or other industrial determination or order or an industrial agreement.\n\n(3) If the Commissioner is satisfied that the employer dismissed or reduced the working hours of an employee solely or primarily in anticipation of, or as a consequence of, employing the new employee —\n\n(a) subsection (2) is taken not to have applied to the wages paid or payable to or in relation to the new employee; and\n\n(b) the Commissioner must make any reassessment necessary to give effect to this subsection.\n\n(4) An employee of an employer is a new employee if the employee —\n\n(a) commences employment with the employer on or after 1 July 2012; and\n\n(b) was not an employee of the employer, or of any other employer in a group of which the employer is a member, at any time prior to the commencement of employment referred to in paragraph (a).\n\n(5) Regulations prescribing a wages subsidy for the purposes of the definition of ***disability wages subsidy*** in subsection (1) may be made and published during a year for which the prescription is expressed to have effect.\n\n[Section 41C inserted: No. 32 of 2012 s. 41.]\n\n##### 41D. Exempt wages: apprentices under training contracts\n\napprentice has the meaning given in the VET Act section 60A;\n\nclass A or class B qualification means a prescribed VET qualification (as defined in the VET Act section 5(1)) that is classified as a class A qualification or class B qualification under the VET Act section 60C;\n\nregistered training contract means a training contract that has been registered under the VET Act section 60F;\n\ntraining contract has the meaning given in the VET Act section 60A;\n\nVET Act means the *Vocational Education and Training Act 1996*.\n\n(2) Wages paid or payable by an employer to or in relation to an employee are exempt from pay‑roll tax if the wages are paid or payable for a period during which the employee is an apprentice under a registered training contract that —\n\n(a) is for a class A or class B qualification; and\n\n(b) in accordance with a requirement imposed under the VET Act section 60C(5), refers to the apprentice under the training contract as an “apprentice”.\n\n(3) An exemption under subsection (2) does not apply to wages paid or payable to or in relation to an employee under a registered training contract that is suspended under the VET Act for the period of the suspension.\n\n[(4)‑(6) deleted]\n\n[Section 41D inserted: No. 7 of 2018 s. 5; amended: No. 10 of 2019 s. 4.]\n\n## Part 6 — Miscellaneous\n\n[Heading inserted: No. 15 of 2010 s. 15.]\n\n##### 41. Exempting charitable bodies or organisations\n\n(1A) A charitable body or organisation is exempt under this section from liability to pay‑roll tax if —\n\n(a) an exemption given by the Commissioner under subsection (2) is in force in respect of the body or organisation; or\n\n(b) it is a relevant body in respect of which a beneficial body determination is in force for the purposes of this Act.\n\n(1) A charitable body or organisation may apply to the Commissioner for exemption from liability to pay‑roll tax.\n\n(2) The Commissioner may, by giving notice to the charitable body or organisation, exempt it from liability to pay‑roll tax.\n\n(3A) However, a charitable body or organisation that is a relevant body cannot be given an exemption by the Commissioner under subsection (2).\n\n(3) An exemption given by the Commissioner under subsection (2) is subject to any conditions specified in the notice.\n\n(4) An exemption given by the Commissioner under subsection (2) comes into operation on the day specified in the notice, which may be the day on which the notice is given, or an earlier or later day.\n\n(5) The day on which an exemption given by the Commissioner under subsection (2) comes into operation under subsection (4) cannot be earlier than —\n\n(a) if the charitable body or organisation is registered, or has at any time been registered, the commencement of the assessment year during which the application for the exemption was made; or\n\n(b) otherwise, the commencement of the assessment year that is 5 years before the assessment year in which the charitable body or organisation was first found by the Commissioner to be liable to pay‑roll tax.\n\n(6) An exemption given by the Commissioner under subsection (2) continues in force until it is revoked.\n\n(7) The Commissioner may amend or revoke an exemption given under subsection (2) and any condition to which it is subject, by giving further notice to the charitable body or organisation.\n\n[Section 41 amended: No. 12 of 2004 s. 7; No. 8 of 2015 s. 13.]\n\n##### 42A. What is a relevant body\n\nA reference to a relevant body is to any of the following —\n\n(a) a political party;\n\n(b) an industrial association;\n\n(c) a professional association;\n\n(d) a body, other than a body referred to in paragraph (a), (b), (c) or (e), that promotes trade, industry or commerce, unless the main purposes of the body are charitable purposes that fall within the first 3 categories (being relief of poverty, advancement of education and advancement of religion) identified by Lord Macnaghten in *Commissioners for Special Purposes of Income Tax v Pemsel* [1891] AC 531 as developed by the common law of Australia from time to time;\n\n(e) a body that is a member of a class of bodies prescribed for the purposes of this paragraph;\n\n(f) a body that —\n\n(i) is a member of a group of which a body referred to in another paragraph is also a member; or\n\n(ii) is a related body corporate of a body referred to in another paragraph; or\n\n(iii) has as its sole or dominant purpose or object the conferral of a benefit, whether financial or non‑financial, on a body referred to in another paragraph.\n\n[Section 42A inserted: No. 8 of 2015 s. 14.]\n\n##### 42B. Application for a beneficial body determination\n\n(1) An application may be made to the Minister for a determination under section 42C that a relevant body is a beneficial body for the purposes of the taxation Acts if —\n\n(a) the Commissioner has (the decision) —\n\n(i) refused to give an exemption under section 41(2); or\n\n(ii) revoked an exemption under section 41(7);\n\nand\n\n(b) that decision is made solely on the ground that the applicant for the exemption, or the subject of the revoked exemption, is a relevant body referred to in section 42A(c), (d), (e) or (f).\n\n(2) An application referred to in subsection (1) can be made only if —\n\n(a) an objection was made to the decision and the objection and any subsequent review proceedings are exhausted, discontinued or finally determined; or\n\n(b) under the *Taxation Administration Act 2003* section 34B —\n\n(i) all rights of objection or review conferred by that Act in respect of the decision have been surrendered; or\n\n(ii) an objection to the decision has been determined and all rights to take review proceedings on the Commissioner’s decision on the objection have been surrendered.\n\n(3) However, an application referred to in subsection (1) cannot be made if the decision was made, or confirmed, on a reassessment made on an application made by the taxpayer —\n\n(a) under the *Taxation Administration Act 2003* section 16(2)(b); and\n\n(b) after the right to object to the original assessment had expired.\n\n(4) An application referred to in subsection (1) must be made within 60 days after subsection (2) first applies in respect of the decision.\n\n[Section 42B inserted: No. 8 of 2015 s. 14.]\n\n##### 42C. Beneficial body determination\n\n(1) On an application under section 42B the Minister, with the Treasurer’s concurrence, may determine that a relevant body is a beneficial body for the purposes of the taxation Acts.\n\n(2) The Minister, with the Treasurer’s concurrence, may amend or revoke a beneficial body determination.\n\n(3) The Minister may make, amend or revoke a beneficial body determination only if the Minister is of the opinion that it is in the public interest to do so and after considering any information that the Minister considers relevant.\n\n(4) The Minister must —\n\n(a) provide written reasons to the applicant for a decision in relation to an application under section 42B; and\n\n(b) provide written reasons for a decision to amend or revoke a beneficial body determination to the body in respect of which the determination is made.\n\n(5) The Minister is to publish notice of the making, amendment or revocation of a beneficial body determination in the *Gazette*.\n\n(6) A beneficial body determination is subject to the conditions specified in the determination (if any).\n\n(7) A beneficial body determination made under this section comes into force —\n\n(a) for the purposes of this Act — on the day on which the determination is made; and\n\n(b) for the purposes of the *Duties Act 2008* and the *Land Tax Assessment Act 2002* — on the day specified in the notice in respect of each Act.\n\n(8) Despite subsection (7)(a), a beneficial body determination made under this section applies —\n\n(a) on and from the day specified by the Minister in the determination, and section 41(5) applies in relation to specifying that day as if it were the day on which an exemption under section 41(2) comes into operation; and\n\n(b) in relation to any liability to pay‑roll tax in respect of which the relevant body would have been exempt under section 41 had a beneficial body determination been in force for the purposes of this Act in respect of the relevant body.