{"id":"a-2011-18","name":"Payroll Tax Act 2011","slug":"payroll-tax-act-2011","collection":"act","jurisdiction":"act","status":"in_force","isInForce":true,"actNumber":"18 of 2011","makingDate":null,"administeringDepartment":null,"currentVersion":{"id":24055,"registerId":"act-a-2011-18-current","compilationNumber":null,"startDate":"2026-04-01","status":"InForce","reasons":null,"registeredAt":null},"sections":[{"sectionNumber":"Part 1","sectionType":"part","heading":"3 Groups with a designated group employer 73","content":"Part 1.3 Groups with a designated group employer 73\n1.6 Application—pt 1.3 73\n\nPage\ncontents 6 Payroll Tax Act 2011\n1.7 Definitions—pt 1.3 73\n1.8 Payroll of group not more than threshold 73\n1.9 Payroll of group over threshold 74\nPart 1.4 Groups with no designated group employer 75\n1.10 Application—pt 1.4 75\n1.11 Meaning of TW—pt 1.4 75\n1.12 Calculation of payroll tax 75\nPart 1.5 Motor vehicle allowances 76\n1.12A Meaning of business journey—pt 1.5 76\n1.13 Continuous recording method 76\n1.14 Averaging method 77\n1.15 Meaning of relevant 12-week period—s 1.16 80\n1.16 Replacing one motor vehicle with another motor vehicle 80\n1.17 Changing method of recording 81\nSchedule 2 Other ACT provisions 82\nPart 2.1 Calculation of monthly payroll tax 82\nDivision 2.1.1 Employer not member of group 82\n2.1 Application—div 2.1.1 82\n2.2 Employer not member of group—amount of tax payable each month 82\n2.3 Employer not member of group—deductible amount for employer not\npaying interstate wages 83\n2.4 Employer not member of group—deductible amount for employer who\npays taxable and interstate wages 83\n","sortOrder":0},{"sectionNumber":"Div 2","sectionType":"division","heading":"1.2 Group with designated group employer 84","content":"Division 2.1.2 Group with designated group employer 84\n2.5 Application—div 2.1.2 84\n2.6 Group with designated group employer—amount of tax payable each\nmonth if approval in force 84\n2.7 Group with designated group employer—amount of tax payable each\nmonth if approval not in force 85\n2.8 Group with designated group employer—deductible amount for groups\nnot paying interstate wages 86\n2.9 Group with designated group employer—deductible amount for groups\npaying taxable and interstate wages 87\n\nPage\ncontents 7\nDivision 2.1.3 Group with no designated group employer 88\n2.10 Application—div 2.1.3 88\n2.11 Group with no designated group employer—amount of tax payable\neach month 88\n","sortOrder":1},{"sectionNumber":"Part 2","sectionType":"part","heading":"2 Charitable organisations 89","content":"Part 2.2 Charitable organisations 89\n2.12 Meaning of charitable organisation—pt 2.2 89\n2.13 Exemption from payroll tax—charitable organisations 89\nPart 2.3 Employment agents 90\n2.14 Employment agents and subcontractors 90\nPart 2.4 Education and training 92\n2.15 Exemption from tax—new starters 92\n2.16 Exemption from tax—apprentices or trainees under approved training\ncontracts 93\nPart 2.5 Hospitals 95\n2.17 Hospitals 95\nPart 2.6 Primary carer leave 96\n2.18 Primary carer leave 96\nPart 2.7 Certain unemployed people 99\n2.19 Certain unemployed people 99\nPart 2.8 Certain bank accounts 100\n2.20 Certain bank accounts 100\nPart 2.9 Territory authorities 101\n2.21 Territory authorities 101\nSchedule 2A Special provisions for 2025-2026 financial\nyear 102\nPart 2A.1 Preliminary 102\n2A.1 Definitions—sch 2A 102\n2A.2 Application—sch 2A 103\n","sortOrder":2},{"sectionNumber":"Part 2A","sectionType":"part","heading":"2 Calculation of payroll tax liability 104","content":"Part 2A.2 Calculation of payroll tax liability 104\n","sortOrder":3},{"sectionNumber":"Div 2A","sectionType":"division","heading":"2.1 Preliminary 104","content":"Division 2A.2.1 Preliminary 104\n2A.3 Calculation of payroll tax for 2025-2026 financial year 104\n\nPage\ncontents 8 Payroll Tax Act 2011\nDivision 2A.2.2 Employers who are not members of a group 104\n2A.4 Application—div 2A.2.2 104\n2A.5 Definitions—div 2A.2.2 104\n2A.6 Calculation of payroll tax 105\nDivision 2A.2.3 Groups with a designated group employer 105\n2A.7 Application—div 2A.2.3 105\n2A.8 Definitions—div 2A.2.3 105\n2A.9 Calculation of payroll tax 106\nDivision 2A.2.4 Groups with no designated group employer 106\n2A.10 Application—div 2A.2.4 106\n2A.11 Meaning of TW—div 2A.2.4 106\n2A.12 