{"id":"nsw:act-2007-021","name":"Payroll Tax Act 2007","slug":"payroll-tax-act-2007","collection":"act","jurisdiction":"nsw","status":"in_force","isInForce":true,"actNumber":"21 of 2007","makingDate":null,"administeringDepartment":null,"currentVersion":{"id":93285,"registerId":"nsw-act-2007-021-current","compilationNumber":null,"startDate":"2026-04-02","status":"InForce","reasons":null,"registeredAt":null},"sections":[{"sectionNumber":"Part 1","sectionType":"part","heading":"Preliminary","content":"# Part 1 Preliminary\n\nPart 1 Preliminary","sortOrder":0},{"sectionNumber":"1","sectionType":"section","heading":"Name of Act","content":"#### 1 Name of Act\n\n1 Name of Act\n\n> This Act is the [Payroll Tax Act 2007](/view/html/inforce/current/act-2007-021).","sortOrder":1},{"sectionNumber":"2","sectionType":"section","heading":"Commencement","content":"#### 2 Commencement\n\n2 Commencement\n\n> This Act commences or is taken to have commenced on 1 July 2007.","sortOrder":2},{"sectionNumber":"3","sectionType":"section","heading":"Definitions","content":"#### 3 Definitions\n\n3 Definitions\n\n> > (1) In this Act—\n> > \n> > ABN means the ABN (Australian Business Number) for an entity within the meaning of the [A New Tax System (Australian Business Number) Act 1999](http://www.legislation.gov.au/) of the Commonwealth.\n> > \n> > agent includes—\n> > \n> > > (a) a person who, in this jurisdiction, for or on behalf of another person outside this jurisdiction, holds or has the management or control of the business of that other person, and\n> > \n> > > (b) a person who, by an order of the Chief Commissioner, is declared to be an agent or the sole agent for any other person for the purposes of this Act and on whom notice of that order has been served.\n> > \n> > Australia means the States of the Commonwealth and the Territories.\n> > \n> > Australian jurisdiction means a State or a Territory.\n> > \n> > coastal waters of the State has the same meaning as in Part 10 of the [Interpretation Act 1987](/view/html/inforce/current/act-1987-015).\n> > \n> > company includes all bodies and associations (corporate and unincorporate) and partnerships.\n> > \n> > corporation has the same meaning as in section 9 of the [Corporations Act 2001](http://www.legislation.gov.au/) of the Commonwealth.\n> > \n> > corresponding law means a law in force in another State or a Territory relating to the imposition upon employers of a tax on wages paid or payable by them and the assessment and collection of that tax.\n> > \n> > designated group employer means a member designated for a group in accordance with section 80.\n> > \n> > director of a company includes a member of the governing body of the company.\n> > \n> > employer means a person who pays or is liable to pay wages and includes—\n> > \n> > > (a) the Crown in any of its capacities, and\n> > \n> > > (b) a person taken to be an employer by or under this Act, and\n> > \n> > > (c) a public, local or municipal body or authority constituted under the law of the Commonwealth or of a State or Territory unless, being an authority constituted under the law of the Commonwealth, it is immune from the operation of this Act.\n> > \n> > employment agency contract has the meaning given in section 37.\n> > \n> > employment agent has the meaning given in section 37.\n> > \n> > exempt wages mean wages that are declared by or under this Act to be exempt wages.\n> > \n> > exercise a function includes perform a duty.\n> > \n> > FBTA Act means the [Fringe Benefits Tax Assessment Act 1986](http://www.legislation.gov.au/) of the Commonwealth.\n> > \n> > financial year means each year commencing on 1 July.\n> > \n> > fringe benefit has the same meaning as in the FBTA Act but does not include—\n> > \n> > > (a) a tax-exempt body entertainment fringe benefit within the meaning of that Act, or\n> > \n> > > (b) anything that is prescribed by the regulations under this Act not to be a fringe benefit for the purposes of this definition.\n> > \n> > function includes a power, authority or duty.\n> > \n> > group has the meaning given in section 67.\n> > \n> > GST has the same meaning as it has in the [A New Tax System (Goods and Services Tax) Act 1999](http://www.legislation.gov.au/) of the Commonwealth except that it includes notional GST of the kind for which payments may be made under section 5 of the [Intergovernmental Agreement Implementation (GST) Act 2000](/view/html/inforce/current/act-2000-044) by a person that is a State entity within the meaning of that Act.\n> > \n> > instrument includes a cheque, bill of exchange, promissory note, money order or a postal order issued by a post office.\n> > \n> > interstate wages means wages that are taxable wages within the meaning of a corresponding law.\n> > \n> > ITAA means the [Income Tax Assessment Act 1997](http://www.legislation.gov.au/) of the Commonwealth.\n> > \n> > liquidator means the person who, whether or not appointed as liquidator, is the person required by law to carry out the winding-up of a company.\n> > \n> > month means the month of January, February, March, April, May, June, July, August, September, October, November and December.\n> > \n> > option 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> > \n> > paid, in relation to wages, includes provided, conferred and assigned and pay and payable have corresponding meanings.\n> > \n> > payroll tax means tax imposed by section 6.\n> > \n> > perform, in relation to services, includes render.\n> > \n> > registered business address means an address for service of notices under the [A New Tax System (Australian Business Number) Act 1999](http://www.legislation.gov.au/) of the Commonwealth on an entity that has an ABN, as shown in the Australian Business Register kept under that Act.\n> > \n> > return period, in relation to an employer, means a period relating to which that employer is required to lodge a return under this Act.\n> > \n> > service provider, in relation to an employment agency contract—see section 37.\n> > \n> > share means a share in a company and includes a stapled security.\n> > \n> > superannuation contribution has the meaning given in section 17 (2).\n> > \n> > taxable wages has the meaning given in section 10.\n> > \n> > termination payment has the meaning given in section 27.\n> > \n> > Territories means the Australian Capital Territory (including the Jervis Bay Territory) and the Northern Territory.\n> > \n> > this jurisdiction means New South Wales and the coastal waters of the State.\n> > \n> > voting share has the same meaning as in section 9 of the [Corporations Act 2001](http://www.legislation.gov.au/) of the Commonwealth.\n> > \n> > wages has the meaning given in Part 3.\n> > \n> > Note.\n> > \n> > The [Interpretation Act 1987](/view/html/inforce/current/act-1987-015) contains definitions and other provisions that affect the interpretation and application of this Act.\n> \n> > (2) Notes included in this Act do not form part of this Act.\n> \n> **s 3:** Am 2009 No 91, Sch 3 \\[1\\]; 2010 No 118, Sch 4 \\[1\\]; 2017 No 11, Sch 3 \\[1\\].","sortOrder":3},{"sectionNumber":"4","sectionType":"section","heading":"Taxation Administration Act 1996","content":"#### 4 Taxation Administration Act 1996\n\n4 [Taxation Administration Act 1996](/view/html/inforce/current/act-1996-097)\n\n> This Act is to be read together with the [Taxation Administration Act 1996](/view/html/inforce/current/act-1996-097) which provides for the administration and enforcement of this Act and other taxation laws.","sortOrder":4},{"sectionNumber":"5","sectionType":"section","heading":"Act binds the Crown","content":"#### 5 Act binds the Crown\n\n5 Act binds the Crown\n\n> > (1) This Act binds the Crown in right of this jurisdiction and, so far as the legislative power of the Parliament permits, the Crown in all its other capacities.\n> \n> > (2) Nothing in this Act makes the Crown in any of its capacities liable to be prosecuted for an offence.","sortOrder":5},{"sectionNumber":"Part 2","sectionType":"part","heading":"Imposition of payroll tax","content":"# Part 2 Imposition of payroll tax\n\nPart 2 Imposition of payroll tax","sortOrder":6},{"sectionNumber":"Division 1","sectionType":"division","heading":"Imposition of tax","content":"## Division 1 Imposition of tax\n\nDivision 1 Imposition of tax","sortOrder":7},{"sectionNumber":"6","sectionType":"section","heading":"Imposition of payroll tax","content":"#### 6 Imposition of payroll tax\n\n6 Imposition of payroll tax\n\n> Payroll tax is imposed on all taxable wages.","sortOrder":8},{"sectionNumber":"7","sectionType":"section","heading":"Who is liable for payroll tax","content":"#### 7 Who is liable for payroll tax\n\n7 Who is liable for payroll tax\n\n> The employer by whom taxable wages are paid or payable is liable to pay payroll tax on the wages.","sortOrder":9},{"sectionNumber":"8","sectionType":"section","heading":"Amount of payroll tax","content":"#### 8 Amount of payroll tax\n\n8 Amount of payroll tax\n\n> The amount of payroll tax payable by an employer is to be ascertained in accordance with Schedules 1 and 2.","sortOrder":10},{"sectionNumber":"9","sectionType":"section","heading":"When must payroll tax be paid","content":"#### 9 When must payroll tax be paid\n\n9 When must payroll tax be paid\n\n> > (1) A person who is liable to pay payroll tax on taxable wages must pay the tax—\n> > \n> > > (a) within 7 days after the end of the month in which those wages were paid or payable, other than the month of June, and\n> > \n> > > (b) within 28 days after the end of the month of June in relation to taxable wages paid or payable in the month of June.\n> \n> > (2) However, if the Chief Commissioner has reason to believe that a person may leave Australia before any payroll tax becomes payable by the person, the tax is payable on the day fixed by the Chief Commissioner by notice served on the person.\n> \n> **s 9:** Am 2019 No 8, Sch 3 \\[1\\].","sortOrder":11},{"sectionNumber":"Division 2","sectionType":"division","heading":"Taxable wages","content":"## Division 2 Taxable wages\n\nDivision 2 Taxable wages","sortOrder":12},{"sectionNumber":"10","sectionType":"section","heading":"What are taxable wages","content":"#### 10 What are taxable wages\n\n10 What are taxable wages\n\n> > (1) For the purposes of this Act, taxable wages are wages that are taxable in this jurisdiction.\n> \n> > (2) However, exempt wages are not taxable wages.\n> \n> **s 10:** Subst 2009 No 91, Sch 3 \\[2\\].","sortOrder":13},{"sectionNumber":"11","sectionType":"section","heading":"Wages that are taxable in this jurisdiction","content":"#### 11 Wages that are taxable in this jurisdiction\n\n11 Wages that are taxable in this jurisdiction\n\n> > (1) For the purposes of this Act, 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 an employee 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 an employee 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 employee is based in this jurisdiction, or\n> > > \n> > > > (ii) the employer is based in this jurisdiction (in a case where the employee 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 employee 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 employee and the employer are not based in an Australian jurisdiction and the wages are not paid or payable in an Australian jurisdiction), or\n> > \n> > > (c) the wages are paid or payable by an employer for or in relation to services performed by an employee wholly outside all Australian jurisdictions and are paid or payable in this jurisdiction.\n> > \n> > Note.\n> > \n> > Section 66A 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 to be determined by reference only to the services performed by the employee in respect of the employer during the month in which the wages are paid or payable, subject to this section.\n> \n> > (3) Any wages paid or payable by an employer in respect of an employee in a particular month are taken to be paid or payable for or in relation to the services performed by the employee in respect of the employer during that month.\n> > \n> > Note.\n> > \n> > For example, if wages paid in a month are paid to an employee 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 employee in the month in which the wages are paid. The services performed in previous months are disregarded. (The services performed in previous months will be relevant to the question of whether wages paid in those previous months are taxable in this jurisdiction.)\n> \n> > (4) If no services are performed by an employee in respect of an employer during the month in which wages are paid or payable to or in relation to the employee—\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 employee in respect of the employer during the most recent prior month in which the employee 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 employee in respect of the employer during that most recent prior month.\n> \n> > (5) If no services were performed by an employee in respect of an employer during the month in which wages are paid or payable to or in relation to the employee or in any prior month—\n> > \n> > > (a) the wages are taken to be paid or payable for or in relation to services performed by the employee in 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 employee 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 employee are to be aggregated for the purposes of determining whether they are taxable in this jurisdiction (as if they were paid or payable for all services performed by the employee in the month in which the wages are paid or payable, or the most recent prior month, as the case requires).\n> > \n> > Note.\n> > \n> > For 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 employee in another Australian jurisdiction, the wages paid are to be aggregated (as if they were paid for all services performed by the employee in that month). Accordingly, subsection (1) (b) would be applied for the purpose of determining whether the wages are taxable in this jurisdiction.\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> **s 11:** Subst 2009 No 91, Sch 3 \\[2\\].","sortOrder":14},{"sectionNumber":"11A","sectionType":"section","heading":"Jurisdiction in which employee is based","content":"#### 11A Jurisdiction in which employee is based\n\n11A Jurisdiction in which employee is based\n\n> > (1) For the purposes of this Act, the jurisdiction in which an employee is based is the jurisdiction in which the employee’s principal place of residence is located.\n> \n> > (2) The jurisdiction in which an employee 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 an employee is based during a month, the jurisdiction in which the employee is based is to be determined by reference to the state of affairs existing on the last day of that month.\n> \n> > (4) An employee who does not have a principal place of residence is taken, for the purposes of this Act, to be an employee who is not based in an Australian jurisdiction.\n> \n> > (5) In the case of wages paid or payable to a corporate employee, the jurisdiction in which the employee is based is to be determined in accordance with section 11B instead of this section (as if a reference in section 11B to an employer were a reference to an employee).\n> \n> > (6) In this section, a corporate employee is a company that is taken to be an employee under section 34 or 39 or a company to whom a payment is made that is taken to be wages payable to an employee under section 42 or 47.\n> \n> **ss 11A–11C:** Ins 2009 No 91, Sch 3 \\[2\\].","sortOrder":15},{"sectionNumber":"11B","sectionType":"section","heading":"Jurisdiction in which employer is based","content":"#### 11B Jurisdiction in which employer is based\n\n11B Jurisdiction in which employer is based\n\n> > (1) For the purposes of this Act, 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, for the purposes of this Act, to be an employer who is not based in an Australian jurisdiction.\n> \n> **ss 11A–11C:** Ins 2009 No 91, Sch 3 \\[2\\].","sortOrder":16},{"sectionNumber":"11C","sectionType":"section","heading":"Place and date of payment of wages","content":"#### 11C Place and date of payment of wages\n\n11C Place and date of payment of wages\n\n> > (1) For the purposes of this Act, 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> > (2) 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 (as the case requires).\n> \n> > (3) Wages are taken to be payable at the place at which they are paid, subject to this section.\n> \n> > (4) 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 to the employee, or\n> > \n> > > (b) if wages have not previously been paid by the employer to the employee—the place where the employee last performed services in respect of the employer before the wages became payable.\n> \n> > (5) If wages paid or payable in the same month by the same employer in respect of the same employee 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> Note.\n> \n> Section 11 requires all wages paid or payable in the same month by the same employer in respect of the same employee to be aggregated for the purpose of determining whether the wages are taxable in this jurisdiction. The above provision ensures only one Australian jurisdiction can be considered to be the jurisdiction in which the wages are paid or payable.\n> \n> **ss 11A–11C:** Ins 2009 No 91, Sch 3 \\[2\\].","sortOrder":17},{"sectionNumber":"Division 3","sectionType":"division","heading":"Other","content":"## Division 3 Other\n\nDivision 3 Other","sortOrder":18},{"sectionNumber":"12","sectionType":"section","heading":"Payroll tax paid under corresponding applied law","content":"#### 12 Payroll tax paid under corresponding applied law\n\n12 Payroll tax paid under corresponding applied law\n\n> > (1) For the purposes of ascertaining the payroll tax payable under this Act by an employer who during a return period pays taxable wages and Commonwealth place wages, there is to be deducted from the amount of payroll tax payable by the employer under this Act the amount of payroll tax payable by the employer under the corresponding applied law.\n> \n> > (2) In this section—\n> > \n> > Commonwealth Act means the [Commonwealth Places (Mirror Taxes) Act 1998](http://www.legislation.gov.au/) of the Commonwealth.\n> > \n> > Commonwealth place wages means wages that would be taxable wages within the meaning of the corresponding applied law if the corresponding applied law applied in relation to each place in this jurisdiction that is a Commonwealth place.\n> > \n> > corresponding applied law means the provisions of the [Payroll Tax Act 2007](/view/html/inforce/current/act-2007-021) that would apply in relation to each place in this jurisdiction that is a Commonwealth place, pursuant to section 6 (2) of the Commonwealth Act, if those provisions were excluded provisions within the meaning of section 6 (1) of the Commonwealth Act.","sortOrder":19},{"sectionNumber":"Part 3","sectionType":"part","heading":"Wages","content":"# Part 3 Wages\n\nPart 3 Wages","sortOrder":20},{"sectionNumber":"13","sectionType":"section","heading":"What are wages?","content":"#### 13 What are wages?\n\n13 What are wages?\n\n> > (1) For the purposes of this Act, wages mean wages, remuneration, salary, commission, bonuses or allowances paid or payable to an employee, including—\n> > \n> > > (a) an amount paid or payable by way of remuneration to a person holding an office under the Crown or in the service of the Crown, and\n> > \n> > > (b) an amount paid or payable under any prescribed classes of contracts to the extent to which that payment is attributable to labour, and\n> > \n> > > (c) 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> > > (d) an amount paid or payable by way of commission to an insurance or time-payment canvasser or collector, and\n> > \n> > > (e) an amount that is included as or taken to be wages by any other provision of this Act.\n> \n> > (2) For the purposes of this Act, wages, remuneration, salary, commission, bonuses or allowances 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> > (3) This Act applies in respect of wages referred to in subsection (1) (a)–(e) that are paid or payable to or in relation to a person who is not an employee in the same way as it applies to wages paid or payable to an employee (as if a reference in this Act to an employee included a reference to any such person).\n> \n> **s 13:** Am 2009 No 91, Sch 3 \\[3\\].","sortOrder":22},{"sectionNumber":"14","sectionType":"section","heading":"Wages include fringe benefits","content":"#### 14 Wages include fringe benefits\n\n14 Wages include fringe benefits\n\n> > (1) For the purposes of this Act, wages include a fringe benefit.\n> \n> > (2) Subsection (1) does not apply to benefits that are exempt benefits for the purposes of the FBTA Act (other than deposits to the Superannuation Holding Accounts Special Account within the meaning of the [Small Superannuation Accounts Act 1995](http://www.legislation.gov.au/) of the Commonwealth).","sortOrder":24},{"sectionNumber":"15","sectionType":"section","heading":"Value of wages comprising fringe benefits","content":"#### 15 Value of wages comprising fringe benefits\n\n15 Value of wages comprising fringe benefits\n\n> > (1) For the purposes of this Act, the value of wages comprising a fringe benefit is to be determined in accordance with the formula—\n> > \n> > ![](/image/((Type%3D%22act%22)%20AND%20(No%3D021)%20AND%20(Year%3D2007)%20AND%20(%22Historical%20Document%22%3D0))/g1.gif)  \n> > where—\n> > \n> > TV is the value that would be the taxable value of the benefit as a fringe benefit for the purposes of the FBTA Act.\n> > \n> > FBT rate is the rate of fringe benefits tax imposed by the FBTA Act that applies when the liability to payroll tax under this Act arises.\n> \n> > (2) In this Act, a reference to taxable wages that were paid or payable by an employer during a month is, in relation to taxable wages comprising fringe benefits—\n> > \n> > > (a) a reference to the value of the fringe benefits paid or payable by the employer during the month, or\n> > \n> > > (b) if an election by the employer is in force under section 16, a reference to an amount calculated in accordance with that section.