\n\n(9) The Commissioner is to reassess the liability to pay‑roll tax of a relevant body for the period in respect of which a beneficial body determination applies in respect of the body under subsection (8).\n\n(10) The limitations as to time in the *Taxation Administration Act 2003* section 17 do not apply in respect of a reassessment under subsection (9).\n\n(11) A beneficial body determination continues in force until the day on which notice of the revocation is published in the *Gazette*, and different days may be specified for each Act in respect of which the determination is in force.\n\n[Section 42C inserted: No. 8 of 2015 s. 14.]\n\n##### 42. Tax payable when employer leaves Australia\n\n(1) If the Commissioner has reason to believe that an employer may leave Australia before any taxes become due and payable by the employer —\n\n(a) the Commissioner may, by notice to the employer, fix an earlier date for payment of the taxes; and\n\n(b) the taxes are due and payable on the date specified in the notice.\n\n(2) In subsection (1) —\n\ntaxes means pay‑roll tax, or any penalties, interest or other amount payable under a pay‑roll tax Act in connection with pay‑roll tax.\n\n##### 43. Agents and trustees\n\n(1) An agent or trustee is answerable as an employer for the doing of everything required to be done by a pay‑roll tax Act in relation to the payment of any WA taxable wages by the principal or the trust.\n\n(2) Without limiting subsection (1), an agent or trustee is to lodge the returns for WA taxable wages as required, and is chargeable with any taxes payable on the wages, but in his or her representative capacity only, and each return is separate and distinct from any other, except as otherwise provided by a pay‑roll tax Act.\n\n(3) If the agent or trustee is an executor or administrator, the returns are to be the same as far as practicable as the deceased person, if living, would have been liable to make.\n\n(4) An agent or trustee who disburses an amount by way of taxes for the principal or beneficiary is authorised to recover the amount from the person for whom it was paid, or to deduct it from any money belonging to that person that is in the hands of the agent or trustee.\n\n(5) An agent or trustee is required to retain from time to time out of any money which comes to the agent or trustee in his or her representative capacity so much as is sufficient to pay the taxes.\n\n(6) An agent or trustee is personally liable for the taxes payable if, after the Commissioner has required him or her to make a return, or while the taxes remain unpaid, the agent or trustee, except with the permission of the Commissioner, disposes of or parts with any fund or money which comes to the agent or trustee from which the taxes could legally be paid, but is not otherwise personally liable for the taxes.\n\n(7) An agent or trustee is indemnified for all payments which he or she makes in accordance with a pay‑roll tax Act or a requirement of the Commissioner.\n\n(8) For the purpose of ensuring the payment of taxes the Commissioner has the same remedies against attachable property of any kind vested in or under the control or management or in the possession of any agent or trustee, as he or she would have against the property of any other person in respect of taxes, and in as full and ample a manner.\n\n(9) The Commissioner may, by giving notice to a person, declare the person to be an agent, or the sole agent, of any other person for the purposes of this Act.\n\n(10) Nothing in this section affects the operation of Part 2 Division 3 or 6, or of Part 4, in relation to trustees.\n\n(11) In this section —\n\ntaxes means pay‑roll tax, or any penalties, interest or other amount payable under a pay‑roll tax Act in connection with pay‑roll tax.\n\n[Section 43 amended: No. 6 of 2020 s. 6.]\n\n##### 44. Keeping books and accounts\n\n(1) An employer who is registered or required to apply for registration must keep —\n\n(a) the records that are prescribed in the regulations for the purposes of this section (if any); and\n\n(b) any other records necessary to enable the Commissioner to determine the employer’s liability to pay pay‑roll tax.\n\n(2) Despite section 87 of the *Taxation Administration Act 2003*, the employer must retain the records for at least 5 years, or for any greater period that is prescribed, after the completion of the transactions to which they relate.\n\n[Section 44 amended: No. 15 of 2010 s. 19.]\n\n##### 45. Regulations\n\n(1) The Governor may make regulations prescribing all matters that are required or permitted by this Act to be prescribed or are necessary or convenient to be prescribed for giving effect to this Act.\n\n(2) Regulations may be made about any or all of the following matters —\n\n(a) the evidence that the Commissioner may require for the purpose of determining whether or not an employer was an employer for part only of an assessment year, whether or not a person was or was not a member of a group or whether or not an exemption under section 29 should be given;\n\n(b) benefits on the value of which pay‑roll tax is payable (whether or not the benefits are exempt benefits under the FBTA Act);\n\n(c) allowances that are exempt from pay‑roll tax, to the extent that is prescribed;\n\n(d) the records and other evidence required to be kept in respect of —\n\n(i) specified exempt allowances; and\n\n(ii) anything affecting the extent to which those allowances are excluded from being wages;\n\n(e) the value of a fringe benefit paid or payable by an employer that is to be included in a return;\n\n(f) any other matter for the application of this Act to a fringe benefit, a specified taxable benefit or a specified exempt allowance;\n\n(fa) the manner of lodging a return or making a payment in a circumstance in which section 28A(1) applies, which may include lodgment or payment by electronic means;\n\n(g) classes of contracts for the purposes of section 9AA(1)(c).\n\n(3) Regulations may create offences and provide, in respect of an offence so created, for the imposition of a fine not exceeding $5 000.\n\n(4) Regulations may be expressed to apply to wages paid or payable before the day on which the regulations come into operation if the application of the regulations to the wages would not adversely affect a person who is or may be liable to pay pay‑roll tax on the wages.\n\n[Section 45 amended: No. 82 of 2004 s. 16; No. 15 of 2010 s. 16; No. 32 of 2012 s. 42.]\n\n##### 46. Transitional provisions\n\nSchedule 1 contains transitional provisions relating to amendments made to this Act.\n\n[Section 46 inserted: No. 15 of 2010 s. 17.]\n\nSchedule 1 — Transitional provisions\n\n[s. 46]\n\n[Heading inserted: No. 15 of 2010 s. 17.]\n\nDivision 1 — Provisions for the *Pay‑roll Tax Assessment Amendment Act 2010* in relation to taxable wages\n\n[Heading inserted: No. 15 of 2010 s. 17.]\n\n1. Liability to tax for assessment years commencing on 1 July 2009 and 1 July 2010\n\nA person’s liability to pay‑roll tax under this Act for the assessment year commencing on 1 July 2009, and for the assessment year commencing on 1 July 2010, is to be determined as if the *Pay‑roll Tax Assessment Amendment Act 2010* (other than Part 2 Division 3) had come into operation on 1 July 2009.\n\n[Clause 1 inserted: No. 15 of 2010 s. 17.]\n\n2. Shares and options granted on or after 1 July 2009 and before *Pay‑roll Tax Assessment Amendment Act 2010* received Royal Assent\n\n(1) If —\n\n(a) an employer granted a share or an option to a person —\n\n(i) on or after 1 July 2009; and\n\n(ii) before the *Pay‑roll Tax Assessment Amendment Act 2010* received the Royal Assent;\n\nand\n\n(b) the amount equal to the value of the share or option was WA taxable wages; and\n\n(c) the value of the share or option is, under section 9DA or 9DG and clause 1, taken to be wages paid by the employer to the employee; and\n\n(d) the wages constituted by the value of that share or option are WA taxable wages under section 5(2) and clause 1,\n\nthe employer may, by notice given to the Commissioner, elect to treat those wages as being paid on the vesting day.\n\n(2) A notice under subclause (1) must be given within the 3 months after the day on which the *Pay‑roll Tax Assessment Amendment Act 2010* received the Royal Assent.\n\n(3) The Commissioner must, on application, make any reassessment necessary to give effect to this clause.\n\n[Clause 2 inserted: No. 15 of 2010 s. 17.]\n\n3. Notices under *Pay‑roll Tax Assessment Regulations 2003* r. 26(1) or (2)\n\nA notice under the *Pay‑roll Tax Assessment Regulations 2003* regulation 26(1) or (2) in relation to the assessment year commencing on 1 July 2009, or the assessment year commencing on 1 July 2010, has effect as if it were given under section 9BH(1) or (2), whichever is relevant.\n\n[Clause 3 inserted: No. 15 of 2010 s. 17.]\n\nDivision 2 — Provisions for the *Pay‑roll Tax Assessment Amendment Act 2010* in relation to grouping of employers\n\n[Heading inserted: No. 15 of 2010 s. 26.]