{"id":"payroll-tax-act-2009","name":"Payroll Tax Act 2009","slug":"payroll-tax-act-2009","collection":"act","jurisdiction":"nt","status":"in_force","isInForce":true,"actNumber":null,"makingDate":null,"administeringDepartment":null,"currentVersion":{"id":30372,"registerId":"nt-payroll-tax-act-2009-current","compilationNumber":null,"startDate":"2026-04-01","status":"InForce","reasons":null,"registeredAt":null},"sections":[{"sectionNumber":"4","sectionType":"section","heading":"Relationship with Taxation Administration Act 2007","content":"4 Relationship with Taxation Administration Act 2007\nThe relationship between this Act and the Taxation Administration\nAct 2007 (the TAA) is stated in section 5 of the TAA.\nNote\nSection 5 of the TAA provides that this Act (which is a taxation law as defined in\nthe TAA) must be read together with the TAA as a single Act. Accordingly, Part 5\nof the TAA imposes a liability to pay interest and penalty tax for a failure to pay\npayroll tax under this Act.\n\nPayroll Tax Act 2009 6\n","sortOrder":0},{"sectionNumber":"5","sectionType":"section","heading":"Act binds Crown","content":"5 Act binds Crown\nThis Act binds the Crown in right of the Territory and, to the extent\nthe legislative power of the Legislative Assembly permits, the\nCrown in all its other capacities.\nDivision 1 Imposition of tax\n6 Imposition of payroll tax\nPayroll tax is imposed on all taxable wages.\n7 Who is liable for payroll tax\nThe employer by whom taxable wages are paid or payable is liable\nto pay payroll tax on the wages.\n","sortOrder":1},{"sectionNumber":"8","sectionType":"section","heading":"Amount of payroll tax","content":"8 Amount of payroll tax\nThe amount of payroll tax payable by an employer is to be\ndetermined in accordance with Schedules 1 and 2.\n","sortOrder":2},{"sectionNumber":"9","sectionType":"section","heading":"When payroll tax must be paid","content":"9 When payroll tax must be paid\n(1) A person who is liable to pay payroll tax on taxable wages must pay\nthe tax within 21 days after the end of the month in which those\nwages were paid or payable.\n(2) However, if the Commissioner has reason to believe a person may\nleave Australia before any payroll tax becomes payable by the\nperson, the tax is payable on the day fixed by the Commissioner by\nnotice served on the person.\n","sortOrder":3},{"sectionNumber":"10","sectionType":"section","heading":"What are taxable wages","content":"10 What are taxable wages\n(1) For this Act, taxable wages are wages that are taxable in this\njurisdiction.\n(2) However, exempt wages are not taxable wages.\n\nPayroll Tax Act 2009 7\n","sortOrder":4},{"sectionNumber":"11","sectionType":"section","heading":"Wages that are taxable in this jurisdiction","content":"11 Wages that are taxable in this jurisdiction\n(1) For this Act, wages are taxable in this jurisdiction if:\n(a) the wages are paid or payable by an employer for or in\nrelation to services performed by an employee wholly in this\njurisdiction; or\n(b) the wages are paid or payable by an employer for or in\nrelation to services performed by an employee in 2 or more\nAustralian jurisdictions, or partly in one or more Australian\njurisdictions and partly outside all Australian jurisdictions, and:\n(i) the employee is based in this jurisdiction; or\n(ii) the employer is based in this jurisdiction (in a case\nwhere the employee is not based in an Australian\njurisdiction); or\n(iii) the wages are paid or payable in this jurisdiction (in a\ncase where both the employee and the employer are not\nbased in an Australian jurisdiction); or\n(iv) the wages are paid or payable for services performed\nmainly in this jurisdiction (in a case where both the\nemployee and the employer are not based in an\nAustralian jurisdiction and the wages are not paid or\npayable in an Australian jurisdiction); or\n(c) the wages are paid or payable by an employer for or in\nrelation to services performed by an employee wholly outside\nall Australian jurisdictions and are paid or payable in this\njurisdiction.\nNote for subsection (1)(c)\nSection 66A provides an exemption for wages paid or payable for services\nperformed wholly in one or more other countries for a continuous period of more\nthan 6 months.\n(2) The question of whether wages are taxable in this jurisdiction is to\nbe determined by reference only to the services performed by the\nemployee in respect of the employer during the month in which the\nwages are paid or payable, subject to this section.\n\nPayroll Tax Act 2009 8\n(3) Any wages paid or payable by an employer in respect of an\nemployee in a particular month are taken to be paid or payable for\nor in relation to the services performed by the employee in respect\nof the employer during that month.\nExample for subsections (2) and (3)\nWages paid to an employee in June 2010 by an employer include wages for\nservices performed by the employee wholly in this jurisdiction in that month and a\nbonus for services performed by the employee during the financial year ending at\nthe end of June 2010, which were services partly performed in this jurisdiction\nand partly in other Australian jurisdictions. The question of whether the wages\npaid in June 2010 are taxable in this jurisdiction is to be determined by reference\nonly to services performed in that month and services performed in the previous\nmonths of that financial year must be disregarded. As a result, the wages paid in\nJune 2010 are taxable in this jurisdiction because of subsection (1)(a).\nThe services performed in the previous months of that financial year will be\nrelevant to the question of whether wages paid in each of those months are\ntaxable in this jurisdiction, which will need to be determined having regard to\nsubsection (1)(a) and (b).\n(4) If no services are performed by an employee in respect of an\nemployer during the month in which the wages are paid or payable\nto or in relation to the employee:\n(a) the question of whether the wages are taxable in this\njurisdiction is to be determined by reference only to the\nservices performed by the employee in respect of the\nemployer during the most recent prior month in which the\nemployee performed services in respect of the employer; and\n(b) the wages are taken to be paid or payable for or in relation to\nthe services performed by the employee in respect of the\nemployer during that most recent prior month.\n(5) If no services were performed by an employee in respect of an\nemployer during the month in which wages are paid or payable to\nor in relation to the employee or in any prior month:\n(a) the wages are taken to be paid or payable for or in relation to\nservices performed by the employee in the month in which the\nwages are paid or payable; and\n(b) the services are taken to have been performed at a place or\nplaces where it may be reasonably expected that the services\nof the employee in respect of the employer will be performed.\n(6) All amounts of wages paid or payable in the same month by the\nsame employer in respect of the same employee are to be\naggregated for the purposes of determining whether they are\ntaxable in this jurisdiction (as if they were paid or payable for all\nservices performed by the employee in the month in which the\n\nPayroll Tax Act 2009 9\nwages are paid or payable, or the most recent prior month, as the\ncase requires).\nExample for subsection (6)\nIf one amount of wages is paid by an employer in a particular month for services\nperformed in this jurisdiction, and another amount of wages is paid by the same\nemployer in the same month for services performed by the same employee in\nanother Australian jurisdiction, the wages paid are to be aggregated (as if they\nwere paid for all services performed by the employee in that month). Accordingly,\nsubsection (1)(b) would be applied for the purpose of determining whether the\nwages are taxable in this jurisdiction.\n(7) If wages are paid in a different month from the month in which they\nare payable, the question of whether the wages are taxable in this\njurisdiction is to be determined by reference to the earlier of the\nrelevant months.\n","sortOrder":5},{"sectionNumber":"11A","sectionType":"section","heading":"Jurisdiction in which employee is based","content":"11A Jurisdiction in which employee is based\n(1) For this Act, the jurisdiction in which an employee is based is the\njurisdiction in which the employee’s principal place of residence is\nlocated.\n(2) The jurisdiction in which an employee is based is to be determined\nby reference to the state of affairs existing during the month in\nwhich the relevant wages are paid or payable.\n(3) If more than one jurisdiction would qualify as the jurisdiction in\nwhich an employee is based during a month, the jurisdiction in\nwhich the employee is based is to be determined by reference to\nthe state of affairs existing on the last day of that month.\n(4) An employee who does not have a principal place of residence is\ntaken, for the purposes of this Act, to be an employee who is not\nbased in an Australian jurisdiction.\n(5) In the case of wages paid or payable to a corporate employee, the\njurisdiction in which the employee is based is to be determined in\naccordance with section 11B instead of this section (as if a\nreference in section 11B to an employer were a reference to an\nemployee).\n(6) In this section:\ncorporate employee means:\n(a) a company that is taken to be an employee under section 34\nor 39; or\n(b) a company to whom a payment is made that is taken to be\nwages payable to an employee under section 42 or 47.\n\nPayroll Tax Act 2009 10\n","sortOrder":6},{"sectionNumber":"11B","sectionType":"section","heading":"Jurisdiction in which employer is based","content":"11B Jurisdiction in which employer is based\n(1) For this Act, the jurisdiction in which an employer is based is:\n(a) the jurisdiction in which the employer’s registered business\naddress is located (if the employer has an ABN); or\n(b) the jurisdiction in which the employer’s principal place of\nbusiness is located (in any other case).\n(2) If wages are paid or payable in connection with a business carried\non by an employer under a trust, the employer’s registered\nbusiness address is the registered business address of the trust or,\nif the trust does not have an ABN, the registered business address\nof the trustee of the trust.\n(3) If an employer has registered business addresses located in\ndifferent jurisdictions at the same point in time, the jurisdiction in\nwhich the employer is based at that point in time is the jurisdiction\nin which the employer’s principal place of business is located.\n(4) The jurisdiction in which an employer is based is to be determined\nby reference to the state of affairs existing during the month in\nwhich the relevant wages are paid or payable.\n(5) If more than one jurisdiction would qualify as the jurisdiction in\nwhich an employer is based during a month, the jurisdiction in\nwhich the employer is based is to be determined by reference to the\nstate of affairs existing on the last day of that month.\n(6) An employer who has neither a registered business address nor a\nprincipal place of business is taken, for the purposes of this Act, to\nbe an employer who is not based in an Australian jurisdiction.\n","sortOrder":7},{"sectionNumber":"11C","sectionType":"section","heading":"Place and date of payment of wages","content":"11C Place and date of payment of wages\n(1) For this Act, wages are taken to have been paid at a place if, for the\npurpose of the payment of those wages:\n(a) an instrument is sent or given or an amount is transferred by\nan employer to a person or a person’s agent at that place; or\n(b) an instruction is given by an employer for the crediting of an\namount to the account of a person or a person’s agent at that\nplace.\n(2) The wages are taken to have been paid on the date that the\ninstrument was sent or given, the amount was transferred or the\naccount credited in accordance with the instruction (as the case\nrequires).\n\nPayroll Tax Act 2009 11\n(3) Wages are taken to be payable at the place at which they are paid,\nsubject to this section.\n(4) Wages that are not paid by the end of the month in which they are\npayable are taken to be payable at:\n(a) the place where wages were last paid by the employer to the\nemployee; or\n(b) if wages have not previously been paid by the employer to the\nemployee – the place where the employee last performed\nservices in respect of the employer before the wages became\npayable.\n(5) If wages paid or payable in the same month by the same employer\nin respect of the same employee are paid or payable in more than\none Australian jurisdiction, the wages paid or payable in that month\nare taken to be paid or payable in the Australian jurisdiction in\nwhich the highest proportion of the wages are paid or payable.\nNote for subsection (5)\nSection 11(6) requires all wages paid or payable in the same month by the same\nemployer in respect of the same employee to be aggregated for the purpose of\ndetermining whether the wages are taxable in this jurisdiction. This subsection\nensures only one Australian jurisdiction can be considered to be the jurisdiction in\nwhich the wages are paid or payable.\n","sortOrder":8},{"sectionNumber":"Div 3","sectionType":"division","heading":"Other matters","content":"Division 3 Other matters\n","sortOrder":9},{"sectionNumber":"12","sectionType":"section","heading":"Payroll tax paid under corresponding applied law","content":"12 Payroll tax paid under corresponding applied law\nNote\nThis section is contained in some corresponding payroll tax laws. It does not\napply in the Territory because the Commonwealth Places (Mirror Taxes)\nAct 1998 (Cth) does not apply to the Territory (see Schedule 1 to that Act).\n","sortOrder":10},{"sectionNumber":"13","sectionType":"section","heading":"What are wages","content":"13 What are wages\n(1) For this Act, wages mean wages, remuneration, salary,\ncommission, bonuses or allowances paid or payable to an\nemployee, including:\n(a) an amount paid or payable by way of remuneration to a\nperson holding an office under the Crown or in the service of\nthe Crown; and\n\nPayroll Tax Act 2009 12\n(b) an amount paid or payable under any class of contract\nprescribed by regulation to the extent to which that payment is\nattributable to labour; and\n(c) an amount paid or payable by a company by way of\nremuneration to or in relation to a director of that company;\nand\n(d) an amount paid or payable by way of commission to an\ninsurance or time-payment canvasser or collector; and\n(e) an amount that is included as or taken to be wages by any\nother provision of this Act.\n(2) For this Act, wages, remuneration, salary, commission, bonuses or\nallowances are wages:\n(a) whether paid or payable at piece work rates or otherwise; and\n(b) whether paid or payable in cash or in kind.\n(3) This Act applies in respect of wages mentioned in subsection (1)(a)\nto (e) that are paid or payable to or in relation to a person who is\nnot an employee in the same way as it applies to wages paid or\npayable to an employee (as if a reference in this Act to an\nemployee included a reference to any such person).\n","sortOrder":11},{"sectionNumber":"14","sectionType":"section","heading":"Wages include fringe benefits","content":"14 Wages include fringe benefits\n(1) For this Act, wages include a fringe benefit.\n(2) Subsection (1) does not apply to benefits that are exempt benefits\nfor the FBTA Act (other than deposits to the Superannuation\nHolding Accounts Special Account within the meaning of the Small\nSuperannuation Accounts Act 1995 (Cth)).\n","sortOrder":12},{"sectionNumber":"15","sectionType":"section","heading":"Value of wages comprising fringe benefits","content":"15 Value of wages comprising fringe benefits\n(1) For this Act, the value of wages comprising a fringe benefit is to be\ndetermined in accordance with the formula:\nrateFBT1\nTV −\n×\nTV is the value that would be the taxable value of the benefit as a\nfringe benefit for the FBTA Act.\n\nPayroll Tax Act 2009 13\nFBT rate is the rate of fringe benefits tax imposed by the FBTA Act\nthat applies when the liability to payroll tax under this Act arises.\n(2) In this Act, a reference to taxable wages that were paid or payable\nby an employer during a month is, in relation to taxable wages\ncomprising fringe benefits:\n(a) a reference to the value of the fringe benefits paid or payable\nby the employer during the month; or\n(b) if an election by the employer is in force under section 16, a\nreference to an amount calculated in accordance with that\n(3) In this Act, a reference to taxable wages that were paid or payable\nby an employer during a year is, in relation to taxable wages\ncomprising fringe benefits, a reference to an amount calculated by\nadding together the amounts under subsection (2)(a) or (b), or\nsubsection (2)(a) and (b), as the case requires, for the months of\nthat year.\n","sortOrder":13},{"sectionNumber":"16","sectionType":"section","heading":"Employer election regarding taxable value of fringe benefits","content":"16 Employer election regarding taxable value of fringe benefits\n(1) An employer who has paid or is liable to pay fringe benefits tax\nimposed by the FBTA Act in respect of a period of not less than\n15 months before 30 June in any year may elect to include as the\nvalue of the fringe benefits paid or payable by the employer during\nthe month concerned:\n(a) in a return lodged in relation to each of the first 11 months\noccurring after 30 June in that year – 1/12th of the amount\ndetermined in accordance with subsection (2) or that part of\nthat amount as, in accordance with section 10, comprises\ntaxable wages for the year of tax (within the meaning of the\nFBTA Act) ending on 31 March preceding the commencement\nof the current financial year; and\n(b) in the return lodged in relation to the 12th month – the amount\ndetermined in accordance with subsection (2) or that part of\nthat amount as, in accordance with section 10, comprises\ntaxable wages for the year of tax (within the meaning of the\nFBTA Act) ending on 31 March preceding that month, less the\ntotal of the amounts of fringe benefits included in the returns\nfor each of the preceding 11 months.\n\nPayroll Tax Act 2009 14\n(2) The amount determined in accordance with this subsection is to be\ndetermined in accordance with the formula:\nrateFBT1\nAFBA −\n×\nAFBA is the aggregate fringe benefits amount within the meaning\nof section 136 of the FBTA Act.\nFBT rate is the rate of fringe benefits tax imposed by the FBTA Act\nthat applies when the liability to payroll tax under this Act arises.\n(3) An election under subsection (1) takes effect when it is notified to\nthe Commissioner in the form approved by the Commissioner.\n(4) After an employer has made an election under subsection (1), the\nemployer must lodge returns containing amounts calculated in\naccordance with the election unless the Commissioner approves,\nby notice in writing given to the employer, the termination of the\nelection and allows the employer to include the value mentioned in\nsection 15(2)(a).\n(5) If an employer ceases to be liable to pay payroll tax, the value of\ntaxable wages comprising fringe benefits to be included in the\nemployer's final return is (irrespective of whether or not the\nemployer has made an election under subsection (1)) the value of\nthe fringe benefits paid or payable by the employer for the period\ncommencing on and including the preceding 1 July until the date on\nwhich the employer ceases to be liable to payroll tax, less the value\nof the fringe benefits paid or payable by the employer during that\nperiod on which payroll tax has been paid.\n","sortOrder":14},{"sectionNumber":"17","sectionType":"section","heading":"Wages include superannuation contributions","content":"17 Wages include superannuation contributions\n(1) For this Act, wages include a superannuation contribution.\n(2) A superannuation contribution is a contribution paid or payable\nby an employer in respect of an employee:\n(a) to or as a superannuation fund within the meaning of the\nSuperannuation Industry (Supervision) Act 1993 (Cth); or\n(b) as a superannuation guarantee charge within the meaning of\nthe Superannuation Guarantee (Administration)\nAct 1992 (Cth); or\n\nPayroll Tax Act 2009 15\n(c) to or as any other form of superannuation, provident or\nretirement fund or scheme including:\n(i) the Superannuation Holding Accounts Special Account\nwithin the meaning of the Small Superannuation\nAccounts Act 1995 (Cth); and\n(ii) a retirement savings account within the meaning of the\nRetirement Savings Accounts Act 1997 (Cth); and\n(iii) a wholly or partly unfunded fund or scheme.\n(3) Setting aside any money or anything that is worth money as, or as\npart of, a superannuation fund, superannuation guarantee charge\nor any other form of superannuation, provident or retirement fund or\nscheme is taken to be paying a superannuation contribution.\n(4) Making a superannuation contribution of anything that is worth\nmoney is taken to be paying a superannuation contribution of the\namount equal to its value, and its value is to be worked out in\naccordance with section 43 as if that section referred to the\ncontribution instead of to wages.