\n> \n> > (3) In this Act, a reference to taxable wages that were paid or payable by an employer during a year is, in relation to taxable wages comprising fringe benefits, a reference to an amount calculated by adding together the amounts under subsection (2) (a) or (b) (or subsection (2) (a) and (b)) as the case requires, for the months of that year.","sortOrder":25},{"sectionNumber":"16","sectionType":"section","heading":"Employer election regarding taxable value of fringe benefits","content":"#### 16 Employer election regarding taxable value of fringe benefits\n\n16 Employer election regarding taxable value of fringe benefits\n\n> > (1) An employer who has paid or is liable to pay fringe benefits tax imposed by the FBTA Act in respect of a period of not less than 15 months before 30 June in any year may elect to include as the value of the fringe benefits paid or payable by the employer during the month concerned—\n> > \n> > > (a) in a return lodged in relation to each of the first 11 months occurring after 30 June in that year—1/12 of the amount determined in accordance with subsection (2) or that part of that amount as, in accordance with section 10, comprises taxable wages for the year of tax (within the meaning of the FBTA Act) ending on 31 March preceding the commencement of the current financial year, and\n> > \n> > > (b) in the return lodged in relation to the 12th month—the amount determined in accordance with subsection (2) or that part of that amount as, in accordance with section 10, comprises taxable wages for the year of tax (within the meaning of the FBTA Act) ending on 31 March preceding that month, less the total of the amounts of fringe benefits included in the returns for each of the preceding 11 months.\n> \n> > (2) The amount determined in accordance with this subsection is to be determined in accordance with the formula—\n> > \n> > ![](/image/((Type%3D%22act%22)%20AND%20(No%3D021)%20AND%20(Year%3D2007)%20AND%20(%22Historical%20Document%22%3D0))/g2.gif)  \n> > where—\n> > \n> > AFBA is the aggregate fringe benefits amount within the meaning of section 136 of the FBTA Act.\n> > \n> > FBT rate is the rate of fringe benefits tax imposed by the FBTA Act that applies when the liability to payroll tax under this Act arises.\n> \n> > (3) An election under subsection (1) takes effect when it is notified to the Chief Commissioner in the form approved by the Chief Commissioner.\n> \n> > (4) After an employer has made an election under subsection (1), the employer must lodge returns containing amounts calculated in accordance with the election unless the Chief Commissioner approves, by notice in writing given to the employer, the termination of the election and allows the employer to include the value referred to in section 15 (2) (a).\n> \n> > (5) If an employer ceases to be liable to pay payroll tax, the value of taxable wages comprising fringe benefits to be included in the employer’s final return is (irrespective of whether or not the employer has made an election under subsection (1)) the value of the fringe benefits paid or payable by the employer for the period commencing on and including the preceding 1 July until the date on which the employer ceases to be liable to payroll tax, less the value of the fringe benefits paid or payable by the employer during that period on which payroll tax has been paid.","sortOrder":26},{"sectionNumber":"17","sectionType":"section","heading":"Wages include superannuation contributions","content":"#### 17 Wages include superannuation contributions\n\n17 Wages include superannuation contributions\n\n> > (1) For the purposes of this Act, wages include a superannuation contribution.\n> \n> > (2) A superannuation contribution is a contribution paid or payable by an employer in respect of an employee—\n> > \n> > > (a) to or as a superannuation fund within the meaning of the [Superannuation Industry (Supervision) Act 1993](http://www.legislation.gov.au/) of the Commonwealth, or\n> > \n> > > (b) as a superannuation guarantee charge within the meaning of the [Superannuation Guarantee (Administration) Act 1992](http://www.legislation.gov.au/) of the Commonwealth, or\n> > \n> > > (c) to or as 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](http://www.legislation.gov.au/) of the Commonwealth, and\n> > > \n> > > > (ii) a retirement savings account within the meaning of the [Retirement Savings Accounts Act 1997](http://www.legislation.gov.au/) of the Commonwealth, and\n> > > \n> > > > (iii) a wholly or partly unfunded fund or scheme.\n> \n> > (3) Setting aside any money or anything that is worth money as, or as part of, a superannuation fund, superannuation guarantee charge or any other form of superannuation, provident or retirement fund or scheme is taken to be paying a superannuation contribution.\n> \n> > (4) Making a superannuation contribution of anything that is worth money is taken to be paying a superannuation contribution of the amount equal to its value, and its value is to be worked out in accordance with section 43 as if that section referred to the contribution instead of to wages.\n> \n> > (5) A superannuation, provident or retirement fund or scheme is unfunded to the extent that money paid or payable by an employer in respect of an employee covered by the fund or scheme is not paid or payable during the employee’s period of service with the employer.\n> \n> > (6) In this section—\n> > \n> > employee includes any person to whom, by virtue of a paragraph of the definition of wages in section 13 (1), an amount paid or payable in the circumstances referred to in that paragraph constitutes wages.","sortOrder":28},{"sectionNumber":"Division 4","sectionType":"division","heading":"Shares and options","content":"## Division 4 Shares and options\n\nDivision 4 Shares and options","sortOrder":29},{"sectionNumber":"18","sectionType":"section","heading":"Inclusion of grant of shares and options as wages","content":"#### 18 Inclusion of grant of shares and options as wages\n\n18 Inclusion of grant of shares and options as wages\n\n> > (1) For the purposes of this Act, wages 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 is an ESS interest (within the meaning of section 83A–10 of the [Income Tax Assessment Act 1997](http://www.legislation.gov.au/) of the Commonwealth) and is granted to the employee under an employee share scheme (within the meaning of that section).\n> > \n> > Note.\n> > \n> > A 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 Division 2 of this Part.\n> \n> > (2) Any such wages are taken, for the purpose of the imposition of payroll tax, to be paid or payable on the relevant day.\n> \n> > (3) For the purposes of this Division, the relevant day is the day that the employer elects in accordance with this Division to treat as the day on which the wages are paid or payable.\n> \n> > (4) To avoid doubt, the grant of a share or option is valuable consideration for the purposes of section 46.\n> \n> **s 18:** Am 2010 No 118, Sch 4 \\[2\\].","sortOrder":30},{"sectionNumber":"19","sectionType":"section","heading":"Choice of relevant day","content":"#### 19 Choice of relevant day\n\n19 Choice of relevant day\n\n> > (1) The employer can elect to treat as the relevant day either the date on which the share or option is granted to the employee or the vesting date.\n> \n> > (2) A share or 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> > (2A) To avoid doubt, if an employee acquires a right to be granted a share or an option, or some other material benefit, at the election of the employer, the share or option is not granted until the employer elects to grant the share or option.\n> \n> > (3) The vesting date in respect of a share is one of the following dates (whichever happens first)—\n> > \n> > > (a) the date 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 date at the end of the period of 7 years from the date on which the share is granted to the employee.\n> \n> > (4) The vesting date in respect of an option is one of the following dates (whichever happens first)—\n> > \n> > > (a) the date on which the share to which the option relates is granted to the employee,\n> > \n> > > (b) the date 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 him or her,\n> > \n> > > (c) the date at the end of the period of 7 years from the date on which the option is granted to the employee.\n> \n> **s 19:** Am 2010 No 118, Sch 4 \\[3\\] \\[4\\].","sortOrder":31},{"sectionNumber":"20","sectionType":"section","heading":"Deemed choice of relevant day in special cases","content":"#### 20 Deemed choice of relevant day in special cases\n\n20 Deemed choice of relevant day in special cases\n\n> > (1) If an employer grants a share or an option to an employee and the value of the grant of the share or option is not included in the taxable wages of the employer for the financial year in which the share or option was granted, the employer is taken to have elected to treat the wages constituted by the grant of that share or option as being paid or payable on the vesting date.\n> \n> > (2) If an employer grants a share or an option to an employee and the value of the grant of the share or option is nil or, if the employer were to elect to treat the date of grant as the relevant day, the wages constituted by the grant would not be liable to payroll tax, the employer is taken to have elected to treat the wages constituted by the grant of that share or option as being paid or payable on the date on which the share or option was granted.","sortOrder":32},{"sectionNumber":"21","sectionType":"section","heading":"Effect of rescission, cancellation of share or option","content":"#### 21 Effect of rescission, cancellation of share or option\n\n21 Effect of rescission, cancellation of share or option\n\n> > (1) If the grant of a share or option is withdrawn, cancelled or exchanged before the vesting date for any valuable consideration (other than the grant of other shares or options), the following provisions apply—\n> > \n> > > (a) the date of withdrawal, cancellation or exchange is taken to be the vesting date of the share or option,\n> > \n> > > (b) the market value of the share or option, on the vesting date, is taken to be the amount of the valuable consideration (and, accordingly, that amount is the amount paid or payable as wages on that date).\n> \n> > (2) If an employer includes the value of a grant of a share or option in the taxable wages of the employer for a financial year and the grant is rescinded because the conditions attaching to the grant were not met, the taxable wages of the employer, in the financial year in which the grant is rescinded, are to be reduced by the value of the grant as previously included in the taxable wages of the employer.\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 option.","sortOrder":33},{"sectionNumber":"22","sectionType":"section","heading":"Grant of share pursuant to exercise of option","content":"#### 22 Grant of share pursuant to exercise of option\n\n22 Grant of share pursuant to exercise of option\n\n> The grant of the share by an employer does not constitute wages for the purposes of this Act if the employer is required to grant the share as a consequence of the exercise of an option by a person and—\n> \n> > (a) the grant of the option to the person constitutes wages for the purposes of this Act, or\n> \n> > (b) the option was granted to the person before 1 July 2003.","sortOrder":34},{"sectionNumber":"23","sectionType":"section","heading":"Value of shares and options","content":"#### 23 Value of shares and options\n\n23 Value of shares and options\n\n> > (1) If the grant of a share or option constitutes wages under this Division, the amount paid or payable as wages is taken, for the purposes of this Act, to be 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> > (2) 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> > (3) 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> > (4) However, the Chief 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> > (5) In determining the market value of a share or option, anything that would prevent or restrict conversion of the share or option to money is to be disregarded.\n> \n> > (6) 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> > (7) In this section, Commonwealth income tax provisions means section 83A–315 of the [Income Tax Assessment Act 1997](http://www.legislation.gov.au/) of the Commonwealth and the regulations made for the purposes of that section.\n> > \n> > Note.\n> > \n> > See Division 83A of the [Income Tax Assessment (1997 Act) Regulations 2021](http://www.legislation.gov.au/) of the Commonwealth for the relevant regulations.\n> \n> **s 23:** Am 2010 No 118, Sch 4 \\[5\\] \\[6\\]; 2022 No 59, Sch 1.28\\[1\\].","sortOrder":35},{"sectionNumber":"24","sectionType":"section","heading":"Inclusion of shares and options granted to directors as wages","content":"#### 24 Inclusion of shares and options granted to directors as wages\n\n24 Inclusion of shares and options granted to directors as wages\n\n> > (1) For the purposes of this Act, wages 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 Division 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 Division 2 of this Part (and not this Division).\n> \n> Note.\n> \n> Section 13 provides that a reference to an employee in this Act includes a reference to any person to whom any amount that is treated as wages under this Act is paid or payable. See also section 11, which deems the wages to be paid or payable for services performed.\n> \n> **s 24:** Am 2009 No 91, Sch 3 \\[4\\]; 2010 No 118, Sch 4 \\[7\\] \\[8\\].","sortOrder":36},{"sectionNumber":"25","sectionType":"section","heading":null,"content":"#### 25\n\n25 (Repealed)","sortOrder":37},{"sectionNumber":"26","sectionType":"section","heading":"Place where wages are payable","content":"#### 26 Place where wages are payable\n\n26 Place where wages are payable\n\n> > (1) The wages constituted by the grant of the share or option are taken to be paid or payable in this jurisdiction 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> > (2) In any other case, the wages constituted by the grant of the share or option are taken to be paid or payable outside this jurisdiction.\n> > \n> > Note.\n> > \n> > The place where wages are paid or payable is sometimes relevant to determining whether the wages are liable to payroll tax under this Act. See section 11.\n> \n> > (3) In this section—\n> > \n> > local company means—\n> > \n> > > (a) a company incorporated or taken to be incorporated under the [Corporations Act 2001](http://www.legislation.gov.au/) of the Commonwealth that is taken to be registered in this jurisdiction for the purposes of that Act, or\n> > \n> > > (b) any other body corporate that is incorporated under an Act of this jurisdiction.\n> \n> **s 26:** Am 2009 No 91, Sch 3 \\[6\\].","sortOrder":39},{"sectionNumber":"Division 5","sectionType":"division","heading":"Termination payments","content":"## Division 5 Termination payments\n\nDivision 5 Termination payments","sortOrder":40},{"sectionNumber":"27","sectionType":"section","heading":"Definitions","content":"#### 27 Definitions\n\n27 Definitions\n\n> In this Division—\n> \n> employment termination payment means—\n> \n> > (a) an employment termination payment within the meaning of section 82-130 of the ITAA, or\n> \n> > (b) a payment that would be an employment termination payment within the meaning of section 82-130 of the ITAA 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](http://www.legislation.gov.au/) of the Commonwealth.\n> \n> termination 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 ITAA if the whole of the employment termination payment had been paid to the employee, or\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, or\n> \n> > (c) an amount paid or payable by a person who is an employer under a relevant contract (within the meaning of section 32) as a consequence of the termination of the supply of the services of an employee under the contract, whether or not paid to the employee or to any other person, if the amount 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 same meaning as in section 83-10 of the ITAA.\n> \n> unused long service leave payment has the same meaning as in section 83-75 of the ITAA.","sortOrder":41},{"sectionNumber":"28","sectionType":"section","heading":"Termination payments","content":"#### 28 Termination payments\n\n28 Termination payments\n\n> For the purposes of this Act, wages include a termination payment.","sortOrder":42},{"sectionNumber":"Division 6","sectionType":"division","heading":"Allowances","content":"## Division 6 Allowances\n\nDivision 6 Allowances","sortOrder":43},{"sectionNumber":"29","sectionType":"section","heading":"Motor vehicle allowances","content":"#### 29 Motor vehicle allowances\n\n29 Motor vehicle allowances\n\n> > (1) For the purposes of this Act, wages, in respect of a financial year, do not include the exempt component of a motor vehicle allowance paid or payable in respect of that year.\n> \n> > (2) Accordingly, if the total motor vehicle allowance paid or payable to an employee in respect of a financial year does not exceed the exempt component, the motor vehicle allowance is not wages for the purposes of this Act.\n> \n> > (3) If the total motor vehicle allowance paid or payable to an employee in respect of a financial year exceeds the exempt component (if any), only that amount that exceeds the exempt component of the motor vehicle allowance is included as wages for the purposes of this Act.\n> \n> > (4) The exempt component of a motor vehicle allowance paid or payable in respect of a financial year is calculated in accordance with the formula—\n> > \n> > ![](/image/((Type%3D%22act%22)%20AND%20(No%3D021)%20AND%20(Year%3D2007)%20AND%20(%22Historical%20Document%22%3D0))/g3.gif)  \n> > where—\n> > \n> > E is the exempt component.\n> > \n> > K is the number of business kilometres travelled during the financial year.\n> > \n> > R is the exempt rate.\n> \n> > (5) The number of business kilometres travelled during the financial year (“**K**”) is to be determined in accordance with the continuous recording method, or the averaging method, whichever method is selected and used by the employer in accordance with Part 5 of Schedule 1.\n> \n> > (6) The Chief Commissioner, by order in writing, may approve the use, by an employer or class of employer, of another method of determining the number of business kilometres travelled during the financial year (including the use of an estimate). If so, the number of business kilometres travelled during the financial year is to be determined in accordance with the method approved by the Chief Commissioner.\n> \n> > (7) For the purposes of this section, the exempt rate for the financial year concerned is—\n> > \n> > > (a) the rate determined by legislative instrument under section 28-25 of the ITAA for calculating a deduction for car expenses using the cents per kilometre method in the financial year immediately preceding the financial year in which the allowance is paid or payable, or\n> > \n> > > (b) if there is more than one rate under the determination referred to in paragraph (a), the highest of those rates, or\n> > \n> > > (c) if no rate is determined as referred to in paragraph (a), the rate prescribed by the regulations under this Act.\n> \n> **s 29:** Am 2017 No 11, Sch 3 \\[2\\].","sortOrder":44},{"sectionNumber":"30","sectionType":"section","heading":"Accommodation allowances","content":"#### 30 Accommodation allowances\n\n30 Accommodation allowances\n\n> > (1) For the purposes of this Act, wages do not include an accommodation allowance paid or payable to an employee in respect of a night’s absence from the person’s usual place of residence that does not exceed the exempt rate.\n> \n> > (2) If the accommodation allowance paid or payable to an employee in respect of a night’s absence from the person’s usual place of residence exceeds the exempt rate, wages include that allowance only to the extent that it exceeds the exempt rate.\n> \n> > (3) For the purposes of this section, 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 by the regulations.","sortOrder":45},{"sectionNumber":"Division 7","sectionType":"division","heading":"Contractor provisions","content":"## Division 7 Contractor provisions\n\nDivision 7 Contractor provisions","sortOrder":46},{"sectionNumber":"31","sectionType":"section","heading":"Definitions","content":"#### 31 Definitions\n\n31 Definitions\n\n> In this Division—\n> \n> contract includes an agreement, arrangement or undertaking, whether formal or informal and whether express or implied.\n> \n> relevant contract has the meaning given in section 32.\n> \n> re-supply of goods acquired from a person includes—\n> \n> > (a) a supply to the person of goods in an altered form or condition, and\n> \n> > (b) a supply to the person of goods in which the first-mentioned goods have been incorporated.\n> \n> services includes results (whether goods or services) of work performed.\n> \n> supply includes supply by way of sale, exchange, lease, hire or hire-purchase, and in relation to services includes the providing, granting or conferring of services.","sortOrder":47},{"sectionNumber":"32","sectionType":"section","heading":"What is a relevant contract?","content":"#### 32 What is a relevant contract?\n\n32 What is a relevant contract?\n\n> > (1) In this Division, a relevant contract in relation to a financial year is a contract under which a person (the designated person) during that financial year, in the course of a business carried on by the designated person—\n> > \n> > > (a) supplies to another person services for or in relation to the performance of work, or\n> > \n> > > (b) has supplied to the designated person the services of persons for or in relation to the performance of work, or\n> > \n> > > (c) gives out goods to natural persons for work to be performed by those persons in respect of those goods and for re-supply of the goods to the designated person or, where the designated person is a member of a group, to another member of that group.