Calculation of payroll tax 106\nDivision 2A.2.5 Motor vehicle allowances 107\n2A.13 Working out business kilometres 107\nPart 2A.3 Calculation of monthly payroll tax 107\n2A.14 Calculation of monthly payroll tax 107\nSchedule 3 Reviewable decisions 108\nDictionary 109\n1 About the endnotes 114\n2 Abbreviation key 114\n3 Legislation history 115\n4 Amendment history 117\n5 Earlier republications 122\n6 Expired transitional or validating provisions 125\n\nAn Act to impose payroll tax, and for other purposes\n\n","sortOrder":4},{"sectionNumber":"1","sectionType":"section","heading":"Name of Act","content":"1 Name of Act\nThis Act is the Payroll Tax Act 2011.\nNote This Act is a tax law under the Taxation Administration Act 1999. As a\ntax law, this Act is subject to provisions of the Taxation Administration\nAct about the administration and enforcement of tax laws generally.\n","sortOrder":5},{"sectionNumber":"3","sectionType":"section","heading":"Dictionary","content":"3 Dictionary\nThe dictionary at the end of this Act is part of this Act.\nNote 1 The dictionary at the end of this Act defines certain terms used in this\nAct, and includes references (signpost definitions) to other terms defined\nelsewhere.\nFor example, the signpost definition ‘corporation—see the Corporations\nAct, section 9.’ means that the term ‘corporation’ is defined in that section\nand the definition applies to this Act.\nNote 2 A definition in the dictionary (including a signpost definition) applies to\nthe entire Act unless the definition, or another provision of the Act,\nprovides otherwise or the contrary intention otherwise appears (see\nLegislation Act, s 155 and s 156 (1)).\n","sortOrder":6},{"sectionNumber":"3A","sectionType":"section","heading":"Numbering","content":"3A Numbering\nThis Act (other than the schedules) is numbered to maintain\nconsistent part, division and section numbering with the Payroll Tax\nAct 2007 (NSW) (the NSW Act), including—\n(a) having a gap in part numbering if there is no equivalent in this\nAct of a part of the NSW Act; and\n(b) having a gap in section numbering if there is no equivalent in\nthis Act of a section of the NSW Act; and\n\nPreliminary Part 1\n(c) for a section that does not have an equivalent in the NSW Act—\nusing a section number that is not used in the NSW Act.\nExamples\n1 There is no pt 8 or s 12 in this Act.\n2 There is no s 53A in the NSW Act.\n4 Notes\nA note included in this Act is explanatory and is not part of this Act.\nNote See the Legislation Act, s 127 (1), (4) and (5) for the legal status of notes.\n","sortOrder":7},{"sectionNumber":"5","sectionType":"section","heading":"Offences against Act—application of Criminal Code etc","content":"5 Offences against Act—application of Criminal Code etc\nOther legislation applies in relation to offences against this Act.\nNote 1 Criminal Code\nThe Criminal Code, ch 2 applies to all offences against this Act (see\nCode, pt 2.1).\nThe chapter sets out the general principles of criminal responsibility\n(including burdens of proof and general defences), and defines terms used\nfor offences to which the Code applies (eg conduct, intention,\nrecklessness and strict liability).\nNote 2 Penalty units\nThe Legislation Act, s 133 deals with the meaning of offence penalties\nthat are expressed in penalty units.\n\n","sortOrder":8},{"sectionNumber":"6","sectionType":"section","heading":"Imposition of payroll tax","content":"6 Imposition of payroll tax\nPayroll tax is imposed on all taxable wages.\n","sortOrder":9},{"sectionNumber":"7","sectionType":"section","heading":"Who is liable for payroll tax?","content":"7 Who is liable for payroll tax?\nThe employer by whom taxable wages are paid or payable is liable to\npay payroll tax on the wages.\n","sortOrder":10},{"sectionNumber":"8","sectionType":"section","heading":"Amount of payroll tax","content":"8 Amount of payroll tax\n(1) The amount of payroll tax payable by an employer must be worked\nout in accordance with schedules 1 and 2.\n(2) However, for the financial year beginning on 1 July 2025, the amount\nof payroll tax payable by an employer must be worked out in\naccordance with schedule 2A instead of schedules 1 and 2, if the total\nwages paid or payable by the employer for the financial year are more\nthan $150 million.