\n(5) A superannuation, provident or retirement fund or scheme is\nunfunded to the extent that money paid or payable by an employer\nin respect of an employee covered by the fund or scheme is not\npaid or payable during the employee's period of service with the\nemployer.\n(6) In this section:\nemployee includes any person to whom, by virtue of a paragraph\nof the definition wages in section 13(1), an amount paid or payable\nin the circumstances mentioned in the paragraph constitutes\n","sortOrder":15},{"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(1) For this Act, wages include the grant of a share or an option to an\nemployee by an employer in respect of services performed by the\nemployee if the share or option:\n(a) is an ESS interest (within the meaning of section 83A-10 of\nthe ITAA); and\n\nPayroll Tax Act 2009 16\n(b) is granted to the employee under an employee share scheme\n(within the meaning of that section).\nA grant of a share or an option to an employee by an employer that is not an ESS\ninterest will be taxable as a fringe benefit under Division 2 of this Part.\n(2) Any such wages are taken, for the imposition of payroll tax, to be\npaid or payable on the relevant day.\n(3) For this Division, the relevant day is the day the employer elects in\naccordance with this Division to treat as the day on which the\nwages are paid or payable.\n(4) To avoid doubt, the grant of a share or option is valuable\nconsideration for section 46.\n","sortOrder":16},{"sectionNumber":"19","sectionType":"section","heading":"Choice of relevant day","content":"19 Choice of relevant day\n(1) The employer can elect to treat as the relevant day either the date\non which the share or option is granted to the employee or the\nvesting date.\n(2) A share or option is granted to a person if:\n(a) another person transfers the share or option to that person\n(other than, in the case of a share, by issuing the share to that\nperson); or\n(b) for a share – another person allots the share to that person; or\n(c) for an option – another person confers the option on, or\notherwise creates the option in, that person; or\n(d) the person otherwise acquires a legal interest in the share or\noption from another person; or\n(e) the person acquires a beneficial interest in the share or option\nfrom another person.\n(2A) To avoid doubt, if an employee acquires a right to be granted a\nshare or an option, or some other material benefit, at the election of\nthe employer, the share or option is not granted until the employer\nelects to grant the share or option.\n\nPayroll Tax Act 2009 17\n(3) The vesting date in respect of a share is one of the following dates\n(whichever happens first):\n(a) the date on which the share vests in the employee (that is,\nwhen any conditions applying to the grant of the share have\nbeen met and the employee's legal or beneficial interest in the\nshare cannot be rescinded);\n(b) the date at the end of the period of 7 years from the date on\nwhich the share is granted to the employee.\n(4) The vesting date in respect of an option is one of the following\ndates (whichever happens first):\n(a) the date on which the share to which the option relates is\ngranted to the employee;\n(b) the date on which the employee exercises a right under the\noption to have the share the subject of the option transferred\nto, allotted to or vested in the employee;\n(c) the date at the end of the period of 7 years from the date on\nwhich the option is granted to the employee.\n","sortOrder":17},{"sectionNumber":"20","sectionType":"section","heading":"Deemed choice of relevant day in special cases","content":"20 Deemed choice of relevant day in special cases\n(1) If an employer grants a share or option to an employee and the\nvalue of the grant of the share or option is not included in the\ntaxable wages of the employer for the financial year in which the\nshare or option was granted, the employer is taken to have elected\nto treat the wages constituted by the grant of that share or option as\nbeing paid or payable on the vesting date.\n(2) If an employer grants a share or option to an employee and the\nvalue of the grant of the share or option is nil or, if the employer\nwere to elect to treat the date of grant as the relevant day, the\nwages constituted by the grant would not be liable to payroll tax, the\nemployer is taken to have elected to treat the wages constituted by\nthe grant of that share or option as being paid or payable on the\ndate on which the share or option was granted.\n","sortOrder":18},{"sectionNumber":"21","sectionType":"section","heading":"Effect of rescission or cancellation of share or option","content":"21 Effect of rescission or cancellation of share or option\n(1) If the grant of a share or option is withdrawn, cancelled or\nexchanged before the vesting date for any valuable consideration\n(other than the grant of other shares or options), the following\nprovisions apply:\n(a) the date of withdrawal, cancellation or exchange is taken to be\nthe vesting date of the share or option;\n\nPayroll Tax Act 2009 18\n(b) the market value of the share or option, on the vesting date, is\ntaken to be the amount of the valuable consideration (and,\naccordingly, that amount is the amount paid or payable as\nwages on that date).\n(2) If an employer includes the value of a grant of a share or option in\nthe taxable wages of the employer for a financial year and the grant\nis rescinded because the conditions attaching to the grant were not\nmet, the taxable wages of the employer, in the financial year in\nwhich the grant is rescinded, are to be reduced by the value of the\ngrant as previously included in the taxable wages of the employer.\n(3) Subsection (2) does not apply just because an employee fails to\nexercise an option or to otherwise exercise his or her rights in\nrespect of a share or option.\n","sortOrder":19},{"sectionNumber":"22","sectionType":"section","heading":"Grant of share pursuant to exercise of option","content":"22 Grant of share pursuant to exercise of option\nThe grant of the share by an employer does not constitute wages\nfor this Act if the employer is required to grant the share as a\nconsequence of the exercise of an option by a person and:\n(a) the grant of the option to the person constitutes wages for this\nAct; or\n(b) the option was granted to the person before 1 July 1999.\n","sortOrder":20},{"sectionNumber":"23","sectionType":"section","heading":"Value of shares and options","content":"23 Value of shares and options\n(1) If the grant of a share or option constitutes wages under this\nDivision, the amount paid or payable as wages is taken, for this Act,\nto be the value of the share or option (expressed in Australian\ncurrency) on the relevant day, less the consideration (if any) paid or\ngiven by the employee in respect of the share or option (other than\nconsideration in the form of services performed).\n(2) The value of a share or an option is:\n(a) the market value; or\n(b) the amount determined as provided for by the Commonwealth\nincome tax provisions.\n(3) The employer may elect the method by which the value of a share\nor an option is determined in any return lodged under this Act.\n(4) However, the Commissioner may determine the method by which\nthe value of a share or an option is determined if the grant of the\nshare or option is not included as wages in a return lodged by an\nemployer as required by this Act.\n\nPayroll Tax Act 2009 19\n(5) In determining the market value of a share or option, anything that\nwould prevent or restrict conversion of the share or option to money\nis to be disregarded.\n(6) The Commonwealth income tax provisions apply with the following\nmodifications, and any other necessary modifications:\n(a) the value of an option is to be determined as if it were a right\nto acquire a beneficial interest in a share;\n(b) a reference to the acquisition of a beneficial interest in a share\nor right is to be read as a reference to the grant of a share or\nan option.\n(7) In this section:\nCommonwealth income tax provisions means section 83A-315\nof the ITAA and the regulations made for that section.\nNote for definition Commonwealth income tax provisions\nSee Division 83A of the Income Tax Assessment Regulations 1997 (Cth) for the\nrelevant regulations.\n","sortOrder":21},{"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(1) For this Act, wages include the grant of a share or an option by a\ncompany to a director of the company who is not an employee of\nthe company by way of remuneration for the appointment or\nservices of the director.\n(2) For that purpose, the other provisions of this Division apply in\nrespect of any such grant as if a reference to the employer were a\nreference to the company and a reference to the employee were a\nreference to the director of the company.\n(3) In this section, a reference to a director of the company includes a\nreference to the following:\n(a) a person who, under a contract or other arrangement, is to be\nappointed as a director of the company;\n(b) a former director of the company.\n\nPayroll Tax Act 2009 20\n(4) However, if wages referred to in this section are fringe benefits, the\nvalue of the wages is to be determined in accordance with\n","sortOrder":22},{"sectionNumber":"Div 2","sectionType":"division","heading":"of this Part (and not this Division).","content":"Division 2 of this Part (and not this Division).\nNote for section 24\nSection 13 provides that a reference to an employee in this Act includes a\nreference to any person to whom any amount that is treated as wages under this\nAct is paid or payable. See also section 11, under which the wages are taken to\nbe paid or payable for services performed.\n","sortOrder":23},{"sectionNumber":"26","sectionType":"section","heading":"Place where wages are payable","content":"26 Place where wages are payable\n(1) The wages constituted by the grant of the share or option are taken\nto be paid or payable in this jurisdiction if the share is a share in a\nlocal company or, in the case of an option, an option to acquire\nshares in a local company.\n(2) In any other case, the wages constituted by the grant of the share\nor option are taken to be paid or payable outside this jurisdiction.\nNote for subsection (2)\nThe place where wages are paid or payable is sometimes relevant to determining\nwhether the wages are taxable in this jurisdiction. See section 11.\nlocal company means:\n(a) a company incorporated or taken to be incorporated under the\nCorporations Act 2001 that is taken to be registered in this\njurisdiction for that Act; or\n(b) any other body corporate that is incorporated under an Act of\nthis jurisdiction.\n","sortOrder":24},{"sectionNumber":"27","sectionType":"section","heading":"Definitions","content":"27 Definitions\nemployment termination payment means:\n(a) an employment termination payment within the meaning of\nsection 82-130 of the ITAA; or\n(b) a payment that would be an employment termination payment\nwithin the meaning of section 82-130 of the ITAA but for the\nfact that it was received later than 12 months after the\ntermination of a person's employment; or\n\nPayroll Tax Act 2009 21\n(c) a transitional termination payment within the meaning of\nsection 82-10 of the Income Tax (Transitional Provisions)\nAct 1997 (Cth).\ntermination payment means:\n(a) a payment made in consequence of the retirement from, or\ntermination of, any office or employment of an employee,\nbeing:\n(i) an unused annual leave payment; or\n(ii) an unused long service leave payment; or\n(iii) so much of an employment termination payment paid or\npayable by an employer, whether or not paid to the\nemployee or to any other person or body, that would be\nincluded in the assessable income of an employee under\n","sortOrder":25},{"sectionNumber":"Part 2","sectionType":"part","heading":"40 of the ITAA if the whole of the employment","content":"Part 2-40 of the ITAA if the whole of the employment\ntermination payment had been paid to the employee; or\n(b) an amount paid or payable by a company as a consequence\nof the termination of the services or office of a director of the\ncompany, whether or not paid to the director or to any other\nperson or body, that would be an employment termination\npayment if that amount had been paid or payable as a\nconsequence of termination of employment; or\n(c) an amount paid or payable by a person who is an employer\nunder a relevant contract (within the meaning of section 32) as\na consequence of the termination of the supply of the services\nof an employee under the contract, whether or not paid to the\nemployee or to any other person, if the amount would be an\nemployment termination payment if that amount had been\npaid or payable as a consequence of termination of\nemployment.\nunused annual leave payment has the same meaning as in\nsection 83-10 of the ITAA.\nunused long service leave payment has the same meaning as in\nsection 83-75 of the ITAA.\n","sortOrder":26},{"sectionNumber":"28","sectionType":"section","heading":"Termination payments","content":"28 Termination payments\nFor this Act, wages include a termination payment.\n\nPayroll Tax Act 2009 22\n","sortOrder":27},{"sectionNumber":"29","sectionType":"section","heading":"Motor vehicle allowances","content":"29 Motor vehicle allowances\n(1) For this Act, wages, in respect of a financial year, do not include\nthe exempt component of a motor vehicle allowance paid or\npayable in respect of that year.\n(2) Accordingly, if the total motor vehicle allowance paid or payable to\nan employee in respect of a financial year does not exceed the\nexempt component, the motor vehicle allowance is not wages for\n(3) If the total motor vehicle allowance paid or payable to an employee\nin respect of a financial year exceeds the exempt component (if\nany), only the amount that exceeds the exempt component of the\nmotor vehicle allowance is included as wages for this Act.\n(4) The exempt component of a motor vehicle allowance paid or\npayable in respect of a financial year is calculated in accordance\nwith the formula:\nE = K × R\nE is the exempt component.\nK is the number of business kilometres travelled during the\nfinancial year.\nR is the exempt rate.\n(5) The number of business kilometres travelled during the financial\nyear (K) is to be determined in accordance with the continuous\nrecording method, or the averaging method, whichever method is\nselected and used by the employer in accordance with Schedule 1,\nPart 5.\n(6) The Commissioner, by order in writing, may approve the use, by an\nemployer or class of employer, of another method of determining\nthe number of business kilometres travelled during the financial\nyear (including the use of an estimate). If so, the number of\nbusiness kilometres travelled during the financial year is to be\ndetermined in accordance with the method approved by the\nCommissioner.\n\nPayroll Tax Act 2009 23\n(7) For this section, the exempt rate for the financial year concerned\nis:\n(a) the rate of cents per kilometre determined under\nsection 28-25(4) of the ITAA for subsection (1) of that section\nin the financial year immediately preceding the financial year\nin which the allowance is paid or payable; or\n(b) if no rate of cents per kilometre mentioned in paragraph (a) is\ndetermined, the rate prescribed by regulation under this Act.\n","sortOrder":28},{"sectionNumber":"30","sectionType":"section","heading":"Accommodation allowances","content":"30 Accommodation allowances\n(1) For this Act, wages do not include an accommodation allowance\npaid or payable to an employee in respect of a night's absence from\nthe person's usual place of residence that does not exceed the\nexempt rate.\n(2) If the accommodation allowance paid or payable to an employee in\nrespect of a night's absence from the person's usual place of\nresidence exceeds the exempt rate, wages include that allowance\nonly to the extent it exceeds the exempt rate.\n(3) For this section, the exempt rate for the financial year concerned\nis:\n(a) the total reasonable amount for daily travel allowance\nexpenses using the lowest capital city for the lowest salary\nband for the financial year determined by the Commissioner of\nTaxation of the Commonwealth; or\n(b) if no determination mentioned in paragraph (a) is in force, the\nrate prescribed by regulation.\n","sortOrder":29},{"sectionNumber":"31","sectionType":"section","heading":"Definitions","content":"31 Definitions\ncontract includes an agreement, arrangement and undertaking,\nwhether formal or informal and whether express or implied.\nrelevant contract, see section 32.\nre-supply of goods acquired from a person includes:\n(a) a supply to the person of goods in an altered form or\ncondition; and\n\nPayroll Tax Act 2009 24\n(b) a supply to the person of goods in which the first-mentioned\ngoods have been incorporated.\nservices includes results (whether goods or services) of work\nperformed.\nsupply includes supply by way of sale, exchange, lease, hire and\nhire-purchase, and in relation to services includes the providing,\ngranting and conferring of services.\n","sortOrder":30},{"sectionNumber":"32","sectionType":"section","heading":"What is a relevant contract","content":"32 What is a relevant contract\n(1) In this Division, a relevant contract in relation to a financial year is\na contract under which a person (the designated person) during\nthat financial year, in the course of a business carried on by the\ndesignated person:\n(a) supplies to another person services for or in relation to the\nperformance of work; or\n(b) has supplied to the designated person the services of persons\nfor or in relation to the performance of work; or\n(c) gives out goods to individuals for work to be performed by\nthose persons in respect of those goods and for re-supply of\nthe goods to the designated person or, where the designated\nperson is a member of a group, to another member of that\n(2) However, a relevant contract does not include a contract of service\nor a contract under which a person (the designated person) during\na financial year in the course of a business carried on by the\ndesignated person:\n(a) is supplied with services for or in relation to the performance\nof work that are ancillary to the supply of goods under the\ncontract by the person by whom the services are supplied or\nto the use of goods which are the property of that person; or\n(b) is supplied with services for or in relation to the performance\nof work where:\n(i) those services are of a kind not ordinarily required by the\ndesignated person and are performed by a person who\nordinarily performs services of that kind to the public\ngenerally; or\n(ii) those services are of a kind ordinarily required by the\ndesignated person for less than 180 days in a financial\n\nPayroll Tax Act 2009 25\n(iii) those services are provided for a period that does not\nexceed 90 days or for periods that, in the aggregate, do\nnot exceed 90 days in that financial year and are not\nservices:\n(A) provided by a person by whom similar services are\nprovided to the designated person; or\n(B) for or in relation to the performance of work where\nany of the persons who perform the work also\nperform similar work for the designated person;\nfor periods that, in the aggregate, exceed 90 days in that\nfinancial year; or\n(iv) those services are supplied under a contract to which\nsubparagraphs (i) to (iii) do not apply and the\nCommissioner is satisfied those services are performed\nby a person who ordinarily performs services of that kind\nto the public generally in that financial year; or\n(c) is supplied by a person (the contractor) with services for or in\nrelation to the performance of work under a contract to which\nparagraphs (a) and (b) do not apply where the work to which\nthe services relate is performed:\n(i) by 2 or more persons employed by, or who provide\nservices for, the contractor in the course of a business\ncarried on by the contractor; or\n(ii) where the contractor is a partnership of 2 or more\nindividuals, by 1 or more of the members of the\npartnership and 1 or more persons employed by, or who\nprovide services for, the contractor in the course of a\nbusiness carried on by the contractor; or\n(iii) where the contractor is an individual, by the contractor\nand 1 or more persons employed by, or who provide\nservices for, the contractor in the course of a business\ncarried on by the contractor; or\n(d) is supplied with services solely for or ancillary to the\nconveyance of goods by means of a vehicle provided by the\nperson conveying them.\n(2A) Subsection (2)(a), (b) or (d) does not apply to a contract if the\nservices supplied under the contract include services that are not\nmentioned in that paragraph.\n\nPayroll Tax Act 2009 26\n(2B) Subsection (2) does not apply if the Commissioner determines the\ncontract under which the services are supplied was entered into\nwith an intention either directly or indirectly of avoiding or evading\nthe payment of tax by any person.\n(3) For this section, an employment agency contract under which\nservices are supplied by an employment agent, or a service\nprovider is procured by an employment agent, is not a relevant\ncontract.