\n> \n> > (2) However, a relevant contract does not include a contract of service or a contract under which a person (the designated person) during a financial year in the course of a business carried on by the designated person—\n> > \n> > > (a) is supplied with services for or in relation to the performance of work that are ancillary to the supply of goods under the contract by the person by whom the services are supplied or to the use of goods which are the property of that person, or\n> > \n> > > (b) is supplied with services for or in relation to the performance of work where—\n> > > \n> > > > (i) those services are of a kind not ordinarily required by the designated person and are performed by a person who ordinarily performs services of that kind to the public generally, or\n> > > \n> > > > (ii) those services are of a kind ordinarily required by the designated person for less than 180 days in a financial year, or\n> > > \n> > > > (iii) those services are provided for a period that does not exceed 90 days or for periods that, in the aggregate, do not exceed 90 days in that financial year and are not services—\n> > > > \n> > > > > (A) provided by a person by whom similar services are provided to the designated person, or\n> > > > \n> > > > > (B) for or in relation to the performance of work where any of the persons who perform the work also perform similar work for the designated person,\n> > > > \n> > > > for periods that, in the aggregate, exceed 90 days in that financial year, or\n> > > \n> > > > (iv) those services are supplied under a contract to which subparagraphs (i)–(iii) do not apply and the Chief Commissioner is satisfied that those services are performed by a person who ordinarily performs services of that kind to the public generally in that financial year, or\n> > \n> > > (c) is supplied by a person (the contractor) with services for or in relation to the performance of work under a contract to which paragraphs (a) and (b) do not apply where the work to which the services relate is performed—\n> > > \n> > > > (i) by two or more persons employed by, or who provide services for, the contractor in the course of a business carried on by the contractor, or\n> > > \n> > > > (ii) where the contractor is a partnership of two or more natural persons, by one or more of the members of the partnership and one or more persons employed by, or who provide services for, the contractor in the course of a business carried on by the contractor, or\n> > > \n> > > > (iii) where the contractor is a natural person, by the contractor and one or more persons employed by, or who provide services for, the contractor in the course of a business carried on by the contractor, or\n> > \n> > > (d) is supplied with services solely for or ancillary to the conveyance of goods by means of a vehicle provided by the person conveying them.\n> \n> > (2A) Subsection (2) does not apply if the Chief Commissioner determines that the contract or arrangement under which the services are supplied was entered into with an intention either directly or indirectly of avoiding or evading the payment of tax by any person.\n> \n> > (2B) Subsection (2) (a), (b), (c) or (d) does not apply to a contract under which any additional services or work (of a kind not covered by the relevant paragraph) are supplied or performed under the contract.\n> \n> > (3) For the purposes of this section, an employment agency contract under which services are supplied by an employment agent, or a service provider is procured by an employment agent, is not a relevant contract.\n> \n> **s 32:** Am 2014 No 56, Sch 3 \\[1\\]–\\[6\\].","sortOrder":48},{"sectionNumber":"33","sectionType":"section","heading":"Persons taken to be employers","content":"#### 33 Persons taken to be employers\n\n33 Persons taken to be employers\n\n> > (1) For the purposes of this Act, a person—\n> > \n> > > (a) who during a financial year, under a relevant contract, supplies services to another person, or\n> > \n> > > (b) to whom during a financial year, under a relevant contract, the services of persons are supplied for or in relation to the performance of work, or\n> > \n> > > (c) who during a financial year, under a relevant contract, gives out goods to other persons,\n> > \n> > is taken to be an employer in respect of that financial year.\n> \n> > (2) If a contract is a relevant contract under both section 32 (1) (a) and (b)—\n> > \n> > > (a) the person to whom, under the contract, the services of persons are supplied for or in relation to the performance of work is taken to be an employer, and\n> > \n> > > (b) despite subsection (1) (a), the person who under the contract supplies the services is taken not to be an employer.","sortOrder":49},{"sectionNumber":"34","sectionType":"section","heading":"Persons taken to be employees","content":"#### 34 Persons taken to be employees\n\n34 Persons taken to be employees\n\n> For the purposes of this Act, a person who during a financial year—\n> \n> > (a) performs work for or in relation to which services are supplied to another person under a relevant contract, or\n> \n> > (b) being a natural person, under a relevant contract, re-supplies goods to an employer,\n> \n> is taken to be an employee in respect of that financial year.","sortOrder":50},{"sectionNumber":"35","sectionType":"section","heading":"Amounts under relevant contracts taken to be wages","content":"#### 35 Amounts under relevant contracts taken to be wages\n\n35 Amounts under relevant contracts taken to be wages\n\n> > (1) For the purposes of this Act, amounts paid or payable by an employer during a financial year for or in relation to the performance of work relating to a relevant contract or the re-supply of goods by an employee under a relevant contract are taken to be wages paid or payable during that financial year.\n> \n> > (2) If an amount referred to in subsection (1) is included in a larger amount paid or payable by an employer under a relevant contract during a financial year, that part of the larger amount which is not attributable to the performance of work relating to the relevant contract or the re-supply of goods by an employee under the relevant contract is as determined by the Chief Commissioner.\n> \n> > (3) An amount paid or payable for or in relation to the performance of work under a relevant contract is taken to include—\n> > \n> > > (a) any payment made by a person who is taken to be an employer under a relevant contract in relation to a person who is taken to be an employee under the relevant contract that would be a superannuation contribution if made in relation to a person in the capacity of an employee, and\n> > \n> > > (b) the value of any share or option (not otherwise included as wages under this Act) provided or liable to be provided by a person who is taken to be an employer under a relevant contract in relation to a person who is taken to be an employee under the relevant contract that would be included as wages under Division 4 if provided to a person in the capacity of an employee.","sortOrder":51},{"sectionNumber":"36","sectionType":"section","heading":"Liability provisions","content":"#### 36 Liability provisions\n\n36 Liability provisions\n\n> If, in respect of a payment for or in relation to the performance of work that is taken to be wages under this Division, payroll tax is paid by a person taken under this Division to be an employer—\n> \n> > (a) no other person is liable to payroll tax in respect of that payment, and\n> \n> > (b) if another person is liable to make a payment for or in relation to that work, that person is not liable to payroll tax in respect of that payment unless it or the payment by the first-mentioned person is made with an intention either directly or indirectly of avoiding or evading the payment of tax whether by the first-mentioned person or another person.","sortOrder":52},{"sectionNumber":"Division 8","sectionType":"division","heading":"Employment agents","content":"## Division 8 Employment agents\n\nDivision 8 Employment agents","sortOrder":53},{"sectionNumber":"36A","sectionType":"section","heading":"Division not applicable to wages paid to common law employees","content":"#### 36A Division not applicable to wages paid to common law employees\n\n36A Division not applicable to wages paid to common law employees\n\n> This Division does not apply in relation to wages that are exempt wages under section 66B and clause 13B of Schedule 2.\n> \n> **s 36A:** Ins 2017 No 11, Sch 3 \\[3\\].","sortOrder":54},{"sectionNumber":"37","sectionType":"section","heading":"Definitions","content":"#### 37 Definitions\n\n37 Definitions\n\n> > (1) For the purposes of this Act, an employment agency contract is a contract, whether formal or informal and whether express or implied, under which a person (an employment agent) procures the services of another person (a service provider) for a client of the employment agent.\n> \n> > (2) However, a contract is not an employment agency contract for the purposes of this Act if it is, or results in the creation of, a contract of employment between the service provider and the client.\n> \n> > (3) In this section—\n> > \n> > contract includes agreement, arrangement and undertaking.","sortOrder":55},{"sectionNumber":"38","sectionType":"section","heading":"Persons taken to be employers","content":"#### 38 Persons taken to be employers\n\n38 Persons taken to be employers\n\n> For the purposes of this Act, the employment agent under an employment agency contract is taken to be an employer.","sortOrder":56},{"sectionNumber":"39","sectionType":"section","heading":"Persons taken to be employees","content":"#### 39 Persons taken to be employees\n\n39 Persons taken to be employees\n\n> For the purposes of this Act, the person who performs work for or in relation to which services are supplied to the client under an employment agency contract is taken to be an employee of the employment agent.","sortOrder":57},{"sectionNumber":"40","sectionType":"section","heading":"Amounts taken to be wages","content":"#### 40 Amounts taken to be wages\n\n40 Amounts taken to be wages\n\n> > (1) For the purposes of this Act, the following are taken to be wages paid or payable by the employment agent under an employment agency contract—\n> > \n> > > (a) any amount paid or payable to or in relation to the service provider in respect of the provision of services in connection with the employment agency contract,\n> > \n> > > (b) the value of any benefit provided for or in relation to the provision of services in connection with the employment agency contract that would be a fringe benefit if provided to a person in the capacity of an employee,\n> > \n> > > (c) any payment made in relation to the service provider that would be a superannuation contribution if made in relation to a person in the capacity of an employee.\n> \n> > (2) Subsection (1) does not apply to an employment agency contract to the extent that an amount, benefit or payment referred to in that subsection would be exempt from payroll tax under Part 4 (other than under section 50 or Division 4 or 5 of that Part), or Part 3 of Schedule 2 (other than clause 5 or 13A), had the service provider performed the services as an employee of the client, if the client has given a declaration to that effect, in the form approved by the Chief Commissioner, to the employment agent.\n> \n> **s 40:** Am 2017 No 11, Sch 3 \\[4\\].","sortOrder":58},{"sectionNumber":"41","sectionType":"section","heading":"Liability provisions","content":"#### 41 Liability provisions\n\n41 Liability provisions\n\n> Subject to section 42, if an employment agent under an employment agency contract—\n> \n> > (a) by arrangement procures the services of a service provider for a client of the employment agent, and\n> \n> > (b) pays payroll tax in respect of an amount, benefit or payment that is, under section 40, taken to be wages paid or payable by the employment agent in respect of the provision of those services in connection with that contract,\n> \n> no other person (including any other person engaged to procure the services of the service provider for the employment agent’s client as part of the arrangement) is liable to pay payroll tax in respect of wages paid or payable for the procurement or performance of those services by the service provider for the client.","sortOrder":59},{"sectionNumber":"42","sectionType":"section","heading":"Agreement to reduce or avoid liability to payroll tax","content":"#### 42 Agreement to reduce or avoid liability to payroll tax\n\n42 Agreement to reduce or avoid liability to payroll tax\n\n> > (1) If the effect of an employment agency contract is to reduce or avoid the liability of any party to the contract to the assessment, imposition or payment of payroll tax, the Chief Commissioner may—\n> > \n> > > (a) disregard the contract, and\n> > \n> > > (b) determine that any party to the contract is taken to be an employer for the purposes of this Act, and\n> > \n> > > (c) determine that any payment made in respect of the contract is taken to be wages for the purposes of this Act.\n> \n> > (2) If the Chief Commissioner makes a determination under subsection (1), the Chief Commissioner must serve a notice of the determination on the person taken to be an employer for the purposes of this Act.\n> \n> > (3) The notice must set out the facts on which the Chief Commissioner relies and the reasons for the determination.\n> \n> > (4) This section has effect in relation to agreements, transactions and arrangements made before, on or after the commencement of this section.","sortOrder":60},{"sectionNumber":"Division 9","sectionType":"division","heading":"Other","content":"## Division 9 Other\n\nDivision 9 Other","sortOrder":61},{"sectionNumber":"43","sectionType":"section","heading":"Value of wages paid in kind","content":"#### 43 Value of wages paid in kind\n\n43 Value of wages paid in kind\n\n> The value of wages (except fringe benefits and shares and options) that are paid or payable in kind is the greater of—\n> \n> > (a) the value agreed or attributed to the wages in, or ascertainable for the wages from, arrangements between the employer and the employee, whichever is the greater, 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.","sortOrder":62},{"sectionNumber":"44","sectionType":"section","heading":"GST excluded from wages","content":"#### 44 GST excluded from wages\n\n44 GST excluded from wages\n\n> > (1) If a person is liable to pay GST on the supply to which wages paid or payable to the person relate, the amount or value of those wages on which payroll tax is payable is the amount or value of the wages paid or payable to the person minus the relevant proportion of the amount of GST payable by the person on the supply 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> > (3) In this section—\n> > \n> > consideration has the same meaning as in the [A New Tax System (Goods and Services Tax) Act 1999](http://www.legislation.gov.au/) of the Commonwealth.\n> > \n> > relevant proportion, in relation to GST payable on a supply to which wages relate, means the proportion that the amount or value of the wages bears to the consideration for the supply to which the wages relate.","sortOrder":63},{"sectionNumber":"45","sectionType":"section","heading":"Wages paid by group employers","content":"#### 45 Wages paid by group employers\n\n45 Wages paid by group employers\n\n> A reference in this Act to wages paid or payable by a member of a group includes wages that would be taken to be paid or payable by a member of a group if the member were the employer of the employee to whom the wages were paid.","sortOrder":64},{"sectionNumber":"46","sectionType":"section","heading":"Wages paid by or to third parties","content":"#### 46 Wages paid by or to third parties\n\n46 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 or to be paid or given directly by an employer to an employee, be or be included as 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 or to be paid or given directly by a company to a director of the company, be or be included as 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, director of a company includes—\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.","sortOrder":65},{"sectionNumber":"47","sectionType":"section","heading":"Agreement etc to reduce or avoid liability to payroll tax","content":"#### 47 Agreement etc to reduce or avoid liability to payroll tax\n\n47 Agreement etc to reduce or avoid liability to payroll tax\n\n> > (1) If any person enters into any agreement, transaction or arrangement, whether in writing or otherwise, under which a natural person performs, for or on behalf of another person, services in respect of which any payment is made to some other person related or connected to the natural person performing the services and the effect of the agreement, transaction or arrangement is to reduce or avoid the liability of any person to the assessment, imposition or payment of payroll tax, the Chief Commissioner may—\n> > \n> > > (a) disregard the agreement, transaction or arrangement, and\n> > \n> > > (b) determine that any party to the agreement, transaction or arrangement is taken to be an employer for the purposes of this Act, and\n> > \n> > > (c) determine that any payment made in respect of the agreement, transaction or arrangement is taken to be wages for the purposes of this Act.\n> \n> > (2) If the Chief Commissioner makes a determination under subsection (1), the Chief Commissioner must serve a notice to that effect on the person taken to be an employer for the purposes of this Act.\n> \n> > (3) The notice must set out the facts on which the Chief Commissioner relies and the reasons for the determination.\n> \n> > (4) This section has effect in relation to agreements, transactions and arrangements made before, on or after the commencement of this section.","sortOrder":66},{"sectionNumber":"Part 4","sectionType":"part","heading":"Exemptions","content":"# Part 4 Exemptions\n\nPart 4 Exemptions","sortOrder":67},{"sectionNumber":"48","sectionType":"section","heading":"Non-profit organisations","content":"#### 48 Non-profit organisations\n\n48 Non-profit organisations\n\n> > (1) Subject to subsection (2), wages are exempt wages if they are paid or payable by any of the following—\n> > \n> > > (a) a religious institution,\n> > \n> > > (b) a public benevolent institution (but not including an instrumentality of the State),\n> > \n> > > (c) a non-profit organisation having as its sole or dominant purpose a charitable, benevolent, philanthropic or patriotic purpose (but not including a school, an educational institution, an educational company or an instrumentality of the State).\n> \n> > (2) The wages must be paid or payable—\n> > \n> > > (a) for work of a kind ordinarily performed in connection with the religious, charitable, benevolent, philanthropic or patriotic purposes of the institution or body, and\n> > \n> > > (b) to a person engaged exclusively in that kind of work.\n> \n> > (3) For the purposes of subsection (1) (c), an educational company is a company—\n> > \n> > > (a) in which an educational institution has a controlling interest, and\n> > \n> > > (b) that provides, promotes or supports the educational services of that institution.\n> \n> > (4) For the purposes of subsection (3), an educational institution has a controlling interest in an educational company if—\n> > \n> > > (a) members of the board of management of the company who are entitled to exercise a majority in voting power at meetings of the board of management are accustomed or under an obligation, whether formal or informal, to act in accordance with the directions, instructions or wishes of the educational institution, or\n> > \n> > > (b) the educational institution 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, or any class of voting shares, issued by the company, or\n> > \n> > > (c) the educational institution has power to appoint more than 50% of the members of the board of management of the company.\n> \n> > (5) In this section—\n> > \n> > educational institution means an entity that provides education above secondary level.\n> \n> **s 48:** Am 2008 No 67, Sch 5 \\[1\\].","sortOrder":69},{"sectionNumber":"49","sectionType":"section","heading":"Schools and educational services and training","content":"#### 49 Schools and educational services and training\n\n49 Schools and educational services and training\n\n> Wages are exempt wages as provided for in Division 1 of Part 3 of Schedule 2.","sortOrder":71},{"sectionNumber":"50","sectionType":"section","heading":"Community Development Employment Project","content":"#### 50 Community Development Employment Project\n\n50 Community Development Employment Project\n\n> > (1) Wages are exempt wages if they are paid or payable to an Aboriginal person who is employed under an employment project.\n> \n> > (2) An employment project is an employment project under the Community Development Employment Project funded by the Department of Employment and Workplace Relations of the Commonwealth or the Torres Strait Regional Authority.","sortOrder":72},{"sectionNumber":"51","sectionType":"section","heading":"Health care service providers","content":"#### 51 Health care service providers\n\n51 Health care service providers\n\n> > (1) Subject to subsection (2), wages paid or payable by a health care service provider are exempt wages.\n> \n> > (2) The wages must be paid or payable—\n> > \n> > > (a) for work of a kind ordinarily performed in connection with the conduct of a health care service provider, and\n> > \n> > > (b) to a person engaged exclusively in that kind of work.\n> \n> > (3) For the purposes of this section, health care service provider has the meaning given in Division 2 of Part 3 of Schedule 2.","sortOrder":74},{"sectionNumber":"52","sectionType":"section","heading":"Division not to limit other exemptions","content":"#### 52 Division not to limit other exemptions\n\n52 Division not to limit other exemptions\n\n> > (1) Nothing in this Division limits the application of any other Division of this Part.\n> \n> > (2) For example, if a health care service provider is also a non-profit organisation, the exemption for non-profit organisations referred to in section 48 may still apply.","sortOrder":75},{"sectionNumber":"53","sectionType":"section","heading":"Maternity and adoption leave","content":"#### 53 Maternity and adoption leave\n\n53 Maternity and adoption leave\n\n> > (1) Wages are exempt wages if they are paid or payable to an employee in respect of—\n> > \n> > > (a) maternity leave, being leave given to a female employee in connection with her pregnancy or the birth of her child (other than sick leave, recreation leave, annual leave or any similar leave), or\n> > \n> > > (b) adoption leave, being leave given to an employee in connection with the adoption of a child by him or her (other than sick leave, recreation leave, annual leave or any similar leave).