\ntotal wages, for the financial year beginning on 1 July 2025—see\nschedule 2A (Special provisions for 2025-2026 financial year),\nsection 2A.2 (4).\n","sortOrder":11},{"sectionNumber":"9","sectionType":"section","heading":"When must payroll tax be paid?","content":"9 When must payroll tax be paid?\n(1) A person who is liable to pay payroll tax on taxable wages must pay\nthe tax—\n(a) within 7 days after the end of the month in which the wages were\npaid or payable, other than June; and\n(b) within 28 days after the end of June in relation to taxable wages\npaid or payable in June.\n\n(2) However, if the commissioner believes on reasonable grounds that a\nperson may leave Australia before any payroll tax becomes payable\nby the person, the tax is payable on the day fixed by the commissioner\nby notice served on the person.\n","sortOrder":12},{"sectionNumber":"10","sectionType":"section","heading":"Meaning of taxable wages","content":"10 Meaning of taxable wages\n(1) For this Act, taxable wages are wages that are taxable in the ACT.\n(2) However, exempt wages are not taxable wages.\n","sortOrder":13},{"sectionNumber":"11","sectionType":"section","heading":"Wages taxable in the ACT","content":"11 Wages taxable in the ACT\n(1) For this Act, wages are taxable in the ACT if—\n(a) the wages are paid or payable by an employer in relation to\nservices performed by an employee entirely in the ACT; or\n(b) the wages are paid or payable by an employer in relation to\nservices performed by an employee in 2 or more Australian\njurisdictions, or partly in 1 or more Australian jurisdictions and\npartly outside all Australian jurisdictions, and—\n(i) the employee is based in the ACT; or\n(ii) if the employee is not based in an Australian jurisdiction—\nthe employer is based in the ACT; or\n(iii) if both the employee and employer are not based in an\nAustralian jurisdiction—the wages are paid or payable in\nthe ACT; or\n(iv) if both the employee and employer are not based in an\nAustralian jurisdiction and the wages are not paid or\npayable in an Australian jurisdiction—the wages are paid\nor payable in relation to services performed mainly in the\nACT; or\n\n(c) the wages are paid or payable by an employer in relation to\nservices performed by an employee entirely outside all\nAustralian jurisdictions and are paid or payable in the ACT.\nNote Section 66A (Wages paid or payable in relation to services performed in\nother countries) provides an exemption for wages paid or payable in\nrelation to services performed entirely in 1 or more other countries for a\ncontinuous period of more than 6 months.\n(2) The question of whether wages are taxable in the ACT must be\ndecided by taking into account only the services performed by the\nemployee in relation to the employer in the month in which the wages\nare paid or payable.\n(3) Any wages paid or payable by an employer in relation to an employee\nin a month are taken to be paid or payable in relation to the services\nperformed by the employee in relation to the employer in that month.\nIf wages paid in a month are paid to an employee in relation to services performed\nover several months, the question of whether the wages are taxable in the ACT must\nbe decided by taking into account only services performed by the employee in the\nmonth in which the wages are paid. Services performed in previous months are\ndisregarded (services performed in previous months will be relevant to the question\nof whether wages paid in the previous months are taxable in the ACT).\n(4) However, if no services are performed by an employee in relation to\nan employer in the month in which wages are paid or payable in\nrelation to the employee—\n(a) the question of whether the wages are taxable in the ACT must\nbe decided by taking into account only the services performed\nby the employee in relation to the employer in the most recent\nprior month in which the employee performed services in\nrelation to the employer; and\n(b) the wages are taken to be paid or payable in relation to the\nservices performed by the employee in relation to the employer\nin that most recent prior month.