\n","sortOrder":31},{"sectionNumber":"33","sectionType":"section","heading":"Persons taken to be employers","content":"33 Persons taken to be employers\n(1) For this Act, a person:\n(a) who during a financial year, under a relevant contract,\nsupplies services to another person; or\n(b) to whom during a financial year, under a relevant contract, the\nservices of persons are supplied for or in relation to the\nperformance of work; or\n(c) who during a financial year, under a relevant contract, gives\nout goods to other persons;\nis taken to be an employer in respect of that financial year.\n(2) If a contract is a relevant contract under both section 32(1)(a)\nand (b):\n(a) the person to whom, under the contract, the services of\npersons are supplied for or in relation to the performance of\nwork is taken to be an employer, and\n(b) despite subsection (1)(a), the person who under the contract\nsupplies the services is taken not to be an employer.\n","sortOrder":32},{"sectionNumber":"34","sectionType":"section","heading":"Persons taken to be employees","content":"34 Persons taken to be employees\nFor this Act, a person who during a financial year:\n(a) performs work for or in relation to which services are supplied\nto another person under a relevant contract; or\n(b) being an individual, under a relevant contract, re-supplies\ngoods to an employer;\nis taken to be an employee in respect of that financial year.\n\nPayroll Tax Act 2009 27\n","sortOrder":33},{"sectionNumber":"35","sectionType":"section","heading":"Amounts under relevant contracts taken to be wages","content":"35 Amounts under relevant contracts taken to be wages\n(1) For this Act, amounts paid or payable by an employer during a\nfinancial year for or in relation to the performance of work relating to\na relevant contract or the re-supply of goods by an employee under\na relevant contract are taken to be wages paid or payable during\nthat financial year.\n(2) If an amount mentioned in subsection (1) is included in a larger\namount paid or payable by an employer under a relevant contract\nduring a financial year, that part of the larger amount which is not\nattributable to the performance of work relating to the relevant\ncontract or the re-supply of goods by an employee under the\nrelevant contract is as determined by the Commissioner.\n(3) An amount paid or payable for or in relation to the performance of\nwork under a relevant contract is taken to include:\n(a) any payment made by a person who is taken to be an\nemployer under a relevant contract in relation to a person who\nis taken to be an employee under the relevant contract that\nwould be a superannuation contribution if made in relation to a\nperson in the capacity of an employee; and\n(b) the value of any share or option (not otherwise included as\nwages under this Act) provided or liable to be provided by a\nperson who is taken to be an employer under a relevant\ncontract in relation to a person who is taken to be an\nemployee under the relevant contract that would be included\nas wages under Division 4 if provided to a person in the\ncapacity of an employee.\n","sortOrder":34},{"sectionNumber":"36","sectionType":"section","heading":"Liability provisions","content":"36 Liability provisions\nIf, in respect of a payment for or in relation to the performance of\nwork that is taken to be wages under this Division, payroll tax is\npaid by a person taken under this Division to be an employer:\n(a) no other person is liable to payroll tax in respect of that\npayment; and\n(b) if another person is liable to make a payment for or in relation\nto that work, that person is not liable to payroll tax in respect of\nthat payment unless it or the payment by the first-mentioned\nperson is made with an intention either directly or indirectly of\navoiding or evading the payment of tax whether by the first-\nmentioned person or another person.\n\nPayroll Tax Act 2009 28\n","sortOrder":35},{"sectionNumber":"37","sectionType":"section","heading":"Definitions","content":"37 Definitions\n(1) For this Act, an employment agency contract is a contract,\nwhether formal or informal and whether express or implied, under\nwhich a person (an employment agent) procures the services of\nanother person (a service provider) for a client of the employment\nagent.\n(2) However, a contract is not an employment agency contract for this\nAct if it is, or results in the creation of, a contract of employment\nbetween the service provider and the client.\ncontract includes agreement, arrangement and undertaking.\n","sortOrder":36},{"sectionNumber":"38","sectionType":"section","heading":"Persons taken to be employers","content":"38 Persons taken to be employers\nFor this Act, the employment agent under an employment agency\ncontract is taken to be an employer.\n","sortOrder":37},{"sectionNumber":"39","sectionType":"section","heading":"Persons taken to be employees","content":"39 Persons taken to be employees\nFor this Act, the person who performs work for or in relation to\nwhich services are supplied to the client under an employment\nagency contract is taken to be an employee of the employment\nagent.\n","sortOrder":38},{"sectionNumber":"40","sectionType":"section","heading":"Amounts taken to be wages","content":"40 Amounts taken to be wages\n(1) For this Act, the following are taken to be wages paid or payable by\nthe employment agent under an employment agency contract:\n(a) any amount paid or payable to or in relation to the service\nprovider in respect of the provision of services in connection\nwith the employment agency contract;\n(b) the value of any benefit provided for or in relation to the\nprovision of services in connection with the employment\nagency contract that would be a fringe benefit if provided to a\nperson in the capacity of an employee;\n(c) any payment made in relation to the service provider that\nwould be a superannuation contribution if made in relation to a\nperson in the capacity of an employee.\n(2) Subsection (1) does not apply to an employment agency contract to\nthe extent an amount, benefit or payment mentioned in that\n\nPayroll Tax Act 2009 29\nsubsection would be exempt from payroll tax under Part 4 (other\nthan under Division 4 or 5 of that Part or section 50) had the service\nprovider been paid by the client as an employee, if the client has\ngiven a declaration to that effect, in the form approved by the\nCommissioner, to the employment agent.\n","sortOrder":39},{"sectionNumber":"41","sectionType":"section","heading":"Liability provisions","content":"41 Liability provisions\nSubject to section 42, if an employment agent under an\nemployment agency contract:\n(a) by arrangement, procures the services of a service provider\nfor a client of the employment agent; and\n(b) pays payroll tax in respect of an amount, benefit or payment\nthat is, under section 40, taken to be wages paid or payable\nby the employment agent in respect of the provision of those\nservices in connection with that contract;\nno other person (including any other person engaged to procure the\nservices of the service provider for the employment agent's client as\npart of the arrangement) is liable to pay payroll tax in respect of\nwages paid or payable for the procurement or performance of those\nservices by the service provider for the client.\n","sortOrder":40},{"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(1) If the effect of an employment agency contract is to reduce or avoid\nthe liability of any party to the contract to the assessment,\nimposition or payment of payroll tax, the Commissioner may:\n(a) disregard the contract; and\n(b) determine that any party to the contract is taken to be an\nemployer for this Act; and\n(c) determine that any payment made in respect of the contract is\ntaken to be wages for this Act.\n(2) If the Commissioner makes a determination under subsection (1),\nthe Commissioner must serve a notice of the determination on the\nperson taken to be an employer for this Act.\n(3) The notice must set out the facts on which the Commissioner relies\nand the reasons for the determination.\n(4) This section has effect in relation to agreements, transactions and\narrangements made before, on or after the commencement of this\n\nPayroll Tax Act 2009 30\n","sortOrder":41},{"sectionNumber":"43","sectionType":"section","heading":"Value of wages paid in kind","content":"43 Value of wages paid in kind\nThe value of wages (except fringe benefits and shares and options)\nthat are paid or payable in kind is the greater of:\n(a) the value agreed or attributed to the wages in, or\nascertainable for the wages from, arrangements between the\nemployer and the employee, whichever is the greater; and\n(b) if the regulations prescribe how the value of wages of that type\nis to be determined – the value determined in accordance with\nthe regulations.\n","sortOrder":42},{"sectionNumber":"44","sectionType":"section","heading":"GST excluded from wages","content":"44 GST excluded from wages\n(1) If a person is liable to pay GST on the supply to which wages paid\nor payable to the person relate, the amount or value of those wages\non which payroll tax is payable is the amount or value of the wages\npaid or payable to the person minus the relevant proportion of the\namount of GST payable by the person on the supply to which the\nwages relate.\n(2) Subsection (1) does not apply in respect of the value of wages\ncomprising a fringe benefit.\nconsideration has the same meaning as in A New Tax System\n(Goods and Services Tax) Act 1999 (Cth).\nrelevant proportion, in relation to GST payable on a supply to\nwhich wages relate, means the proportion that the amount or value\nof the wages bears to the consideration for the supply to which the\nwages relate.\n","sortOrder":43},{"sectionNumber":"45","sectionType":"section","heading":"Wages paid by group employers","content":"45 Wages paid by group employers\nA reference in this Act to wages paid or payable by a member of a\ngroup includes wages that would be taken to be paid or payable by\na member of a group if the member were the employer of the\nemployee to whom the wages were paid.\n","sortOrder":44},{"sectionNumber":"46","sectionType":"section","heading":"Wages paid by or to third parties","content":"46 Wages paid by or to third parties\n(1) If any of the following amounts of money or other valuable\nconsideration would, if paid or given or to be paid or given directly\nby an employer to an employee, be or be included as wages paid or\npayable by the employer to the employee for this Act, they are\n\nPayroll Tax Act 2009 31\ntaken to be wages paid or payable by the employer to the\nemployee:\n(a) any money or other valuable consideration paid or given, or to\nbe paid or given, to an employee, for the employee's services\nas an employee of an employer, by a person other than the\nemployer;\n(b) any money or other valuable consideration paid or given, or to\nbe paid or given, by an employer, for an employee's services\nas the employee of the employer, to a person other than the\nemployee;\n(c) any money or other valuable consideration paid or given, or to\nbe paid or given, by a person other than an employer, for an\nemployee's services as an employee of the employer, to a\nperson other than the employee.\n(2) If any of the following amounts of money or other valuable\nconsideration would, if paid or given or to be paid or given directly\nby a company to a director of the company, be or be included as\nwages paid or payable by the company to the director for this Act,\nthey are taken to be wages paid or payable by the company to the\ndirector:\n(a) any money or other valuable consideration paid or given, or to\nbe paid or given, to a director of a company, by way of\nremuneration for the appointment or services of the director to\nthe company, by a person other than the company;\n(b) any money or other valuable consideration paid or given, or to\nbe paid or given, by a company, by way of remuneration for\nthe appointment or services of the director to the company, to\na person other than the director;\n(c) any money or other valuable consideration paid or given, or to\nbe paid or given, by any person, by way of remuneration for\nthe appointment or services of a director to the company, to a\nperson other than the director.\ndirector of a company includes:\n(a) a person who, under a contract or other arrangement, is to be\nappointed as a director of the company; and\n(b) a former director of the company.\n\nPayroll Tax Act 2009 32\n","sortOrder":45},{"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(1) If any person enters into any agreement, transaction or\narrangement, whether in writing or otherwise, under which an\nindividual performs, for or on behalf of another person, services in\nrespect of which any payment is made to some other person\nrelated or connected to the individual performing the services and\nthe effect of the agreement, transaction or arrangement is to reduce\nor avoid the liability of any person to the assessment, imposition or\npayment of payroll tax, the Commissioner may:\n(a) disregard the agreement, transaction or arrangement; and\n(b) determine that any party to the agreement, transaction or\narrangement is taken to be an employer for this Act; and\n(c) determine that any payment made in respect of the\nagreement, transaction or arrangement is taken to be wages\nfor this Act.\n(2) If the Commissioner makes a determination under subsection (1),\nthe Commissioner must serve a notice to that effect on the person\ntaken to be an employer for this Act.\n(3) The notice must set out the facts on which the Commissioner relies\nand the reasons for the determination.\n(4) This section has effect in relation to agreements, transactions and\narrangements made before, on or after the commencement of this\n","sortOrder":46},{"sectionNumber":"48","sectionType":"section","heading":"Definitions","content":"48 Definitions\n(1) In this Division:\ncategory 1 to 3 purpose means a charitable purpose that falls\nwithin the first 3 categories (being relief of poverty, advancement of\neducation and advancement of religion) identified by Lord\nMacnaghten in Commissioners for Special Purposes of Income Tax\nv Pemsel [1891] AC 531 as developed by the common law of\nAustralia from time to time.\n\nPayroll Tax Act 2009 33\neducational company means a company:\n(a) in which an educational institution has a controlling interest;\nand\n(b) that provides, promotes or supports the educational services\nof that institution.\neducational institution means an entity that provides education\nabove secondary level.\nentity includes a person, and a body, association or organisation\n(whether corporate or unincorporated).\nindustrial association means any of the following:\n(a) an association of employees, or an association of employers,\nregistered as an organisation, or recognised, under the Fair\nWork (Registered Organisations) Act 2009 (Cth);\n(b) an association of employees registered or recognised as a\ntrade union (however described) under the law of a State or\nTerritory;\n(c) an association of employers registered or recognised as such\n(however described) under the law of a State or Territory;\n(d) an association of employees the predominant purpose of\nwhich is the protection and promotion of the employees'\ninterests in matters concerning their employment.\nnon-profit entity, see section 48A.\npolitical party means an entity that has as one of its purposes the\npromotion of the election to the Legislative Assembly or the\nParliament of the Commonwealth or of a State or another Territory,\nof a candidate or candidates endorsed by it or by an entity of which\nit forms part.\nprofessional association means an entity that has as one of its\npurposes the promotion of the interests of its members in any\nprofession.\ntrade, industry or commerce entity, see section 48B.\n(2) For the definition educational company, an educational institution\nhas a controlling interest in a company if:\n(a) members of the board of management of the company who\nare entitled to exercise more than 50% of the voting power at\n\nPayroll Tax Act 2009 34\nmeetings of the board of management are accustomed or\nunder an obligation, whether formal or informal, to act in\naccordance with the directions, instructions or wishes of the\neducational institution; or\n(b) the educational institution may (whether directly or indirectly)\nexercise, control the exercise of, or substantially influence the\nexercise of, more than 50% of the voting power attached to\nvoting shares, or any class of voting shares, issued by the\ncompany; or\n(c) the educational institution has power to appoint more\nthan 50% of the members of the board of management of the\ncompany.\n","sortOrder":47},{"sectionNumber":"48A","sectionType":"section","heading":"Meaning of non-profit entity","content":"48A Meaning of non-profit entity\n(1) Each of the following is a non-profit entity:\n(a) a religious institution;\n(b) a public benevolent institution;\n(c) a non-profit organisation:\n(i) the sole or predominant purpose of which is a religious,\ncharitable, benevolent, philanthropic or patriotic purpose;\nand\n(ii) that is not an excluded entity.\n(2) However, an instrumentality of the Territory is not a non-profit\nentity.\n(3) An entity is an excluded entity if it is one of the following:\n(a) a school;\n(b) an educational institution;\n(c) an educational company;\n(d) a political party;\n(e) an industrial association;\n(f) a professional association;\n\nPayroll Tax Act 2009 35\n(g) a trade, industry or commerce entity.\nNote for subsection (3)\nWages paid by a school or college may be exempt wages under section 49 and\nSchedule 2, clause 16.\n(4) However, an entity is not an excluded entity if a determination\nunder section 48E is in force in relation to the entity.\n","sortOrder":48},{"sectionNumber":"48B","sectionType":"section","heading":"Meaning of trade, industry or commerce entity","content":"48B Meaning of trade, industry or commerce entity\n(1) An entity is a trade, industry or commerce entity if:\n(a) a purpose of the entity is to promote trade, industry or\ncommerce (whether generally or in respect of any particular\nkind of trade, industry or commerce); and\n(b) the entity is not an entity mentioned in section 48A(3)(a) to (f).\n(2) However, an entity is not a trade, industry or commerce entity if:\n(a) the entity's sole or predominant purpose is a category 1 to 3\npurpose; or\n(b) the entity has 2 or more purposes that:\n(i) are each category 1 to 3 purposes; and\n(ii) together constitute the entity's predominant purpose.\n","sortOrder":49},{"sectionNumber":"48C","sectionType":"section","heading":"Non-profit entities – exempt wages","content":"48C Non-profit entities – exempt wages\n(1) Wages are exempt wages if the Commissioner is satisfied that the\nwages:\n(a) are paid or payable by a non-profit entity that carries on\ncharitable activities; and\n(b) are paid or payable to a person who is engaged exclusively in\nwork of a kind ordinarily performed in connection with the\ncarrying on of charitable activities by the entity.\n(2) A non-profit entity carries on charitable activities if the entity\ndirectly carries out work that is predominantly of a religious,\ncharitable, benevolent, philanthropic or patriotic nature.\n(3) For subsection (2), giving money to another entity that carries out\nwork of the kind mentioned in subsection (2) does not, by itself,\nconstitute carrying on a charitable activity.\n\nPayroll Tax Act 2009 36\n","sortOrder":50},{"sectionNumber":"48D","sectionType":"section","heading":"Determining purpose of entity","content":"48D Determining purpose of entity\nFor this Division, the purpose or purposes of an entity are to be\ndetermined having regard to all the relevant circumstances\nincluding the entity's stated objects (if any) and its activities.\n","sortOrder":51},{"sectionNumber":"48E","sectionType":"section","heading":"Commissioner may override exclusion","content":"48E Commissioner may override exclusion\n(1) The Commissioner may, by order in writing, determine that an entity\nthat would, but for the determination, be an excluded entity under\nsection 48A(3)(f) or (g) is not an excluded entity.\n(2) The Commissioner may do so only if satisfied there are special\nreasons that justify the entity being treated as a non-profit entity for\nthe purposes of this Division.\n(3) In deciding whether to make a determination, the Commissioner\nmay have regard to the following:\n(a) the significance of the excluding feature of the entity in relation\nto the purposes of the entity considered as a whole;\n(b) the extent to which the entity's purposes are category 1 to 3\npurposes or are otherwise beneficial to the community;\n(c) the extent to which the entity's purposes are, or are intended\nto be, beneficial to a particular class of persons (whether or\nnot members of the entity) rather than the community\ngenerally;\n(d) any other factors the Commissioner considers relevant.\n(4) A determination may be expressed to take effect on a date that is:\n(a) earlier than the date of the determination; but\n(b) not earlier than 1 July 2015.\n(5) The Commissioner may, by order in writing, revoke a determination\nif the Commissioner ceases to be satisfied as mentioned in\nsubsection (2).\n(6) A revocation of a determination may be expressed to take effect on\na date that is earlier than the date of the revocation.\n(7) In this section:\nexcluding feature of an entity, means a purpose, object or activity\nof the entity that would, but for a determination under this section,\ncause it to be an excluded entity.