\n> \n> > (2) It is immaterial whether the leave is taken during or after the pregnancy or before or after the adoption.\n> \n> > (3) The exemption is limited to wages paid or payable in respect of a maximum of 14 weeks maternity leave in respect of any one pregnancy and 14 weeks adoption leave in respect of any one adoption.\n> \n> > (4) In subsection (3)—\n> > \n> > > (a) a reference to 14 weeks maternity leave or 14 weeks adoption leave includes a reference to an equivalent period of leave at a reduced rate of pay, and\n> > \n> > > (b) a reference to wages paid or payable in respect of a period of leave is a reference to the total wages that would normally have been paid or payable for that period of leave.\n> > \n> > Note.\n> > \n> > For a part-time employee, the exemption may apply to wages paid or payable for maternity leave or adoption leave that extends to 28 weeks at half of the part-time rate of pay that would normally apply to the employee.\n> \n> > (5) The exemption does not apply to any part of wages paid or payable in respect of maternity or adoption leave that comprises fringe benefits.\n> \n> Note.\n> \n> Clause 13A of Schedule 2 provides for a similar exemption for paternity leave given to a male employee. That exemption is not included in some corresponding laws.\n> \n> **s 53:** Am 2010 No 46, Sch 8 \\[1\\]; 2012 No 20, Sch 3 \\[1\\].","sortOrder":77},{"sectionNumber":"54","sectionType":"section","heading":"Administrative requirements for exemption","content":"#### 54 Administrative requirements for exemption\n\n54 Administrative requirements for exemption\n\n> > (1) An employer wishing to claim an exemption under section 53 in respect of maternity leave must obtain and keep a medical certificate in respect of, or declaration in writing by, the employee—\n> > \n> > > (a) stating that the employee is or was pregnant, or\n> > \n> > > (b) stating that the employee has given birth and the date of birth.\n> \n> > (2) An employer wishing to claim an exemption under section 53 in respect of adoption leave must obtain and keep a declaration in writing by the employee stating—\n> > \n> > > (a) that a child has been placed in the custody of the employee pending the making of an adoption order, or\n> > \n> > > (b) that an adoption order has been made or recognised in favour of the employee.\n> \n> Note.\n> \n> Section 53 of the [Taxation Administration Act 1996](/view/html/inforce/current/act-1996-097) requires these records to be kept for at least 5 years unless the Chief Commissioner authorises earlier destruction.\n> \n> **s 54:** Am 2017 No 25, Sch 2.9.","sortOrder":78},{"sectionNumber":"55","sectionType":"section","heading":"Volunteer firefighters","content":"#### 55 Volunteer firefighters\n\n55 Volunteer firefighters\n\n> Subject to section 57, wages are exempt wages if they are paid or payable to an employee in respect of any period when he or she was taking part in bushfire fighting activities as a volunteer member of a rural fire brigade under the [Rural Fires Act 1997](/view/html/inforce/current/act-1997-065).","sortOrder":80},{"sectionNumber":"56","sectionType":"section","heading":"Emergency service volunteers","content":"#### 56 Emergency service volunteers\n\n56 Emergency service volunteers\n\n> Subject to section 57, wages are exempt wages if they are paid or payable to an employee in respect of any period when he or she was engaging in emergency operations as a volunteer member of an emergency services organisation under the [State Emergency and Rescue Management Act 1989](/view/html/inforce/current/act-1989-165).","sortOrder":81},{"sectionNumber":"57","sectionType":"section","heading":"Limitation of exemption","content":"#### 57 Limitation of exemption\n\n57 Limitation of exemption\n\n> An exemption under this Division does not apply to wages paid or payable as recreation leave, annual leave, long service leave or sick leave.","sortOrder":82},{"sectionNumber":"58","sectionType":"section","heading":"Local government bodies","content":"#### 58 Local government bodies\n\n58 Local government bodies\n\n> Subject to section 60, wages are exempt wages if they are paid or payable by a council, a county council or a joint organisation, within the meaning of the [Local Government Act 1993](/view/html/inforce/current/act-1993-030).\n> \n> **s 58:** Am 2017 No 65, Sch 2.21.","sortOrder":84},{"sectionNumber":"59","sectionType":"section","heading":"Local government business entities","content":"#### 59 Local government business entities\n\n59 Local government business entities\n\n> > (1) Subject to section 60, wages are exempt wages if they are paid or payable—\n> > \n> > > (a) by a wholly-owned subsidiary of a council or of 2 or more councils, and\n> > \n> > > (b) to a person for or in connection with an activity that is conducted for the council or councils under a written arrangement between the subsidiary and the council or councils.\n> \n> > (2) The written arrangement referred to in subsection (1) (b) must include a provision for the payment by the subsidiary to the council or councils of an amount approximately equivalent to the amount of tax that would be payable by the subsidiary under this Act but for the exemption.\n> \n> > (3) In this section—\n> > \n> > council has the same meaning as in the [Local Government Act 1993](/view/html/inforce/current/act-1993-030).\n> > \n> > wholly-owned subsidiary has the same meaning as in the [Corporations Act 2001](http://www.legislation.gov.au/) of the Commonwealth.\n> \n> > (4) In this section, a reference to a wholly-owned subsidiary of 2 or more councils is a reference to a body corporate that, if the councils were a single council, would be a wholly-owned subsidiary of the single council.\n> \n> **s 59:** Am 2016 No 14, Sch 4 \\[1\\]–\\[3\\].","sortOrder":85},{"sectionNumber":"60","sectionType":"section","heading":"Limitation on local government exemptions","content":"#### 60 Limitation on local government exemptions\n\n60 Limitation on local government exemptions\n\n> > (1) An exemption under this Division does not apply to wages paid or payable for or in connection with—\n> > \n> > > (a) any of the activities referred to in subsection (2), or\n> > \n> > > (b) the construction of any buildings or works, or the installation of plant, machinery or equipment for use in any of the activities referred to in subsection (2).\n> \n> > (2) Subsection (1) applies to the following activities—\n> > \n> > > (a) the supply of electricity or gas,\n> > \n> > > (b) water supply,\n> > \n> > > (c) sewerage,\n> > \n> > > (d) the conduct of—\n> > > \n> > > > (i) abattoirs,\n> > > \n> > > > (ii) public markets,\n> > > \n> > > > (iii) parking stations,\n> > > \n> > > > (iv) cemeteries or crematoria,\n> > > \n> > > > (v) hostels,\n> > > \n> > > > (vi) an activity prescribed by the regulations,\n> > \n> > > (e) an activity specified in Schedule 2.","sortOrder":86},{"sectionNumber":"61","sectionType":"section","heading":"State Governors","content":"#### 61 State Governors\n\n61 State Governors\n\n> Wages paid or payable by the Governor of a State are exempt wages.","sortOrder":88},{"sectionNumber":"62","sectionType":"section","heading":"Defence personnel","content":"#### 62 Defence personnel\n\n62 Defence personnel\n\n> Wages are exempt wages if they are paid or payable to an employee in respect of any period when he or she was on leave from employment because of being a member of—\n> \n> > (a) the Defence Force of the Commonwealth, or\n> \n> > (b) the armed forces of any part of the Commonwealth of Nations.","sortOrder":89},{"sectionNumber":"63","sectionType":"section","heading":"War Graves Commission","content":"#### 63 War Graves Commission\n\n63 War Graves Commission\n\n> Wages paid or payable by the Commonwealth War Graves Commission are exempt wages.","sortOrder":90},{"sectionNumber":"64","sectionType":"section","heading":"Consular and non-diplomatic representatives","content":"#### 64 Consular and non-diplomatic representatives\n\n64 Consular and non-diplomatic representatives\n\n> Wages paid or payable to members of his or her official staff by a consular or other representative of any country in Australia (other than a diplomatic representative) are exempt wages.","sortOrder":92},{"sectionNumber":"65","sectionType":"section","heading":"Trade Commissioners","content":"#### 65 Trade Commissioners\n\n65 Trade Commissioners\n\n> Wages paid or payable to members of his or her official staff by a Trade Commissioner representing any other part of the Commonwealth of Nations in Australia are exempt wages.","sortOrder":93},{"sectionNumber":"66","sectionType":"section","heading":"Australian-American Fulbright Commission","content":"#### 66 Australian-American Fulbright Commission\n\n66 Australian-American Fulbright Commission\n\n> Wages paid or payable by the Australian-American Fulbright Commission are exempt wages.","sortOrder":94},{"sectionNumber":"66A","sectionType":"section","heading":"Wages paid or payable for or in relation to services performed in other countries","content":"#### 66A Wages paid or payable for or in relation to services performed in other countries\n\n66A Wages paid or payable for or in relation to services performed in other countries\n\n> Wages are exempt wages if they are paid or payable for or in relation to services performed by an employee 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 employee for the services so performed.\n> \n> **pt 4, div 9 (s 66A):** Ins 2009 No 91, Sch 3 \\[7\\].","sortOrder":96},{"sectionNumber":"Division 10","sectionType":"division","heading":"Miscellaneous","content":"## Division 10 Miscellaneous\n\nDivision 10 Miscellaneous\n\n**pt 4, div 10 (ss 66B, 66C):** Ins 2017 No 11, Sch 3 \\[5\\].","sortOrder":97},{"sectionNumber":"66B","sectionType":"section","heading":"Employment agents supplying their common law employees","content":"#### 66B Employment agents supplying their common law employees\n\n66B Employment agents supplying their common law employees\n\n> Wages are exempt wages as provided for in clause 13B of Schedule 2.\n> \n> **pt 4, div 10 (ss 66B, 66C):** Ins 2017 No 11, Sch 3 \\[5\\].","sortOrder":98},{"sectionNumber":"66C","sectionType":"section","heading":"Wages paid to living organ donors","content":"#### 66C Wages paid to living organ donors\n\n66C Wages paid to living organ donors\n\n> Wages are exempt wages to the extent that they are reimbursed by the Commonwealth under the Supporting Leave for Living Organ Donors Programme.\n> \n> **pt 4, div 10 (ss 66B, 66C):** Ins 2017 No 11, Sch 3 \\[5\\].","sortOrder":99},{"sectionNumber":"66D","sectionType":"section","heading":"Wages subsidised under Commonwealth jobkeeper scheme","content":"#### 66D Wages subsidised under Commonwealth jobkeeper scheme\n\n66D Wages subsidised under Commonwealth jobkeeper scheme\n\n> > (1) This section applies in relation to an employee (a jobkeeper subsidised employee) in respect of whom jobkeeper payments are paid or payable to the employer if, but for those payments, less wages or no wages would have been paid to the employee.\n> \n> > (2) The wages paid to a jobkeeper subsidised employee are exempt wages, but only to the extent of the difference between—\n> > \n> > > (a) the amount of jobkeeper payments paid or payable to the employer in respect of the employee, and\n> > \n> > > (b) the amount of wages that would have been paid to the employee but for those jobkeeper payments.\n> \n> > (3) Subsection (2) applies only in respect of wages paid during the period—\n> > \n> > > (a) commencing on 30 March 2020, and\n> > \n> > > (b) ending on the day the scheme for jobkeeper payments ends.\n> \n> > (4) For the purposes of this section, any overpayment of jobkeeper payments is to be disregarded in calculating the amount of jobkeeper payments paid or payable to an employer in respect of an employee.\n> \n> > (5) To avoid doubt, this section does not apply in relation to an employee if the wages paid or payable to the employee are greater than the jobkeeper payments paid or payable to the employer in respect of the employee.\n> \n> > (6) In this section—\n> > \n> > jobkeeper payment has the same meaning as it has in Part 6–4C of the [Fair Work Act 2009](http://www.legislation.gov.au/) of the Commonwealth.\n> > \n> > overpayment, in relation to a jobkeeper payment, means any amount in respect of the payment that an employer is liable to repay to the Commonwealth under section 9 of the [Coronavirus Economic Response Package (Payments and Benefits) Act 2020](http://www.legislation.gov.au/) of the Commonwealth.\n> \n> **s 66D:** Ins 2020 No 6, Sch 1.3.","sortOrder":100},{"sectionNumber":"66E","sectionType":"section","heading":"Wages funded by Commonwealth Aged Care Workforce Retention Grant Opportunity","content":"#### 66E Wages funded by Commonwealth Aged Care Workforce Retention Grant Opportunity\n\n66E Wages funded by Commonwealth Aged Care Workforce Retention Grant Opportunity\n\n> > (1) Wages paid or payable on or after 1 June 2020 are exempt wages to the extent that they are funded by any payment (an Aged Care Workforce payment) made under the program established by the Commonwealth and known as the Aged Care Workforce Retention Grant Opportunity.\n> \n> > (2) Any overpayment of Aged Care Workforce payments is to be disregarded in calculating the amount of Aged Care Workforce payments for the purposes of subsection (1).\n> \n> **s 66E:** Ins 2020 No 19, Sch 4. Am 2021 No 12, Sch 1\\[1\\].","sortOrder":101},{"sectionNumber":"66EA","sectionType":"section","heading":"Wages funded by Commonwealth Aged Care Workforce Bonus Grant Opportunity","content":"#### 66EA Wages funded by Commonwealth Aged Care Workforce Bonus Grant Opportunity\n\n66EA Wages funded by Commonwealth Aged Care Workforce Bonus Grant Opportunity\n\n> > (1) Wages paid or payable on or after 1 February 2022 are exempt wages to the extent that they are funded by a payment (an Aged Care Workforce Bonus payment) made under the program established by the Commonwealth and known as the Aged Care Workforce Bonus Grant Opportunity.\n> \n> > (2) An overpayment of Aged Care Workforce Bonus payments is to be disregarded in calculating the amount of Aged Care Workforce Bonus payments for the purposes of subsection (1).\n> \n> **s 66EA:** Ins 2022 No 32, Sch 3.","sortOrder":102},{"sectionNumber":"66F","sectionType":"section","heading":"Exemption for employers under Jobs Plus agreements","content":"#### 66F Exemption for employers under Jobs Plus agreements\n\n66F Exemption for employers under Jobs Plus agreements\n\n> > (1) The relevant Minister is authorised on behalf of the State—\n> > \n> > > (a) before 1 July 2024 to enter into an agreement with an employer that is expressed to be for the purposes of this section (a Jobs Plus agreement), and\n> > \n> > > (b) to give effect to the agreement.\n> \n> > (1A) To avoid doubt, a variation, agreed on or after 1 July 2024, of a Jobs Plus agreement entered into before that date must not be regarded as the entry into a new Jobs Plus agreement, unless the variation results in an increase in the number of positions that are entitled to a wages exemption under this section.\n> \n> > (2) Without limiting the matters that may be specified by a Jobs Plus agreement, the agreement must specify—\n> > \n> > > (a) the kinds of wages that are exempt wages under this section, and\n> > \n> > > (b) the grounds on which, or the circumstances in which, the relevant Minister may revoke an exemption under this section, and\n> > \n> > > (c) for an agreement with an employer whose registered business address is outside the metropolitan area—that the exemption cannot be revoked merely because the employer has only created between 20 and 29 new jobs (inclusive).\n> \n> > (3) Subject to this section, wages are exempt wages if—\n> > \n> > > (a) they are paid or payable by an employer who enters into a Jobs Plus agreement, and\n> > \n> > > (a1) they are paid or payable to a person in relation to a period—\n> > > \n> > > > (i) before 1 October 2028, and\n> > > \n> > > > (ii) within the first 4 years of the exemption applying to wages for the person’s position, and\n> > \n> > > (b) they are wages of a kind that is specified by the agreement to be exempt wages under this section.\n> \n> > (4) The relevant Minister may, by written notice issued to an employer who enters into a Jobs Plus agreement, revoke the exemption under this section on the grounds, or in the circumstances, specified by the agreement.\n> \n> > (5) The effect of the revocation is as follows—\n> > \n> > > (a) the wages referred to in subsection (3) are taken never to have been exempt wages under this section,\n> > \n> > > (b) the employer is liable to pay payroll tax on the wages even if the relevant Minister revokes the exemption under this section after the employer relies on the exemption as the reason for not paying payroll tax on the wages,\n> > \n> > > (c) the Chief Commissioner must assess or reassess the employer’s liability to pay payroll tax on the wages accordingly.\n> \n> > (6) For the purposes of the [Taxation Administration Act 1996](/view/html/inforce/current/act-1996-097), section 9(3)(c), the Chief Commissioner is authorised to make a reassessment under this section until 1 July 2033.\n> \n> > (7) An employer who enters into a Jobs Plus agreement cannot lodge an objection with the Chief Commissioner under the [Taxation Administration Act 1996](/view/html/inforce/current/act-1996-097), Part 10, Division 1 to an assessment or reassessment under this section on the grounds that the relevant Minister has revoked an exemption under this section.\n> \n> > (8) Without limiting the [Taxation Administration Act 1996](/view/html/inforce/current/act-1996-097), section 82(b)(i), a Jobs Plus administrator may disclose to another Jobs Plus administrator information in relation to a Jobs Plus agreement, including personal information within the meaning of the [Privacy and Personal Information Protection Act 1998](/view/html/inforce/current/act-1998-133) and confidential information—\n> > \n> > > (a) to assist a Jobs Plus administrator to exercise a function under this section, including to assist the relevant Minister to give effect to the agreement, or\n> > \n> > > (b) in connection with the administration of a taxation law.\n> \n> > (9) The relevant Minister may delegate a function of the relevant Minister under this section to another Jobs Plus administrator, subject to the following—\n> > \n> > > (a) the relevant Minister cannot delegate a function to a tax officer,\n> > \n> > > (b) the relevant Minister cannot delegate a function under subsection (1)(a) or (4) to any person other than the Chief Executive Officer of Investment NSW,\n> > \n> > > (c) the relevant Minister cannot delegate this power of delegation.\n> \n> > (10) The State, or a Jobs Plus administrator, does not incur civil liability in connection with the exercise of a function under this section.\n> \n> > (11) The relevant Minister must, until 1 July 2029, cause to be tabled in each House of Parliament an annual report containing the following for each financial year—\n> > \n> > > (a) the total number of employers who entered into Jobs Plus agreements,\n> > \n> > > (b) the total number of new jobs the employers agreed to create, as specified by the agreements,\n> > \n> > > (c) the total number of new jobs in fact created by the employers, whether created in that financial year or an earlier financial year,\n> > \n> > > (d) the total amount of payroll tax from which the employers were exempt under this section, whether in relation to that financial year or an earlier financial year.\n> \n> > (11A) To avoid doubt, this section prevails over the provisions of a Jobs Plus agreement to the extent of an inconsistency.\n> \n> > (11B) This section is repealed on 2 July 2033.\n> \n> > (12) In this section—\n> > \n> > give effect to a Jobs Plus agreement includes—\n> > \n> > > (a) comply with an obligation of the State under the agreement, and\n> > \n> > > (b) exercise or enforce a right or power under the agreement.\n> > \n> > Jobs Plus administrator means each of the following—\n> > \n> > > (a) the relevant Minister,\n> > \n> > > (b) a tax officer,\n> > \n> > > (c) a person employed in the Premier’s Department,\n> > \n> > > (d) a person employed in Investment NSW.\n> > \n> > metropolitan area means—\n> > \n> > > (a) the Greater Sydney Region within the meaning of the [Greater Sydney Commission Act 2015](/view/html/repealed/current/act-2015-057), and\n> > \n> > > (b) the local government areas of Newcastle, Shellharbour and Wollongong.\n> > \n> > new job, in relation to an employer who enters into a Jobs Plus agreement, means a position created by the employer after entering into the agreement.\n> > \n> > relevant Minister means the Minister for Jobs, Investment, Tourism and Western Sydney.\n> > \n> > taxation law and tax officer have the same meanings as in the [Taxation Administration Act 1996](/view/html/inforce/current/act-1996-097).\n> \n> **s 66F:** Ins 2021 No 12, Sch 1\\[2\\]. Am 2023 No 35, Sch 4.32; 2025 No 37, Sch 5\\[1\\]–\\[5\\].","sortOrder":103},{"sectionNumber":"Part 5","sectionType":"part","heading":"Grouping of employers","content":"# Part 5 Grouping of employers\n\nPart 5 Grouping of employers","sortOrder":104},{"sectionNumber":"67","sectionType":"section","heading":"Definitions","content":"#### 67 Definitions\n\n67 Definitions\n\n> In this Part—\n> \n> business 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 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> \n> whether carried on by 1 person or 2 or more persons together.\n> \n> group means a group constituted under this Part, but does not include any member of the group in respect of whom a determination under Division 4 is in force.","sortOrder":106},{"sectionNumber":"68","sectionType":"section","heading":"Grouping provisions to operate independently","content":"#### 68 Grouping provisions to operate independently\n\n68 Grouping provisions to operate independently\n\n> The 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.","sortOrder":107},{"sectionNumber":"69","sectionType":"section","heading":"Constitution of groups","content":"#### 69 Constitution of groups\n\n69 Constitution of groups\n\n> A group is constituted by all the persons or bodies forming a group that is not a part of any larger group.","sortOrder":109},{"sectionNumber":"70","sectionType":"section","heading":"Groups of corporations","content":"#### 70 Groups of corporations\n\n70 Groups of corporations\n\n> > (1) Corporations constitute a group if they are related bodies corporate within the meaning of the [Corporations Act 2001](http://www.legislation.gov.au/) of the Commonwealth.