\n\n(5) Also, if no services were performed by an employee in relation to an\nemployer in the month in which wages are paid or payable in relation\nto the employee or in any prior month—\n(a) the wages are taken to be paid or payable in relation to services\nperformed by the employee in the month in which the wages are\npaid or payable; and\n(b) the services are taken to have been performed at a place or places\nwhere it may be reasonably expected that the services of the\nemployee in relation to the employer will be performed.\n(6) All amounts of wages paid or payable in the same month by the same\nemployer in relation to the same employee must be aggregated for the\npurpose of deciding whether they are taxable in the ACT (as if they\nwere paid or payable for all services performed by the employee in\nthe month in which the wages are paid or payable, or the most recent\nprior month).\nIf 1 amount of wages is paid by an employer in a particular month for services\nperformed in the ACT, and another amount of wages is paid by the same employer\nin the same month for services performed by the same employee in another\nAustralian jurisdiction, the wages paid must be aggregated (as if they were paid for\nall services performed by the employee in that month). Accordingly, s (1) (b) would\nbe applied for the purpose of deciding whether the wages are taxable in the ACT.\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 the ACT\nmust be decided by taking into account the earlier of the relevant\nmonths.\n\n","sortOrder":14},{"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 must be decided by\ntaking into account the state of affairs in the month in which the\nrelevant wages are paid or payable.\n(3) If more than 1 jurisdiction would qualify as the jurisdiction in which\nan employee is based in a month, the jurisdiction in which the\nemployee is based must be decided by taking into account the state of\naffairs on the last day of that month.\n(4) For this Act, an employee who does not have a principal place of\nresidence is taken to be an employee who is not based in an Australian\njurisdiction.\n(5) For wages paid or payable to a corporate employee, the jurisdiction\nin which the employee is based must be worked out under section 11B\ninstead of this section (as if a reference in section 11B to an employer\nwere a reference to an employee).\n(6) For this section, a corporate employee is a company—\n(a) that is taken to be an employee under section 34 (Contractors—\npeople taken to be employees) or section 39 (Employment\nagents—people taken to be employees); or\n(b) to which a payment is made that is taken to be wages payable to\nan employee under section 42 (Employment agents—agreement\nto reduce or avoid liability to payroll tax) or section 47\n(Agreement etc to reduce or avoid liability to payroll tax).\n\n","sortOrder":15},{"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) if the employer has an ABN—the jurisdiction in which the\nemployer’s registered business address is located; or\n(b) in any other case—the jurisdiction in which the employer’s\nprincipal place of business is located.\n(2) If wages are paid or payable in connection with a business carried on\nby an employer under a trust, the employer’s registered business\naddress is—\n(a) if the trust has an ABN—the registered business address of the\ntrust; or\n(b) if the trust does not have an ABN—the registered business\naddress of the trustee of the trust.\n(3) If an employer has registered business addresses in different\njurisdictions at the same time, the jurisdiction in which the employer\nis based at that time is the jurisdiction in which the employer’s\nprincipal place of business is located.\n(4) The jurisdiction in which an employer is based must be decided by\ntaking into account the state of affairs in the month in which the\nrelevant wages are paid or payable.\n(5) If more than 1 jurisdiction would qualify as the jurisdiction in which\nan employer is based in a month, the jurisdiction in which the\nemployer is based must be decided by taking into account the state of\naffairs on the last day of that month.\n(6) For this Act, an employer is taken to be an employer who is not based\nin an Australian jurisdiction if the employer has neither a registered\nbusiness address nor a principal place of business.\n\n","sortOrder":16},{"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 the wages—\n(a) an instrument is sent or given or an amount is transferred by an\nemployer to a person or a person’s agent at the 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 the\nplace.