\n\n4. Exclusion from group in force before 1 July 2012\n\nIf the Commissioner has excluded a person from a group under section 31(4) or 32(3) (as in force before 1 July 2012) and that exclusion was in force immediately before 1 July 2012, that exclusion has effect, according to its terms, on and after 1 July 2012, as if it had been granted under Part 4 (as in force on and after 1 July 2012).\n\n[Clause 4 inserted: No. 15 of 2010 s. 26.]\n\n5. Exclusion from group granted on or after 1 July 2012\n\nAn exclusion of a person from a group under Part 4 (as in force on and after 1 July 2012) cannot have effect before 1 July 2012 despite section 38(5).\n\n[Clause 5 inserted: No. 15 of 2010 s. 26.]\n\n6. Exclusion from group having effect before 1 July 2012\n\nThe Commissioner may, on and after 1 July 2012, exclude a person from a group for a period that is before 1 July 2012 but not on or after 1 July 2012, and may do so as if the *Pay‑roll Tax Assessment Amendment Act 2010* Part 2 Division 3 had not come into operation.\n\n[Clause 6 inserted: No. 15 of 2010 s. 26.]\n\nDivision 3 — Provisions consequent on enactment of *Revenue Laws Amendment Act 2012* Part 5 Division 2\n\n[Heading 2 inserted: No. 29 of 2012 s. 25.]\n\n7. Assessment and payment of pay‑roll tax in relation to employee shares and options\n\nAnything done or omitted to be done by an employer in connection with the assessment and payment of pay‑roll tax, in respect of a month occurring after June 2009 and before July 2011, that would have been validly done or omitted to be done had the amendments made to this Act by the *Revenue Laws Amendment Act 2012* Part 5 Division 2 been in force, is taken to have been validly done or omitted.\n\nThis provision validates a decision by an employer to treat the grant of a share or an option to an employee that is not an ESS interest as a fringe benefit under Part 2 Division 2A Subdivision 2 and to determine the value of those fringe benefits in accordance with those provisions, rather than by reference to Part 2 Division 2A Subdivision 4.\n\n[Clause 7 2 inserted: No. 29 of 2012 s. 25.]\n\n8. Determination of vesting day and value of employee shares and options\n\n(1) In this clause —\n\nassessment amendments means the amendments made by the *Revenue Laws Amendment Act 2012* sections 19 and 21;\n\nnew section 9DA means section 9DA as amended by the *Revenue Laws Amendment Act 2012* section 18;\n\nold section 9DA means section 9DA as in force immediately before 1 July 2011;\n\nrelevant day has the meaning given in section 9DA(4).\n\n(2) Part 2 Division 2A Subdivision 4 continues to apply in respect of a share or an option granted before 1 July 2011 that constituted wages under old section 9DA, whether or not the grant of the share or option would constitute wages under new section 9DA, if the relevant day in relation to the grant of the share or option is not a day occurring before 1 July 2011.\n\nFor example, a share granted before 1 July 2011 that is not an ESS interest continues to be treated as wages under Part 2 Division 2A Subdivision 4 if the vesting day for the share did not occur before 1 July 2011 and the employer did not elect to treat the day of the grant as the relevant day.\n\n(3) Sections 9DB and 9DD as amended by the assessment amendments apply in respect of any such share or option.\n\n(4) Accordingly, the vesting day and the value of the share or option are to be determined in accordance with those sections as amended by the assessment amendments.\n\n(5) This clause does not apply in respect of a share or an option granted before 1 July 2011 if the liability for pay‑roll tax in respect of the grant is determined in accordance with Part 2 Division 2A Subdivision 2 (as permitted by clause 7).\n\n[Clause 8 2 inserted: No. 29 of 2012 s. 25.]\n\n9. Shares and options granted on or after 1 July 2011 and before *Revenue Laws Amendment Act 2012* received Royal Assent\n\nSubject to the *Taxation Administration Act 2003* section 17(4), if an employer granted a share or an option to a person —\n\n(a) on or after 1 July 2011; and\n\n(b) before the *Revenue Laws Amendment Act 2012* received the Royal Assent,\n\nthe Commissioner must make any reassessment necessary to give effect to this Act as amended by the *Revenue Laws Amendment Act 2012* Part 5 Division 2.\n\n[Clause 9 2 inserted: No. 29 of 2012 s. 25.]\n\nDivision 4 — Provisions for the *Taxation Legislation Amendment Act (No. 2) 2015*\n\n[Heading inserted: No. 8 of 2015 s. 15.]\n\n10. Terms used\n\ncommencement day means the day on which the *Taxation Legislation Amendment Act (No. 2) 2015* Part 4 comes into operation;\n\nexemption means an exemption under section 41;\n\nnew provisions means sections 41, 42A, 42B and 42C as in force immediately after commencement day;\n\npreviously exempt charitable body or organisation means a charitable body or organisation in respect of which an exemption was in force immediately before commencement day.\n\n[Clause 10 inserted: No. 8 of 2015 s. 15.]\n\n11. Exemptions currently held by relevant bodies may be revoked\n\n(1) If the Commissioner forms the preliminary view that a previously exempt charitable body or organisation may be a relevant body then the Commissioner is to give notice (preliminary notice about an exemption under section 41) to that body or organisation informing it —\n\n(a) that the Commissioner has formed such a preliminary view; and\n\n(b) that the exemption may be revoked under this clause; and\n\n(c) that if the exemption is revoked under this clause, the revocation will have effect on and from the day specified in the notice, being a day that is at least 2 months after the day on which the notice is given (the specified day).\n\n(2) If preliminary notice about an exemption under section 41 is given the Commissioner is to decide whether or not the previously exempt charitable body or organisation is a relevant body.\n\n(3) If the Commissioner decides that the previously exempt charitable body or organisation is a relevant body, the Commissioner, by notice given to the body or organisation, is to —\n\n(a) revoke the exemption; and\n\n(b) inform the previously exempt charitable body or organisation of the grounds on which the decision to revoke the exemption was made.\n\n(4) The revocation of an exemption under this clause has effect —\n\n(a) on and from the specified day; and\n\n(b) for the purposes of an application under section 42B, as if the revocation were made under section 41(7).\n\n(5) If the Minister makes a determination under section 42C of the new provisions that the previously exempt charitable body or organisation in respect of which an exemption was revoked is a beneficial body for the purposes of the taxation Acts, then the new provisions apply in relation to that determination as if —\n\n(a) a reference in section 42C(7)(a) to the day on which the determination comes into force for the purposes of this Act were a reference to the specified day; and\n\n(b) a reference in section 42C(8) to the day on and from which the beneficial body determination applies were a reference to the specified day.\n\n[Clause 11 inserted: No. 8 of 2015 s. 15.]\n\n12. Exemptions for periods before the commencement of the *Taxation Legislation Amendment Act (No. 2) 2015* Part 4\n\n(1) This clause applies to a charitable body or organisation if, after commencement day —\n\n(a) the charitable body or organisation becomes registered and applies for an exemption; and\n\n(b) the Commissioner decides that the charitable body or organisation is a relevant body.\n\n(2) Despite section 41(3A), the Commissioner may give an exemption under section 41(2) to a charitable body or organisation to which this clause applies but such an exemption —\n\n(a) does not apply to the period on and after commencement day; and\n\n(b) is to be taken to have been revoked immediately before that day.\n\n[Clause 12 inserted: No. 8 of 2015 s. 15.]\n\n13. A body or organisation given an exemption under clause 12 may apply for a beneficial body determination\n\n(1) If the Commissioner makes a decision under clause 12(1)(b) solely on the ground that the charitable body or organisation is a relevant body referred to in section 42A(c), (d), (e) or (f) (the relevant body), then —\n\n(a) an application may be made under section 42B for a beneficial body determination in respect of the relevant body; and\n\n(b) the new provisions apply to and in respect of that application, and any subsequent determination, as if a reference in section 42B(1) to the decision were a reference to the decision of the Commissioner under clause 12(1)(b).\n\n(2) If the Minister makes a beneficial body determination under section 42C in respect of a relevant body, then the new provisions apply in relation to that determination as if —\n\n(a) a reference in section 42C(7)(a) to the day on which the determination comes into force for the purposes of this Act were a reference to commencement day; and\n\n(b) a reference in section 42C(8) to the day on and from which the beneficial body determination applies were a reference to commencement day.\n\n[Clause 13 inserted: No. 8 of 2015 s. 15.]\n\nDivision 5 — Provisions for the *Taxation Legislation Amendment Act (No. 3) 2015* Part 4\n\n[Heading inserted: No. 15 of 2015 s. 18.]\n\n14. Changes relating to tax thresholds do not apply to assessment years commencing before 1 July 2015\n\nThis Act has effect in relation to an assessment year that commenced before 1 July 2015 as if the amendments in the *Taxation Legislation Amendment Act (No. 3) 2015* Part 4 had not come into operation.