\n> \n> > (2) (Repealed)\n> \n> **s 70:** Am 2008 No 67, Sch 5 \\[2\\].","sortOrder":110},{"sectionNumber":"71","sectionType":"section","heading":"Groups arising from the use of common employees","content":"#### 71 Groups arising from the use of common employees\n\n71 Groups arising from the use of common employees\n\n> > (1) If one or more employees of an employer perform duties for or in connection with one or more businesses carried on by the employer and one or more other persons, the employer and each of those other persons constitute a group.\n> \n> > (2) If one or more employees of an employer are employed solely or mainly to perform duties for or in connection with one or more businesses carried on by one or more other persons, the employer and each of those other persons constitute a group.\n> \n> > (3) If one or more employees of an employer perform duties for or in connection with one or more businesses carried on by one or more other persons, being duties performed in connection with, or in fulfilment of the employer’s obligation under, an agreement, arrangement or undertaking for the provision of services to any one or more of those other persons in connection with that business or those businesses, the employer and each of those other persons constitute a group.\n> \n> > (4) Subsection (3) applies to an agreement, arrangement or undertaking—\n> > \n> > > (a) whether the agreement, arrangement or undertaking is formal or informal, express or implied, and\n> > \n> > > (b) whether or not the agreement, arrangement or undertaking provides for duties to be performed by the employees or specifies the duties to be performed by them.\n> \n> Note.\n> \n> Section 79 (Exclusion of persons from groups) allows the Chief Commissioner, for payroll tax purposes, to exclude persons from a group constituted under this section in certain circumstances.","sortOrder":111},{"sectionNumber":"72","sectionType":"section","heading":"Groups of commonly controlled businesses","content":"#### 72 Groups of commonly controlled businesses\n\n72 Groups of commonly controlled businesses\n\n> > (1) If a person or set of persons has a controlling interest in each of 2 businesses, the persons who carry on those businesses constitute a group.\n> > \n> > Note.\n> > \n> > Section 79 (Exclusion of persons from groups) allows the Chief Commissioner, for payroll tax purposes, to exclude persons from a group constituted under this section in certain circumstances.\n> \n> > (2) For the purposes of this section, a person or set of persons has a controlling interest in a business if—\n> > \n> > > (a) in the case of 1 person—the person is the sole owner (whether or not as trustee) of the business, or\n> > \n> > > (b) in the case of a set of persons—the persons are together as trustees the sole owners of the business, or\n> > \n> > > (c) in the case of a business carried on by a corporation—\n> > > \n> > > > (i) the person or each of the set of persons is a director of the corporation and the person or set of persons is entitled to exercise more than 50% of the voting power at meetings of the directors of the corporation, or\n> > > \n> > > > (ii) a director or set of directors of the corporation that is entitled to exercise more than 50% of the voting power at meetings of the directors of the corporation is under an obligation, whether formal or informal, to act in accordance with the direction, instructions or wishes of that person or set of persons, or\n> > \n> > > (d) in the case of a business carried on by a body corporate or unincorporate—that person or set of persons constitute more than 50% of the board of management (by whatever name called) of the body or control the composition of that board, or\n> > \n> > > (e) in the case of a business carried on by a corporation that has a share capital—that person or set of persons can, directly or indirectly, exercise, control the exercise of, or substantially influence the exercise of, more than 50% of the voting power attached to the voting shares, or any class of voting shares, issued by the corporation, or\n> > \n> > > (f) in the case of a business carried on by a partnership—that person or set of persons—\n> > > \n> > > > (i) own (whether beneficially or not) more than 50% of the capital of the partnership, or\n> > > \n> > > > (ii) is entitled (whether beneficially or not) to more than 50% of the profits of the partnership, or\n> > \n> > > (g) in the case of a business carried on under a trust—the person or set of persons (whether or not as a trustee of, or beneficiary under, another trust) is the beneficiary in respect of more than 50% of the value of the interests in the first-mentioned trust.\n> \n> > (3) If—\n> > \n> > > (a) 2 corporations are related bodies corporate within the meaning of the [Corporations Act 2001](http://www.legislation.gov.au/) of the Commonwealth, and\n> > \n> > > (b) 1 of the corporations has a controlling interest in a business,\n> > \n> > the other corporation has a controlling interest in the business.\n> \n> > (4) If—\n> > \n> > > (a) a person or set of persons has a controlling interest in a business, and\n> > \n> > > (b) a person or set of persons who carry on the business has a controlling interest in another business,\n> > \n> > the person or set of persons referred to in paragraph (a) has a controlling interest in that other business.\n> \n> > (5) If—\n> > \n> > > (a) a person or set of persons is the beneficiary of a trust in respect of more than 50% of the value of the interests in the trust, and\n> > \n> > > (b) the trustee of the trust (whether alone or together with another trustee or trustees) has a controlling interest in the business of another trust,\n> > \n> > the person or set of persons has a controlling interest in the business.\n> \n> > (6) A person who may benefit from a discretionary trust as a result of the trustee or another person, or the trustee and another person, exercising or failing to exercise a power or discretion, is taken, for the purposes of this Part, to be a beneficiary in respect of more than 50% of the value of the interests in the trust.\n> \n> > (7) If—\n> > \n> > > (a) a person or set of persons has a controlling interest in the business of a trust, and\n> > \n> > > (b) the trustee of the trust (whether alone or together with another trustee or trustees) has a controlling interest in the business of a corporation,\n> > \n> > the person or set of persons is taken to have a controlling interest in the business of the corporation.\n> \n> > (8) If—\n> > \n> > > (a) a person or set of persons has a controlling interest in the business of a trust, and\n> > \n> > > (b) the trustee of the trust (whether alone or together with another trustee or trustees) has a controlling interest in the business of a partnership,\n> > \n> > the person or set of persons is taken to have a controlling interest in the business of the partnership.","sortOrder":112},{"sectionNumber":"73","sectionType":"section","heading":"Groups arising from tracing of interests in corporations","content":"#### 73 Groups arising from tracing of interests in corporations\n\n73 Groups arising from tracing of interests in corporations\n\n> > (1) An entity and a corporation form part of a group if the entity has a controlling interest in the corporation.\n> > \n> > Note.\n> > \n> > Section 79 (Exclusion of persons from groups) allows the Chief Commissioner, for payroll tax purposes, to exclude persons from a group constituted under this section in certain circumstances.\n> \n> > (2) For the purposes of this section, 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 and the value of that direct interest exceeds 50%, or\n> > \n> > > (b) the entity has an indirect interest in the corporation and the value of that indirect interest exceeds 50%, or\n> > \n> > > (c) the entity has an aggregate interest in the corporation and the value of the aggregate interest exceeds 50%.\n> \n> > (3) Division 3 applies for the purposes of the interpretation of this section.\n> > \n> > Note.\n> > \n> > Division 3 sets out the manner for determining whether an entity has a direct interest, indirect interest or aggregate interest in a corporation, and the value of such an interest.\n> \n> > (4) In this section—\n> > \n> > associated person means a person who is associated with another person in accordance with any of the following provisions—\n> > \n> > > (a) persons are associated persons if they are related persons,\n> > \n> > > (b) natural persons 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 (within the meaning of the [Corporations Act 2001](http://www.legislation.gov.au/) of the Commonwealth) is a beneficiary of the trust (not including a public unit trust scheme) of which the trustee is a trustee.\n> > \n> > domestic partner of a person means a person to whom the person is not married but with whom the person is living as a couple on a genuine domestic basis (irrespective of gender).\n> > \n> > entity means—\n> > \n> > > (a) a person, or\n> > \n> > > (b) 2 or more persons who are associated persons (as defined in this section).\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 provisions—\n> > \n> > > (a) natural persons are related persons if—\n> > > \n> > > > (i) one is the spouse or domestic 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 within the meaning of the [Corporations Act 2001](http://www.legislation.gov.au/) of the Commonwealth,\n> > \n> > > (c) a natural person and a private company are related persons if the natural person is a majority shareholder or director of the company or of another private company that is a related body corporate of the company within the meaning of the [Corporations Act 2001](http://www.legislation.gov.au/) of the Commonwealth,\n> > \n> > > (d) a natural person and a trustee are related persons if the natural person 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> > (5) For the purposes of the definition of domestic partner in subsection (4), in determining whether persons are domestic partners of each other, all the circumstances of their relationship are to be taken into account, including any one or more of the matters referred to in section 4 (2) of the [Property (Relationships) Act 1984](/view/html/inforce/current/act-1984-147) as may be relevant in a particular case.","sortOrder":113},{"sectionNumber":"74","sectionType":"section","heading":"Smaller groups subsumed by larger groups","content":"#### 74 Smaller groups subsumed by larger groups\n\n74 Smaller groups subsumed by larger groups\n\n> > (1) If a person is a member of 2 or more groups, the members of all the groups together constitute a group.\n> \n> > (2) If 2 or more members of a group have together a controlling interest in a business (within the meaning of section 72), all the members of the group and the person or persons who carry on the business together constitute a group.\n> \n> Note.\n> \n> Section 79 (Exclusion of persons from groups) allows the Chief Commissioner, for payroll tax purposes, to exclude persons from a group constituted under this section in certain circumstances.\n> \n> **s 74:** Am 2008 No 67, Sch 5 \\[3\\].","sortOrder":114},{"sectionNumber":"74A","sectionType":"section","heading":"Groups arising from former entities","content":"#### 74A Groups arising from former entities\n\n74A Groups arising from former entities\n\n> > (1) An entity (the successor) and a former entity constitute a group if the successor and the former entity are or were both sufficiently influenced by the same other person (the third party).\n> \n> > (2) For this section, a successor or former entity is sufficiently influenced by a third party if the successor or former entity is accustomed or under an obligation, whether formal or informal, or might reasonably be expected, to act in accordance with the directions, instructions or wishes of the third party.\n> \n> > (3) Subsection (2) applies whether the directions, instructions or wishes are, or might reasonably be expected to be, communicated directly or indirectly through another person.\n> \n> > (4) The Chief Commissioner may determine that an entity and a former entity who would, but for the determination, be a member of a group under subsection (1) are not part of a group if the Chief Commissioner is satisfied the influence of the third party is not, or was not, intended to avoid tax or other commercial obligations.\n> \n> > (5) In this section—\n> > \n> > entity includes—\n> > \n> > > (a) a person, and\n> > > \n> > > Note—\n> > > \n> > > Under the [Interpretation Act 1987](/view/html/inforce/current/act-1987-015), Schedule 4, a person includes an individual, a corporation and a body corporate or politic.\n> > \n> > > (b) a company, and\n> > \n> > > (c) a trustee of a trust.\n> > \n> > former entity includes—\n> > \n> > > (a) a corporation that is in administration or being wound up, or has executed a deed of company arrangement under the [Corporations Act 2001](http://www.legislation.gov.au/) of the Commonwealth, if the Chief Commissioner is satisfied the Chief Commissioner will not be able to recover from the corporation the amount the Chief Commissioner is entitled to recover from the corporation, and\n> > \n> > > (b) a corporation that is deregistered under the [Corporations Act 2001](http://www.legislation.gov.au/) of the Commonwealth, Chapter 5A, and\n> > \n> > > (c) a person who was a trustee of a trust but is no longer a trustee of the trust, whether or not the trust is dissolved.\n> \n> **s 74A:** Ins 2023 No 18, Sch 5\\[1\\]. Am 2023 No 26, Sch 4\\[1\\]\\[2\\]; 2024 No 90, Sch 6\\[1\\].","sortOrder":115},{"sectionNumber":"75","sectionType":"section","heading":"Application","content":"#### 75 Application\n\n75 Application\n\n> This Division applies for the purposes of section 73 (Groups arising from tracing of interests in corporations).","sortOrder":117},{"sectionNumber":"76","sectionType":"section","heading":"Direct interest","content":"#### 76 Direct interest\n\n76 Direct interest\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, as referred to in subsection (1), 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, as referred to in subsection (1).","sortOrder":118},{"sectionNumber":"77","sectionType":"section","heading":"Indirect interest","content":"#### 77 Indirect interest\n\n77 Indirect interest\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 following are examples of how subsections (1) and (2) work (the examples are cumulative)—\n> > \n> > > (a) corporation A (a directly controlled corporation) has a direct interest in corporation B. Corporations A and B form part of a chain of corporations, and corporation B is linked to corporation A. Accordingly, an entity that has a direct interest in corporation A also has an indirect interest in corporation B,\n> > \n> > > (b) corporation B also has a direct interest in corporation C. In this case, corporations A, B and C form part of a chain of corporations. Both corporations B and C are linked to corporation A. The entity that has a direct interest in corporation A has an indirect interest in both corporations B and C,\n> > \n> > > (c) corporation B also has a direct interest in corporation D. There are now 2 chains of corporations, one consisting of A, B and C, and one consisting of A, B and D. Corporations B, C and D are all linked to corporation A and an entity that has a direct interest in corporation A would have an indirect interest in corporations B, C and D. An entity that has a direct interest in corporation B would have an indirect interest in corporations C and D. However, an entity that has a direct interest in corporation C only would not have an indirect interest in corporation D, as corporation D is not linked to corporation C.\n> \n> > (4) 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> > (5) The following are examples of how subsection (4) works (the examples are cumulative)—\n> > \n> > > (a) an entity has a direct interest (with a value of 80%) in corporation A. Corporation A has a direct interest (with a value of 70%) in corporation B. The value of the indirect interest of the entity in corporation B is 80% × 70% (that is, 56%). Accordingly, in this example the entity has a controlling interest (within the meaning of section 73 (Groups arising from tracing of interests in corporations)) in corporation B,\n> > \n> > > (b) corporation B also has a direct interest (with a value of 40%) in corporation C. The value of the indirect interest of the entity in corporation C is 80% × 70% × 40% (that is, 22.4%). Accordingly, in this example the entity does not have a controlling interest in corporation C.\n> \n> > (6) It is possible for an entity to have more than one indirect interest in a corporation. This may occur if the corporation is linked to more than one corporation in which the entity has a direct interest, or if the corporation is linked to only one corporation in which the entity has a direct interest but is linked through more than one chain of corporations. In that case, the entity has an aggregate interest in the corporation (see section 78 (Aggregation of interests)).","sortOrder":119},{"sectionNumber":"78","sectionType":"section","heading":"Aggregation of interests","content":"#### 78 Aggregation of interests\n\n78 Aggregation of 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> > (3) For example—\n> > \n> > > (a) an entity has a direct interest (with a value of 40%) in corporation B,\n> > \n> > > (b) the entity also has a direct interest (with a value of 25%) in corporation A, which in turn has a direct interest (with a value of 60%) in corporation B. Accordingly, the entity also has an indirect interest in corporation B with a value of 15% (that is, 25% × 60%),\n> > \n> > > (c) the value of the entity’s aggregate interest in corporation B is the sum of the direct interest (40%) and the indirect interest (15%), which is 55%,\n> > \n> > > (d) accordingly, in this example, the entity has a controlling interest in corporation B (within the meaning of section 73 (Groups arising from tracing of interests in corporations)).","sortOrder":120},{"sectionNumber":"79","sectionType":"section","heading":"Exclusion of persons from groups","content":"#### 79 Exclusion of persons from groups\n\n79 Exclusion of persons from groups\n\n> > (1) The Chief Commissioner may, by order in writing, determine that a person who would, but for the determination, be a member of a group is not a member of the group.\n> \n> > (2) The Chief Commissioner may only make such a determination if satisfied, having regard to the nature and degree of ownership and control of the businesses, the nature of the businesses and any other matters the Chief Commissioner considers relevant, that a business carried on by the person, is carried on independently of, and is not connected with the carrying on of, a business carried on by any other member of that group.\n> \n> > (3) The Chief Commissioner cannot exclude a person from a group if the person is a body corporate that, by reason of section 50 of the [Corporations Act 2001](http://www.legislation.gov.au/) of the Commonwealth, is related to another body corporate that is a member of that group.\n> \n> > (4) This section extends to a group constituted by reason of section 74 (Smaller groups subsumed by larger groups).\n> \n> > (5) A determination can be expressed to take effect on a date that is earlier than the date of the determination.\n> \n> > (6) The Chief Commissioner may by order in writing revoke a determination that applies in respect of a person if satisfied that the circumstances in which a determination may be made do not apply to the person.\n> \n> > (7) The revocation of a determination can be expressed to take effect on a date that is earlier than the date of the determination.\n> \n> > (8) This section does not apply to a person who is a member of a group to which section 74A applies.\n> \n> **s 79:** Am 2023 No 18, Sch 5\\[2\\].","sortOrder":122},{"sectionNumber":"80","sectionType":"section","heading":"Designated group employers","content":"#### 80 Designated group employers\n\n80 Designated group employers\n\n> > (1) The members of a group may, with the approval of the Chief Commissioner, designate a qualified member of the group to be the designated group employer for the group for the purposes of this Act.\n> \n> > (2) A member of a group is a qualified member if the member—\n> > \n> > > (a) has paid during the preceding financial year wages that exceeded the threshold amount for that financial year (within the meaning of Schedule 1), or\n> > \n> > > (b) is likely to pay during the current financial year wages that are likely to exceed that amount.\n> \n> > (3) If none of the members of a group is a qualified member but the members together—\n> > \n> > > (a) have paid during the preceding financial year wages that exceeded the threshold amount for that financial year (within the meaning of Schedule 1), or\n> > \n> > > (b) are, in the opinion of the Chief Commissioner, likely to pay during the current financial year wages that will exceed that amount,\n> > \n> > the members may, with the approval of the Chief Commissioner, designate any member of the group to be the designated group employer for the group for the purposes of this Act.\n> \n> > (4) If the members of a group do not designate a member as the designated group employer within 7 days after the end of the month in which the group is established, the Chief Commissioner may (but is not obliged to) designate any member of the group as the designated group employer.\n> \n> > (5) The designated group employer of a group stops being the designated group employer from and including the earlier of the following days—\n> > \n> > > (a) the first day of a return period during which there is a change in the membership of the group,\n> > \n> > > (b) the first day of a return period during which the members of the group revoke the designation.