\n(2) The wages are taken to have been paid on the date that the instrument\nwas sent or given, the amount was transferred or the account credited\nin accordance with the instruction.\n(3) Wages are taken to be payable at the place at which they are paid.\n(4) However, wages that are not paid by the end of the month in which\nthey are payable 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 relation to the employer before the wages became\npayable.\n(5) Also, if wages paid or payable in the same month by the same\nemployer in relation to the same employee are paid or payable in more\nthan 1 Australian jurisdiction, the wages paid or payable in that month\nare taken to be paid or payable in the Australian jurisdiction in which\nthe highest proportion of the wages is paid or payable.\nNote Section 11 (Wages taxable in the ACT) requires all wages paid or payable\nin the same month by the same employer in relation to the same employee\nto be aggregated for the purpose of deciding whether the wages are\ntaxable in the ACT. Section 11C ensures only 1 Australian jurisdiction\ncan be considered to be the jurisdiction in which the wages are paid or\npayable.\n\nGeneral concept of wages Division 3.1\n","sortOrder":17},{"sectionNumber":"Div 3","sectionType":"division","heading":"1 General concept of wages","content":"Division 3.1 General concept of wages\n","sortOrder":18},{"sectionNumber":"13","sectionType":"section","heading":"Meaning of wages","content":"13 Meaning of wages\n(1) For this Act, wages means wages, remuneration, salary, commission,\nbonuses or allowances paid or payable to an employee, including—\n(a) an amount paid or payable as remuneration to a person by the\nTerritory or a territory authority; and\n(b) an amount paid or payable under a contract prescribed by\nregulation, to the extent to which the payment is attributable to\nlabour; and\n(c) an amount paid or payable by a company as remuneration in\nrelation to a director of the company; and\n(d) an amount that is included as or taken to be wages by any other\nprovision of this Act.\nNote Other provisions that define wages for this Act include the following:\n• a fringe benefit (see s 14);\n• a superannuation contribution (see s 17);\n• the grant of a share or option to an employee by an employer in\nrelation to services performed by the employee in certain\ncircumstances (see s 18);\n• the grant of a share, or option, by a company to a director of the\ncompany who is not an employee in certain circumstances (see\ns 24);\n• a termination payment (see s 28);\n• an amount that exceeds the exempt component of a motor vehicle\nallowance (see s 29);\n• an amount of accommodation allowance that exceeds the exempt\nrate (see s 30);\n• certain amounts paid or payable by an employment agent under an\nemployment agency contract (see s 40).\n\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 relation to wages mentioned in subsection (1) (a)\nto (d) that are paid or payable in relation to a person who is not an\nemployee in the same way as it applies to wages paid or payable to\nan employee (as if a reference in this Act to an employee includes a\nreference to the person).\n","sortOrder":19},{"sectionNumber":"14","sectionType":"section","heading":"Wages includes fringe benefits","content":"14 Wages includes fringe benefits\n(1) For this Act, wages includes a fringe benefit.\n(2) Subsection (1) does not apply to benefits that are exempt benefits for\nthe FBTA Act (other than deposits to the Superannuation Holding\nAccounts Special Account under the Small Superannuation Accounts\nAct 1995 (Cwlth)).\n(3) In this Act:\nfringe benefit has the same meaning as in the FBTA Act but does not\ninclude—\n(a) a tax-exempt body entertainment fringe benefit under that Act;\nor\n(b) anything determined by the Minister to not be a fringe benefit.\n(4) A determination is a disallowable instrument.\n\nFringe benefits Division 3.2\n","sortOrder":20},{"sectionNumber":"15","sectionType":"section","heading":"Value of wages that are fringe benefits","content":"15 Value of wages that are fringe benefits\n(1) For this Act, the value of wages that are a fringe benefit is worked out\nTV × 1\n1 − FBT rate\n(2) In this Act, a reference to taxable wages that were paid or payable by\nan employer in a month is, in relation to taxable wages that are fringe\nbenefits—\n(a) a reference to the value of the fringe benefits paid or payable by\nthe employer in the month; or\n(b) if an election by the employer is in force under section 16—a\nreference to an amount worked out under the section.