\n\n[Clause 14 inserted: No. 15 of 2015 s. 18.]\n\nDivision 6 — Provisions for the *Pay‑roll Tax Assessment Amendment (Exemption for Trainees) Act 2018*\n\n[Heading inserted: No. 7 of 2018 s. 6.]\n\n15. Term used: commencement day\n\ncommencement day means 1 December 2017, being the day on which the *Pay‑roll Tax Assessment Amendment (Exemption for Trainees) Act 2018* section 6 is deemed, under section 2(b) of that Act, to have come into operation.\n\n[Clause 15 inserted: No. 7 of 2018 s. 6; amended: No. 10 of 2019 s. 5.]\n\n[**16.** Deleted: No. 10 of 2019 s. 6.]\n\n17. Reassessment\n\nSubject to the *Taxation Administration Act 2003* section 17, the Commissioner must make any reassessment necessary as a result of the amendments made by the *Pay‑roll Tax Assessment Amendment (Exemption for Trainees) Act 2018* coming into operation on commencement day.\n\n[Clause 17 inserted: No. 7 of 2018 s. 6.]\n\nDivision 7 — Provisions for the *Pay‑roll Tax Assessment Amendment Act 2019*\n\n[Heading inserted: No. 10 of 2019 s. 7.]\n\n18. Terms used\n\napprentice has the meaning given in the VET Act section 60A;\n\ncommencement day means the day on which the *Pay‑roll Tax Assessment Amendment Act 2019* section 4 comes into operation;\n\nformer section 41D means section 41D as in force immediately before commencement day;\n\nVET Act means the *Vocational Education and Training Act 1996*.\n\n[Clause 18 inserted: No. 10 of 2019 s. 7.]\n\n19. Application of amendments made by *Pay‑roll Tax Assessment Amendment Act 2019*\n\nThe amendments made by the *Pay‑roll Tax Assessment Amendment Act 2019* apply in relation to wages paid or payable on or after commencement day.\n\n[Clause 19 inserted: No. 10 of 2019 s. 7.]\n\n20. Exemption for wages paid or payable: training contracts lodged for registration before 1 December 2017\n\n(1) This clause applies to a training contract (the pre‑1 December 2017 training contract) if —\n\n(a) in accordance with a requirement imposed under the VET Act section 60C(5), an apprentice under the training contract is referred to as a “trainee”; and\n\n(b) the training contract was lodged for registration under the VET Act section 60F(2) before 1 December 2017.\n\n(2) Despite the amendments made by the *Pay‑roll Tax Assessment Amendment Act 2019* section 4, wages paid or payable by an employer to or in relation to an employee are exempt from pay‑roll tax if —\n\n(a) the wages are paid or payable for a period during which the employee is an apprentice under the pre‑1 December 2017 training contract; and\n\n(b) the wages would have been exempt from pay‑roll tax under former section 41D, as modified by Schedule 1 clause 16 (as that clause was in force immediately before commencement day).\n\n[Clause 20 inserted: No. 10 of 2019 s. 7.]\n\n21. Exemption for wages paid or payable: training contracts lodged for registration between 1 December 2017 and 30 June 2019\n\n(1) This clause applies to a training contract (the pre‑1 July 2019 training contract) if —\n\n(a) in accordance with a requirement imposed under the VET Act section 60C(5), an apprentice under the training contract is referred to as a “trainee”; and\n\n(b) the training contract was lodged for registration under the VET Act section 60F(2) during the period beginning on 1 December 2017 and ending immediately before commencement day.\n\n(2) Despite the amendments made by the *Pay‑roll Tax Assessment Amendment Act 2019* section 4, wages paid or payable by an employer to or in relation to an employee are exempt from pay‑roll tax if —\n\n(a) the wages are paid or payable for a period during which the employee is an apprentice under the pre‑1 July 2019 training contract; and\n\n(b) the wages would have been exempt from pay‑roll tax under former section 41D.\n\n[Clause 21 inserted: No. 10 of 2019 s. 7.]\n\nDivision 8 — Provisions for *Pay‑roll Tax Assessment Amendment (Thresholds) Act 2020*\n\n[Heading inserted: No. 6 of 2020 s. 7.]\n\n22. Amendments apply to financial years beginning on or after 1 July 2019\n\nThe amendments made by the *Pay‑roll Tax Assessment Amendment (Thresholds) Act 2020* apply in relation to financial years that begin on or after 1 July 2019.\n\n[Clause 22 inserted: No. 6 of 2020 s. 7.]\n\nGlossary\n\n[s. 4]\n\n1. 1M, 1MC Terms used\n\nIn a pay‑roll tax Act, unless the contrary intention appears —\n\nABN means the ABN (Australian Business Number) for an entity within the meaning of the *A New Tax System (Australian Business Number) Act 1999* (Commonwealth);\n\nactual value, of a fringe benefit, has the meaning given in section 9BB(2);\n\nactuary means a Fellow or an Accredited Member of the Institute of Actuaries of Australia;\n\nagent includes —\n\n(a) a person who in Western Australia, for or on behalf of another person outside Western Australia, holds or has the management or control of the business of that other person; and\n\n(b) a person on whom notice of a declaration under section 43(9) has been served;\n\nannual threshold amount, in relation to a financial year, means the annual threshold amount fixed for the financial year under section 8(1);\n\nassessment year, in relation to pay‑roll tax, means the financial year for which the pay‑roll tax is, or is to be, assessed;\n\nAustralian jurisdiction means a State or a Territory;\n\nAustralian superannuation fund means a superannuation fund that —\n\n(a) was established in Australia, or has any asset situated in Australia; and\n\n(b) has its central management and control in Australia;\n\nAustralian taxable wages means WA taxable wages and interstate taxable wages;\n\nbusiness includes —\n\n(a) a profession or trade; and\n\n(b) any other activity carried on for fee, gain or reward; and\n\n(c) the activity of employing one or more persons who perform duties for or in connection with another business; and\n\n(d) the carrying on of a trust (including a dormant trust); and\n\n(e) the activity of holding any money or property used for or in connection with another business,\n\nwhether carried on by one person or 2 or more persons together;\n\ncharitable body or organisation means a body or organisation established or carried on for charitable purposes except —\n\n(a) a body or organisation whose sole or principal purpose is the provision of tertiary education; or\n\n(b) a college or other vocational education and training institution under the *Vocational Education and Training Act 1996*;\n\ncompany includes all bodies and associations (corporate and unincorporate) and partnerships;\n\ncontrolling interest, in relation to a business, has the definition given in section 33;\n\ncorporation has the meaning given by section 57A of the Corporations Act;\n\nCorporations Act means the *Corporations Act 2001* of the Commonwealth;\n\ncorresponding law, in relation to another State, means a law in force in the 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, but does not include the *Pay‑roll Tax Assessment Act 1941* of the Commonwealth 3;\n\ndefined benefit fund has the meaning given to “defined benefit superannuation scheme” in section 6 of the Superannuation Guarantee Act;\n\ndefined superannuation benefit means a benefit under a superannuation fund that is defined, wholly or in part, by reference to either or both of the following —\n\n(a) the amount of the member’s salary —\n\n(i) at a particular date, being the date of the termination of the member’s employment, the date of the member’s retirement, or an earlier date; or\n\n(ii) averaged over a period ending on any such date;\n\n(b) a stated amount;\n\ndesignated group employer, in relation to a group, means the member of the group designated under section 39;\n\nDGE means designated group employer;\n\ndirector of a company includes a member of the governing body of the company;\n\nemployer means any person who pays or is liable to pay any wages, and includes the Crown in right of the State of Western Australia and an employment agent;\n\nemployment agent means a person (the agent) who procures the services of another person (the worker) for a third person (the client) under an arrangement where —\n\n(a) the worker does not become the employee of either the agent or the client, but does perform duties of a similar nature to those of an employee; and\n\n(b) remuneration is paid directly or indirectly by the agent to the worker or to some other person for the services performed by the worker;\n\nexempt, in relation to wages, means exempt from pay‑roll tax under Part 5;\n\nFBT year means a year ending on 31 March;\n\nFBTA Act means the *Fringe Benefits Tax Assessment Act 1986* of the Commonwealth;\n\nfringe benefit means anything that is a fringe benefit under the FBTA Act except a benefit prescribed not to be a fringe benefit for the purposes of this definition;\n\ngroup means a group constituted under Part 4;\n\nGST has the same meaning as it has in the *A New Tax System (Goods and Services Tax) Act 1999* of the Commonwealth except that it includes notional GST of the kind for which payments may be made under the *State Entities (Payments) Act 1999* by a person that is a State entity as defined in that Act;\n\nhalf‑year means a period of 6 months beginning on 