\n> \n> > (6) The designation of a designated group employer under subsection (1) or (3) must be by notice in writing.\n> \n> > (7) Such a notice must—\n> > \n> > > (a) be executed by or on behalf of each member of the group, and\n> > \n> > > (b) be served on the Chief Commissioner.\n> \n> **s 80:** Am 2009 No 51, Sch 7.4 \\[1\\].","sortOrder":123},{"sectionNumber":"81","sectionType":"section","heading":"Joint and several liability","content":"#### 81 Joint and several liability\n\n81 Joint and several liability\n\n> > (1) If a member of a group fails to pay an amount that the member is required to pay under this Act in respect of any period, every member of the group is liable jointly and severally to pay that amount to the Chief Commissioner.\n> \n> > (2) If 2 or more persons are jointly or severally liable to pay an amount under this section, the Chief Commissioner may recover the whole of the amount from them, or any of them, or any one of them.\n> \n> > (3) If, under this section, 2 or more persons are jointly and severally liable to pay an amount that is payable by any one of them, each person is also jointly and severally liable to pay—\n> > \n> > > (a) any amount payable to the Chief Commissioner under this or any other Act in relation to that amount, including any interest and penalty tax, and\n> > \n> > > (b) any costs and expenses incurred in relation to the recovery of that amount that the Chief Commissioner is entitled to recover from any such person.\n> \n> > (4) A person who pays an amount in accordance with the liability imposed by this section has such rights of contribution or indemnity from the other person or persons as are just.\n> \n> > (5) This section applies whether or not the person was an employer during the relevant period.\n> \n> > (6) Each member of a group constituted under section 74A is liable jointly and severally for an amount payable under the Act by the former entity, within the meaning of that section, even if the amount became payable by the former entity before the group was constituted.\n> \n> > (7) A reference in subsection (6) to amount payable by a former entity includes an amount that would have been payable by the former entity if the former entity had not executed a deed of company arrangement as referred to in section 74A(5), definition of former entity, paragraph (a).\n> \n> **s 81:** Am 2023 No 18, Sch 5\\[3\\]; 2024 No 90, Sch 6\\[2\\] \\[3\\].","sortOrder":124},{"sectionNumber":"Part 6","sectionType":"part","heading":"Adjustments of tax","content":"# Part 6 Adjustments of tax\n\nPart 6 Adjustments of tax","sortOrder":125},{"sectionNumber":"82","sectionType":"section","heading":"Determination of correct amount of payroll tax","content":"#### 82 Determination of correct amount of payroll tax\n\n82 Determination of correct amount of payroll tax\n\n> > (1) For the purposes of this Part, the correct amount of payroll tax payable by an employer in respect of a financial year is the amount determined in accordance with Schedule 1 in respect of that financial year.\n> \n> > (2) This Part applies in respect of payroll tax paid or payable whether as a group employer or as an individual employer.\n> \n> > (3) If an employer is liable for payroll tax both as an individual employer and as a group employer (for different periods in the same financial year) separate adjustments are to be made under this Part in respect of any period as a group employer and any period as an individual employer (and for that purpose separate determinations of the correct amount of payroll tax payable by the employer are to be made).\n> \n> > (4) In this Part—\n> > \n> > group employer means an employer who is a member of a group.\n> > \n> > individual employer means an employer who is not a member of a group.","sortOrder":126},{"sectionNumber":"83","sectionType":"section","heading":"Annual adjustment of payroll tax","content":"#### 83 Annual adjustment of payroll tax\n\n83 Annual adjustment of payroll tax\n\n> > (1) If the amount of payroll tax paid or payable by an employer when the employer made the returns relating to a financial year is greater than the correct amount of payroll tax payable by the employer in respect of the financial year, the Chief Commissioner (on application by the employer) is to refund to that employer an amount equal to the difference.\n> \n> > (2) If the amount of payroll tax paid or payable by an employer when the employer made the returns relating to a financial year is less than the correct amount of payroll tax payable by the employer in respect of the financial year, the employer must pay to the Chief Commissioner as payroll tax an amount equal to the difference.\n> \n> > (3) Any amount payable by an employer under this section in respect of a financial year must be paid within the period during which the employer is required to lodge a return under this Act in respect of the return period that is or includes the month of June in that financial year.\n> \n> > (4) The amount of any refund payable to an employer in respect of a financial year under this section is to be reduced by the amount of any other refund of payroll tax made in respect of that financial year to that employer (whether under this section or otherwise) before the time of the refund under this section.","sortOrder":127},{"sectionNumber":"84","sectionType":"section","heading":"Adjustment of payroll tax when employer changes circumstances","content":"#### 84 Adjustment of payroll tax when employer changes circumstances\n\n84 Adjustment of payroll tax when employer changes circumstances\n\n> > (1) If an employer changes their circumstances during a financial year, the employer must, if the amount of payroll tax paid or payable by the employer when the employer made returns relating to the relevant period prior to the change of circumstances is less than the correct amount of payroll tax payable by the employer in respect of the financial year, pay to the Chief Commissioner as payroll tax an amount equal to the difference.\n> \n> > (2) A change of circumstances occurs when the employer—\n> > \n> > > (a) ceases to pay or be liable to pay taxable wages and interstate wages, or\n> > \n> > > (b) becomes a group employer (following a period as an individual employer), or\n> > \n> > > (c) ceases to be a group employer (and becomes an individual employer).\n> \n> > (3) The relevant period prior to a change of circumstances is the period prior to the change (during the financial year concerned and since any prior change of circumstances) for which the employer paid or was liable to pay taxable wages or interstate wages.\n> \n> > (4) In calculating for the purposes of this section the correct amount of payroll tax payable by the employer, it is to be assumed that the wages paid or payable by the employer during the relevant period are the only wages paid or payable by the employer during the financial year concerned.\n> \n> > (5) Any amount payable by an employer under this section in respect of a relevant period must be paid within the period during which the employer is required to lodge a return under this Act relating to that relevant period or the last return under this Act relating to the relevant period.\n> \n> > (6) Any payroll tax paid or payable by an employer under this section is to be included as payroll tax paid or payable by the employer for the purposes of the annual adjustment of payroll tax under this Part.\n> \n> Note.\n> \n> If an employer ceases to be a group employer during a financial year an adjustment will be made under this section. If later in that financial year the employer ceases to pay wages there will be a further adjustment under this section. The first adjustment will adjust payroll tax paid for the period as a group employer against the correct amount of tax that should have been paid (based on the assumption that the period as a group employer is the only period for which the employer paid wages throughout the year). The second adjustment will adjust payroll tax paid for the period as an individual employer against the correct amount of tax that should have been paid (based on the assumption that the period as an individual employer is the only period for which the employer paid wages throughout the year). Any amount of payroll tax paid under this section is taken into account for the purposes of the annual adjustment of payroll tax.","sortOrder":128},{"sectionNumber":"85","sectionType":"section","heading":"Special provision where wages fluctuate","content":"#### 85 Special provision where wages fluctuate\n\n85 Special provision where wages fluctuate\n\n> If a person who did not pay and was not liable to pay taxable wages or interstate wages for any part of a financial year satisfies the Chief Commissioner that, by reason of the nature of the person’s trade or business, the taxable wages and interstate wages, if any, paid or payable by the person fluctuate with different periods of the financial year, the Chief Commissioner may determine that the person is to be treated for the purposes of this Part—\n> \n> > (a) if the person has conducted that trade or business in Australia during the whole of the financial year—as an employer who pays or is liable to pay taxable wages throughout the financial year, or\n> \n> > (b) if the person has conducted that trade or business in Australia during part only of the financial year—as an employer who pays or is liable to pay taxable wages throughout that last-mentioned part of the financial year.\n> \n> Note.\n> \n> The effect of such a determination is that when the correct amount of payroll tax is calculated (for the purposes of a tax adjustment provided for by this Part) the employer may receive the benefit of the payroll tax threshold for the period for which the employer is to be treated as paying wages, and not just for the period for which the employer actually pays wages. Without such a determination, an employer may only receive the benefit of a proportion of the threshold amount that is equivalent to the proportion of the whole financial year for which the employer actually pays wages.","sortOrder":129},{"sectionNumber":"Part 7","sectionType":"part","heading":"Registration and returns","content":"# Part 7 Registration and returns\n\nPart 7 Registration and returns","sortOrder":130},{"sectionNumber":"86","sectionType":"section","heading":"Registration","content":"#### 86 Registration\n\n86 Registration\n\n> > (1) An employer who is not already registered must apply for registration as an employer under this Act if—\n> > \n> > > (a) during a month in a financial year the employer pays or is liable to pay, anywhere, wages of more than the weekly threshold amount per week that are wholly or partly taxable wages, or\n> > \n> > > (b) the employer is a member of a group the members of which together during a month in a financial year pay or are liable to pay, anywhere, wages of more than the weekly threshold amount per week that are wholly or partly taxable wages,\n> > \n> > with the weekly threshold amount calculated in accordance with the following formula (disregarding any amount in cents)—\n> > \n> > ![](/image/((Type%3D%22act%22)%20AND%20(No%3D021)%20AND%20(Year%3D2007)%20AND%20(%22Historical%20Document%22%3D0))/g10.gif)  \n> > where—\n> > \n> > N is the number of days in the financial year.\n> > \n> > TA is the threshold amount for the financial year as provided by Schedule 1.\n> \n> > (2) The application for registration is to be made to the Chief Commissioner in a form and manner approved by the Chief Commissioner within 7 days after the end of the month concerned.\n> \n> > (3) The Chief Commissioner is to register the applicant as an employer under this Act.\n> \n> > (4) The Chief Commissioner may cancel the registration of a person as an employer if satisfied that the person has ceased to pay or to have a liability to pay wages as described in subsection (1).\n> \n> > (5) If the Chief Commissioner cancels the registration of a person as an employer in any financial year and that person subsequently pays or is liable to pay taxable wages during that financial year the person may, despite the fact that the person is not required to apply for registration, apply to the Chief Commissioner (in a form and manner approved by the Chief Commissioner) for registration as an employer, and the Chief Commissioner is then to register the person as an employer under this Act.\n> \n> **s 86:** Am 2008 No 48, Sch 2 \\[1\\].","sortOrder":131},{"sectionNumber":"87","sectionType":"section","heading":"Returns","content":"#### 87 Returns\n\n87 Returns\n\n> > (1) Every employer who is registered or required to apply for registration as an employer under this Act must—\n> > \n> > > (a) within 7 days after the end of each month except June, lodge with the Chief Commissioner a return relating to that month, and\n> > \n> > > (b) within 28 days after the end of June in each year, lodge with the Chief Commissioner a return relating to that month and to the adjustment of payroll tax paid or payable by the employer during the financial year ending on the close of that month.\n> \n> > (2) The designated group employer for a group may, with the approval of the Chief Commissioner, lodge a joint return for the purposes of this section covering specified members of the group (including the designated group employer).\n> \n> > (3) If a joint return is lodged and the return would, if lodged by a single employer, comply with this section, each of the employers covered by the return is taken to have complied with this section.\n> \n> **s 87:** Am 2019 No 8, Sch 3 \\[2\\].","sortOrder":132},{"sectionNumber":"Part 8","sectionType":"part","heading":"Collection and recovery of tax","content":"# Part 8 Collection and recovery of tax\n\nPart 8 Collection and recovery of tax","sortOrder":133},{"sectionNumber":"88","sectionType":"section","heading":"Application","content":"#### 88 Application\n\n88 Application\n\n> > (1) This Division applies to an agent of or trustee for an employer.\n> \n> > (2) Nothing in this Division limits or otherwise affects the application of Part 5 to an agent or trustee, or 2 or more persons one or more of whom is an agent or trustee.","sortOrder":135},{"sectionNumber":"89","sectionType":"section","heading":"Agents and trustees are answerable","content":"#### 89 Agents and trustees are answerable\n\n89 Agents and trustees are answerable\n\n> An agent or trustee is answerable as the employer for the doing of all things that are required to be done by or under this Act in respect of the payment of any wages which are subject to payroll tax under this Act.","sortOrder":136},{"sectionNumber":"90","sectionType":"section","heading":"Returns by agent or trustee","content":"#### 90 Returns by agent or trustee\n\n90 Returns by agent or trustee\n\n> > (1) An agent or trustee must, in respect of the wages referred to in section 89, make the returns required under Part 7, but in a representative capacity only, and each return must, except as otherwise provided by this Act, be separate and distinct from any other.\n> \n> > (2) In the case of an executor or administrator, the returns must be the same as far as practicable as the deceased person, if living, would have been liable to make.","sortOrder":137},{"sectionNumber":"91","sectionType":"section","heading":"Liability to pay tax","content":"#### 91 Liability to pay tax\n\n91 Liability to pay tax\n\n> > (1) An agent or trustee is personally liable for tax on the wages referred to in section 89 if—\n> > \n> > > (a) after the Chief Commissioner has required the agent or trustee to make a return, or\n> > \n> > > (b) while the tax remains unpaid,\n> > \n> > the agent or trustee, except with the written permission of the Chief Commissioner, disposes of or parts with any fund or money which comes to the agent or trustee from or out of which tax could legally be paid.\n> \n> > (2) Otherwise than as provided in subsection (1), the agent or trustee is not personally liable to pay the tax in a representative capacity.\n> \n> > (3) The agent or trustee must retain from time to time out of any money which comes to the agent or trustee in a representative capacity enough to pay the tax.\n> \n> > (4) For the purpose of ensuring the payment of tax, the Chief Commissioner has the same remedies against attachable property of any kind vested in or under the control or management or in the possession of the agent or trustee, as the Chief Commissioner has against the property of any other person in respect of tax, and in as full and ample a manner.","sortOrder":138},{"sectionNumber":"92","sectionType":"section","heading":"Indemnity for agent or trustee","content":"#### 92 Indemnity for agent or trustee\n\n92 Indemnity for agent or trustee\n\n> > (1) An agent or trustee is indemnified for all payments that the agent or trustee makes under this Act or in accordance with the requirements of the Chief Commissioner.\n> \n> > (2) An agent or trustee who pays tax as agent or trustee may recover the amount paid from the person on whose behalf it was paid, or deduct it from any money in the agent’s or trustee’s hands belonging to that person.","sortOrder":139},{"sectionNumber":"93","sectionType":"section","heading":"Tax not paid during lifetime","content":"#### 93 Tax not paid during lifetime\n\n93 Tax not paid during lifetime\n\n> > (1) This section applies if, whether intentionally or not, a person escapes full payment of tax in his or her lifetime by reason of not having duly made full, complete and accurate returns.\n> \n> > (2) The Chief Commissioner has the same powers and remedies against the trustees of the estate of the person in respect of the liability to which the person was subject as the Chief Commissioner would have had against the person if the person were still living.\n> \n> > (3) The trustees must lodge the returns under this Act that the Chief Commissioner requires.\n> \n> > (4) The trustees are subject to tax to the same extent as the deceased person would be subject to tax if he or she were still living, but the Chief Commissioner, in any circumstances the Chief Commissioner considers appropriate, may remit tax payable by the trustees under this section by any amount.\n> \n> > (5) The amount of any tax payable by the trustees is a charge on all the deceased person’s estate in their hands in priority to all other encumbrances.","sortOrder":141},{"sectionNumber":"94","sectionType":"section","heading":"Payment of tax by executors or administrators","content":"#### 94 Payment of tax by executors or administrators\n\n94 Payment of tax by executors or administrators\n\n> > (1) If, at the time of an employer’s death, he or she had not paid the whole of the tax payable up to the date of death, the Chief Commissioner has the same powers and remedies for the assessment and recovery of tax from the executors and administrators as the Chief Commissioner would have had against the employer, if the employer were alive.\n> \n> > (2) The executors or administrators must lodge any of the returns referred to in Part 7 that have not been lodged by the deceased.","sortOrder":142},{"sectionNumber":"95","sectionType":"section","heading":"Assessment if no probate within 6 months of death","content":"#### 95 Assessment if no probate within 6 months of death\n\n95 Assessment if no probate within 6 months of death\n\n> > (1) If, in respect of the estate of any deceased employer, probate has not been granted or letters of administration have not been taken out within 6 months after the death, the Chief Commissioner may make an assessment under section 8 of the [Taxation Administration Act 1996](/view/html/inforce/current/act-1996-097) of the tax liability of the deceased under this Act.\n> \n> > (2) The Chief Commissioner must cause notice of the assessment to be published twice in a daily newspaper circulating in the State or Territory in which the deceased resided.\n> \n> > (3) Any person claiming an interest in the estate of the deceased may, within 60 days after the first publication of notice of the assessment, lodge an objection with the Chief Commissioner in accordance with Division 1 of Part 10 of the [Taxation Administration Act 1996](/view/html/inforce/current/act-1996-097).\n> \n> > (4) Subject to any amendment of the assessment by the Chief Commissioner or by the Supreme Court, the assessment so made is conclusive evidence of the indebtedness of the deceased to the Chief Commissioner.\n> \n> > (5) However, if probate of the will or letters of administration of the estate of the deceased is or are granted to a person after the assessment is first published, that person may, within 60 days after the date of the grant, lodge an objection in accordance with Division 1 of Part 10 of the [Taxation Administration Act 1996](/view/html/inforce/current/act-1996-097).","sortOrder":143},{"sectionNumber":"96","sectionType":"section","heading":"Person in receipt or control of money for absentee","content":"#### 96 Person in receipt or control of money for absentee\n\n96 Person in receipt or control of money for absentee\n\n> > (1) This section applies to a person (the controller) who has the receipt, control or disposal of money belonging to a person resident out of Australia (the principal) if the principal is liable to pay tax under this Act.\n> \n> > (2) The controller must pay the tax payable by the principal at the time, or within the period, specified by the Chief Commissioner.\n> \n> > (3) A controller who pays tax in accordance with subsection (2) may recover the amount paid from the principal or deduct it from any money in the controller’s hands belonging to the principal.\n> \n> > (4) A controller must from time to time retain out of any money which comes to the controller on behalf of the principal so much as is sufficient to pay the tax which is or will become due by the principal.\n> \n> > (5) A controller is personally liable for the tax payable by the controller on behalf of the principal if—\n> > \n> > > (a) after the tax becomes payable, or\n> > \n> > > (b) after the Chief Commissioner has required the controller to pay the tax,\n> > \n> > the controller, except with the written permission of the Chief Commissioner, disposes of or parts with any fund or money then in the controller’s possession, or which comes to the controller from or out of which the tax could legally be paid.