\n(3) In this Act, a reference to taxable wages that were paid or payable by\nan employer in a year is, in relation to taxable wages that are fringe\nbenefits, a reference to an amount worked out by adding together the\namounts under subsection (2) (a) or (b) (or subsection (2) (a) and (b)),\nfor the months of that year.\nFBT rate means the rate of fringe benefits tax imposed by the FBTA\nAct that applies when the liability to payroll tax under this Act arises.\nTV means the value that would be the taxable value of the benefit as\na fringe benefit for the FBTA Act.\n\n","sortOrder":21},{"sectionNumber":"16","sectionType":"section","heading":"Employer election for taxable value of fringe benefits","content":"16 Employer election for 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 relation to a period of not less than\n15 months before 30 June in any year may elect to include as the value\nof the fringe benefits paid or payable by the employer in a month—\n(a) in a return lodged in relation to each of the first 11 months after\n","sortOrder":22},{"sectionNumber":"30","sectionType":"section","heading":"June in the year—1/12th of the amount worked out under","content":"30 June in the year—1/12th of the amount worked out under\nsubsection (2), or the part of that amount that, under section 10\n(Meaning of taxable wages), consists of taxable wages for the\nyear of tax (under the FBTA Act) ending on 31 March before\nthe beginning of the current financial year; and\n(b) in the return lodged in relation to the 12th month—the amount\nworked out under subsection (2), or the part of that amount that,\nunder section 10, consists of taxable wages for the year of tax\n(under the FBTA Act) ending on 31 March before the month,\nless the total of the amounts of fringe benefits included in the\nreturns for each of the earlier 11 months.\n(2) An amount is worked out under this subsection as follows:\nAFBA × 1\n1 − FBT rate\n(3) An election under subsection (1) takes effect when it is notified to the\ncommissioner.\n(4) After an employer has made an election under subsection (1), the\nemployer must lodge returns containing amounts worked out in\naccordance with the election unless the commissioner approves, by\nwritten notice given to the employer, the termination of the election\nand allows the employer to include the value mentioned in\nsection 15 (2) (a) (Value of wages that are fringe benefits).\n\nSuperannuation contributions Division 3.3\n(5) If an employer ceases to be liable to pay payroll tax, the value of\ntaxable wages that are fringe benefits to be included in the employer’s\nfinal return is (whether or not the employer has made an election\nunder subsection (1)) the value of the fringe benefits paid or payable\nby the employer for the period beginning on the previous 1 July until\nthe date when the employer ceases to be liable to payroll tax, less the\nvalue of the fringe benefits paid or payable by the employer in that\nperiod when payroll tax has been paid.\n(6) In this section:\nAFBA means the aggregate fringe benefits amount under the FBTA\nAct, section 136 (Interpretation).\nFBT rate means the rate of fringe benefits tax imposed by the FBTA\nAct that applies when the liability to payroll tax under this Act arises.\nDivision 3.3 Superannuation contributions\n","sortOrder":23},{"sectionNumber":"17","sectionType":"section","heading":"Wages includes superannuation contribution","content":"17 Wages includes superannuation contribution\n(1) For this Act, wages includes a superannuation contribution.\n(2) For this Act, a superannuation contribution is a contribution paid or\npayable by an employer in relation to an employee—\n(a) to or as a superannuation fund under the Superannuation\nIndustry (Supervision) Act 1993 (Cwlth); or\n(b) as a superannuation guarantee charge under the Superannuation\nGuarantee (Administration) Act 1992 (Cwlth); or\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\nunder the Small Superannuation Accounts Act 1995\n(Cwlth); and\n\n(ii) a retirement savings account under the Retirement Savings\nAccounts Act 1997 (Cwlth); and\n(iii) an entirely or partly unfunded fund or scheme.