\n\nPayroll Tax Act 2009 37\nDivision 2 Education and training\n","sortOrder":52},{"sectionNumber":"49","sectionType":"section","heading":"Schools and educational services and training","content":"49 Schools and educational services and training\nWages are exempt wages as provided for in Schedule 2, Part 4,\nDivision 1.\n","sortOrder":53},{"sectionNumber":"50","sectionType":"section","heading":"Community Development Employment Project","content":"50 Community Development Employment Project\nAboriginal person who is employed under an employment project.\n(2) An employment project is an employment project under the\nCommunity Development Employment Project funded by the\nDepartment of Employment and Workplace Relations of the\nCommonwealth or the Torres Strait Regional Authority.\n","sortOrder":54},{"sectionNumber":"51","sectionType":"section","heading":"Health care service providers","content":"51 Health care service providers\n(1) Subject to subsection (2), wages paid or payable by a health care\nservice provider are exempt wages.\n(2) The wages must be paid or payable:\n(a) for work of a kind ordinarily performed in connection with the\nconduct of a health care service provider; and\n(b) to a person engaged exclusively in that kind of work.\n(3) For this section, health care service provider has the meaning\ngiven in Schedule 2, Part 4, Division 2.\n","sortOrder":55},{"sectionNumber":"52","sectionType":"section","heading":"Division not to limit other exemptions","content":"52 Division not to limit other exemptions\n(1) Nothing in this Division limits the application of any other Division of\nthis Part.\n(2) For example, if a health care service provider is also a non-profit\nentity, Part 4 Division 1 may still apply.\n\nPayroll Tax Act 2009 38\n","sortOrder":56},{"sectionNumber":"53","sectionType":"section","heading":"Maternity and adoption leave","content":"53 Maternity and adoption leave\nemployee in respect of:\n(a) maternity leave, being leave given to a female employee in\nconnection with her pregnancy or the birth of her child (other\nthan sick leave, recreation leave, annual leave or any similar\nleave); or\n(b) adoption leave, being leave given to an employee in\nconnection with the adoption of a child by the employee (other\nthan sick leave, recreation leave, annual leave or any similar\nleave).\nClause 20 of Schedule 2 provides for a similar exemption for paternity leave\ngiven to a male employee. That exemption is not included in some corresponding\npayroll tax laws.\n(2) It is immaterial whether the leave is taken during or after the\npregnancy or before or after the adoption.\n(3) The exemption is limited to wages paid or payable in respect of a\nmaximum of 14 weeks maternity leave in respect of any\none pregnancy and 14 weeks adoption leave in respect of any\none adoption.\n(4) In subsection (3):\n(a) a reference to 14 weeks maternity leave or 14 weeks adoption\nleave includes a reference to an equivalent period of leave at\na reduced rate of pay; and\n(b) a reference to wages paid or payable in respect of a period of\nleave is a reference to the total wages that would normally\nhave been paid or payable for that period of leave.\nExample for subsection (4)\nFor a part-time employee, the exemption may apply to wages paid or payable for\nmaternity leave or adoption leave that extends to 28 weeks at half of the\npart-time rate of pay that would normally apply to the employee.\n(5) The exemption does not apply to any part of wages paid or payable\nin respect of maternity or adoption leave that comprises fringe\nbenefits.\n\n","sortOrder":57},{"sectionNumber":"Div 5","sectionType":"division","heading":"Volunteer firefighters and emergency service volunteers","content":"Division 5 Volunteer firefighters and emergency service volunteers\nPayroll Tax Act 2009 39\n","sortOrder":58},{"sectionNumber":"54","sectionType":"section","heading":"Administrative requirements for exemption","content":"54 Administrative requirements for exemption\n(1) An employer wishing to claim an exemption under section 53 in\nrespect of maternity leave must obtain and keep a medical\ncertificate in respect of, or statutory declaration by, the employee:\n(a) stating that the employee is or was pregnant; or\n(b) stating that the employee has given birth and the date of birth.\n(2) An employer wishing to claim an exemption under section 53 in\nrespect of adoption leave must obtain and keep a statutory\ndeclaration by the employee stating:\n(a) that a child has been placed in the custody of the employee\npending the making of an adoption order; or\n(b) that an adoption order has been made or recognised in favour\nof the employee.\nNote\nDivision 5 Volunteer firefighters and emergency service\nvolunteers\n","sortOrder":59},{"sectionNumber":"55","sectionType":"section","heading":"Volunteer firefighters","content":"55 Volunteer firefighters\nSubject to section 57, wages are exempt wages if they are paid or\npayable to an employee in respect of any period when the\nemployee was taking part in bushfire fighting activities:\n(a) as a volunteer member as defined in section 3(1) of the Fire\nand Emergency Act 1996; or\n(b) as a member of a volunteer bushfire brigade established\nunder section 54 of the Bushfires Management Act 2016; or\n(c) as authorised by a fire control officer or fire warden under the\nBushfires Management Act 2016.\n","sortOrder":60},{"sectionNumber":"56","sectionType":"section","heading":"Emergency service volunteers","content":"56 Emergency service volunteers\nSubject to section 57, wages are exempt wages if they are paid or\npayable to an employee in respect of any period when the\nemployee:\n(a) was engaging in activities as a volunteer member as defined\nin section 8 of the Emergency Management Act 1996; or\n\nPayroll Tax Act 2009 40\n(b) attends an incident as defined in section 3(1) of the Fire and\nEmergency Act 1996 as a volunteer member under that Act.\n","sortOrder":61},{"sectionNumber":"57","sectionType":"section","heading":"Limitation of exemption","content":"57 Limitation of exemption\nAn exemption under this Division does not apply to wages paid or\npayable as recreation leave, annual leave, long service leave or\nsick leave.\n","sortOrder":62},{"sectionNumber":"58","sectionType":"section","heading":"Local governing bodies","content":"58 Local governing bodies\nSubject to section 60, wages are exempt wages if they are paid or\npayable by:\n(a) a local governing body; or\n(b) a union or partnership of which all the members are local\ngoverning bodies.\n","sortOrder":63},{"sectionNumber":"59","sectionType":"section","heading":"Local government business entities","content":"59 Local government business entities\n(1) Subject to section 60, wages are exempt wages if they are paid or\npayable:\n(a) by a wholly-owned subsidiary (within the meaning of the\nCorporations Act 2001) of a local governing body; and\n(b) to a person for or in connection with an activity that is\nconducted for the local governing body under a written\narrangement between the subsidiary and the local governing\nbody.\n(2) The written arrangement mentioned in subsection (1)(b) must\ninclude a provision for the payment by the subsidiary to the local\ngoverning body of an amount approximately equivalent to the\namount of tax that would be payable by the subsidiary under this\nAct but for the exemption.\n","sortOrder":64},{"sectionNumber":"60","sectionType":"section","heading":"Limitation on local government exemptions","content":"60 Limitation on local government exemptions\nAn exemption under this Division does not apply to wages paid or\npayable for or in connection with:\n(a) activities prescribed by regulation; or\n(b) the construction of any buildings or works, or the installation of\nplant, machinery or equipment for use in any of the activities.\n\nPayroll Tax Act 2009 41\nDivision 7 Other government and defence\n61 State Governors\nWages paid or payable by the Governor of a State are exempt\n62 Defence personnel\nWages are exempt wages if they are paid or payable to an\nemployee in respect of any period when the employee was on\nleave from employment because of being a member of:\n(a) the Australian Defence Force; or\n(b) the armed forces of any part of the Commonwealth of Nations.\n","sortOrder":65},{"sectionNumber":"63","sectionType":"section","heading":"War Graves Commission","content":"63 War Graves Commission\nWages paid or payable by the Commonwealth War Graves\nCommission are exempt wages.\n","sortOrder":66},{"sectionNumber":"Div 8","sectionType":"division","heading":"Foreign government representatives and","content":"Division 8 Foreign government representatives and\ninternational agencies\n","sortOrder":67},{"sectionNumber":"64","sectionType":"section","heading":"Consular and non-diplomatic representatives","content":"64 Consular and non-diplomatic representatives\nWages paid or payable to members of his or her official staff by a\nconsular or other representative of any country in Australia (other\nthan a diplomatic representative) are exempt wages.\n","sortOrder":68},{"sectionNumber":"65","sectionType":"section","heading":"Trade Commissioners","content":"65 Trade Commissioners\nWages paid or payable to members of his or her official staff by a\nTrade Commissioner representing any other part of the\nCommonwealth of Nations in Australia are exempt wages.\n","sortOrder":69},{"sectionNumber":"66","sectionType":"section","heading":"Australian-American Fulbright Commission","content":"66 Australian-American Fulbright Commission\nWages paid or payable by the Australian-American Fulbright\nCommission are exempt wages.\n","sortOrder":70},{"sectionNumber":"66A","sectionType":"section","heading":"Wages paid or payable for or in relation to services performed","content":"66A Wages paid or payable for or in relation to services performed\nin other countries\nWages are exempt wages if they are paid or payable for or in\nrelation to services performed by an employee wholly in one or\nmore other countries for a continuous period of more than 6 months\n\nPayroll Tax Act 2009 42\nbeginning on the day on which wages were first paid or payable to\nthat employee for the services so performed.\n","sortOrder":71},{"sectionNumber":"Div 1","sectionType":"division","heading":"Interpretation","content":"Division 1 Interpretation\n","sortOrder":72},{"sectionNumber":"67","sectionType":"section","heading":"Definitions","content":"67 Definitions\nbusiness includes:\n(a) a profession or trade; and\n(b) any other activity carried on for fee, gain or reward; and\n(c) the activity of employing 1 or more persons who perform\nduties for or in connection with another business; and\n(d) the carrying on of a trust (including a dormant trust); and\n(e) the activity of holding any money or property used for or in\nconnection with another business;\nwhether carried on by 1 person or 2 or more persons together.\ngroup means a group constituted under this Part, but does not\ninclude any member of the group in respect of whom a\ndetermination under Division 4 is in force.\n","sortOrder":73},{"sectionNumber":"68","sectionType":"section","heading":"Grouping provisions to operate independently","content":"68 Grouping provisions to operate independently\nThe fact that a person is not a member of a group constituted under\na provision of this Part does not prevent the person from being a\nmember of a group constituted under another provision of this Part.\n","sortOrder":74},{"sectionNumber":"69","sectionType":"section","heading":"Constitution of groups","content":"69 Constitution of groups\nA group is constituted by all the persons or bodies forming a group\nthat is not a part of any larger group.\n","sortOrder":75},{"sectionNumber":"70","sectionType":"section","heading":"Groups of corporations","content":"70 Groups of corporations\nCorporations constitute a group if they are related bodies corporate\nwithin the meaning of the Corporations Act 2001.\n\nPayroll Tax Act 2009 43\n","sortOrder":76},{"sectionNumber":"71","sectionType":"section","heading":"Groups arising from the use of common employees","content":"71 Groups arising from the use of common employees\n(1) If 1 or more employees of an employer perform duties for or in\nconnection with 1 or more businesses carried on by the employer\nand 1 or more other persons, the employer and each of those other\npersons constitute a group.\n(2) If 1 or more employees of an employer are employed solely or\nmainly to perform duties for or in connection with 1 or more\nbusinesses carried on by 1 or more other persons, the employer\nand each of those other persons constitute a group.\n(3) If 1 or more employees of an employer perform duties for or in\nconnection with 1 or more businesses carried on by 1 or more other\npersons, being duties performed in connection with, or in fulfilment\nof the employer's obligation under, an agreement, arrangement or\nundertaking for the provision of services to any 1 or more of those\nother persons in connection with that business or those businesses,\nthe employer and each of those other persons constitute a group.\n(4) Subsection (3) applies to an agreement, arrangement or\nundertaking:\n(a) whether the agreement, arrangement or undertaking is formal\nor informal, express or implied; and\n(b) whether or not the agreement, arrangement or undertaking\nprovides for duties to be performed by the employees or\nspecifies the duties to be performed by them.\nNote\n","sortOrder":77},{"sectionNumber":"72","sectionType":"section","heading":"Groups of commonly controlled businesses","content":"72 Groups of commonly controlled businesses\n(1) If a person or set of persons has a controlling interest in each of\n2 businesses, the persons who carry on those businesses\nconstitute a group.\n(2) For this section, a person or set of persons has a controlling\ninterest in a business if:\n(a) in the case of 1 person – the person is the sole owner\n(whether or not as trustee) of the business; or\n\nPayroll Tax Act 2009 44\n(b) in the case of a set of persons – the persons are together as\ntrustees the sole owners of the business; or\n(c) in the case of a business carried on by a corporation:\n(i) the person or each of the set of persons is a director of\nthe corporation and the person or set of persons is\nentitled to exercise more than 50% of the voting power\nat meetings of the directors of the corporation; or\n(ii) a director or set of directors of the corporation that is\nentitled to exercise more than 50% of the voting power\nat meetings of the directors of the corporation is under\nan obligation, whether formal or informal, to act in\naccordance with the direction, instructions or wishes of\nthat person or set of persons; or\n(d) in the case of a business carried on by a body corporate or\nunincorporated – that person or set of persons constitute more\nthan 50% of the board of management (by whatever name\ncalled) of the body or control the composition of that board; or\n(e) in the case of a business carried on by a corporation that has\na share capital – that person or set of persons can, directly or\nindirectly, exercise, control the exercise of, or substantially\ninfluence the exercise of, more than 50% of the voting power\nattached to the voting shares, or any class of voting shares,\nissued by the corporation; or\n(f) in the case of a business carried on by a partnership – that\nperson or set of persons:\n(i) own (whether beneficially or not) more than 50% of the\ncapital of the partnership; or\n(ii) is entitled (whether beneficially or not) to more than 50%\nof the profits of the partnership; or\n(g) in the case of a business carried on under a trust – the person\nor set of persons (whether or not as a trustee of, or beneficiary\nunder, another trust) is the beneficiary in respect of more\nthan 50% of the value of the interests in the first-mentioned\ntrust.\n(3) If:\n(a) 2 corporations are related bodies corporate within the\nmeaning of the Corporations Act 2001; and\n(b) 1 of the corporations has a controlling interest in a business;\n\nPayroll Tax Act 2009 45\nthe other corporation has a controlling interest in the business.\n(4) If:\n(a) a person or set of persons has a controlling interest in a\nbusiness; and\n(b) a person or set of persons who carry on the business has a\ncontrolling interest in another business;\nthe person or set of persons mentioned in paragraph (a) has a\ncontrolling interest in the other business.\n(5) If:\n(a) a person or set of persons is the beneficiary of a trust in\nrespect of more than 50% of the value of the interests in the\ntrust; and\nanother trust;\nthe person or set of persons has a controlling interest in the\nbusiness.\n(6) A person who may benefit from a discretionary trust as a result of\nthe trustee or another person, or the trustee and another person,\nexercising or failing to exercise a power or discretion, is taken, for\nthis Part, to be a beneficiary in respect of more than 50% of the\nvalue of the interests in the trust.\n(7) If:\n(a) a person or set of persons has a controlling interest in the\nbusiness of a trust; and\na corporation;\nthe person or set of persons is taken to have a controlling interest in\nthe business of the corporation.\n(8) If:\n(a) a person or set of persons has a controlling interest in the\nbusiness of a trust; and\n\nPayroll Tax Act 2009 46\na partnership;\nthe person or set of persons is taken to have a controlling interest in\nthe business of the partnership.\n","sortOrder":78},{"sectionNumber":"73","sectionType":"section","heading":"Groups arising from tracing of interests in corporations","content":"73 Groups arising from tracing of interests in corporations\n(1) An entity and a corporation form part of a group if the entity has a\ncontrolling interest in the corporation.\n(2) For this section, an entity has a controlling interest in a\ncorporation if the corporation has share capital and:\n(a) the entity has a direct interest in the corporation and the value\nof that direct interest exceeds 50%; or\n(b) the entity has an indirect interest in the corporation and the\nvalue of that indirect interest exceeds 50%; or\n(c) the entity has an aggregate interest in the corporation and the\nvalue of the aggregate interest exceeds 50%.\n(3) Division 3 applies for the interpretation of this section.\nNote for subsection (3)\nDivision 3 sets out the manner for determining whether an entity has a direct\ninterest, indirect interest or aggregate interest in a corporation, and the value of\nsuch an interest.\n(4) In this section:\nassociated person means a person who is associated with\nanother person in accordance with any of the following provisions:\n(a) persons are associated persons if they are related persons;\n(b) individuals are associated persons if they are partners in a\npartnership;\n(c) private companies are associated persons if common\nshareholders have a majority interest in each private\ncompany;\n\nPayroll Tax Act 2009 47\n(d) trustees are associated persons if any person is a beneficiary\ncommon to the trusts (other than a public unit trust scheme) of\nwhich they are trustees;\n(e) a private company and a trustee are associated persons if a\nrelated body corporate of the company (within the meaning of\nthe Corporations Act 2001) is a beneficiary of the trust (other\nthan a public unit trust scheme) of which the trustee is a\ntrustee.\nentity means:\n(a) a person; or\n(b) 2 or more persons who are associated persons (as defined in\nthis section).\nprivate company means a company that is not limited by shares,\nor whose shares are not quoted on the Australian Securities\nExchange or any exchange of the World Federation of Exchanges.\nrelated person means a person who is related to another person in\naccordance with any of the following provisions:\n(a) individuals are related persons if:\n(i) one is the spouse or de facto partner of the other; or\n(ii) the relationship between them is that of parent and child,\nbrothers, sisters, or brother and sister;\n(b) private companies are related persons if they are related\nbodies corporate within the meaning of the Corporations\nAct 2001;\n(c) an individual and a private company are related persons if the\nindividual is a majority shareholder or director of the company\nor of another private company that is a related body corporate\nof the company within the meaning of the Corporations\nAct 2001;\n(d) an individual and a trustee are related persons if the individual\nis a beneficiary of the trust (not being a public unit trust\nscheme) of which the trustee is a trustee;\n(e) a private company and a trustee are related persons if the\ncompany, or a majority shareholder or director of the\ncompany, is a beneficiary of the trust (not being a public unit\ntrust scheme) of which the trustee is a trustee.\n\nPayroll Tax Act 2009 48\n","sortOrder":79},{"sectionNumber":"74","sectionType":"section","heading":"Smaller groups subsumed by larger groups","content":"74 Smaller groups subsumed by larger groups\n(1) If a person is a member of 2 or more groups, the members of all the\ngroups together constitute a group.\n(2) If 2 or more members of a group have together a controlling interest\nin a business (within the meaning of section 72), all the members of\nthe group and the person or persons who carry on the business\ntogether constitute a group.