\n> \n> > (6) Otherwise than as provided in subsection (5), a controller is not personally liable to pay the tax payable by the principal.\n> \n> > (7) A controller is indemnified for all payments which the controller makes under this Act or in accordance with the requirements of the Chief Commissioner.","sortOrder":144},{"sectionNumber":"97","sectionType":"section","heading":"Agent for absentee principal winding-up business","content":"#### 97 Agent for absentee principal winding-up business\n\n97 Agent for absentee principal winding-up business\n\n> > (1) If an agent for an absentee principal has been required by the principal to wind-up the principal’s business, the agent must notify the Chief Commissioner of the intention to wind-up the business before taking any steps to wind it up.\n> > \n> > Maximum penalty—5 penalty units.\n> \n> > (2) After receiving notice under subsection (1), the Chief Commissioner may notify the agent in writing of—\n> > \n> > > (a) the amount (if any) of payroll tax for which the principal is liable, and\n> > \n> > > (b) the date (at least 21 days after the notice is given) by which the tax must be paid.\n> \n> > (3) An agent who is given notice under subsection (2) must—\n> > \n> > > (a) set aside an amount out of the assets of the principal’s business that is sufficient to pay the tax, and\n> > \n> > > (b) pay the tax to the Chief Commissioner by the date specified in the notice.\n> > \n> > Maximum penalty—5 penalty units.\n> \n> > (4) If an agent contravenes this section, the agent is personally liable for any tax that becomes payable in respect of the principal’s business.","sortOrder":145},{"sectionNumber":"98","sectionType":"section","heading":"Recovery of tax paid on behalf of another person","content":"#### 98 Recovery of tax paid on behalf of another person\n\n98 Recovery of tax paid on behalf of another person\n\n> A person who, under the provisions of this Act, pays any tax for or on behalf of another person is entitled to recover the amount so paid from the other person as a debt, together with the costs of recovery, or to retain or deduct that amount out of any money in the person’s hands belonging or payable to the other person.","sortOrder":146},{"sectionNumber":"99","sectionType":"section","heading":"Liquidator to give notice","content":"#### 99 Liquidator to give notice\n\n99 Liquidator to give notice\n\n> > (1) Within 14 days after becoming liquidator of a company that has been an employer registered or required to be registered under this Act, the liquidator must give the Chief Commissioner notice in writing of the liquidator’s appointment.\n> \n> > (2) As soon as practicable after receiving the notice, the Chief Commissioner must notify the liquidator of the amount that appears to the Chief Commissioner to be sufficient to provide for any tax which is or will become payable by the company.\n> \n> > (3) The liquidator—\n> > \n> > > (a) must not without leave of the Chief Commissioner part with any of the assets of the company until the liquidator has been so notified, and\n> > \n> > > (b) must set aside out of the assets available for the payment of the tax, assets to the value of the amount so notified, or the whole of the assets so available if they are of less than that value, and\n> > \n> > > (c) is, to the extent of the value of the assets which the liquidator is so required to set aside, liable as trustee to pay the tax.\n> \n> > (4) A liquidator must not fail—\n> > \n> > > (a) to comply with this section, or\n> > \n> > > (b) as trustee duly to pay the tax for which the liquidator is liable under subsection (3).\n> > \n> > Maximum penalty—50 penalty units.\n> \n> > (5) If a liquidator commits an offence against subsection (4), the liquidator is personally liable to pay the tax, to the extent of the value of the assets of which the liquidator has taken possession and which are, or were at any time, available to the liquidator for the payment of the tax.\n> \n> > (6) If more than one person is appointed as liquidator or required by law to carry out the winding-up of a company—\n> > \n> > > (a) the obligations and liabilities attaching to a liquidator under this section attach to each of those persons, and\n> > \n> > > (b) if any one of those persons has paid the tax due in respect of the company being wound-up, the others are each liable to pay that person that person’s equal share of the amount of the tax so paid.\n> \n> > (7) Despite anything in this section, all costs, charges and expenses that, in the Chief Commissioner’s opinion, have been properly incurred by a liquidator in the winding-up of a company, including the remuneration of the liquidator, may be paid out of the assets of the company in priority to any tax payable in respect of the company.\n> \n> > (8) Nothing in this section—\n> > \n> > > (a) limits the liability of a liquidator under section 91, or\n> > \n> > > (b) affects any of the provisions of the [Corporations Act 2001](http://www.legislation.gov.au/) of the Commonwealth.","sortOrder":147},{"sectionNumber":"99A","sectionType":"section","heading":"Temporary reduction for businesses with annual wages of $10 million or less for financial year 2019–2020","content":"#### 99A Temporary reduction for businesses with annual wages of $10 million or less for financial year 2019–2020\n\n99A Temporary reduction for businesses with annual wages of $10 million or less for financial year 2019–2020\n\n> > (1) An employer who is liable to pay payroll tax on wages paid or payable for the financial year commencing on 1 July 2019 is only required to pay 75% of that payroll tax if all Australian wages paid or payable by the employer are $10,000,000 or less.\n> \n> > (2) An employer who is part of a group is not eligible for the reduction referred to in subsection (1) unless the employer provides the Chief Commissioner with the following information—\n> > \n> > > (a) information about all other employers who are part of the group,\n> > \n> > > (b) the amount of taxable wages and interstate wages paid or payable by each of those employers for the financial year commencing on 1 July 2019.\n> \n> > (3) For the avoidance of doubt, an employer does not cease to be eligible for the reduction referred to in subsection (1) merely because the employer ceased paying wages before the commencement of this section.\n> \n> > (4) In this section—\n> > \n> > all Australian wages paid or payable by an employer means the sum of the following—\n> > \n> > > (a) all taxable wages paid or payable by the employer,\n> > \n> > > (b) all interstate wages paid or payable by the employer,\n> > \n> > > (c) all taxable wages and interstate wages paid or payable by all members of the group that the employer is part of.\n> \n> **s 99A:** Ins 2020 No 2, Sch 1.2\\[1\\]. Am 2021 No 29, Sch 1\\[1\\].","sortOrder":148},{"sectionNumber":"99B","sectionType":"section","heading":"Temporary reduction for businesses with annual wages of $10 million or less for financial year 2021–2022","content":"#### 99B Temporary reduction for businesses with annual wages of $10 million or less for financial year 2021–2022\n\n99B Temporary reduction for businesses with annual wages of $10 million or less for financial year 2021–2022\n\n> > (1) An employer who is liable to pay payroll tax on wages paid or payable for the financial year commencing on 1 July 2021 is only required to pay 50% of that payroll tax if—\n> > \n> > > (a) all Australian wages paid or payable by the employer are $10,000,000 or less, and\n> > \n> > > (b) the employer—\n> > > \n> > > > (i) qualified for the 2021 COVID-19 JobSaver Payment scheme or the 2021 COVID-19 Business Grant scheme administered by Service NSW, or\n> > > \n> > > > (ii) met the 30% or greater decline in turnover eligibility test for either of the schemes, whether or not the employer has applied for a payment or grant, or met other eligibility criteria for a payment or grant, under the schemes.\n> \n> > (2) An employer who is part of a group is not eligible for the reduction referred to in subsection (1) unless the employer provides the Chief Commissioner with the following information—\n> > \n> > > (a) information about all other employers who are part of the group,\n> > \n> > > (b) the amount of taxable wages and interstate wages paid or payable by each of those employers for the financial year commencing on 1 July 2021.\n> \n> > (3) To avoid doubt, an employer does not cease to be eligible for the reduction referred to in subsection (1) merely because the employer ceased paying wages before the commencement of this section.\n> \n> > (4) The Chief Executive Officer of Service NSW is entitled to disclose, and the Chief Commissioner is entitled to receive, and to use in relation to the administration of a taxation law, information contained in, or relating to, an employer’s application for a 2021 COVID-19 JobSaver Payment or a 2021 COVID-19 Business Grant.\n> \n> > (5) In this section—\n> > \n> > all Australian wages paid or payable by an employer means the sum of the following—\n> > \n> > > (a) all taxable wages paid or payable by the employer,\n> > \n> > > (b) all interstate wages paid or payable by the employer,\n> > \n> > > (c) all taxable wages and interstate wages paid or payable by all members of the group that the employer is part of.\n> \n> **s 99B:** Ins 2021 No 29, Sch 1\\[2\\].","sortOrder":149},{"sectionNumber":"Part 9","sectionType":"part","heading":"General","content":"# Part 9 General\n\nPart 9 General","sortOrder":150},{"sectionNumber":"100","sectionType":"section","heading":"Provisions specific to this jurisdiction","content":"#### 100 Provisions specific to this jurisdiction\n\n100 Provisions specific to this jurisdiction\n\n> Schedule 2, which contains provisions that are applicable only to this jurisdiction, has effect.","sortOrder":151},{"sectionNumber":"101","sectionType":"section","heading":"Regulations","content":"#### 101 Regulations\n\n101 Regulations\n\n> > (1) The Governor may make regulations, not inconsistent with this Act, for or with respect to any matter that by this Act is required or permitted to be prescribed or that is necessary or convenient to be prescribed for carrying out or giving effect to this Act.\n> \n> > (2) In particular, the Governor may make regulations for or with respect to the following—\n> > \n> > > (a) the manner of making any application to the Chief Commissioner under this Act,\n> > \n> > > (b) the evidence that the Chief Commissioner may require for the purpose of determining whether or not—\n> > > \n> > > > (i) an employer was an employer for part only of a financial year, or\n> > > \n> > > > (ii) a person was a member of a group at any time or during any period,\n> > \n> > > (c) the signing of returns, applications, notices, statements or forms by or on behalf of employers and deeming any return, application, notice, statement or form signed on behalf of an employer to have been signed by the employer,\n> > \n> > > (d) the authentication of any certificate, notice or other document issued for the purpose of this Act or any regulation.\n> \n> > (3) A regulation may create an offence punishable by a penalty not exceeding 20 penalty units.","sortOrder":152},{"sectionNumber":"102","sectionType":"section","heading":"Nature of proceedings for offences","content":"#### 102 Nature of proceedings for offences\n\n102 Nature of proceedings for offences\n\n> Proceedings for an offence under this Act or the regulations may be dealt with summarily before the Local Court.\n> \n> **s 102:** Am 2007 No 94, Sch 2.","sortOrder":153},{"sectionNumber":"103","sectionType":"section","heading":"Savings, transitional and other provisions","content":"#### 103 Savings, transitional and other provisions\n\n103 Savings, transitional and other provisions\n\n> Schedule 3 has effect.","sortOrder":154},{"sectionNumber":"104","sectionType":"section","heading":"Repeal","content":"#### 104 Repeal\n\n104 Repeal\n\n> The [Pay-roll Tax Act 1971](/view/html/repealed/current/act-1971-022) is repealed.","sortOrder":155},{"sectionNumber":"105","sectionType":"section","heading":null,"content":"#### 105\n\n105 (Repealed)","sortOrder":156},{"sectionNumber":"106","sectionType":"section","heading":"Review of Act","content":"#### 106 Review of Act\n\n106 Review of Act\n\n> > (1) The Minister is to review this Act to determine whether the policy objectives of the Act remain valid and whether the terms of the Act remain appropriate for securing those objectives.\n> \n> > (2) The review is to be undertaken as soon as possible after the period of 5 years from the date of assent to this Act.\n> \n> > (3) A report on the outcome of the review is to be tabled in each House of Parliament within 12 months after the end of the period of 5 years.","sortOrder":158},{"sectionNumber":"Schedule 1","sectionType":"schedule","heading":"Calculation of payroll tax liability for financial year commencing 1 July 2007 and subsequent financial years","content":"# Schedule 1 Calculation of payroll tax liability for financial year commencing 1 July 2007 and subsequent financial years\n\nSchedule 1 Calculation of payroll tax liability for financial year commencing 1 July 2007 and subsequent financial years\n\n(Sections 8, 82)\n\n**sch 1:** Am 2008 No 48, Sch 2 \\[2\\]–\\[4\\]; 2008 No 62, Sch 1.21; 2008 No 67, Sch 5 \\[4\\] \\[5\\]; 2010 No 46, Sch 8 \\[2\\]; 2013 No 50, Sch 4 \\[1\\]–\\[4\\]; 2018 No 39, Sch 2; 2020 No 2, Sch 1.2\\[2\\]; 2020 No 43, cl 3(1) (2).","sortOrder":159},{"sectionNumber":"1A","sectionType":"section","heading":"Indexation of threshold amount (financial years 2008–2012)","content":"#### 1A Indexation of threshold amount (financial years 2008–2012)\n\n1A Indexation of threshold amount (financial years 2008–2012)\n\n> > (1) This clause applies to the determination of the threshold amount for the financial year commencing on 1 July 2008 and subsequent financial years up to and including the financial year commencing on 1 July 2012.\n> \n> > (2) The threshold amount for a financial year is to be determined by multiplying $600,000 by A/B, where—\n> > \n> > A is the Sydney CPI number for March in the financial year before the financial year for which the threshold amount is to be determined, and\n> > \n> > B is the Sydney CPI number for March 2007, and\n> > \n> > A/B is calculated to 3 decimal places.\n> \n> > (3) If the threshold amount for a financial year determined in accordance with subclause (2) would be an amount that is less than the threshold amount for the previous financial year, the threshold amount for the financial year is to be determined to be the same as the threshold amount for that previous financial year.\n> \n> > (4) If the threshold amount determined under this clause for a financial year is not a multiple of $1,000, the amount is to be rounded to the nearest $1,000 (with an amount of $500 to be rounded down).\n> \n> > (5) The Chief Commissioner is to publish a notice in the Gazette before the start of each financial year (starting with the financial year commencing on 1 July 2009 and ending with the financial year commencing on 1 July 2012) specifying the threshold amount determined under this clause for the financial year.\n> > \n> > Note.\n> > \n> > The threshold amount for the 2008 financial year determined under this clause is $623,000.\n> \n> > (6) In this clause—\n> > \n> > Sydney CPI number means the Consumer Price Index (All Groups Index) for Sydney issued by the Australian Statistician.","sortOrder":162},{"sectionNumber":"Schedule 2","sectionType":"schedule","heading":"NSW specific provisions","content":"# Schedule 2 NSW specific provisions\n\nSchedule 2 NSW specific provisions\n\n(Sections 8, 100)\n\n**sch 2:** Am 2008 No 48, Sch 2 \\[5\\]; 2009 No 51, Sch 7.4 \\[2\\]; 2010 No 46, Sch 8 \\[3\\] \\[4\\]; 2010 No 97, Sch 2.24; 2011 No 4, Sch 2.27; 2012 No 20, Sch 3 \\[2\\]; 2012 No 97, Sch 1.30; 2016 No 14, Sch 4 \\[4\\]–\\[8\\]; 2016 No 27, Sch 5.6; 2017 No 11, Sch 3 \\[6\\] \\[7\\]; 2018 No 11, Sch 3.11; 2018 No 70, Sch 4.80; 2019 No 8, Sch 3 \\[3\\]–\\[5\\]; 2022 No 59, Sch 1.28\\[2\\]; 2024 No 38, Sch 5\\[1\\]; 2024 No 90, Sch 6\\[4\\]–\\[6\\]; 2025 No 48, Sch 4.8.","sortOrder":184},{"sectionNumber":"3A","sectionType":"section","heading":"Special provision for financial years 2008–2010","content":"#### 3A Special provision for financial years 2008–2010\n\n3A Special provision for financial years 2008–2010\n\n> For payroll tax payable in relation to a financial year commencing on 1 July 2008, 2009 or 2010—\n> \n> > (a) the amount of payroll tax that an employer is required to pay is to be ascertained in accordance with Schedule 2A rather than Schedule 1, and\n> \n> > (b) clauses 2 and 3 do not apply to the calculation of that payroll tax, and\n> \n> > (c) a reference in section 82 (Determination of correct amount of payroll tax) to Schedule 1 is to be read as a reference to Schedule 2A.","sortOrder":193},{"sectionNumber":"3B","sectionType":"section","heading":"Application of Division","content":"#### 3B Application of Division\n\n3B Application of Division\n\n> > (1) An employer who is an eligible existing taxpayer or an eligible new taxpayer may opt to make payments of estimated payroll tax in respect of any month in a financial year (other than the month of June) as an alternative to making payments of tax based on wages paid or payable in the month.\n> \n> > (2) The amount that the eligible existing taxpayer or eligible new taxpayer is required to pay as payroll tax in respect of the month is to be ascertained in accordance with this Division.\n> \n> > (3) This Division does not affect the determination of the correct amount of payroll tax or the adjustment of payroll tax under Part 6 of this Act.","sortOrder":195},{"sectionNumber":"3C","sectionType":"section","heading":"Eligible taxpayers","content":"#### 3C Eligible taxpayers\n\n3C Eligible taxpayers\n\n> > (1) An employer is an eligible existing taxpayer if—\n> > \n> > > (a) payroll tax was payable by the employer in respect of the whole of the previous financial year, and the amount of the payroll tax payable was less than $150,000, or\n> > \n> > > (b) payroll tax was payable by the employer in respect of part only of the previous financial year, and the amount of payroll tax that would have been payable by the employer for the whole of the financial year (ascertained in accordance with Division 1) is less than $150,000.\n> \n> > (2) An employer is an eligible new taxpayer if—\n> > \n> > > (a) the employer has not paid and is not liable to pay payroll tax in respect of the previous financial year, and\n> > \n> > > (b) the employer has lodged returns in respect of at least 3 separate months in the current financial year (other than the month of June), and\n> > \n> > > (c) the amount of payroll tax that would be payable by the employer for the whole of the financial year (ascertained in accordance with Division 1) is less than $150,000.","sortOrder":196},{"sectionNumber":"3D","sectionType":"section","heading":"Calculation of estimated monthly payroll tax","content":"#### 3D Calculation of estimated monthly payroll tax\n\n3D Calculation of estimated monthly payroll tax\n\n> > (1) The amount of payroll tax that an eligible existing taxpayer is required to pay in relation to a return of wages in respect of a month (other than the month of June) in a financial year is the amount of dollars calculated in accordance with the formula—\n> > \n> > ![](/image/((Type%3D%22act%22)%20AND%20(No%3D021)%20AND%20(Year%3D2007)%20AND%20(%22Historical%20Document%22%3D0))/g21.gif)\n> > \n> > ME (existing) is the amount of tax required to be paid by the eligible existing taxpayer.\n> > \n> > T is the total amount of payroll tax paid or payable by the eligible existing taxpayer in respect of the previous financial year.\n> > \n> > R is 0.03 or any other amount determined in respect of the financial year by the Chief Commissioner by notice published in the Gazette before 21 May in the preceding financial year.\n> > \n> > D is the total number of days to which the returns lodged by the eligible existing taxpayer in the previous financial year relate.\n> > \n> > where—\n> \n> > (2) The amount of payroll tax that an eligible new taxpayer is required to pay in relation to a return of wages in respect of a month (other than the month of June) in a financial year is the amount of dollars calculated in accordance with the formula—\n> > \n> > ![](/image/((Type%3D%22act%22)%20AND%20(No%3D021)%20AND%20(Year%3D2007)%20AND%20(%22Historical%20Document%22%3D0))/g22.gif)\n> > \n> > ME (new) is the amount of tax required to be paid by the eligible new taxpayer.\n> > \n> > T is the total amount of payroll tax paid or payable by the eligible new taxpayer in respect of the periods to which the returns lodged by the eligible new taxpayer in the current financial year relate.\n> > \n> > D is the total number of days to which the returns lodged by the eligible new taxpayer in the current financial year (inclusive of the first 3 returns, and any subsequent returns, lodged by the eligible new taxpayer in that year) relate.\n> > \n> > where—","sortOrder":197},{"sectionNumber":"Division 2A","sectionType":"division","heading":"General practitioners in medical centres","content":"## Division 2A General practitioners in medical centres\n\nDivision 2A General practitioners in medical centres","sortOrder":208},{"sectionNumber":"10A","sectionType":"section","heading":"Definitions","content":"#### 10A Definitions\n\n10A Definitions\n\n> In this division—\n> \n> bulk billing arrangement, for general practitioner services, means an arrangement where—\n> \n> > (a) the person responsible for paying for the services assigns the person’s right to a Medicare benefit for the service to the general practitioner who provided the service, and\n> \n> > (b) the general practitioner accepts the Medicare benefit as full payment for the service.\n> \n> general practitioner means a medical practitioner who is registered under the [Health Practitioner Regulation National Law (NSW)](/view/html/inforce/current/act-2009-86a) in the specialty of general practice.\n> \n> general practitioner services means professional services provided by a general practitioner.