1 January or 1 July;\n\nindividual superannuation guarantee shortfall has the same definition as it has in the Superannuation Guarantee Act;\n\nindustrial association means any of the following —\n\n(a) an organisation registered under the *Industrial Relations Act 1979* section 53 or 54;\n\n(b) an association of employees, or an association of employers, registered as an organisation, or recognised, under the *Fair Work (Registered Organisations) Act 2009* (Commonwealth);\n\n(c) an association of employees registered or recognised as a trade union (however described) under the law of another State or a Territory;\n\n(d) an association of employers registered or recognised as such (however described) under the law of another State or a Territory;\n\n(e) an association of employees a principal purpose of which is the protection and promotion of the employees’ interests in matters concerning their employment;\n\ninterstate non‑group employer means a non‑group employer who pays or is liable to pay WA taxable wages during all or part of an assessment year, and who also pays or is liable to pay interstate taxable wages during all or part of the assessment year, whether or not the interstate taxable wages are paid or payable in respect of the same part of the assessment year as the WA taxable wages;\n\ninterstate taxable wages means wages that are subject to pay‑roll tax under a corresponding law;\n\nITA Act means the *Income Tax Assessment Act 1997* (Commonwealth);\n\nlocal non‑group employer means a non‑group employer who pays or is liable to pay WA taxable wages during part or all of an assessment year, but is not liable to pay any interstate taxable wages during the assessment year;\n\nmonthly threshold amount means —\n\n(a) for a financial year — the amount fixed as the monthly threshold amount for the financial year under section 8(2); or\n\n(b) for a half‑year in the financial year beginning on 1 July 2019 — the amount fixed as the monthly threshold amount for the half‑year under section 7A(2);\n\nmotor vehicle allowance means an allowance paid by an employer to a person who provides or maintains a motor vehicle used for business journeys;\n\nnominated deduction means —\n\n(a) in relation to a group — the amount nominated for the group under section 19;\n\n(b) in relation to an interstate non‑group employer — the amount nominated for the employer under section 15;\n\nnon‑group employer means an employer who is not a member of a group under Part 4;\n\nnon‑profit organisation means body corporate, society or association formed otherwise than for the purpose of profit or gain to individual members of the body, society or association;\n\noption means an option or right, whether actual, prospective or contingent, of a person to acquire a share or to have a share transferred or allotted to the person;\n\npaid, in relation to wages, includes provided, conferred and assigned and pay and payable  have corresponding meanings;\n\npay‑roll tax means the tax imposed under the *Pay‑roll Tax Act 2002*;\n\npay‑roll tax Act means —\n\n(a) the *Pay‑roll Tax Act 2002*; or\n\n(b) the *Pay‑roll Tax Assessment Act 2002*; or\n\n(c) the *Taxation Administration Act 2003*;\n\npay‑roll tax rate, in relation to an employer or group and an assessment year, part of an assessment year or a progressive return period, means the rate of pay‑roll tax fixed for the employer or group and the year, part‑year or period under the *Pay‑roll Tax Act 2002*;\n\npolitical party means a body or organisation, whether incorporated or unincorporated, having as one of its objects or activities the promotion of the election to the Parliament of the Commonwealth, or to a Parliament of a State or Territory, of a candidate or candidates endorsed by it or by a body or organisation of which it forms part;\n\nprofessional association means a body or organisation, whether incorporated or unincorporated, having as one of its objects or activities the promotion of the interests of its members in any profession;\n\n  progressive return period means a period for which an employer is required by section 26, or by a condition of an exemption under section 29, to lodge a return;\n\npromote trade, industry or commerce includes to carry out an undertaking a purpose of which includes the promotion of, or the advocacy for, trade, industry or commerce, whether generally or in respect of any particular kind of trade, industry or commerce;\n\nprovide, in relation to a fringe benefit or a specified taxable benefit, has the same definition as in section 136 of the FBTA Act;\n\nregistered means registered as an employer under section 25;\n\nregistered business address means an address for service of notices under the *A New Tax System (Australian Business Number) Act 1999* (Commonwealth) on an entity that has an ABN, as shown in the Australian Business Register kept under that Act;\n\nrelated body corporate has the meaning given in section 9 of the Corporations Act;\n\nrelevant body has the meaning given in section 42A;\n\nremote location means a location that is not —\n\n(a) in an eligible urban area within the meaning of section 140 of the FBTA Act; or\n\n(b) adjacent to an eligible urban area within the meaning of that section;\n\nreturn means a return lodged under this Act;\n\nreturn period, in relation to an employer, means —\n\n(a) a month; or\n\n(b) if the employer is required to lodge an annual return under section 27(1) — an assessment year; or\n\n(c) if the employer is exempt under section 29 from lodging monthly returns —\n\n(i) unless subparagraph (ii) applies, an assessment year;\n\n(ii) if a condition of the exemption requires returns to be lodged more frequently than annually, a progressive return period;\n\nshare means a share in a company and includes a stapled security;\n\nsliding scale period has the meaning given in the *Pay‑roll Tax Act 2002* section 5(3);\n\nsmaller group, for the purposes of section 36, has the meaning given in that section;\n\nspecified exempt allowance means an allowance prescribed under section 45(2)(c);\n\nspecified taxable benefit means a benefit prescribed under section 45(2)(b);\n\nState means a State or a Territory;\n\nsuperannuation fund includes —\n\n(a) a superannuation fund within the meaning of the *Superannuation Industry (Supervision) Act 1993* (Commonwealth); and\n\n(b) any other form of superannuation, provident or retirement fund or scheme including —\n\n(i) the Superannuation Holding Accounts Special Account within the meaning of the *Small Superannuation Accounts Act 1995* (Commonwealth); and\n\n(ii) a retirement savings account within the meaning of the *Retirement Savings Accounts Act 1997* (Commonwealth);\n\nSuperannuation Guarantee Act means the *Superannuation Guarantee (Administration) Act 1992* (Commonwealth);\n\ntapering value means —\n\n(a) for a financial year — the tapering value for the financial year calculated in accordance with section 8(4); or\n\n(b) for a half‑year in the financial year beginning on 1 July 2019 — the tapering value for the half‑year calculated in accordance with section 7A(4);\n\ntaxes, for the purposes of section 42 or 43, has the meaning given in the respective section;\n\ntax‑reducing arrangement means any arrangement, transaction or agreement, whether in writing or otherwise —\n\n(a) under which a natural person (the worker) performs, for or on behalf of a second person, services for which any payment is made to a third person related or connected to the worker; and\n\n(b) which has the effect of reducing or avoiding the liability of any person to the assessment, imposition, or payment of pay‑roll tax (whether or not that is the only effect of the agreement);\n\nTerritory means the Australian Capital Territory, the Jervis Bay Territory or the Northern Territory;\n\nthreshold amount, for a half‑year in the financial year beginning on 1 July 2019, means the threshold amount fixed for the half‑year under section 7A(1);\n\ntrustee, in addition to every person appointed or constituted trustee by act of parties, by order or declaration of a court or by operation of law, includes —\n\n(a) an executor or administrator, guardian, committee, receiver or liquidator; and\n\n(b) every person having or taking upon himself or herself the administration or control of any real or personal property affected by any express or implied trust, or acting in any fiduciary capacity, or having the possession, control or management of any real or personal property of a person under any legal or other disability;\n\nupper threshold amount means —\n\n(a) for a financial year — the amount fixed for the financial year under section 8(3); or\n\n(b) for a half‑year in the financial year beginning on 1 July 2019 — the amount fixed for the half‑year under section 7A(3);\n\nvalue —\n\n(a) in relation to a beneficial interest in a discretionary trust, has the meaning given in section 34;\n\n(b) in relation to a fringe benefit, has the meaning given in section 9BB;\n\n(c) in relation to a specified taxable benefit, has the meaning given in section 9BI;\n\n(d) in relation to wages in respect of a supply on which GST is payable, has the meaning given in section 9HB;\n\n(e) in relation to wages paid in kind, has the meaning given in section 9HA;\n\nvoting share has the definition given by section 9 of the Corporations Act;\n\nWA fringe benefits means fringe benefits that are WA taxable wages on which fringe benefits tax (imposed under the *Fringe Benefits Tax Act 1986* (Commonwealth)) is paid or payable;\n\nwages has the meaning given in section 9AA;\n\n  WA taxable wages has the meaning given in section 5(2).