\nNote\nDivision 3 Business groups tracing of interests in\ncorporations\n75 Application\nThis Division applies for section 73.\n76 Direct interest\n(1) An entity has a direct interest in a corporation if:\n(a) in the case of an entity that is a person – the person can,\ndirectly or indirectly, exercise, control the exercise of, or\nsubstantially influence the exercise of, the voting power\nattached to any voting shares issued by the corporation; or\n(b) in the case of an entity that is 2 or more persons who are\nassociated persons – each of the associated persons can,\ndirectly or indirectly, exercise, control the exercise of, or\nsubstantially influence the exercise of, the voting power\nattached to any voting shares issued by the corporation.\n(2) The value of the direct interest of the entity in the corporation is the\nproportion (expressed as a percentage) of the voting power of all\nvoting shares issued by the corporation that:\n(a) in the case of an entity that is a person – the person can\ndirectly or indirectly exercise, control the exercise of, or\nsubstantially influence the exercise of, as mentioned in\nsubsection (1); or\n(b) in the case of an entity that is 2 or more persons who are\nassociated persons – the associated persons can, if acting\ntogether, directly or indirectly exercise, control the exercise of,\nor substantially influence the exercise of, as mentioned in\nsubsection (1).\n\nPayroll Tax Act 2009 49\n","sortOrder":80},{"sectionNumber":"77","sectionType":"section","heading":"Indirect interest","content":"77 Indirect interest\n(1) An entity has an indirect interest in a corporation if the corporation\nis linked to another corporation (the directly controlled\ncorporation) in which the entity has a direct interest.\n(2) A corporation is linked to a directly controlled corporation if the\ncorporation is part of a chain of corporations:\n(a) that starts with the directly controlled corporation; and\n(b) in which a link in the chain is formed if a corporation has a\ndirect interest in the next corporation in the chain.\n(3) The following are examples of how subsections (1) and (2) work\n(the examples are cumulative):\n(a) corporation A (a directly controlled corporation) has a direct\ninterest in corporation B. Corporations A and B form part of a\nchain of corporations, and corporation B is linked to\ncorporation A. Accordingly, an entity that has a direct interest\nin corporation A also has an indirect interest in corporation B;\n(b) corporation B also has a direct interest in corporation C. In this\ncase, corporations A, B and C form part of a chain of\ncorporations. Both corporations B and C are linked to\ncorporation A. The entity that has a direct interest in\ncorporation A has an indirect interest in both corporations B\nand C;\n(c) corporation B also has a direct interest in corporation D. There\nare now 2 chains of corporations, one consisting of A, B and\nC, and one consisting of A, B and D. Corporations B, C and D\nare all linked to corporation A and an entity that has a direct\ninterest in corporation A would have an indirect interest in\ncorporations B, C and D. An entity that has a direct interest in\ncorporation B would have an indirect interest in corporations C\nand D. However, an entity that has a direct interest in\ncorporation C only would not have an indirect interest in\ncorporation D, as corporation D is not linked to corporation C.\n(4) The value of the indirect interest of an entity in a corporation (an\nindirectly controlled corporation) that is linked to a directly\ncontrolled corporation is calculated by multiplying together the\nfollowing:\n(a) the value of the direct interest of the entity in the directly\ncontrolled corporation;\n\nPayroll Tax Act 2009 50\n(b) the value of each direct interest that forms a link in the chain\nof corporations by which the indirectly controlled corporation is\nlinked to the directly controlled corporation.\n(5) The following are examples of how subsection (4) works (the\nexamples are cumulative):\n(a) an entity has a direct interest (with a value of 80%) in\ncorporation A. Corporation A has a direct interest (with a value\nof 70%) in corporation B. The value of the indirect interest of\nthe entity in corporation B is 80% × 70% (that is, 56%).\nAccordingly, in this example the entity has a controlling\ninterest (within the meaning of section 73) in corporation B;\n(b) corporation B also has a direct interest (with a value of 40%)\nin corporation C. The value of the indirect interest of the entity\nin corporation C is 80% × 70% × 40% (that is, 22⋅4%).\nAccordingly, in this example the entity does not have a\ncontrolling interest in corporation C.\n(6) It is possible for an entity to have more than 1 indirect interest in a\ncorporation. This may occur if the corporation is linked to more than\n1 corporation in which the entity has a direct interest, or if the\ncorporation is linked to only 1 corporation in which the entity has a\ndirect interest but is linked through more than 1 chain of\ncorporations. In that case, the entity has an aggregate interest in\nthe corporation (see section 78).\n","sortOrder":81},{"sectionNumber":"78","sectionType":"section","heading":"Aggregation of interests","content":"78 Aggregation of interests\n(1) An entity has an aggregate interest in a corporation if:\n(a) the entity has a direct interest and 1 or more indirect interests\nin the corporation; or\n(b) the entity has more than 1 indirect interest in the corporation.\n(2) The value of the aggregate interest of an entity in a corporation is\nthe sum of the following:\n(a) the value of the direct interest (if any) of the entity in the\ncorporation;\n(b) the value of each indirect interest of the entity in the\ncorporation.\n(3) For example:\n(a) an entity has a direct interest (with a value of 40%) in\ncorporation B; and\n\nPayroll Tax Act 2009 51\n(b) the entity also has a direct interest (with a value of 25%) in\ncorporation A, which in turn has a direct interest (with a value\nof 60%) in corporation B. Accordingly, the entity also has an\nindirect interest in corporation B with a value of 15% (that is,\n25% × 60%); and\n(c) the value of the entity's aggregate interest in corporation B is\nthe sum of the direct interest (40%) and the indirect interest\n(15%), which is 55%; and\n(d) accordingly, in this example, the entity has a controlling\ninterest in corporation B (within the meaning of section 73).\n","sortOrder":82},{"sectionNumber":"79","sectionType":"section","heading":"Exclusion of persons from groups","content":"79 Exclusion of persons from groups\n(1) The Commissioner may, by order in writing, determine that a\nperson who would, but for the determination, be a member of a\ngroup is not a member of the group.\n(2) The Commissioner may only make such a determination if satisfied,\nhaving regard to the nature and degree of ownership and control of\nthe businesses, the nature of the businesses and any other matters\nthe Commissioner considers relevant, that a business carried on by\nthe person, is carried on independently of, and is not connected\nwith the carrying on of, a business carried on by any other member\nof that group.\n(3) The Commissioner cannot exclude a person from a group if the\nperson is a body corporate that, by reason of section 50 of the\nCorporations Act 2001, is related to another body corporate that is\na member of that group.\n(4) This section extends to a group constituted by reason of section 74.\n(5) A determination can be expressed to take effect on a date that is:\n(a) earlier than the date of the determination; but\n(b) not earlier than 1 July 2008.\n(6) The Commissioner may, by order in writing, revoke a determination\nthat applies in respect of a person if satisfied the circumstances in\nwhich a determination may be made do not apply to the person.\n(7) The revocation of a determination can be expressed to take effect\non a date that is earlier than the date of the determination.\n\nPayroll Tax Act 2009 52\n","sortOrder":83},{"sectionNumber":"80","sectionType":"section","heading":"Designated group employers","content":"80 Designated group employers\n(1) The members of a group may, with the approval of the\nCommissioner, designate a qualified member of the group to be the\ndesignated group employer for the group for this Act.\n(2) A member of a group is a qualified member if the member:\n(a) has paid during the preceding financial year wages that\nexceeded $2 500 000; or\n(b) is likely to pay during the current financial year wages that are\nlikely to exceed that amount.\n(3) If none of the members of a group is a qualified member but the\nmembers together:\n(a) have paid during the preceding financial year wages that\nexceeded $2 500 000; or\n(b) are, in the opinion of the Commissioner, likely to pay during\nthe current financial year wages that will exceed that amount;\nthe members may, with the approval of the Commissioner,\ndesignate any member of the group to be the designated group\nemployer for the group for this Act.\n(4) If the members of a group do not designate a member as the\ndesignated group employer within 7 days after the end of the month\nin which the group is established, the Commissioner may (but is not\nobliged to) designate any member of the group as the designated\ngroup employer.\n(5) The designated group employer of a group stops being the\ndesignated group employer from and including the earlier of the\nfollowing days:\n(a) the first day of a return period during which there is a change\nin the membership of the group;\n(b) the first day of a return period during which the members of\nthe group revoke the designation.\n(6) The designation of a designated group employer under\nsubsection (1) or (3) must be by notice in writing.\n(7) The notice must:\n(a) be executed by or on behalf of each member of the group; and\n\nPayroll Tax Act 2009 53\n(b) be served on the Commissioner.\n","sortOrder":84},{"sectionNumber":"81","sectionType":"section","heading":"Joint and several liability","content":"81 Joint and several liability\n(1) If a member of a group fails to pay an amount that the member is\nrequired to pay under this Act in respect of any period, every\nmember of the group is liable jointly and severally to pay that\namount to the Commissioner.\n(2) If 2 or more persons are jointly or severally liable to pay an amount\nunder this section, the Commissioner may recover the whole of the\namount from them, or any of them, or any one of them.\n(3) If, under this section, 2 or more persons are jointly and severally\nliable to pay an amount that is payable by any one of them, each\nperson is also jointly and severally liable to pay:\n(a) any amount payable to the Commissioner under this or any\nother Act in relation to that amount, including any interest and\npenalty tax; and\n(b) any costs and expenses incurred in relation to the recovery of\nthat amount that the Commissioner is entitled to recover from\nany such person.\n(4) A person who pays an amount in accordance with the liability\nimposed by this section has such rights of contribution or indemnity\nfrom the other person or persons as are just.\n(5) This section applies whether or not the person was an employer\nduring the relevant period.\n","sortOrder":85},{"sectionNumber":"82","sectionType":"section","heading":"Determination of correct amount of payroll tax","content":"82 Determination of correct amount of payroll tax\n(1) For this Part, the correct amount of payroll tax payable by an\nemployer in respect of a financial year is the amount determined in\naccordance with Schedule 1, or clause 14 of Schedule 2, as the\ncase requires, in respect of that financial year.\n(2) This Part applies in respect of payroll tax paid or payable whether\nas a group employer or as an individual employer.\n(3) If an employer is liable for payroll tax both as an individual employer\nand as a group employer (for different periods in the same financial\nyear) separate adjustments are to be made under this Part, or\nclause 15 of Schedule 2, as the case requires, in respect of any\nperiod as a group employer and any period as an individual\n\nPayroll Tax Act 2009 54\nemployer (and for that purpose separate determinations of the\ncorrect amount of payroll tax payable by the employer are to be\nmade).\n(4) In this Part:\ngroup employer means an employer who is a member of a group.\nindividual employer means an employer who is not a member of a\n","sortOrder":86},{"sectionNumber":"83","sectionType":"section","heading":"Annual adjustment of payroll tax","content":"83 Annual adjustment of payroll tax\n(1) If the amount of payroll tax paid or payable by an employer (other\nthan a group employer) when the employer made the returns\nrelating to a financial year is greater than the correct amount of\npayroll tax payable by the employer in respect of the financial year,\nthe Commissioner (on application by the employer) is to refund to\nthat employer an amount equal to the difference.\n(2) If the amount of payroll tax paid or payable by an employer (other\nthan a group employer) when the employer made the returns\nrelating to a financial year is less than the correct amount of payroll\ntax payable by the employer in respect of the financial year, the\nemployer must pay to the Commissioner as payroll tax an amount\nequal to the difference.\n(3) Any amount payable by an employer under this section or\nclause 15 of Schedule 2 in respect of a financial year must be paid\nwithin the period during which the employer is required to lodge a\nreturn under this Act in respect of the return period that is or\nincludes the month of June in that financial year.\n(4) The amount of any refund payable to an employer in respect of a\nfinancial year under this section or clause 15 of Schedule 2 is to be\nreduced by the amount of any other refund of payroll tax made in\nrespect of that financial year to that employer (whether under this\nsection or otherwise) before the time of the refund under this\nNote\nClause 15 of Schedule 2 applies to group employers.\n","sortOrder":87},{"sectionNumber":"84","sectionType":"section","heading":"Adjustment of payroll tax when employer changes","content":"84 Adjustment of payroll tax when employer changes\ncircumstances\n(1) If an employer changes the employer's circumstances during a\nfinancial year, the employer must, if the amount of payroll tax paid\nor payable by the employer when the employer made returns\nrelating to the relevant period prior to the change of circumstances\n\nPayroll Tax Act 2009 55\nis less than the correct amount of payroll tax payable by the\nemployer in respect of the financial year, pay to the Commissioner\nas payroll tax an amount equal to the difference.\n(2) A change of circumstances occurs when the employer:\n(a) ceases to pay or be liable to pay taxable wages and interstate\nwages; or\n(b) becomes a group employer (following a period as an individual\nemployer); or\n(c) ceases to be a group employer (and becomes an individual\nemployer).\n(3) The relevant period prior to a change of circumstances is the period\nprior to the change (during the financial year concerned and since\nany prior change of circumstances) for which the employer paid or\nwas liable to pay taxable wages or interstate wages.\n(4) In calculating for this section the correct amount of payroll tax\npayable by the employer, it is to be assumed that the wages paid or\npayable by the employer during the relevant period are the only\nwages paid or payable by the employer during the financial year\nconcerned.\n(5) Any amount payable by an employer under this section in respect\nof a relevant period must be paid within the period during which the\nemployer is required to lodge a return under this Act relating to that\nrelevant period or the last return under this Act relating to the\nrelevant period.\n(6) Any payroll tax paid or payable by an employer under this section is\nto be included as payroll tax paid or payable by the employer for the\nannual adjustment of payroll tax under this Part.\nNote\nIf an employer ceases to be a group employer during a financial year an\nadjustment will be made under this section. If later in that financial year the\nemployer ceases to pay wages there will be a further adjustment under this\nsection. The first adjustment will adjust payroll tax paid for the period as a group\nemployer against the correct amount of tax that should have been paid (based on\nthe assumption that the period as a group employer is the only period for which\nthe employer paid wages throughout the year). The second adjustment will adjust\npayroll tax paid for the period as an individual employer against the correct\namount of tax that should have been paid (based on the assumption that the\nperiod as an individual employer is the only period for which the employer paid\nwages throughout the year). Any amount of payroll tax paid under this section is\ntaken into account for the annual adjustment of payroll tax.\n\nPayroll Tax Act 2009 56\n","sortOrder":88},{"sectionNumber":"85","sectionType":"section","heading":"Special provision where wages fluctuate","content":"85 Special provision where wages fluctuate\nIf a person who did not pay and was not liable to pay taxable wages\nor interstate wages for any part of a financial year satisfies the\nCommissioner that, by reason of the nature of the person's trade or\nbusiness, the taxable wages and interstate wages, if any, paid or\npayable by the person fluctuate with different periods of the\nfinancial year, the Commissioner may determine that the person is\nto be treated for this Part:\n(a) if the person has conducted that trade or business in Australia\nduring the whole of the financial year – as an employer who\npays or is liable to pay taxable wages throughout the financial\n(b) if the person has conducted that trade or business in Australia\nduring part only of the financial year – as an employer who\npays or is liable to pay taxable wages throughout that part of\nthe financial year.\nNote\nThe effect of such a determination is that when the correct amount of payroll tax\nis calculated (for a tax adjustment provided for by this Part) the employer may\nreceive the benefit of the payroll tax threshold for the period for which the\nemployer is to be treated as paying wages, and not just for the period for which\nthe employer actually pays wages. Without such a determination, an employer\nmay only receive the benefit of a proportion of the threshold amount that is\nequivalent to the proportion of the whole financial year for which the employer\nactually pays wages.\n","sortOrder":89},{"sectionNumber":"86","sectionType":"section","heading":"Registration","content":"86 Registration\n(1) An employer who is not already registered must apply for\nregistration as an employer under this Act if:\n(a) during a month the employer pays or is liable to pay,\nanywhere, wages of more than the weekly threshold amount\nper week that are wholly or partly taxable wages; or\n(b) the employer is a member of a group the members of which\ntogether during a month pay or are liable to pay, anywhere,\nwages of more than the weekly threshold amount per week\nthat are wholly or partly taxable wages.\n\nPayroll Tax Act 2009 57\n(1A) For subsection (1), the weekly threshold amount is to be worked\nout using the following formula (disregarding any amount in cents):\nN\nTA ×\nN is the number of days in the financial year.\n(2) The application for registration is to be made to the Commissioner\nin a form and manner approved by the Commissioner within\n21 days after the end of the month concerned.\n(3) The Commissioner is to register the applicant as an employer under\n(4) The Commissioner may cancel the registration of a person as an\nemployer if satisfied that the person has ceased to pay or to have a\nliability to pay wages as described in subsection (1).\n(5) If the Commissioner cancels the registration of a person as an\nemployer in any financial year and the person subsequently pays or\nis liable to pay taxable wages during the financial year, the person\nmay, despite the fact the person is not required to apply for\nregistration, apply to the Commissioner (in a form and manner\napproved by the Commissioner) for registration as an employer,\nand the Commissioner is then to register the person as an\nemployer under this Act.\n","sortOrder":90},{"sectionNumber":"87","sectionType":"section","heading":"Returns","content":"87 Returns\n(1) Every employer who is registered or required to apply for\nregistration as an employer under this Act must:\n(a) within 21 days after the end of each month (except June) –\nlodge with the Commissioner a return relating to that month;\nand\n(b) within 21 days after the end of June in each year – lodge with\nthe Commissioner a return relating to that month and to the\nadjustment of payroll tax paid or payable by the employer\nduring the financial year ending on the close of that month.\n\nPayroll Tax Act 2009 58\n(2) The designated group employer for a group may, with the approval\nof the Commissioner, lodge a joint return for this section covering\nspecified members of the group (including the designated group\nemployer).\n(3) If a joint return is lodged and the return would, if lodged by a single\nemployer, comply with this section, each of the employers covered\nby the return is taken to have complied with this section.