\n> \n> medical centre means premises, other than a private health facility, used to provide general practitioner services at the premises or remotely—\n> \n> > (a) by telephone, or\n> \n> > (b) using other technology that enables audio, or audio and visual, communication between persons at different places.\n> \n> Metropolitan Sydney has the meaning given by the regulations.\n> \n> practice arrangement has the same meaning as in the [Health Practitioner Regulation National Law (NSW)](/view/html/inforce/current/act-2009-86a).\n> \n> prescribed billing arrangements, for general practitioner services, means either or both of the following—\n> \n> > (a) bulk billing arrangements for the services,\n> \n> > (b) veterans arrangements for the services.\n> \n> private health facility has the same meaning as in the [Private Health Facilities Act 2007](/view/html/inforce/current/act-2007-009).\n> \n> professional services means a professional service specified in the [Health Insurance Act 1973](http://www.legislation.gov.au/) of the Commonwealth, section 3, definition of professional service, paragraph (a).\n> \n> relevant contract has the same meaning as in this Act, Part 3, Division 7.\n> \n> relevant general practitioner wages—see clause 10B(1).\n> \n> veterans arrangement, for general practitioner services, means an arrangement—\n> \n> > (a) approved by the Chief Commissioner, and\n> \n> > (b) under which the general practitioner accepts as full payment for the services payment under one or more of the following Acts of the Commonwealth—\n> > \n> > > (i) the [Australian Participants in British Nuclear Tests and British Commonwealth Occupation Force (Treatment) Act 2006](http://www.legislation.gov.au/),\n> > \n> > > (ii) the [Military Rehabilitation and Compensation Act 2004](http://www.legislation.gov.au/),\n> > \n> > > (iii) the [Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988](http://www.legislation.gov.au/),\n> > \n> > > (iv) the [Treatment Benefits (Special Access) Act 2019](http://www.legislation.gov.au/),\n> > \n> > > (v) the [Veterans’ Entitlements Act 1986](http://www.legislation.gov.au/).","sortOrder":209},{"sectionNumber":"10B","sectionType":"section","heading":"Relevant general practitioner wages","content":"#### 10B Relevant general practitioner wages\n\n10B Relevant general practitioner wages\n\n> > (1) Wages are relevant general practitioner wages if—\n> > \n> > > (a) the wages are paid or payable to a general practitioner—\n> > > \n> > > > (i) under a relevant contract, and\n> > > \n> > > > (ii) for the provision of general practitioner services through a medical centre, and\n> > \n> > > (b) the relevant contract is part of a practice arrangement, and\n> > \n> > > (c) a relevant proportion of all the general practitioner services provided by general practitioners through the medical centre in the relevant financial year are provided under prescribed billing arrangements.\n> \n> > (2) The relevant proportion of general practitioner services that must be provided under prescribed billing arrangements is—\n> > \n> > > (a) for a medical centre in Metropolitan Sydney—at least 80%, or\n> > \n> > > (b) otherwise—at least 70%.","sortOrder":210},{"sectionNumber":"10C","sectionType":"section","heading":"Rebate for relevant general practitioner wages","content":"#### 10C Rebate for relevant general practitioner wages\n\n10C Rebate for relevant general practitioner wages\n\n> > (1) An employer is entitled to a rebate of payroll tax paid or payable for relevant general practitioner wages if the wages are paid or payable on or after 4 September 2024.\n> \n> > (2) The amount of the rebate for a financial year for an employer is the difference between—\n> > \n> > > (a) the payroll tax payable for the financial year by the employer when the relevant general practitioner wages are included, and\n> > \n> > > (b) the payroll tax that would be payable for the financial year by the employer if the relevant general practitioner wages were not included.\n> \n> > (3) The rebate may be given to the employer—\n> > \n> > > (a) as a refund, or\n> > \n> > > (b) as an offset against other payroll tax liabilities.\n> \n> > (4) Regulations may be made about rebates under this clause, including—\n> > \n> > > (a) specifying the time at which a rebate must be given, and\n> > \n> > > (b) the circumstances in which a rebate will be given as a refund or as an offset.","sortOrder":211},{"sectionNumber":"10D","sectionType":"section","heading":"Certain general practitioner wages exempt","content":"#### 10D Certain general practitioner wages exempt\n\n10D Certain general practitioner wages exempt\n\n> > (1) Relevant general practitioner wages paid or payable before 4 September 2024 are exempt unless payroll tax has been paid on the wages before that day.\n> \n> > (2) In this clause—\n> > \n> > relevant general practitioner wages includes wages that would be relevant general practitioner wages if clause 10B(1)(c) did not apply.","sortOrder":212},{"sectionNumber":"13A","sectionType":"section","heading":"Paternity leave","content":"#### 13A Paternity leave\n\n13A Paternity leave\n\n> > (1) Wages are exempt wages if they are paid or payable to an employee in respect of paternity leave, being leave given to a male employee in connection with the pregnancy of a woman with his unborn child or the birth of his child (other than sick leave, recreation leave, annual leave or any similar leave).\n> \n> > (2) It is immaterial whether the leave is taken during or after the pregnancy.\n> \n> > (3) The exemption is limited to wages paid or payable in respect of a maximum of 14 weeks paternity leave in respect of any one pregnancy.\n> \n> > (4) In subclause (3)—\n> > \n> > > (a) a reference to 14 weeks paternity leave includes a reference to an equivalent period of leave at a reduced rate of pay, and\n> > \n> > > (b) a reference to wages paid or payable in respect of a period of leave is a reference to the total wages that would normally have been paid or payable for that period of leave.\n> > \n> > Note.\n> > \n> > For a part-time employee, the exemption may apply to wages paid or payable for paternity leave that extends to 28 weeks at half of the part-time rate of pay that would normally apply to the employee.\n> \n> > (5) The exemption does not apply to any part of wages paid or payable in respect of paternity leave that comprises fringe benefits.\n> \n> > (6) An employer wishing to claim an exemption under this clause in respect of paternity leave must obtain and keep a medical certificate in respect of, or statutory declaration by, the employee—\n> > \n> > > (a) stating that a woman is or was pregnant with the employee’s unborn child, or\n> > \n> > > (b) stating that a woman has given birth to the employee’s child and the date of birth.\n> \n> Note.\n> \n> Section 53 of the [Taxation Administration Act 1996](/view/html/inforce/current/act-1996-097) requires these records to be kept for at least 5 years unless the Chief Commissioner authorises earlier destruction.","sortOrder":218},{"sectionNumber":"13B","sectionType":"section","heading":"Employment agents supplying their common law employees","content":"#### 13B Employment agents supplying their common law employees\n\n13B Employment agents supplying their common law employees\n\n> > (1) Wages are exempt wages if—\n> > \n> > > (a) they are paid or payable for services that were performed under an employment agency contract by a service provider for a client of an employment agent, and\n> > \n> > > (b) the service provider performed the services as an employee of the employment agent, and\n> > \n> > > (c) the wages would be exempt wages under Part 4 (other than section 50 or Division 4 or 5 of that Part), or Part 3 of Schedule 2 (other than clause 5 or 13A), had the service provider performed the services as an employee of the client, and\n> > \n> > > (d) the client has given a declaration to the effect of paragraph (c), in the form approved by the Chief Commissioner, to the employment agent.\n> \n> > (2) A reference in this clause to an employee does not include a reference to a person who is an employee only because the person is taken to be an employee by Division 8 of Part 3 or any other provision of this Act.","sortOrder":219},{"sectionNumber":"Schedule 2A","sectionType":"schedule","heading":"Special provisions for financial years 2008–2010","content":"# Schedule 2A Special provisions for financial years 2008–2010\n\nSchedule 2A Special provisions for financial years 2008–2010\n\n(Schedule 2, clause 3A)\n\n**sch 2A:** Ins 2008 No 48, Sch 2 \\[6\\]. Am 2010 No 46, Sch 8 \\[5\\].","sortOrder":232},{"sectionNumber":"Schedule 3","sectionType":"schedule","heading":"Savings, transitional and other provisions","content":"# Schedule 3 Savings, transitional and other provisions\n\nSchedule 3 Savings, transitional and other provisions\n\n(Section 103)\n\n**sch 3:** Am 2008 No 48, Sch 2 \\[7\\]; 2008 No 67, Sch 5 \\[6\\] \\[7\\]; 2009 No 51, Sch 7.4 \\[3\\] \\[4\\]; 2009 No 91, Sch 3 \\[8\\] \\[9\\]; 2010 No 46, Sch 8 \\[6\\] \\[7\\]; 2010 No 118, Sch 4 \\[9\\] \\[10\\]; 2012 No 20, Sch 3 \\[3\\] \\[4\\]; 2014 No 37, Sch 3.2; 2014 No 56, Sch 3 \\[7\\]; 2017 No 11, Sch 3 \\[8\\]; 2019 No 8, Sch 3 \\[6\\]; 2020 No 43, cl 3(3); 2021 No 12, Sch 1\\[3\\]; 2024 No 38, Sch 5\\[2\\]; 2024 No 90, Sch 6\\[7\\].","sortOrder":254},{"sectionNumber":"Part 10","sectionType":"part","heading":"Provision consequent on enactment of State Revenue and Other Legislation Amendment (Budget Measures) Act 2014","content":"# Part 10 Provision consequent on enactment of State Revenue and Other Legislation Amendment (Budget Measures) Act 2014\n\nPart 10 Provision consequent on enactment of [State Revenue and Other Legislation Amendment (Budget Measures) Act 2014](/view/html/repealed/current/act-2014-037)","sortOrder":287},{"sectionNumber":"Part 11","sectionType":"part","heading":"Provisions consequent on enactment of State Revenue Legislation Amendment Act 2017","content":"# Part 11 Provisions consequent on enactment of State Revenue Legislation Amendment Act 2017\n\nPart 11 Provisions consequent on enactment of [State Revenue Legislation Amendment Act 2017](/view/html/repealed/current/act-2017-011)","sortOrder":289},{"sectionNumber":"Part 12","sectionType":"part","heading":"Provisions consequent on enactment of State Revenue and Other Legislation Amendment Act 2019","content":"# Part 12 Provisions consequent on enactment of State Revenue and Other Legislation Amendment Act 2019\n\nPart 12 Provisions consequent on enactment of [State Revenue and Other Legislation Amendment Act 2019](/view/html/repealed/current/act-2019-008)","sortOrder":292},{"sectionNumber":"Part 13","sectionType":"part","heading":"Provision consequent on enactment of Payroll Tax Amendment Act 2020","content":"# Part 13 Provision consequent on enactment of Payroll Tax Amendment Act 2020\n\nPart 13 Provision consequent on enactment of [Payroll Tax Amendment Act 2020](/view/pdf/asmade/act-2020-43)","sortOrder":295},{"sectionNumber":"Part 14","sectionType":"part","heading":"Provision consequent on enactment of Payroll Tax Amendment (Jobs Plus) Act 2021","content":"# Part 14 Provision consequent on enactment of Payroll Tax Amendment (Jobs Plus) Act 2021\n\nPart 14 Provision consequent on enactment of [Payroll Tax Amendment (Jobs Plus) Act 2021](/view/pdf/asmade/act-2021-12)","sortOrder":297},{"sectionNumber":"Part 15","sectionType":"part","heading":"Provisions consequent on enactment of Revenue Legislation Amendment Act 2024","content":"# Part 15 Provisions consequent on enactment of Revenue Legislation Amendment Act 2024\n\nPart 15 Provisions consequent on enactment of [Revenue Legislation Amendment Act 2024](/view/pdf/asmade/act-2024-38)","sortOrder":299},{"sectionNumber":"Part 16","sectionType":"part","heading":"Provision consequent on enactment of Revenue Legislation Further Amendment Act 2024","content":"# Part 16 Provision consequent on enactment of Revenue Legislation Further Amendment Act 2024\n\nPart 16 Provision consequent on enactment of [Revenue Legislation Further Amendment Act 2024](/view/pdf/asmade/act-2024-90)","sortOrder":302},{"sectionNumber":"Schedule 4","sectionType":"schedule","heading":null,"content":"# Schedule 4\n\nSchedule 4 (Repealed)\n\n**sch 4:** Am 2008 No 62, Sch 4.","sortOrder":304}],"analysis":{"kimi_summary":{"_metrics":{"source":"grok-batch-everything"},"content_quality":"ok","complexity_score":8,"scope_assessment":{"changed":true,"description":"The Act has grown well beyond the original 1971 Pay-roll Tax Act's simple imposition on cash wages. Amendments have broadened 'wages' (Part 3) to capture fringe benefits (s 14), superannuation (s 17), ESS interests and options (s 18 with deemed vesting in s 20), termination payments (s 28) and contractor payments (s 35), turning it into a comprehensive labour-cost levy. Grouping (Part 5) now traces interests through corporations (s 73) and former entities (s 74A), while anti-avoidance rules (ss 42, 47) and specific rebates (ss 66D-66F) address modern structures. Exemptions have proliferated (e.g. organ donors in s 66C, Jobs Plus in s 66F) and contractor/agent deeming (Divs 7-8 of Part 3) goes far beyond the original employer focus."},"complexity_factors":["Over 40 defined terms in s 3, many cross-referencing Commonwealth legislation such as the Corporations Act 2001, ITAA 1997, FBTA Act and GST Act","Nested conditional tests for taxable wages in ss 10-12 and 11A-11C (employee/employer location, principal place of residence, place of payment, aggregation rules across months)","Nine Divisions in Part 3 with formulas for fringe benefits (s 15), superannuation (s 17), shares/options (ss 18-26 with vesting date elections and rescission adjustments), termination payments (ss 27-28), motor vehicle allowances (s 29 with continuous/averaging methods in Sch 1 Pt 5) and contractor provisions (ss 31-36 with 11 exceptions in s 32(2))","Complex grouping and tracing rules in Part 5 (ss 69-78, including controlling interest tests in s 72 and indirect interest calculations in s 77)","Multiple adjustment mechanisms and formulas in Schs 1 and 2 (including indexation in cl 1A for 2008-2012, half-year credits in Sch 2A, and estimated monthly tax in Pt 2 Div 3)","Layered exemptions in Part 4 (e.g. non-profits in s 48 limited to exclusive charitable work, maternity leave capped at 14 weeks in s 53, local government carve-outs in s 60)"],"plain_english_summary":"**The Payroll Tax Act 2007** requires businesses in New South Wales to pay a tax on the wages they pay staff if the total is above a set yearly amount (currently $1.2 million). It explains what counts as wages (not just salary but also bonuses, company cars and other benefits, retirement contributions, shares or options given to staff, and payments when someone leaves a job). The law sets out who must pay (employers, including government bodies and some contractors), how to work out the tax using formulas in the schedules, and many exemptions (for charities and religious groups doing their core work, schools, hospitals, maternity or paternity leave up to 14 weeks, volunteer firefighters, and certain government activities). Businesses must register if they cross the threshold, send regular reports, and can be grouped with related companies to stop tax avoidance. It affects most employers with significant payrolls and helps fund state services like health and education. The rules try to be fair to small businesses while capturing larger ones."},"issue_detection":{"absurdities":[],"contradictions":[]},"summary":{"complexity_score":8,"scope_assessment":{"changed":true,"description":"The Act was originally enacted in 2007 to consolidate and modernise NSW payroll tax legislation. Over its 40+ amendments, its scope has expanded and shifted to address emerging workforce arrangements — notably contractor and labour-hire arrangements, which were less prevalent in 2007. The gig economy and non-traditional employment models have prompted amendments that bring a wider range of payment arrangements within the definition of taxable wages, going beyond what the original drafters would have anticipated."},"complexity_factors":["Extensive amendment history — over 40 versions since 2007 — meaning the operative rules have changed repeatedly and determining which version applies to a given period requires careful attention","Multi-jurisdictional calculations — wages paid in other Australian states and territories must be factored into NSW payroll tax liability, requiring employers to track interstate payrolls","Broad and technical definition of 'wages' — includes not just salaries but superannuation, bonuses, fringe benefits, contractor payments, and other forms of remuneration, each with different rules","Complex grouping provisions — related businesses can be treated as a single employer, which affects eligibility for the tax-free threshold and requires analysis of ownership and control structures","Exemptions and concessions — multiple categories of exempt employers (charities, hospitals, etc.) with conditions attached, requiring case-by-case assessment","Self-repealing provision — section 66F is scheduled to automatically repeal itself on 2 July 2033, adding a time-sensitive legislative layer","Interaction with other state payroll tax laws — businesses operating nationally must comply with different rules in each state simultaneously","Ongoing compliance obligations — monthly or annual lodgements, registration requirements, and potential audits by Revenue NSW"],"plain_english_summary":"## NSW Payroll Tax Act 2007 — What Is It?\n\nThis is a **New South Wales law** that requires businesses to pay a tax called **payroll tax** to the NSW government. Payroll tax is essentially a tax on the wages and salaries a business pays to its workers.\n\n### Who Does This Affect?\n\n- **Business owners and employers** in NSW — if your total wages bill exceeds a certain threshold (a set dollar amount), you must register and pay payroll tax.\n- **Employees** are not directly taxed under this law — it's the *employer* who pays.\n- Businesses operating across **multiple Australian states** face additional complexity, as wages paid interstate are factored into calculations.\n\n### Why Does It Matter?\n\n- **It's a significant business cost.** Payroll tax is one of the largest state taxes in NSW. Getting it wrong — underpaying, late lodging, or failing to register — can result in penalties and interest charges.\n- **The law is detailed about what counts as 'wages'.** It's not just salaries. Bonuses, superannuation contributions (the compulsory retirement savings employers must make), certain contractor payments, and other benefits can all be included.\n- **There are exemptions.** Charities, certain public hospitals, and other specific organisations may be exempt or receive concessions.\n- **Grouped employers** — if you own or control multiple businesses, the government may treat them as a single employer for calculating the tax threshold, meaning you could lose access to the tax-free threshold.\n\n### Key Things to Know\n- The law has been amended **many times** since 2007 (over 40 versions), meaning the rules have shifted frequently.\n- A specific provision (section 66F) dealing with a particular issue is scheduled to **automatically repeal itself on 2 July 2033**.\n- The Act is overseen by the NSW Treasurer and Minister for Finance."},"flash_summary":{"complexity_score":9,"scope_assessment":{"changed":true,"description":"The Act has expanded significantly from its predecessor (Pay-roll Tax Act 1971). It now includes broader definitions of wages (e.g., superannuation contributions, shares/options, contractor payments), more complex grouping rules (tracing of interests), additional exemptions (e.g., jobkeeper, living organ donors, Jobs Plus agreements), and temporary tax rate reductions. The scope has grown from a simple payroll tax on employee wages to a comprehensive tax capturing many forms of remuneration and covering complex business structures."},"complexity_factors":["Over 50 defined terms in section 3 alone, many cross-referencing other Acts","Lengthy and detailed provisions for what constitutes wages (fringe benefits, super, shares/options, termination payments, contractors, employment agents)","Complex grouping rules (Part 5) with tracing of interests through corporate chains, trusts, and partnerships","Multiple schedules (1, 2, 2A) with different calculation methods and historical rates","Nested exemptions with conditions (e.g., non-profits require exclusive engagement in charitable works)","Extensive cross-references between sections and schedules, and to Commonwealth legislation (FBTA Act, ITAA, Corporations Act)","Conditional logic and exceptions to exceptions (e.g., relevant contract exclusions with anti-avoidance override)","Transitional and savings provisions in Schedule 3 that modify application of amendments"],"plain_english_summary":"This is the Payroll Tax Act 2007 (NSW). It imposes a tax on employers in New South Wales (NSW) based on the wages they pay to employees. The tax applies to 'taxable wages'—broadly, wages paid for work performed in NSW or by an employer based in NSW. 'Wages' includes salary, commissions, bonuses, fringe benefits, superannuation contributions, shares and options, termination payments, and payments under certain contracts. Employers must register and lodge monthly or annual returns, paying tax at rates that vary over time (currently around 5.45% above a tax-free threshold). The Act contains many exemptions, including for non-profit organisations (religious, charitable, benevolent), public hospitals, schools, apprentices, maternity/paternity leave, volunteer firefighters, and certain government bodies. Related businesses (e.g., corporate groups, common control) are grouped together and treated as one entity for calculating the tax-free threshold. The Chief Commissioner (Revenue NSW) administers the Act, and there are provisions for recovery from agents, liquidators, and principal contractors. The Act is complex due to its many defined terms, multiple schedules, and cross-references to Commonwealth tax laws."}},"importantCases":[],"_links":{"self":"/api/acts/payroll-tax-act-2007","history":"/api/acts/payroll-tax-act-2007/history","analysis":"/api/acts/payroll-tax-act-2007/analysis","conflicts":"/api/acts/payroll-tax-act-2007/conflicts","importantCases":"/api/acts/payroll-tax-act-2007/important-cases","documents":"/api/acts/payroll-tax-act-2007/documents"}}