\n\n[Clause 1 amended: No. 40 of 2003 s. 26 and 28(1); No. 82 of 2004 s. 6 and 17; No. 15 of 2010 s. 18(1)-(9) and 27; No. 29 of 2012 s. 26; No. 32 of 2012 s. 43; No. 8 of 2015 s. 16; No. 15 of 2015 s. 19; No. 20 of 2017 s. 10; No. 6 of 2020 s. 8.]\n\n[Modification, to clause 1, to have effect under the Commonwealth Places (Mirror Taxes Administration) Act 1999 s. 7, see Commonwealth Places (Mirror Taxes Administration) Regulations 2007 r. 34 and endnote 1M.]\n\n[Modification, to clause 1, to have effect under the Commonwealth Places (Mirror Taxes) Act 1998 (Commonwealth) s. 8, see Commonwealth Places (Mirror Taxes) (Modification of Applied Laws (WA)) Notice 2007 cl. 35 and endnote 1MC.]\n\n[**2-12.** Deleted: No. 15 of 2010 s. 18(10).]\n\n![dline]()\n\nNotes\n\nThis is a compilation of the *Pay-roll Tax Assessment Act 2002* and includes amendments made by other written laws. For provisions that have come into operation, and for information about any reprints, see the compilation table.\n\nCompilation table\n\n| **Short title** | **Number and year** | **Assent** | **Commencement** |\n| --- | --- | --- | --- |\n| *Pay-roll Tax Assessment Act 2002* | 48 of 2002 | 20 Mar 2003 | 1 Jul 2003 (see. s. 2 and *Gazette* 27 Jun 2003 p. 2383) |\n| *Business Tax Review (Assessment) Act 2003* Pt. 4 and 5 | 40 of 2003 | 30 Jun 2003 | 1 Jul 2003 (see s. 2(1)) |\n| *Revenue Laws Amendment and Repeal Act 2004* Pt. 3 | 12 of 2004 | 29 Jun 2004 | 29 Jun 2004 (see s. 2(1)) |\n| *Revenue Laws Amendment (Tax Relief) Act 2004* Pt. 2 4 | 82 of 2004 | 8 Dec 2004 | Pt. 2 Div. 1 and 2: 1 Jan 2005 (see s. 2(2));   Pt. 2 Div. 3: 1 Jul 2006 (see s. 2(3)) |\n| *Revenue Laws Amendment Act 2005* Pt. 2 | 11 of 2005 | 30 Aug 2005 | 18 May 2005 (see s. 2(2)) |\n| **Reprint 1: The *Pay‑roll Tax Assessment Act 2002* as at 6 Jan 2006** (includes amendments listed above except those in the *Revenue Laws Amendment (Tax Relief) Act 2004* Pt. 2 Div. 3) | | | |\n| *Financial Legislation Amendment and Repeal Act 2006* s. 4 | 77 of 2006 | 21 Dec 2006 | 1 Feb 2007 (see s. 2(1) and *Gazette* 19 Jan 2007 p. 137) |\n| *Training Legislation Amendment and Repeal Act 2008* s. 59 | 44 of 2008 | 10 Dec 2008 | 10 Jun 2009 (see s. 2(2)) |\n| *Pay-roll Tax Assessment Amendment Act 2010* Pt. 2 | 15 of 2010 | 25 Jun 2010 | Pt. 2 Div. 1 and 2: 25 Jun 2010 (see s. 2(a));   Pt. 2 Div. 3: 1 Jul 2012 (see s. 2(b)) |\n| **Reprint 2: The *Pay‑roll Tax Assessment Act 2002* as at 15 Oct 2010** (includes amendments listed above except those in the *Pay-roll Tax Assessment Amendment Act 2010* Pt. 2 Div. 3) | | | |\n| *Fire and Emergency Services Legislation Amendment Act 2012* Pt. 7 Div. 10 | 22 of 2012 | 29 Aug 2012 | 1 Nov 2012 (see s. 2(b) and *Gazette* 31 Oct 2012 p. 5255) |\n| *Revenue Laws Amendment Act 2012* Pt. 5 | 29 of 2012 | 3 Sep 2012 | Heading to Pt. 5, Pt. 5 Div. 1 and 2: 1 Jul 2011 (see s. 2(c));   Pt. 5 Div. 3: 4 Sep 2012 (see s. 2(e)) |\n| *Revenue Laws Amendment Act (No. 2) 2012* Pt. 5 | 32 of 2012 | 8 Oct 2012 | 1 Jul 2012 (see s. 2(d)(ii)) |\n| **Reprint 3: The *Pay‑roll Tax Assessment Act 2002* as at 17 Jan 2014** (includes amendments listed above) | | | |\n| *Revenue Laws Amendment Act 2014* Pt. 4 | 15 of 2014 | 2 Jul 2014 | 1 Jul 2014 (see s. 2(c)(ii)) |\n| *Taxation Legislation Amendment Act (No. 2) 2015* Pt. 4 | 8 of 2015 | 9 Mar 2015 | 10 Mar 2015 (see s. 2(b)) |\n| *Taxation Legislation Amendment Act (No. 3) 2015* Pt. 4 | 15 of 2015 | 26 May 2015 | 1 Jul 2015 (see s. 2(b)(i)) |\n| *Health Services Act 2016* s. 298 | 11 of 2016 | 26 May 2016 | 1 Jul 2016 (see s. 2(b) and *Gazette* 24 Jun 2016 p. 2291) |\n| *Local Government Legislation Amendment Act 2016* Pt. 3 Div. 27 | 26 of 2016 | 21 Sep 2016 | 21 Jan 2017 (see s. 2(b) and *Gazette* 20 Jan 2017 p. 648) |\n| *Pay-roll Tax Assessment Amendment (Debt and Deficit Remediation) Act 2017* | 20 of 2017 | 13 Dec 2017 | s. 1 and 2: 13 Dec 2017 (see s. 2(a));   Act other than s. 1 and 2: 14 Dec 2017 (see s. 2(b)) |\n| *Pay-roll Tax Assessment Amendment (Exemption for Trainees) Act 2018* | 7 of 2018 | 18 May 2018 | Act other than s. 1 and 2: 1 Dec 2017 (see s. 2(b));   s. 1 and 2: 18 May 2018 (see s. 2(a)) |\n| **Reprint 4: The *Pay-roll Tax Assessment Act 2002* as at 16 Nov 2018** (includes amendments listed above) | | | |\n| *Pay‑roll Tax Assessment Amendment Act 2019* | 10 of 2019 | 12 Jun 2019 | s. 1 and 2: 12 Jun 2019 (see s. 2(a));   Act other than s. 1 and 2: 1 Jul 2019 (see s. 2(b)) |\n| *Revenue Laws Amendment Act 2019* Pt. 4 | 12 of 2019 | 12 Jun 2019 | 13 Jun 2019 (see s. 2(e)) |\n| *Pay-roll Tax Assessment Amendment (Thresholds) Act 2020* | 6 of 2020 | 6 Apr 2020 | Act other than s. 1 and 2: 1 Jul 2019 (see s. 2(b));   s. 1 and 2: 6 Apr 2020 (see s. 2(a)) |\n\nOther notes\n\n1M Under the *Commonwealth Places (Mirror Taxes Administration) Act 1999* s. 7, modifications to State taxing laws may be prescribed. Modifications are prescribed in the *Commonwealth Places (Mirror Taxes Administration) Regulations 2007* Pt. 5 Div. 2.\n\nIf a modification is to:\n\n- replace or insert a numbered provision, the new provision is identified by the superscript 1M appearing after the provision number;\n- amend a numbered provision, the amended provision is identified by the superscript 1M appearing after the provision number.\n\n1MC Under the *Commonwealth Places (Mirror Taxes) Act 1998* (Commonwealth) s. 8, modifications to State taxing laws, in their application as Commonwealth laws in Commonwealth places in Western Australia, may be prescribed. Modifications are prescribed in the *Commonwealth Places (Mirror Taxes) (Modifications of Applied Laws (WA)) Notice 2007* (Commonwealth) Pt. 5 Div. 2.\n\nIf a modification is to:\n\n- replace or insert a numbered provision, the new provision is identified by the superscript 1MC appearing after the provision number;\n- amend a numbered provision, the amended provision is identified by the superscript 1MC appearing after the provision number.\n\n1 Repealed by the *Taxation Administration (Consequential Provisions) Act 2002* s. 5.\n\n2 Renumbered under the *Reprints Act 1984* s. 7(5)(c)(ii).\n\n3 Repealed by the *Tax Laws Amendment (Repeal of Inoperative Provisions) Act 2006* (Commonwealth).\n\n4 The *Revenue Laws Amendment (Tax Relief) Act 2004* s. 5(6) and 15(7) read as follows:\n\n5. Section 29 amended and transitional provision\n\n...\n\n(6) The amendments made by this section do not affect an exemption given before the coming into operation of this section.\n\n15. Section 29 amended and transitional provision\n\n...\n\n(7) The amendments made by this section do not affect an exemption given before the coming into operation of this section.\n\nDefined terms\n\n*[This is a list of terms defined and the provisions where they are defined. The list is not part of the law.]*\n\n**Defined term Provision(s)**\n\nABN Gl.\n\nactual value 9BB(2), Gl.\n\nactuary Gl.\n\nadoption leave 41A(1)\n\nagent Gl.\n\naggregate interest 35D(1)\n\nannual threshold amount Gl.\n\napprentice 41D(1), Sch. 1 cl. 18\n\nassessment amendments Sch. 1 cl. 8(1)\n\nassessment year Gl.\n\nassociated person 35A(1)\n\nAustralian jurisdiction Gl.\n\nAustralian superannuation fund Gl.\n\nAustralian taxable wages Gl.\n\nbusiness Gl.\n\ncharitable body or organisation Gl.\n\nclass A or class B qualification 41D(1)\n\ncommencement day Sch. 1 cl. 10, 15 and 18\n\nCommonwealth income tax provisions 9DD(1)\n\ncompany Gl.\n\ncontrolling interest Gl.\n\ncorporation Gl.\n\nCorporations Act Gl.\n\ncorresponding law Gl.\n\ndecision 42B(1)\n\ndefined benefit fund Gl.\n\ndefined superannuation benefit Gl.\n\ndesignated group employer Gl.\n\nDGE Gl.\n\ndirect interest 35B(1)\n\ndirectly controlled corporation 35C(1)\n\ndirector Gl.\n\nDisability Services Commission 41C(1)\n\ndisability wages subsidy 41C(1)\n\nDSC disability support 41C(1)\n\nemployee 9CA\n\nemployer 9CA, Gl.\n\nemployment agent Gl.\n\nemployment termination payment 9EA(2)\n\nentity 35A(1)\n\nexempt Gl.\n\nexemption Sch. 1 cl. 10\n\nexpected pay‑roll tax liability 28A(3), 29(1b)\n\nFBT year Gl.\n\nFBTA Act Gl.\n\nfirst half‑year portion 23G(3)\n\nfirst return period portion 23I(3)\n\nformer section 41D Sch. 1 cl. 18\n\nfringe benefit Gl.\n\ngroup Gl.\n\nGST Gl.\n\nhalf‑year Gl.\n\nindirect interest 35C(1)\n\nindirectly controlled corporation 35C(3)\n\nindividual superannuation guarantee shortfall Gl.\n\nindustrial association Gl.\n\ninstrument 6D(1)\n\ninterstate non‑group employer Gl.\n\ninterstate taxable wages Gl.\n\nITA Act Gl.\n\nlocal company 9DH(1)\n\nlocal non‑group employer Gl.\n\nmaternity leave 41A(1)\n\nmonthly threshold amount Gl.\n\nmotor vehicle allowance Gl.\n\nnew employee 41C(1) and (4)\n\nnew provisions Sch. 1 cl. 10\n\nnew section 9DA Sch. 1 cl. 8(1)\n\nnominated deduction Gl.\n\nnon‑group employer Gl.\n\nnon‑profit organisation Gl.\n\nnotional contribution 9CA\n\nold section 9DA Sch. 1 cl. 8(1)\n\noption Gl.\n\npaid Gl.\n\nparental leave 41A(1)\n\npart‑year 10(3), 13(4), 23C(1), 23G(1), 23H(1)\n\npay Gl.