\n","sortOrder":91},{"sectionNumber":"88","sectionType":"section","heading":"Application","content":"88 Application\n(1) This Division applies to an agent of, or trustee for, an employer.\n(2) Nothing in this Division limits or otherwise affects the application of\n","sortOrder":92},{"sectionNumber":"Part 5","sectionType":"part","heading":"to an agent or trustee, or 2 or more persons 1 or more of","content":"Part 5 to an agent or trustee, or 2 or more persons 1 or more of\nwhom is an agent or trustee.\n","sortOrder":93},{"sectionNumber":"89","sectionType":"section","heading":"Agents and trustees are answerable","content":"89 Agents and trustees are answerable\nAn agent or trustee is answerable as the employer for the doing of\nall things that are required to be done by or under this Act in\nrespect of the payment of any wages which are subject to payroll\ntax under this Act.\n","sortOrder":94},{"sectionNumber":"90","sectionType":"section","heading":"Returns by agent or trustee","content":"90 Returns by agent or trustee\n(1) An agent or trustee must, in respect of the wages mentioned in\nsection 89, make the returns required under Part 7, but in a\nrepresentative capacity only, and each return must, except as\notherwise provided by this Act, be separate and distinct from any\nother.\n(2) In the case of an executor or administrator, the returns must be the\nsame as far as practicable as the deceased person, if living, would\nhave been liable to make.\n","sortOrder":95},{"sectionNumber":"91","sectionType":"section","heading":"Liability to pay tax","content":"91 Liability to pay tax\n(1) An agent or trustee is personally liable for tax on the wages\nmentioned in section 89 if:\n(a) after the Commissioner has required the agent or trustee to\nmake a return; or\n(b) while the tax remains unpaid;\n\nPayroll Tax Act 2009 59\nthe agent or trustee, except with the written permission of the\nCommissioner, disposes of or parts with any fund or money which\ncomes to the agent or trustee from or out of which tax could legally\nbe paid.\n(2) Otherwise than as provided in subsection (1), the agent or trustee is\nnot personally liable to pay the tax in a representative capacity.\n(3) The agent or trustee must retain from time to time out of any money\nwhich comes to the agent or trustee in a representative capacity\nenough to pay the tax.\n(4) For ensuring the payment of tax, the Commissioner has the same\nremedies against attachable property of any kind vested in or under\nthe control or management or in the possession of the agent or\ntrustee, as the Commissioner has against the property of any other\nperson in respect of tax, and in as full and ample a manner.\n","sortOrder":96},{"sectionNumber":"92","sectionType":"section","heading":"Indemnity for agent or trustee","content":"92 Indemnity for agent or trustee\n(1) An agent or trustee is indemnified for all payments that the agent or\ntrustee makes under this Act or in accordance with the\nrequirements of the Commissioner.\n(2) An agent or trustee who pays tax as agent or trustee may recover\nthe amount paid from the person on whose behalf it was paid, or\ndeduct it from any money in the agent's or trustee's hands\nbelonging to that person.\nNote\nIn some corresponding payroll tax laws, this Division provides for special cases in\nsections 93 to 99 which do not apply in the Territory.\n93 Tax not paid during lifetime\n94 Payment of tax by executors or administrators\n95 Assessment if no probate within 6 months of death\n96 Person in receipt or control of money for absentee\n97 Agent for absentee principal winding-up business\n98 Recovery of tax paid on behalf of another person\n99 Liquidator to give notice\n\nPayroll Tax Act 2009 60\n","sortOrder":97},{"sectionNumber":"Part 9","sectionType":"part","heading":"General","content":"Part 9 General\n","sortOrder":98},{"sectionNumber":"100","sectionType":"section","heading":"Provisions specific to this jurisdiction","content":"100 Provisions specific to this jurisdiction\nSchedule 2, which contains provisions that are applicable only to\nthis jurisdiction, has effect.\n","sortOrder":99},{"sectionNumber":"101","sectionType":"section","heading":"Regulations","content":"101 Regulations\n(1) The Administrator may make regulations under this Act.\n(2) The regulations may provide for the following:\n(a) the manner of making any application to the Commissioner\nunder this Act;\n(b) the evidence the Commissioner may require for determining\nwhether or not:\n(i) an employer was an employer for part only of a financial\n(ii) a person was a member of a group at any time or during\nany period;\n(c) the signing of returns, applications, notices, statements or\nforms by or on behalf of employers and deeming any return,\napplication, notice, statement or form signed on behalf of an\nemployer to have been signed by the employer;\n(d) the authentication of any certificate, notice or other document\nissued for this Act or any regulation.\nPart 10 Repeals and transitional provisions for Payroll\nTax Act 2009\n102 Repeals\nThe Acts specified in Schedule 3 are repealed.\n103 Definitions\ncommencement means the commencement of this Act.\nold Act means the Pay-roll Tax Act 1978.\nold regulations means the Pay-roll Tax Regulations 1978.\n\nPayroll Tax Act 2009 61\npre-existing, for a thing done under the old Act, means the thing as\nin force under the old Act immediately before the commencement.\n","sortOrder":100},{"sectionNumber":"104","sectionType":"section","heading":"Application of this Act and old Act","content":"104 Application of this Act and old Act\n(1) This Act applies to payroll tax on taxable wages that are paid or\npayable on or after 1 July 2009.\n(2) Despite its repeal, the old Act continues to apply to payroll tax on\ntaxable wages (within the meaning of the old Act) paid or payable\nbefore 1 July 2009.\n","sortOrder":101},{"sectionNumber":"105","sectionType":"section","heading":"General saving","content":"105 General saving\nAny act, matter or thing that had effect under or for a provision of\nthe old Act, or a provision of another Act repealed by this Act,\nimmediately before the repeal of the provision continues to have\neffect under or for the corresponding provision of this Act, subject to\nany other provision of this Part or the regulations under this Part.\n","sortOrder":102},{"sectionNumber":"106","sectionType":"section","heading":"Employer election","content":"106 Employer election\nAn election made by an employer under regulation 27K of the old\nregulations that was in force immediately before 1 July 2009 is\ntaken, on and after that day, to be an election under section 16(1)\nof this Act.\n","sortOrder":103},{"sectionNumber":"107","sectionType":"section","heading":"Pre-1 July 2009 taxable wages that included superannuation","content":"107 Pre-1 July 2009 taxable wages that included superannuation\ncontributions\n(1) This section applies if:\n(a) because of clause 3 of Schedule 1 of the old Act, an\nemployer's taxable wages for a financial year that started\nbefore 1 July 2009 (a pre-1 July 2009 financial year)\nincluded an amount of superannuation contribution; and\n(b) the employer did not actually make that superannuation\ncontribution until on or after 1 July 2009.\n(2) The employer may deduct that amount from the employer's taxable\nwages for a subsequent return period in which that superannuation\ncontribution is actually made.\n(3) A superannuation contribution that is alleged by an employer to be\nincluded in the employer's taxable wages for a pre-1 July 2009\nfinancial year must be evidenced to the satisfaction of the\nCommissioner in the employer’s records for payroll tax purposes.\n\nPayroll Tax Act 2009 62\n","sortOrder":104},{"sectionNumber":"108","sectionType":"section","heading":"Superannuation contributions relating to pre-1 July 1999","content":"108 Superannuation contributions relating to pre-1 July 1999\nservice\n(1) Despite anything in section 11 or 17, wages do not include a\nsuperannuation contribution paid or payable in respect of services\nperformed by an employee before 1 July 1999.\n(2) A superannuation contribution that is alleged by an employer to be\npaid in respect of services performed by an employee before\n","sortOrder":105},{"sectionNumber":"1","sectionType":"section","heading":"July 1999 must be evidenced to the satisfaction of the","content":"1 July 1999 must be evidenced to the satisfaction of the\nCommissioner in the employer’s records for payroll tax purposes.\n(3) In particular, the employer’s records must show the manner of\ncalculation of the contribution and any actuarial basis for it.\n(4) For subsection (3), and any assessment of payroll tax to which that\nsubsection is material, the certificate of a fellow or accredited\nmember of the Institute of Actuaries of Australia to the effect that\nthe actuarial basis on which an amount is calculated is justified is\nevidence and, in the absence of evidence to the contrary, proof of\nthat fact.\n(5) If records are not kept as required by this section, the\nCommissioner is entitled to assume that a payment of money by an\nemployer as a superannuation contribution on or after 1 July 1999\nis an amount payable in respect of services performed by an\nemployee on or after that day.\n","sortOrder":106},{"sectionNumber":"109","sectionType":"section","heading":"Designated group employer","content":"109 Designated group employer\nThe designation of an employer as a designated group employer\nthat had effect immediately before 1 July 2009 has effect as the\ndesignation of a designated group employer under this Act.\n","sortOrder":107},{"sectionNumber":"110","sectionType":"section","heading":"Approval relating to motor vehicle allowance","content":"110 Approval relating to motor vehicle allowance\nAn approval given by the Commissioner under section 3E(6) of the\nold Act that was in force immediately before 1 July 2009 is taken,\non and after that day, to be an approval given under section 29(6)\nof this Act.\n","sortOrder":108},{"sectionNumber":"111","sectionType":"section","heading":"Registration of employers","content":"111 Registration of employers\nAn employer who was registered under section 12 of the old Act\nimmediately before 1 July 2009 is taken, on and after that day, to\nbe registered under section 86 of this Act.\n\nPayroll Tax Act 2009 63\n","sortOrder":109},{"sectionNumber":"112","sectionType":"section","heading":"Delegation, authorisation and appointment","content":"112 Delegation, authorisation and appointment\n(1) This section applies to a delegation, authorisation or appointment\n(each of which is a relevant instrument) made under the Taxation\nAdministration Act 2007 and was in force immediately before\n1 July 2009 in relation to the old Act or old regulations.\n(2) A relevant instrument has effect after that date if it relates to a\nprovision of the old Act or old regulations that continues to have\neffect after that date because of this Part.\n(3) If a relevant instrument relates to a provision of the old Act or old\nregulations for which there is a corresponding provision of this Act,\nthe relevant instrument has effect after that date as it were made in\nrelation to the corresponding provision of this Act.\n","sortOrder":110},{"sectionNumber":"113","sectionType":"section","heading":"Application","content":"113 Application\n(1) Subject to subsections (2) and (3), the amendments made to this\nAct by the Payroll Tax Amendment Act 2010 apply in respect of\ntaxable wages that are paid or payable on or after 1 July 2009.\n(2) The amendments made to this Act by the Payroll Tax Amendment\nAct 2010 are to be applied for the purpose of determining the\ncorrect amount of payroll tax (within the meaning of section 82)\npayable by an employer in respect of the financial year\ncommencing on 1 July 2009 (including in respect of expired\nmonths).\n(3) Section 9 continues to apply in respect of an expired month as if the\namendments made to this Act by the Payroll Tax Amendment\nAct 2010 had not been made.\n(4) In this section:\nexpired month means a month occurring after June 2009 that\nended before or on the day on which the Administrator's assent to\nthe Payroll Tax Amendment Act 2010 is declared.\n\nPayroll Tax Act 2009 64\n","sortOrder":111},{"sectionNumber":"114","sectionType":"section","heading":"Assessment and payment of payroll tax in relation to employee","content":"114 Assessment and payment of payroll tax in relation to employee\nshares and options\nAnything done or omitted to be done by an employer in connection\nwith the assessment and payment of payroll tax, in respect of a\nmonth occurring after June 2009 and before July 2011, that would\nhave been validly done or omitted to be done had the amendments\nmade to this Act by the Revenue Legislation Amendment Act 2011\nbeen in force, is taken to have been validly done or omitted.\nNote for section 114\nThis provision validates a decision by an employer to treat the grant of a share or\nan option to an employee that is not an ESS interest as a fringe benefit under\nPart 3, Division 2 and to determine the value of those fringe benefits in\naccordance with those provisions, rather than by reference to Part 3, Division 4.\n","sortOrder":112},{"sectionNumber":"115","sectionType":"section","heading":"Determination of vesting date and value of employee shares","content":"115 Determination of vesting date and value of employee shares\nand options\n(1) Part 3, Division 4 continues to apply in relation to a share or an\noption granted before 1 July 2011 that constituted wages under old\nsection 18, whether or not the grant of the share or option would\nconstitute wages under new section 18, if the relevant day in\nrelation to the grant of the share or option is not a day occurring\nbefore 1 July 2011.\nExample for subsection (1)\nA share granted before 1 July 2011 that is not an ESS interest continues to be\ntreated as wages under Part 3, Division 4 if the vesting date for the share did not\noccur before 1 July 2011 and the employer did not elect to treat the date of the\ngrant as the relevant day.\n(2) The assessment amendments apply in respect of any such share or\noption.\n(3) Accordingly, the vesting date and the value of the share or option\nare to be determined in accordance with the assessment\namendments.\n(4) This section does not apply in respect of a share or an option\ngranted before 1 July 2011 if the liability for payroll tax in respect of\nthe grant is determined in accordance with Part 3, Division 2 (as\npermitted by section 114).\n(5) In this section:\nassessment amendments means the amendments made by\n","sortOrder":113},{"sectionNumber":"Part 3","sectionType":"part","heading":"of the Revenue Legislation Amendment Act 2011.","content":"Part 3 of the Revenue Legislation Amendment Act 2011.\n\n","sortOrder":114},{"sectionNumber":"Div 4","sectionType":"division","heading":"Transitional matters for Revenue Legislation Amendment Act 2018","content":"Division 4 Transitional matters for Revenue Legislation Amendment Act 2018\nPayroll Tax Act 2009 65\nnew section 18 means section 18 as amended by the Revenue\nLegislation Amendment Act 2011.\nold section 18 means section 18 as in force immediately before\nrelevant day, see section 18(3).\nDivision 3 Revenue and Other Legislation Amendment\nAct 2015\n116 Definition\n2015 Act means the Revenue and Other Legislation Amendment\nAct 2015.\n117 Contractor provisions – wages paid or payable before\n(1) Section 32, as amended by section 15 of the 2015 Act, does not\napply in relation to wages paid or payable before 1 July 2015.\n(2) Section 32, as in force before 1 July 2015, continues to apply in\nrelation to wages paid or payable before 1 July 2015 as if\nsection 15 of the 2015 Act had not commenced.\n","sortOrder":115},{"sectionNumber":"118","sectionType":"section","heading":"Non-profit entities – wages paid or payable before 1 July 2015","content":"118 Non-profit entities – wages paid or payable before 1 July 2015\n(1) Part 4, Division 1, as amended by section 17 of the 2015 Act, does\nnot apply in relation to wages paid or payable before 1 July 2015.\n(2) Part 4, Division 1, as in force before 1 July 2015, continues to apply\nin relation to wages paid or payable before 1 July 2015 as\nif section 17 of the 2015 Act had not commenced.\nDivision 4 Transitional matters for Revenue Legislation\nAmendment Act 2018\n","sortOrder":116},{"sectionNumber":"119","sectionType":"section","heading":"Transitional matters for Revenue Legislation Amendment","content":"119 Transitional matters for Revenue Legislation Amendment\nAct 2018\n(1) The amendments made to this Act by the Revenue Legislation\nAmendment Act 2018 apply to:\n(a) wages paid on or after 1 May 2018, except wages payable\nbefore that date; and\n(b) wages payable on or after 1 May 2018.\n\n","sortOrder":117},{"sectionNumber":"Div 6","sectionType":"division","heading":"Transitional matters for Revenue Legislation Amendment Act 2025","content":"Division 6 Transitional matters for Revenue Legislation Amendment Act 2025\nPayroll Tax Act 2009 66\n(2) This Act, as in force immediately before 1 May 2018, continues to\napply to wages paid or payable before 1 May 2018.\nDivision 5 Transitional matters for Payroll Tax Amendment\nAct 2025\n","sortOrder":118},{"sectionNumber":"120","sectionType":"section","heading":"Application of amendments","content":"120 Application of amendments\n(1) This Act as amended by the Payroll Tax Amendment Act 2025\napplies in relation to:\n(a) wages paid on or after 1 July 2025, except wages payable\nbefore that date; and\n(b) wages payable on or after 1 July 2025.\n(2) This Act as in force immediately before 1 July 2025 continues to\napply in relation to wages paid or payable before 1 July 2025.\nDivision 6 Transitional matters for Revenue Legislation\n","sortOrder":119},{"sectionNumber":"121","sectionType":"section","heading":"Application of amendments","content":"121 Application of amendments\n(1) Section 48C, as amended by Part 3 of the Revenue Legislation\nAmendment Act 2025 (the amending Act), applies in relation to:\n(a) wages paid by non-profit entities on or after 1 July 2025,\nexcept wages payable before that date; and\n(b) wages payable by non-profit entities on or after 1 July 2025.\n(2) Section 48C, as in force immediately before the commencement of\nthe amending Act, continues to apply in relation to wages paid or\npayable by non-profit entities before 1 July 2025.\n\nPayroll Tax Act 2009 67\nsections 8, 29(5) and 82\n","sortOrder":120},{"sectionNumber":"Part 1","sectionType":"part","heading":"Interpretation","content":"Part 1 Interpretation\n1 Definitions\nIn this Schedule:\nETA or employer's threshold amount, see clause 4.\nfinancial year means the financial year commencing on\n1 July 2009 or on 1 July in any subsequent financial year.\nFY means the number of days in the financial year.\nGTA or group threshold amount, see clause 8.\nR means 5.5%.\nrelevant financial year means the financial year to which the\ncalculation of the relevant payroll tax relates.\nTA or threshold amount means $2 500 000.\nPart 2 Employers who are not members of group\n2 Application of Part\nThis Part applies only to an employer who is not a member of a\n3 Definitions\n\nPayroll Tax Act 2009 68\nC means the number of days in the relevant financial year in\nrespect of which the employer paid or was liable to pay taxable\nwages or interstate wages (otherwise than as a member of a\ngroup).\nIW means the total interstate wages paid or payable by the\nemployer concerned (otherwise than as a member of a group)\nduring the relevant financial year.\nconcerned (otherwise than as a member of a group) during the\nrelevant financial year.\n4 Payroll of employer not more than threshold\nAn employer is not liable to pay payroll tax for a financial year if the\ntotal taxable wages and interstate wages paid or payable by the\nemployer (otherwise than as a member of a group) during that year\nis not more than the employer's threshold amount, being the\namount calculated in accordance with the following formula:\nFY\nC\nTA ×\n5 Payroll of employer over threshold\nIf the total taxable wages and interstate wages paid or payable by\nan employer (otherwise than as a member of a group) during a\nfinancial year is more than the employer's threshold amount, the\nemployer is liable to pay as payroll tax for that year the amount of\ndollars calculated in accordance with the following formula:\nRAD\nIWTW\nTW\nTW ×\n\n\n\n\n\n\n\n\n\n\n ×\n+\n−\nPart 3 Groups with designated group employer\n","sortOrder":121},{"sectionNumber":"6","sectionType":"section","heading":"Application of Part","content":"6 Application of Part\nThis Part applies only to an employer who is a member of a group\nfor which there is a designated group employer.\n\nPayroll Tax Act 2009 69\n","sortOrder":122},{"sectionNumber":"7","sectionType":"section","heading":"Definitions","content":"7 Definitions\nC means the number of days in the relevant financial year in\nrespect of which at least 1 member of the group paid or was liable\nto pay (as a member of the group) taxable wages or interstate\nGIW means the total interstate wages paid or payable by the group\nconcerned during the relevant financial year.\nGTW means the total taxable wages paid or payable by the group\nconcerned during the relevant financial year.\nconcerned (as a member of the group) during the relevant financial\nyear.\n8 Payroll of group not more than threshold\nNone of the members of a group is liable to pay payroll tax for the\nfinancial year if the total taxable wages and interstate wages paid or\npayable by the group during that year is not more than the group\nthreshold amount, being the amount calculated in accordance\nwith the following formula:\nFY\nC\nTA ×\n9 Payroll of group over threshold\n(1) This clause applies to a group if:\n(a) there is a designated group employer of the group; and\n(b) the total taxable wages and interstate wages paid or payable\nby the group during the financial year is more than the group\nthreshold amount; and\n\nPayroll Tax Act 2009 70\n(c) the Commissioner, by writing, allows the group to calculate\npayroll tax under this clause.\nNote for subclause (1)\nClause 14 of Schedule 2 applies to the group if subclause (1)(a) and (b) of this\nclause apply, but subclause (1)(c) of this clause does not apply, to the group.\n(2) The designated group employer for the group is liable to pay as\npayroll tax for the financial year the amount of dollars calculated in\nRAD\nGIWGTW\nGTW\nTW ×\n\n\n\n\n\n\n\n\n\n\n ×\n+\n−\n(3) Each member of the group (other than that designated group\nemployer) is liable to pay as payroll tax for the financial year the\namount of dollars calculated in accordance with the following\nformula:\n","sortOrder":123},{"sectionNumber":"Part 4","sectionType":"part","heading":"Groups with no designated group employer","content":"Part 4 Groups with no designated group employer\n10 Application of Part\nThis Part applies only to an employer who is a member of a group\nfor which there is no designated group employer.\n11 Definition\nconcerned (as a member of the group) during the relevant financial\nyear.\n12 Calculation of payroll tax\nEach member of the group is liable to pay as payroll tax for the\nfinancial year the amount of dollars calculated in accordance with\nthe following formula:\n\nPayroll Tax Act 2009 71\nPart 5 Motor vehicle allowances\n13 Continuous recording method\nIf an employer selects the continuous recording method for\ndetermining the number of business kilometres travelled during a\nfinancial year, the following details are required to be recorded by\nthe employer:\n(a) the odometer readings at the beginning and end of each\nbusiness journey undertaken by the person during the\nfinancial year by means of a motor vehicle provided or\nmaintained by the person;\n(b) the specific purpose for which each such business journey\nwas taken;\n(c) the distance travelled by the person during the financial year\nin the course of all such business journeys (which is taken to\nbe the number of business kilometres travelled during the\nfinancial year), calculated on the basis of the odometer\nreadings mentioned in paragraph (a).\n14 Averaging method\n(1) If an employer selects the averaging method for determining the\nnumber of business kilometres travelled during a financial year, the\nfollowing details are required to be recorded by the employer:\n(a) the odometer readings at the beginning and end of each\nbusiness journey undertaken by the person during the relevant\n12-week period by means of a motor vehicle provided or\nmaintained by the person;\nNote for paragraph (a)\nClause 15 defines the relevant 12-week period.\n(b) the specific purpose for which each such business journey\nwas taken;\n(c) the distance travelled by the person during the relevant\n12-week period in the course of all such business journeys,\ncalculated on the basis of the odometer readings mentioned in\nparagraph (a);\n(d) the odometer readings at the beginning and end of the\nrelevant 12-week period for each motor vehicle provided or\nmaintained by the person for undertaking business journeys;\n\nPayroll Tax Act 2009 72\n(e) the distance travelled by each such vehicle during the relevant\n12-week period, calculated on the basis of the odometer\nreadings mentioned in paragraph (d);\n(f) the distance travelled by the person in the course of business\nthe relevant 12-week period, calculated as a percentage of the\ndistance travelled by that vehicle during that period (the\nrelevant percentage);\n(g) the odometer readings at the beginning and end of the\nfinancial year for each vehicle provided or maintained by the\nperson for undertaking business journeys;\n(h) the distance travelled by each such vehicle during the financial\nyear, calculated on the basis of the odometer readings\nmentioned in paragraph (g);\n(i) the distance travelled by the person in the course of business\nthe financial year (which is taken to be the number of\nbusiness kilometres travelled during the financial year),\ncalculated on the basis that the percentage of that distance\nthat was travelled by the person in the course of business\nthe financial year is the same as the relevant percentage.\n(2) For the next succeeding 4 financial years after the first financial\nyear in which odometer details are recorded in accordance with\nsubclause (1), an employer is not required to calculate the relevant\npercentage, or record the details mentioned in subclause (1)(a)\nto (f), for the person but is required to record the other details\nmentioned in that subclause.\n(3) Accordingly, for the next succeeding 4 financial years after the first\nfinancial year in which odometer details are recorded in accordance\nwith subclause (1), the number of business kilometres travelled\nduring the financial year is to be calculated (as mentioned in\nsubclause (1)(i)) on the basis of the relevant percentage calculated\nfor the first financial year.\n(4) Despite subclauses (2) and (3), an employer is required to calculate\nthe relevant percentage for a financial year, and record the details\nmentioned in subclause (1)(a) to (f), if:\n(a) the Commissioner serves a notice on the employer before the\ncommencement of a financial year during that period directing\nthe employer to keep the details mentioned in subclause (1)(a)\nto (f) for that financial year; or\n\nPayroll Tax Act 2009 73\n(b) the employer wishes to use the recording method mentioned\nin this clause for 1 or more additional motor vehicles used by\nthe person in any financial year or for any other reason.\n(5) In a situation mentioned in subclause (4), the new record for the\nfinancial year replaces the relevant percentage details previously\nrecorded and subclauses (2) and (3) apply in relation to the new\nrecord for the financial year as if it were the first financial year in\nwhich odometer details were recorded.\n(6) An employer who has adopted and employed the method of\nrecording mentioned in subclauses (2) and (3) for a person for\n4 successive financial years must, in the next succeeding financial\nyear, make a fresh recording of all the details specified in\nsubclause (1) if the employer intends to continue to use the same\nmethod of recording for the person. Subclauses (2) and (3) then\napply in relation to the new record for the financial year as if it were\nthe first financial year in which odometer details were recorded.\n(7) If the odometer of a motor vehicle is replaced or recalibrated during\nany period for which its readings are relevant for this clause, the\nodometer readings immediately before and after the replacement or\nrecalibration are to be recorded.\n15 Meaning of relevant 12-week period\n(1) In clause 14, relevant 12-week period means a continuous period\nof at least 12 weeks, selected by the employer, throughout which a\nmotor vehicle is provided or maintained by a person. If the motor\nvehicle is provided or maintained for less than 12 weeks, the period\nmust be the entire period for which the motor vehicle is provided or\nmaintained.\n(2) The period may overlap the start or end of the financial year, so\nlong as it includes part of the year.\n(3) If the averaging method is used for 2 or more motor vehicles for the\nsame financial year, the odometer readings for those motor\nvehicles must cover periods that are concurrent.\n16 Replacing 1 motor vehicle with another motor vehicle\n(1) For using the averaging method, an employer may nominate a\nmotor vehicle as having replaced another motor vehicle with effect\nfrom a day specified in the nomination.\n\nPayroll Tax Act 2009 74\n(2) After the nomination takes effect, the replacement motor vehicle is\ntreated as the original motor vehicle, and the original motor vehicle\nis treated as a different motor vehicle. An employer need not repeat\nfor the replacement vehicle the steps already taken for the original\nmotor vehicle.\n(3) An employer must record the nomination in writing in the financial\nyear in which the nomination takes effect.\n(4) However, the Commissioner may allow an employer to record the\nnomination at a later time.\n17 Changing method of recording\n(1) An employer may change from using the averaging method to using\nthe continuous recording method with effect from the beginning of a\nfinancial year if the employer complies with clause 13 in respect of\nthe financial year.\n(2) An employer may change from using the continuous recording\nmethod to using the averaging method with effect from the\nbeginning of a financial year if the employer complies with\nclause 14 in respect of the financial year.\n18 Definition\nbusiness journey means:\n(a) a journey undertaken in a motor vehicle by a person otherwise\nthan in the application of the vehicle to a private use, being an\napplication that, if the person is paid a motor vehicle\nallowance for that use, results in the provision of a fringe\nbenefit (within the meaning of the FBTA Act) by the employer;\nor\n(b) a journey undertaken in a motor vehicle by a person in the\ncourse of producing assessable income of the person (within\nthe meaning of the Income Tax Assessment Act 1936 (Cth)).\n\nPayroll Tax Act 2009 75\nsections 8 and 100\nPart 1 Introduction to Schedule\n1 Application of Schedule\nThis Schedule sets out provisions that apply only in this jurisdiction.\n2 Definitions\nIn this Schedule:\nbaseline count, see clause 20A.\nfinancial year means the financial year commencing on\n1 July 2009 or on 1 July in any subsequent financial year.\ngroup threshold amount, see clause 8 of Schedule 1.\nresident employee, see clause 20A.\nPart 2 Calculation of monthly payroll tax\nDivision 1 Rate of payroll tax\n3 Rate of payroll tax\nThe rate of payroll tax in this jurisdiction is 5.5%.\nDivision 2 Employers who are not members of a group\n4 Application of Division\nThis Division applies only to an employer who is not a member of a\n5 Amount of payroll tax to be paid each month\n(1) The amount of payroll tax payable by an employer on taxable\nwages paid or payable by the employer in a month is the amount of\ndollars calculated in accordance with the following formula:\n( ) RDTW ×−\n\nPayroll Tax Act 2009 76\n(otherwise than as a member of a group) during the month.\nD is the deductible amount mentioned in clause 6 or 7 (as the case\nrequires).\nR is the rate of payroll tax mentioned in clause 3.\n(2) If D is equal to or more than TW in respect of a month, the\nemployer is not required to pay payroll tax in respect of that month.\n6 Deductible amount for employer who does not pay interstate\nwages\n(1) For an employer who pays or is liable to pay taxable wages in a\nmonth but does not pay and is not liable to pay interstate wages in\nthat month, the deductible amount in respect of that month is an\namount not exceeding the amount in dollars calculated in\naccordance with the following formula, as determined in a manner\napproved by the Commissioner:\nTA\n(2) Subclause (1) applies whether the employer pays or is liable to pay\nwages for the whole of the month or only part of the month.\n7 Deductible amount for employer who pays interstate wages\n(1) The deductible amount for an employer who pays or is liable to pay\ntaxable wages and interstate wages in a month is an amount\ndetermined in a manner approved by the Commissioner.\n(2) The deductible amount claimed cannot be more than the amount\nmentioned in clause 6(1).\nDivision 3 Groups with designated group employer\n8 Application of Division\nThis Division applies only to an employer who is a member of a\ngroup of which there is a designated group employer.\n\nPayroll Tax Act 2009 77\n9 Amount of payroll tax to be paid each month\n(1) If an approval is in force under section 87(2) for the designated\ngroup employer to lodge a joint return:\n(a) the amount of payroll tax payable by the designated group\nemployer on taxable wages paid or payable in a month by the\nemployers covered by the return is the amount of dollars\ncalculated in accordance with the following formula:\n( ) RDJTW ×−\nJTW is the total taxable wages paid or payable during the\nmonth by the employers covered by the return (as members of\na group).\nD is the deductible amount mentioned in clause 10 or 11 (as\nthe case requires).\nR is the rate of tax mentioned in clause 3; and\n(b) the amount of payroll tax payable by each employer who is a\nmember of the group but is not covered by the return on\ntaxable wages paid or payable by the employer in a month is\nthe amount of dollars calculated in accordance with the\nconcerned (as a member of the group) during the relevant\n(2) If an approval under section 87(2) is not in force for the designated\ngroup employer:\n(a) the amount of payroll tax payable by the designated group\nemployer on taxable wages paid or payable by the designated\ngroup employer in a month is the amount of dollars calculated\nin accordance with the following formula:\n( ) RDTW ×−\n\nPayroll Tax Act 2009 78\nTW is the total taxable wages paid or payable by the\ndesignated group employer (as a member of a group) during\nthe month.\nD is the deductible amount mentioned in clause 10 or 11 (as\nthe case requires).\nR is the rate of tax mentioned in clause 3; and\n(b) the amount of payroll tax payable by each employer who is a\nmember of the group on taxable wages paid or payable by the\nemployer in a month is the amount of dollars calculated in\nconcerned (as a member of the group) during the relevant\n(3) For subclauses (1)(a) and (2)(a), if D is equal to or more than JTW\nor TW in respect of a month (as the case requires), the designated\ngroup employer is not required to pay payroll tax in respect of that\n10 Deductible amount for groups that do not pay interstate wages\n(1) For a group in which 1 or more members pay or are liable to pay\ntaxable wages in a month but no members pay or are liable to pay\ninterstate wages in that month, the deductible amount in respect of\nthat month is an amount not exceeding the amount in dollars\ncalculated in accordance with the following formula, as determined\nin a manner approved by the Commissioner:\nTA\n(2) Subclause (1) applies whether group members pay or are liable to\npay wages for the whole of the month or only part of the month.\n\nPayroll Tax Act 2009 79\n11 Deductible amount for groups that pay interstate wages\n(1) The deductible amount for a group in which 1 or more members\npay or are liable to pay taxable wages or interstate wages in a\nmonth is an amount determined in a manner approved by the\nCommissioner.\n(2) The deductible amount claimed cannot be more than the amount\nmentioned in clause 10(1).\nDivision 4 Groups with no designated group employer\n12 Application of Division\nThis Division applies only to an employer who is a member of a\ngroup of which there is no designated group employer.\n13 Amount of payroll tax to be paid each month\nThe amount of payroll tax payable by each member of the group on\ntaxable wages paid or payable by the member in a month is the\namount of dollars calculated in accordance with the following\nformula:\nconcerned (as a member of the group) during the relevant month.\nPart 3 Payroll tax for financial year\n14 Payroll tax for financial year for group that has designated\ngroup employer\n(1) This clause applies to a group if:\n(a) there is a designated group employer of the group; and\n(b) the total taxable wages and interstate wages paid or payable\nby the group during the financial year is more than the group\nthreshold amount; and\n(c) clause 9 of Schedule 1 does not apply to the group.\n\nPayroll Tax Act 2009 80\n(2) The designated group employer of the group is liable to pay as\npayroll tax for the financial year the amount of dollars calculated in\nRAD\nGIWGTW\nGTW\nGTW ×\n\n\n\n\n\n\n\n\n\n\n ×\n+\n−\n(3) In this clause:\nGIW is the total interstate wages paid or payable by the members\nof the group during the relevant financial year.\nGTA, see Schedule 1, clause 8.\nGTW is the total taxable wages paid or payable by the members of\nthe group during the relevant financial year.\nR is 5.5%.\nNote for clause 14\nFor the calculation of the payroll tax payable for a financial year by an employer\nwho is a member of a group of which there is no designated group employer, see\nclause 12 of Schedule 1.\n15 Adjustment of payroll tax for group\n(1) If an amount of payroll tax paid for a financial year in respect of a\ngroup is greater than the correct amount of payroll tax payable in\nrespect of the financial year for the group, the Commissioner (on\napplication by a member of the group) is to refund the amount\nequal to the difference to the designated group employer of the\ngroup or, if the Commissioner considers it appropriate, another\nmember of the group.\n(2) If an amount of payroll tax paid for a financial year in respect of a\ngroup is less than the correct amount of payroll tax payable in\nrespect of the financial year for the group, the designated group\nemployer of the group or, if the Commissioner considers it\nappropriate, another member of the group, must pay the\n\nPayroll Tax Act 2009 81\nCommissioner as payroll tax an amount equal to the difference.\nDivision 1 Education and training\n16 Schools and colleges\nWages are exempt wages if they are paid or payable by a school\nor college (other than a technical school or a technical college) that:\n(a) provides education at or below, but not above, the secondary\nlevel of education; and\n(b) is carried on by a body corporate, society or association\notherwise than for the purpose of profit or gain to the individual\nmembers of the body corporate, society or association and is\nnot carried on by or on behalf of the Territory.\n17 Apprentices and trainees\nemployee who is an apprentice or trainee.\n(2) Despite subsection (1), wages paid or payable to a trainee by an\nemployer are not exempt wages if, immediately before the\ncommencement of the trainee's traineeship with the employer, the\ntrainee had been employed by the employer for a continuous period\nof:\n(a) for a full-time employee – 3 months or more; or\n(b) for a part-time or casual employee – 12 months or more.\n(3) In this clause:\napprentice, see section 5 of the Training and Skills Development\nAct 2016.\ntrainee, see section 6 of the Training and Skills Development\nAct 2016.\nDivision 2 Health care service providers\n19 What is a health care service provider\nFor Part 4, Division 3 of this Act, a health care service provider is:\n(a) a public hospital; or\n\nPayroll Tax Act 2009 82\n(b) a hospital that is carried on by a society or association\notherwise than for the profit or gain to the individual members\nof the society or association.\nDivision 3 Paternity leave\n20 Paternity leave\nemployee in respect of leave (paternity leave):\n(a) given to a male employee in connection with:\n(i) the pregnancy of a female carrying his unborn child; or\n(ii) the birth of his child; and\n(b) that is not sick leave, recreation leave, annual leave or any\nsimilar leave.\n(2) For subclause (1), it is immaterial whether the leave is taken during\nor after the pregnancy.\n(3) The exemption is limited to wages paid or payable in respect of a\nmaximum of 14 weeks paternity leave given to an employee in\nrespect of any one pregnancy.\n(4) In subclause (3):\n(a) a reference to 14 weeks paternity leave includes a reference\nto an equivalent period of leave at a reduced rate of pay; and\n(b) a reference to wages paid or payable in respect of a period of\nleave is a reference to the total wages that would normally\nhave been paid or payable for that period of leave.\nExample for subclause (4)\nFor a part-time employee, the exemption may apply to wages paid or payable for\npaternity leave that extends to 28 weeks at half of the part-time rate of pay that\nwould normally apply to the employee.\n(5) The exemption does not apply to any part of wages paid or payable\nin respect of paternity leave that comprises fringe benefits.\n(6) An employer wishing to claim an exemption in respect of paternity\nleave given to an employee must obtain and keep a statutory\ndeclaration by the employee stating that:\n(a) a female is or was pregnant with the employee's unborn child;\nor\n\nPayroll Tax Act 2009 83\n(b) the employee's child has been born and the date of the birth.\nNote for subclause (6)\nDivision 4 Hiring resident employees\n","sortOrder":124},{"sectionNumber":"20A","sectionType":"section","heading":"Definitions","content":"20A Definitions\nbaseline count, in respect of an employer, means the total number\nof resident employees employed by the employer on 30 April 2018.\nresident employee means an employee whose principal place of\nresidence is in the Territory.