\n\npayable Gl.\n\npay‑roll tax Gl.\n\npay‑roll tax Act Gl.\n\npay‑roll tax rate Gl.\n\nperiod or part‑period 11(1), 23I(1)\n\npolitical party Gl.\n\npre‑1 December 2017 training contract Sch. 1 cl. 20(1)\n\npre‑1 July 2019 training contract Sch. 1 cl. 21(1)\n\npreliminary notice about an exemption under section 41 Sch. 1 cl. 11(1)\n\npreviously exempt charitable body or organisation Sch. 1 cl. 10\n\nprivate company 35A(1)\n\nprofessional association Gl.\n\nprogressive return period Gl.\n\npromote trade, industry or commerce Gl.\n\nprovide Gl.\n\nquarter 29(4d)\n\nregistered Gl.\n\nregistered business address Gl.\n\nregistered training contract 41D(1)\n\nrelated body corporate Gl.\n\nrelated person 35A(1)\n\nrelevant amount 23L(1)\n\nrelevant body Sch. 1 cl. 13(1), Gl.\n\nrelevant day 9DA(4), Sch. 1 cl. 8(1)\n\nrelevant liability provisions 23K(1)\n\nrelevant part‑year liability provisions 23D(2)\n\nrelevant return period liability provisions 23D(3)\n\nrelevant whole year liability provisions 23D(1)\n\nremote location Gl.\n\nreturn Gl.\n\nreturn period Gl.\n\nreturn period portion 23J(1)\n\nsecond half‑year portion 23G(3)\n\nsecond return period portion 23I(3)\n\nshare Gl.\n\nsliding scale period Gl.\n\nsmaller group Gl.\n\nspecified day Sch. 1 cl. 11(1)\n\nspecified exempt allowance Gl.\n\nspecified taxable benefit Gl.\n\nState Gl.\n\nsuperannuation contribution 9CA\n\nsuperannuation fund Gl.\n\nSuperannuation Guarantee Act Gl.\n\ntapering value Gl.\n\ntaxes 42(2), 43(11), Gl.\n\ntax‑reducing arrangement Gl.\n\ntermination payment 9EA(2)\n\nTerritory Gl.\n\nthreshold amount Gl.\n\ntraining contract 41D(1)\n\ntrustee Gl.\n\nunused annual leave payment 9EA(2)\n\nunused long service leave payment 9EA(2)\n\nupper threshold amount Gl.\n\nvalue Gl.\n\nvesting day 9DB(2), 9DB(3)\n\nVET Act 41D(1), Sch. 1 cl. 18\n\nvoting share Gl.\n\nWA fringe benefits Gl.\n\nWA taxable wages 5(2), Gl.\n\nwages 9AA(1), 9DA(1), 9DG(1), Gl.\n","sortOrder":23}],"analysis":{"summary":{"complexity_score":1,"scope_assessment":{"changed":false,"description":"Unable to assess whether the scope of the Act changed from its original intent, as no legislative text was retrievable. The source page returned a system error indicating the URL has changed due to website upgrades."},"complexity_factors":["No legislative content was available to analyse — the source URL returned an error page rather than the text of the Act","Complexity cannot be meaningfully assessed without access to the actual legislative provisions","Score of 1 reflects absence of content, not simplicity of the underlying law"],"plain_english_summary":"## Pay-roll Tax Assessment Act 2002 (WA)\n\n**⚠️ Content Unavailable**\n\nThe actual text of this Western Australian legislation could not be retrieved. The page hosting the Pay-roll Tax Assessment Act 2002 on the WA legislation website is no longer accessible at its previous URL due to a system upgrade.\n\n**What we know generally about this Act:**\nThis is a Western Australian law that governs how **payroll tax** is assessed and collected. Payroll tax is a state-based tax that employers pay on the wages they pay to their workers. It typically affects:\n- **Businesses and employers** who pay wages above a certain threshold\n- **Contractors and labour-hire arrangements**\n- **Grouping provisions** (where related businesses are treated as one for tax purposes)\n\nTo access the current version of this legislation, visit the [Parliamentary Counsel's Office](https://www.legislation.wa.gov.au) and search directly for the Act."},"flash_summary":{"complexity_score":8,"scope_assessment":{"changed":true,"description":"The Act’s scope, as evidenced in the text, has been amended several times and broadened in defined areas. Subsequent provisions expand and clarify items treated as wages (including fringe benefits, shares and options, and superannuation notional contributions) (ss 9BA–9BH; 9DA–9DD; 9CB–9CD). Grouping and tracing rules were expanded and detailed (Part 4; ss 35A–35D). Thresholds and tapering mechanics were revised, including special half‑year rules for 2019/20 (s 7A; s 8; Division 6). Schedule 1 contains transitional clauses implementing and phasing those changes across different periods. These amendments alter the legal reach of the wage base, how liabilities are allocated among related entities, and the timing/measurement rules used to determine tax due (see ss cited)."},"complexity_factors":["Multiple employer categories with different liability rules (local non‑group, interstate non‑group, groups) (ss 10, 13, 17)","Thresholds, monthly/annual apportionment formulas and tapering values with statutory calculation methods (ss 7A, 8, 10–12, 17–19)","Detailed valuation and reporting regimes for fringe benefits, shares/options, in‑kind wages and superannuation including alternative estimated methods and reconciliation rules (ss 9BA–9BH; 9DA–9DH; 9CB–9CD; 9HA)","Extensive grouping, tracing and control rules that determine group composition and joint liability (Part 4, ss 30–39, 35A–35D)","Commissioner discretions and administrative nomination powers that affect taxable amounts and return requirements (ss 15, 19, 21, 23A, 23C, 25(2A), 38)","Special transitional and half‑year rules for particular years (Division 6, ss 23D–23M; Schedule 1 transitional provisions)","Multiple return frequencies and exemption regimes with eligibility tests and record‑keeping obligations (ss 26–29, 44)","Penalties, reassessment mechanisms and reconciliation processes that interact with progressive returns and annual liabilities (ss 16, 20, 27, 42)"],"plain_english_summary":"## What this law does\n\nThis Act sets out how Western Australia assesses and collects pay‑roll tax on wages. It defines which payments count as taxable wages, who is liable to pay the tax, how to register and lodge returns, how groups of employers are treated, what wages are exempt, and how certain special items (fringe benefits, shares/options, superannuation, termination payments and allowances) are valued for tax purposes (see Parts 2–6 and the Glossary). The basic liability rule is that pay‑roll tax is payable on WA taxable wages (s 5) and the employer who pays or is liable to pay those wages is primarily liable (s 7(1)).\n\n## Who it affects\n\n- Employers (including the Crown and employment agents) who pay or are liable to pay WA taxable wages (s 9AA, s 7(1)).\n- Groups of related or commonly controlled businesses (Part 4, ss 30–39); group members share liability in some circumstances (s 7(2)).\n- Employers who provide fringe benefits, shares or options to workers: those benefits can be treated as wages for pay‑roll tax (ss 9BA, 9DA, 9DD).\n- Employers making superannuation contributions or with defined‑benefit funds (ss 9CB–9CD).\n- Employers who meet registration and return thresholds (ss 24–29) and those seeking exemptions (Part 5, ss 40–41D; Part 6, ss 41–42C).\n\n## How the tax works mechanically\n\n- Scope of taxable wages: WA taxable wages are wages (as defined) that are taxable in Western Australia, excluding exempt wages (s 5(1)–(2)). The jurisdictional rules determine whether wages are taxable here based on where services are performed, where the person or employer is based, and where wages are paid or payable (s 6A; ss 6B–6D).\n\n- Valuation of special items: the Act specifies how to include the value of fringe benefits (ss 9BA–9BB), how employers may use an \"estimated value method\" and conditions for that method (ss 9BC–9BH), how shares and options are treated and dated for tax purposes (ss 9DA–9DH), and how superannuation contributions and notional contributions are taken into account (ss 9CB–9CD).\n\n- Taxable thresholds and tapering: annual, monthly and upper threshold amounts and tapering formulas determine whether and how much tax is payable (s 8 for years on/after 1 July 2020; s 7A for half‑years in 2019/20). The calculation of deductible amounts and tapering uses formulae in ss 10–13 and related sections for different employer classes.\n\n- Employer categories and calculation regimes: the Act separates local non‑group employers, interstate non‑group employers and groups. Different liability and return rules apply to each category (Divisions 2–3; ss 10, 13, 17; progressive return rules ss 11, 15, 19). Progressive returns are reconciled annually (ss 16, 20).\n\n- Registration and returns: employers meeting the monthly threshold must apply for registration (s 24). Registered employers must lodge monthly returns (s 26), with specified timelines and penalties for late or missing returns (ss 26, 27, 28). Exemptions from monthly returns are available subject to Commissioner conditions and expected liability tests (s 29).\n\n## Who pays, who decides, and enforcement powers\n\n- Primary liability: the employer pays (s 7(1)). If a member of a group pays WA taxable wages, pay‑roll tax may be a joint and several debt of each member of the group during the period (s 7(2)).