\n","sortOrder":125},{"sectionNumber":"20B","sectionType":"section","heading":"Relocating or replacing employees with resident employees on","content":"20B Relocating or replacing employees with resident employees on\nor after 1 May 2018\n(1) Wages are exempt wages if:\n(b) the resident employee was an employee of the employer on\n30 April 2018; and\n(c) the resident employee formerly resided outside the Territory\nbut relocated to a principal place of residence in the Territory\non or after 1 May 2018 and before 1 July 2021.\nExample for subclause (1)\nA fly-in fly-out employee relocates to the Territory on 1 September 2018. The\nemployer can claim the exemption, regardless of the baseline count.\n(2) Wages are exempt wages if:\n(b) the resident employee was hired on or after 1 May 2018 and\nbefore 1 July 2021; and\n(c) the resident employee was hired to replace a former employee\nwhose principal place of residence was outside the Territory;\nand\n(d) the former employee was an employee of the employer on\n30 April 2018; and\n\nPayroll Tax Act 2009 84\n(e) the replacement occurred within 6 months of when the former\nemployee ceased to be an employee.\nExample for subclause (2)\nA fly-in fly-out employee, hired before 1 May 2018, ceases to be employed. The\nposition is filled within 6 months by a new employee who lives in the Territory.\nThe employer can claim an exemption, regardless of the baseline count.\n","sortOrder":126},{"sectionNumber":"20C","sectionType":"section","heading":"Hiring new resident employees on or after 1 May 2018","content":"20C Hiring new resident employees on or after 1 May 2018\n(1) Wages are exempt wages if:\n(b) the resident employee was hired on or after 1 May 2018 and\nbefore 1 July 2021.\n(2) The number of resident employees for which the exemption under\nsubclause (1) is available in a month is limited to the number of\nresident employees, calculated on the last day of the month, that\nexceeds the baseline count, less the number of any resident\nemployees mentioned in clause 20B.\nExample for clause 20C\nAn employer had 50 resident employees on 30 April 2018 (baseline count). None\nof the resident employees were of the kind mentioned in clause 20B. In\nMay 2018, 3 resident employees resigned and were replaced by 4 more resident\nemployees. Under this clause the exemption is only available for 1 of those\n4 resident employees.\n","sortOrder":127},{"sectionNumber":"20D","sectionType":"section","heading":"Other conditions","content":"20D Other conditions\n(1) The exemptions under this Division are available only in respect of\nwages paid or payable during the 2-year period beginning on the\ndate the resident employee's wages first became eligible for the\nexemption.\nExample for subclause (1)\nIf a resident employee is hired on 1 September 2018 and the wages are eligible\nfor the exemption, the exemption is available only until 31 August 2020.\n(2) The exemptions under this Division apply in relation to:\n(a) a full-time employee; and\n(b) a part-time employee; and\n(c) a person taken to be an employee under Part 3, Division 7 of\n\nPayroll Tax Act 2009 85\n(3) The exemptions under this Division do not apply in relation to:\n(a) a casual employee; or\n(b) a person taken to be an employee under Part 3, Division 8 of\n","sortOrder":128},{"sectionNumber":"20E","sectionType":"section","heading":"Record keeping","content":"20E Record keeping\nAn employer wishing to claim an exemption under this Division\nmust obtain and keep sufficient records to satisfy the requirements\nfor the claim.\nNote for clause 20E\n","sortOrder":129},{"sectionNumber":"20F","sectionType":"section","heading":"Power to vary or refuse","content":"20F Power to vary or refuse\n(1) The Commissioner may make an order under subclause (2) if\nsatisfied that:\n(a) despite the appearance of an increase in the number of\nresident employees after 30 April 2018, in substance, no\nmaterial change in that number occurred; or\n(b) the claim, the baseline count or other information on which a\nclaim is made is not based on an accurate reflection of the\nemployer's situation or the circumstance of the employer's\nemployees; or\n(c) the claim is not justified by any material benefit to the\nemployment of resident employees; or\n(d) the structure of the employer's business has significantly\nchanged since 30 April 2018.\n(2) The Commissioner may, by order:\n(a) vary or refuse, in whole or in part, a claim for the exemption;\nor\n(b) vary the baseline count for an employer, or allocate baseline\ncounts among employers.\n","sortOrder":130},{"sectionNumber":"20G","sectionType":"section","heading":"Guidelines","content":"20G Guidelines\n(1) The Commissioner may issue written guidelines about exemptions\nand other matters under this Division.\n(2) A guideline may be of general or specific application.\n\nPayroll Tax Act 2009 86\n(3) A claim for an exemption is taken to be a valid claim to the extent\nthat it complies with the guidelines in force under this clause.\n(4) A guideline does not affect:\n(a) the exercise by the Commissioner of a power under this Act;\nor\n(b) the right of a person to have the Commissioner exercise a\npower under this Act.\nPart 5 Government bodies – special provisions\n21 Application of Act to Government Business Divisions and\nstatutory corporations\n(1) A Government Business Division is taken to be an employer for this\nAct.\n(2) A Government Business Division or statutory corporation (rather\nthan the Commissioner for Public Employment) will be regarded for\nthis Act as the employer of all employees assigned to work in it.\n(3) If a Government Business Division is not a corporation, this Act\napplies to it as if it were a corporation.\n(4) In this clause:\nGovernment Business Division means an Agency or a part of an\nAgency that:\n(a) is a Government Business Division as defined in section 3(1)\nof the Financial Management Act 1995; and\n(b) is not excluded by regulation from the operation of this clause.\n\nPayroll Tax Act 2009 87\nsection 102\nPay-roll Tax Ordinance 1978 Act No. 47 of 1978\nPay-roll Tax Act 1979 Act No. 71 of 1979\nPay-roll Tax Act (No. 2) 1979 Act No. 125 of 1979\nPay-roll Tax Act 1980 Act No. 46 of 1980\nPay-roll Tax Amendment Act 1980 Act No. 14 of 1981\nPay-roll Tax Amendment Act 1981 Act No. 80 of 1981\nPay-roll Tax Amendment Act 1982 Act No. 88 of 1982\nPay-roll Tax Amendment Act 1985 Act No. 14 of 1985\nPay-roll Tax Amendment Act (No. 2) 1985 Act No. 29 of 1985\nPay-roll Tax Amendment Act 1986 Act No. 62 of 1986\nPay-roll Tax Amendment Act 1987 Act No. 3 of 1987\nPay-roll Tax Amendment Act 1988 Act No. 41 of 1988\nPay-roll Tax Amendment Act 1991 Act No. 22 of 1991\nPay-roll Tax Amendment Act 1992 Act No. 50 of 1992\nPay-roll Tax Amendment Act 1993 Act No. 58 of 1993\nPay-roll Tax Amendment Act 1994 Act No. 40 of 1994\nPay-roll Tax Amendment Act 1999 Act No. 29 of 1999\nPay-roll Tax Amendment Act 2000 Act No. 34 of 2000\nPay-roll Tax Amendment Act 2001 Act No. 49 of 2001\nPay-roll Tax Amendment Act 2002 Act No. 43 of 2002\nPay-roll Tax Amendment Act (No. 2) 2002 Act No. 52 of 2002\nPay-roll Tax Amendment Act (No. 3) 2002 Act No. 74 of 2002\nPay-roll Tax Amendment Act 2003 Act No. 36 of 2003\n\nPayroll Tax Act 2009 88\nPay-roll Tax Amendment Act 2004 Act No. 39 of 2004\nPay-roll Tax Amendment Act 2005 Act No. 27 of 2005\nPay-roll Tax Amendment Act 2007 Act No. 26 of 2007\nPay-roll Tax Amendment (Harmonisation) Act 2008 Act No. 22 of 2008\n\nPayroll Tax Act 2009 89\n1 KEY Key to abbreviations\namd = amended od = order\napp = appendix om = omitted\nbl = by-law pt = Part\nch = Chapter r = regulation/rule\ncl = clause rem = remainder\ndiv = Division renum = renumbered\nexp = expires/expired rep = repealed\nf = forms s = section\nGaz = Gazette sch = Schedule\nhdg = heading sdiv = Subdivision\nins = inserted SL = Subordinate Legislation\nlt = long title sub = substituted\nnc = not commenced\n","sortOrder":131},{"sectionNumber":"2","sectionType":"section","heading":"LIST OF LEGISLATION","content":"2 LIST OF LEGISLATION\nPayroll Tax Act 2009 (Act No. 18, 2009)\nAssent date 25 June 2009\nCommenced 1 July 2009 (s 2)\nPayroll Tax Amendment Act 2010 (Act No. 1, 2010)\nAssent date 17 March 2010\nCommenced 1 July 2009 (s 2)\nRevenue Legislation Amendment Act 2011 (Act No. 21, 2011)\nAssent date 24 June 2011\nCommenced pt 2: 3 May 2011; rem: 1 July 2011 (s 2)\nRevenue Legislation Amendment Act 2012 (Act No. 20, 2012)\nAssent date 30 June 2012\nCommenced 1 July 2012 (s 2)\nRevenue Legislation Amendment Act 2013 (Act No. 20, 2013)\nAssent date 18 June 2013\nCommenced 1 July 2013 (s 2)\nEmergency Management Act 2013 (Act No. 27, 2013)\nAssent date 8 November 2013\nCommenced 27 November 2013 (Gaz S63, 27 November 2013)\nRevenue and Other Legislation Amendment Act 2015 (Act No. 18, 2015)\nAssent date 23 June 2015\nCommenced pt 2 and pt 5, divs 1 to 4: 28 April 2015; pts 3 and 4, pt 5,\ndivs 5 to 8 and pt 6: 1 July 2015; rem: 23 June 2015 (s 2)\nBushfires Management Act 2016 (Act No. 14, 2016)\nAssent date 7 June 2016\nCommenced 1 November 2016 (Gaz S111, 27 October 2016)\n\nPayroll Tax Act 2009 90\nRevenue and Other Legislation Amendment Act 2017 (Act No. 13, 2017)\nAssent date 27 June 2017\nCommenced 1 July 2017 (s 2)\nRevenue Legislation Amendment Act 2018 (Act No. 14, 2018)\nAssent date 28 June 2018\nCommenced pts 3, 4 and 6 (except ss 34 and 36(3)): 1 May 2018;\npt 2, divs 1 and 2, pt 5, ss 34 and 36(3) and pt 7: 1 July 2018;\npt 2, div 3 and pt 8: 1 July 2019 (s 2)\nTreasury and Finance Legislation Amendment Act 2020 (Act No. 28, 2020)\nAssent date 15 December 2020\nCommenced pts 2 and 3: 1 July 2020 (s 2(2)); pt 4: 1 December 2020\n(s 2(3)); rem: 16 December 2020 (s 2(1))\nLocal Government Act 2019 (Act No. 39, 2019)\nAssent date 13 December 2019\nCommenced pt 8.6: 1 July 2022; rem: 1 July 2021 (Gaz S27,\n30 June 2021)\nAmending Legislation\nStatute Law Revision Act 2020 (Act No. 26, 2020)\nAssent date 19 November 2020\nCommenced 20 November 2020 (s 2)\nLocal Government Amendment Act 2021 (Act No. 15, 2021)\nAssent date 25 May 2021\nCommenced 26 May 2021 (s 2)\nPay-roll Amendment Act 2025 (Act No. 1, 2025)\nAssent date 18 February 2025\nCommenced 1 July 2025 (s 2)\nRevenue Legislation Amendment Act 2025 (Act No. 17, 2025)\nAssent date 26 June 2025\nCommenced 1 July 2025 (s 2 and s 2 Payroll Tax Amendment Act 2025\n(Act No. 1, 2025))\n","sortOrder":132},{"sectionNumber":"3","sectionType":"section","heading":"GENERAL AMENDMENTS","content":"3 GENERAL AMENDMENTS\nGeneral amendments of a formal nature (which are not referred to in the table\nof amendments to this reprint) are made by the Interpretation Legislation\nAmendment Act 2018 (Act No. 22, 2018) to: ss 1, 3, 4, 54, 55, 56, 103 and\n112 and sch 2.\n4 LIST OF AMENDMENTS\ns 3 amd No. 1, 2010, s 4; No. 21, 2011, s 14; No. 18, 2015, s 14; No. 39, 2019,\ns 370\nss 10 – 11 sub No. 1, 2010, s 5\nss 11A – 11C ins No. 1, 2010, s 5\ns 13 amd No. 1, 2010, s 6\ns 18 amd No. 21, 2011, s 15\ns 19 amd No. 21, 2011, s 16\n\nPayroll Tax Act 2009 91\ns 23 amd No. 21, 2011, s 17\ns 24 amd No. 1, 2010, s 7; No. 21, 2011, s 18\ns 25 rep No. 1, 2010, s 8\ns 26 amd No. 1, 2010, s 9\ns 29 amd No. 13, 2017, s 8\ns 32 amd No. 18, 2015, s 15\ns 40 amd No. 18, 2015, s 16\npt 4\ndiv 1 hdg sub No. 18, 2015, s 17\ns 48 sub No. 18, 2015, s 17\nss 48A – 48B ins No. 18, 2015, s 17\ns 48C ins No. 18, 2015, s 17\namd No. 17, 2025, s 11\nss 48D – 48E ins No. 18, 2015, s 17\ns 52 amd No. 18, 2015, s 18\ns 53 amd No. 20, 2012, s 4\ns 55 amd No. 14, 2016, s 120\ns 56 amd No. 27, 2013, s 128\npt 4\ndiv 9 hdg ins No. 1, 2010, s 10\ns 66A ins No. 1, 2010, s 10\ns 80 amd No. 21, 2011, s 19; No. 1, 2025, s 4\ns 86 amd No. 21, 2011, s 20\npt 10 hdg amd No. 21, 2011, s 21\npt 11 hdg exp No. 18, 2009, s 116\nins No. 1, 2010, s 11\nsub No. 18, 2015, s 19\ndiv 1 hdg ins No. 18, 2015, s 19\ns 113 exp No. 18, 2009, s 116\nins No. 1, 2010, s 11\npt 12 hdg ins No. 21, 2011, s 22\nrep No. 18, 2015, s 20\ndiv 2 hdg ins No. 18, 2015, s 20\nss 114 – 115 exp No. 18, 2009, s 116\nins No. 21, 2011, s 22\ndiv 3 hdg ins No. 18, 2015, s 21\ns 116 exp No. 18, 2009, s 116\nins No. 18, 2015, s 21\nss 117 – 118 ins No. 18, 2015, s 21\ndiv 4 hdg ins No. 14, 2018, s 23\ns 119 ins No. 14, 2018, s 23\ndiv 5 hdg ins No. 1, 2025, s 5\ns 120 ins No. 1, 2025, s 5\ndiv 6 hdg ins No. 17, 2025, s 12\ns 121 ins No. 17, 2025, s 12\nsch 1 amd No. 21, 2011, s 23; No. 20, 2013, s 14; No. 1, 2025, s 6\nsch 2 amd No. 21, 2011, s 24; No. 20, 2012, s 5; No. 20, 2013, s 15; No. 18, 2015,\ns 22; No. 14, 2018, s 24; No. 28, 2020, s 4; No. 1, 2025, s 7","sortOrder":133}],"analysis":{"flash_summary_failed":{"failed":true,"reason":"Unauthenticated. Configure AI_GATEWAY_API_KEY or use a provider module. Learn more: https://ai-sdk.dev/unauthenticated-ai-gateway","source":"analysis-cron"},"issue_detection":{"absurdities":[],"contradictions":[{"severity":"high","section_a":"Schedule 2, clause 9(2)(a) and (3)","section_b":"Schedule 2, clause 9(2)(b)","confidence":0.99,"description":"Where no joint-return approval is in force, clause 9(2)(a) calculates the designated group employer’s monthly tax after a deductible amount, and clause 9(3) says it need not pay if that amount equals or exceeds its taxable wages. Clause 9(2)(b) also applies to “each employer who is a member of the group”, without excluding the designated group employer, and calculates tax on its taxable wages without a deduction. If that employer has positive taxable wages no greater than the deductible amount, the provisions require both no payment and payment of tax on those wages.","source_quotes":["the amount of payroll tax payable by the designated group\nemployer on taxable wages paid or payable by the designated\ngroup employer in a month is the amount of dollars calculated in\naccordance with the following formula:","the amount of payroll tax payable by each employer who is a\nmember of the group on taxable wages paid or payable by the\nemployer in a month is the amount of dollars calculated in\naccordance with the following formula:\nRTW ×","For subclauses (1)(a) and (2)(a), if D is equal to or more than JTW\nor TW in respect of a month (as the case requires), the designated\ngroup employer is not required to pay payroll tax in respect of that\nmonth."]}]},"flash_summary":{"complexity_score":7,"scope_assessment":{"changed":true,"description":"The Act replaces the earlier Pay-roll Tax Act regime and, compared with the prior framework, establishes a broader and more detailed structure for the tax base and administration (see s 102; s 104). It explicitly extends the wage concept to include fringe benefits, employer superannuation contributions, certain employee shares and options, contractor-supplied services and payments made through third parties (Part 3, Divs 2–5; ss 14, 17, 18, 31–36, 46). The statute adds comprehensive grouping, tracing and aggregation rules (Part 5, ss 69–79) and Territory-specific calculation rules and incentives (Schedule 2, including resident-hiring provisions at cl 20A–20G). The Act therefore changes the scope of what counts as taxable wages and who is treated as an employer compared with the old Act (see Part 10 transitional provisions and Schedule 3 which repealed earlier Acts). Recent amendments recorded in the text (e.g. additions to definitions, non-profit rules and transitional clauses) further refine and in some cases broaden or clarify exemptions and valuation rules (see ss 48A–48C; s 23(4); Part 11 transitional provisions)."},"complexity_factors":["Extensive cross-references between Parts and Schedules (e.g. wages definitions in Part 3 affect many other Parts)","Multiple special regimes: fringe benefits, shares/options, superannuation, termination payments (Divs 2–5 of Part 3)","Complex grouping and attribution rules with tracing of interests and aggregation of direct/indirect/aggregate interests (Part 5, Divs 2–3, ss 70–78)","Contractor and employment-agent provisions that recharacterise commercial arrangements as employment for tax purposes (Part 3, Divs 7–8, ss 31–42)","Territory-specific calculation and incentive rules in Schedule 2 (monthly deductible amounts, resident hiring exemptions, and territorial rate)","Detailed calculation formulas and threshold mechanics in Schedule 1 (annual deduction, employer/group thresholds, monthly vs annual calculations)","Significant Commissioner discretions and anti-avoidance powers (ss 42, 47, 79, 80, 101) creating fact-sensitive enforcement outcomes","Multiple transitional and amendment provisions spanning many amending Acts, creating temporal complexity for pre- and post-amendment liabilities (Part 11 and transitional sections)","Record-keeping and evidentiary requirements for specific exemptions and allowance methods (ss 54; Schedule 1 cl 13–17; Schedule 2 cl 20E)"],"plain_english_summary":"The Payroll Tax Act 2009 imposes a payroll tax on employers’ \"taxable wages\" (broadly defined to include cash pay, fringe benefits, superannuation, certain share/termination payments) at the Territory rate (5.5%) above the $2,500,000 annual threshold. It sets registration, monthly return and payment rules, treats some contractors and intermediaries as employers, aggregates related entities into groups, and lists targeted exemptions and recruitment incentives.\n\nIt matters because it defines the state revenue base, shifts compliance and collection risk onto employers, and gives the Commissioner wide enforcement and discretionary powers."},"kimi_summary":{"_metrics":{"completionTokens":717},"content_quality":"ok","complexity_score":8,"scope_assessment":{"changed":false,"description":"The legislation appears consistent with its original purpose as a payroll tax law. While it has been amended multiple times (as shown in the endnotes), these amendments appear to be refinements and updates rather than scope expansion — covering areas like employee share schemes, contractor arrangements, and non-profit exemptions that are typical of modern payroll tax legislation. The 2018 resident employee hiring incentive was a time-limited policy measure rather than a permanent expansion of scope."},"complexity_factors":["47 defined terms in section 3 alone, with many more throughout the Act","Extensive cross-referencing between Parts, Divisions, and two Schedules for calculations","Nested conditional logic for determining which jurisdiction wages are taxable in (section 11 with 6 subsections and multiple limbs)","Complex grouping provisions with 4 different ways businesses can be grouped (sections 70-74), plus tracing of interests through corporate chains (Division 3 of Part 5)","Multiple calculation methods in Schedule 1 with different formulas for: non-group employers, group employers with designated group employer, and group employers without designated group employer","Contractor provisions (Division 7 of Part 3) with 6 different exceptions in section 32(2), each with sub-conditions","Transitional provisions spanning 6 different amending Acts in Part 11, with different commencement dates and application rules","Anti-avoidance provisions that allow Commissioner to disregard arrangements (sections 42, 47)","Motor vehicle allowance calculations with two different recording methods (continuous vs averaging) and 4-year lock-in periods"],"plain_english_summary":"This is the **Northern Territory's Payroll Tax Act 2009**, a state tax law that requires employers to pay tax on the wages they pay to employees.\n\n**What it does:**\n- **Imposes a 5.5% tax** on wages paid by employers once they exceed an annual threshold (currently $2.5 million)\n- **Defines \"wages\" broadly** to include not just cash salaries, but also fringe benefits (like company cars), superannuation contributions, shares and options given to employees, termination payments, and certain contractor payments\n- **Groups related businesses together** — if you control multiple businesses or they're connected through common employees or shared directors, their combined wages count toward the tax threshold\n- **Requires monthly returns** and annual reconciliation\n\n**Who it affects:**\n- Any business or organisation employing people in the Northern Territory\n- Special rules apply to employment agents, contractors treated as employees, and groups of related companies\n\n**Key exemptions include:**\n- Wages paid by non-profit charities doing charitable work\n- Schools and educational institutions\n- Health care service providers (public hospitals and non-profit hospitals)\n- Maternity, adoption and paternity leave (up to 14 weeks)\n- Volunteer firefighters and emergency service volunteers\n- Local government bodies\n- Defence personnel on leave\n- Wages for employees working overseas for more than 6 months continuously\n- A special 2018-2021 incentive for hiring Northern Territory resident employees\n\n**Why it matters:**\nPayroll tax is a significant cost for medium and large employers. The grouping rules prevent businesses from splitting into smaller entities to stay under the threshold. The broad definition of wages catches many non-cash benefits, and the complex contractor provisions mean businesses using contractors need to check whether those arrangements trigger payroll tax liability."}},"importantCases":[],"_links":{"self":"/api/acts/payroll-tax-act-2009","history":"/api/acts/payroll-tax-act-2009/history","analysis":"/api/acts/payroll-tax-act-2009/analysis","conflicts":"/api/acts/payroll-tax-act-2009/conflicts","importantCases":"/api/acts/payroll-tax-act-2009/important-cases","documents":"/api/acts/payroll-tax-act-2009/documents"}}