\n\n- Commissioner discretion: the Commissioner has several powers that affect taxpayer obligations and liability calculations, including:\n  - registering an employer on the Commissioner’s initiative (s 25(2A)–(2B));\n  - nominating deductions or estimates for interstate employers and groups used in progressive return calculations (ss 15, 19, 23A–23B);\n  - making determinations about tax‑reducing arrangements and treating parties/payments as employers/wages (s 21) and excluding persons from groups where businesses are independent (s 38);\n  - allowing changes to fringe benefit valuation methods in limited circumstances (s 9BH);\n  - making and varying nominations or cancelling them, and requiring additional returns for reconciliation (ss 15(6)–(9), 23A(2)–(5), 27).\n\n- Enforcement measures: the Commissioner can require further returns (s 28), fix earlier payment dates where an employer may leave Australia (s 42), and there are monetary penalties and record‑keeping requirements (ss 24, 26–29, 44).\n\n## Compliance burden and administrative mechanics (source references)\n\n- Registration obligation and fines: non‑group employers crossing the monthly threshold must apply within 7 days after month end (s 24; penalty specified). The Commissioner can also register employers proactively (s 25(2A)–(2B)).\n\n- Returns and timing: monthly returns must be lodged (s 26), additional returns for interstate wages or group members must be lodged annually for reconciliation (s 27). There are specific lodgment windows (s 26(3); s 27(2)(c)). Penalties apply for non‑compliance (ss 26, 27, 28).\n\n- Books and records: employers must keep prescribed records and retain them for at least 5 years (s 44), with fines for failures.\n\n- Valuation and reporting complexity: employers who provide fringe benefits, shares/options or make superannuation contributions must apply detailed valuation rules (ss 9BA–9BG; 9DA–9DH; 9CB–9CD) and either use actual values or—in eligible cases—an estimated value method that itself has notice, eligibility and reconciliation rules (ss 9BC–9BH).\n\n## Rules that change timing or scope in special years\n\n- Special half‑year rules for the 2019/20 financial year: sections 7A and Division 6 (ss 23D–23M) set different half‑year thresholds, modified application rules and reconciliation approaches for the assessment year beginning 1 July 2019.\n\n- Transitional and amendment provisions: Schedule 1 contains transitional rules tied to multiple amending Acts that adjust how shares/options, grouping and exemptions operate for specified historic periods (Schedule 1 generally).\n\n## Costs, incentives, trade‑offs and implementation considerations (mechanical effects in the law)\n\n- Tax incidence and behavioural margin: the Act makes employers the legal payer (s 7). The threshold amounts, tapering formulas and monthly/annual calculations (ss 8, 10–13) determine when employers cross into taxable liability and thus mechanically affect the marginal cost of wage bills. Employers close to thresholds will have calculable step or taper effects when hiring or changing pay structures because the Act defines how deductible amounts and tapering values are computed (ss 10(2), 11(2), 17(3A)).\n\n- Treatment of non‑cash remuneration: by including fringe benefits, shares/options and some in‑kind payments within the wage base (ss 9BA, 9BB, 9DA, 9HA), the Act reduces opportunities to avoid the wage base by shifting remuneration form—unless exemptions or valuation rules apply. Employers must follow valuation mechanics and reconciliation rules (ss 9BB, 9BC–9BH, 9DD).\n\n- Grouping and allocation effects: grouping rules (Part 4) allocate liability across related entities; designation of a DGE centralises return obligations (s 39) and joint and several group liability applies in some cases (s 7(2)). These mechanics can change where tax falls within corporate groups and affect how businesses structure ownership and intra‑group arrangements (ss 30–39).\n\n- Administrative discretion and compliance risk: the Commissioner’s powers to nominate deductions, treat arrangements as tax‑reducing, register employers proactively, exclude members from groups, and set conditions for exemptions introduce administrative decision points that can change reported liabilities (ss 15, 19, 21, 23A, 25(2A), 38, 29). Those powers also create implementation risk for employers who must rely on or respond to Commissioner decisions.\n\n## Key takeaways (practical)\n\n- Employers are legally liable; groups can create joint liabilities (s 7).\n- The Act contains detailed valuation and timing rules for non‑cash pay and for certain benefits (ss 9BA–9BH; 9DA–9DH; 9CB–9CD).\n- Thresholds, tapering and special transitional rules determine whether and how much tax is payable (s 8; s 7A; Division 6 for 2019/20).\n- The Commissioner has significant administrative discretions that affect registration, allocations, exclusions and the use of estimates (ss 15, 19, 21, 23A, 25(2A), 38, 9BH).\n- Compliance requires timely registration, returns, record‑keeping and application of complex valuation rules; statutory penalties and retention periods are specified (ss 24–29, 44)."},"flash_summary_failed":{"failed":true,"reason":"Unauthenticated. Configure AI_GATEWAY_API_KEY or use a provider module. Learn more: https://ai-sdk.dev/unauthenticated-ai-gateway","source":"analysis-cron"},"issue_detection":{"absurdities":[],"contradictions":[]},"kimi_summary":{"_metrics":{"completionTokens":750},"content_quality":"ok","complexity_score":8,"scope_assessment":{"changed":true,"description":"The legislation has grown significantly beyond its original 2002 scope. Major expansions include: (1) 2010 amendments adding comprehensive treatment of shares/options, superannuation, and fringe benefits as wages; (2) 2012 grouping provisions with corporate tracing rules; (3) 2015 'beneficial body' framework for politically sensitive exemptions; (4) 2017-2020 sliding scale and threshold restructuring; and (5) extensive transitional provisions now comprising an entire Schedule. The original Act was approximately 50 sections; it now has 46 sections plus 8 divisions of transitional provisions and a detailed glossary."},"complexity_factors":["Extensive cross-referencing between this Act, the Pay-roll Tax Act 2002, and the Taxation Administration Act 2003","Multiple overlapping definitions of 'wages' across 8 subdivisions including fringe benefits, superannuation, shares/options, termination payments, and allowances","Complex grouping provisions (Part 4) with 6 different ways businesses can be grouped, tracing of corporate interests, and exclusion applications","Detailed mathematical formulas for threshold calculations with tapering values, apportionment for part-years, and special half-year rules for 2019-2020","47+ defined terms in the Glossary, many with nested definitions","8 divisions of transitional provisions dealing with amendments from 2010-2020","Special provisions for interstate employers requiring reconciliation of Australian-wide wages","Anti-avoidance provisions for tax-reducing arrangements and third-party payments"],"plain_english_summary":"This is Western Australia's main law for assessing and collecting payroll tax — a tax that employers pay on the wages they pay to workers.\n\n**What it does:**\n- **Sets out who pays tax and how much**: Employers pay tax on \"WA taxable wages\" (wages paid for work done in WA or by WA-based workers). The tax uses a sliding scale — smaller employers get a tax-free threshold (currently $1 million per year), with the tax rate increasing gradually until it hits the full rate at $7.5 million in wages.\n- **Defines what counts as \"wages\"**: This includes obvious things like salaries and bonuses, but also less obvious things like fringe benefits (company cars, etc.), superannuation contributions, shares and options given to employees, termination payments, and payments made by employment agents.\n- **Groups related businesses**: If businesses are related (through common ownership, shared employees, or control), they're treated as one \"group\" for tax purposes — meaning they share the one tax threshold. Complex rules determine when businesses are grouped.\n- **Provides exemptions**: Certain wages don't attract tax, including wages for volunteers (firefighters, etc.), parental leave, wages for apprentices, wages paid to workers overseas for extended periods, and wages paid by charities, hospitals, schools, and government bodies.\n- **Sets up registration and reporting**: Employers must register, lodge monthly or annual returns, and keep records for at least 5 years.\n\n**Who it affects:**\n- Any business or organisation that pays wages in Western Australia\n- Employment agents and labour hire firms\n- Groups of related businesses\n- Charities and non-profits (with special rules)\n\n**Why it matters:**\nThis is a significant business tax in WA. The grouping rules are particularly important — they prevent businesses from splitting into smaller entities to claim multiple tax thresholds. The law is complex, with detailed rules for interstate employers, part-year calculations, and special transitional provisions for threshold changes in 2019-2020."}},"importantCases":[],"_links":{"self":"/api/acts/pay-roll-tax-assessment-act-2002","history":"/api/acts/pay-roll-tax-assessment-act-2002/history","analysis":"/api/acts/pay-roll-tax-assessment-act-2002/analysis","conflicts":"/api/acts/pay-roll-tax-assessment-act-2002/conflicts","importantCases":"/api/acts/pay-roll-tax-assessment-act-2002/important-cases","documents":"/api/acts/pay-roll-tax-assessment-act-2002/documents"}}