\n(3) Setting aside any money or anything that is worth money as, or as part\nof, a superannuation fund, superannuation guarantee charge or any\nother form of superannuation, provident or retirement fund or scheme\nis 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 must be worked out under\nsection 43 (Value of wages paid in kind) as if the section mentioned\nthe contribution instead of wages.\n(5) A superannuation, provident or retirement fund or scheme is\nunfunded to the extent that money paid or payable by an employer in\nrelation to an employee covered by the fund or scheme is not paid or\npayable in the employee’s period of service with the employer.\n(6) In this section:\nemployee includes anyone to whom, because of a paragraph of the\ndefinition of wages in section 13 (1), an amount paid or payable in\nthe circumstances mentioned in the paragraph is wages.\n","sortOrder":24},{"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 includes the grant of a share or option to an\nemployee by an employer in relation to services performed by the\nemployee if the share or option is an ESS interest and is granted to\nthe employee under an employee share scheme.\nNote A grant of a share or option to an employee by an employer that is not an\nESS interest will be taxable as a fringe benefit under div 3.2 (Fringe\nbenefits).\n\n(2) The wages are taken, for the purpose of the imposition of payroll tax,\nto be paid or payable on the relevant day.\n(3) For this division, the relevant day is the day that the employer elects\nin accordance with this division to treat as the day when the wages\nare paid or payable.\n(4) To remove any doubt, the grant of a share or option is valuable\nconsideration for section 46 (Wages paid by or to third parties).\nemployee share scheme—see the Income Tax Assessment Act 1997\n(Cwlth), section 83A-10 (Meaning of ESS interest and employee\nshare scheme).\nESS interest—see the Income Tax Assessment Act 1997 (Cwlth),\nsection 83A-10.\n","sortOrder":25},{"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\nwhen the share or option is granted to the employee or the vesting\ndate.\n(2) For this division, a share or option is granted to a person if—\n(a) someone else transfers the share or option to the person (other\nthan, for a share, by issuing the share to that person); or\n(b) for a share—someone else allots the share to the person; or\n(c) for an option—someone else confers the option on, or otherwise\ncreates the option in, the person; or\n(d) the person otherwise acquires a legal interest in the share or\noption from someone else; or\n(e) the person acquires a beneficial interest in the share or option\nfrom someone else.\n\n(3) To remove any doubt, if an employee acquires a right to be granted a\nshare or option, or another material benefit, at the employer’s\nelection, the share or option is not granted until the employer elects\nto grant the share or option.\n(4) For this division, the vesting date in relation to a share is whichever\nof the following happens first:\n(a) the date when the share vests in the employee (that is, when any\nconditions applying to the grant of the share have been met and\nthe employee’s legal or beneficial interest in the share cannot be\nrescinded);\n(b) the date at the end of the period of 7 years from the date when\nthe share is granted to the employee.\n(5) For this division, the vesting date in relation to an option is whichever\nof the following happens first:\n(a) the date when the share to which the option relates is granted to\nthe employee;\n(b) the date when the employee exercises a right under the option to\nhave the share the subject of the option transferred to, allotted to\nor vested in the employee;\n(c) the date at the end of the period of 7 years from the date when\nthe option is granted to the employee.\n","sortOrder":26},{"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 value\nof the grant of the share or option is not included in the taxable wages\nof the employer for the financial year when the share or option was\ngranted, the employer is taken to have elected to treat the wages that\nare the grant of that share or option as being paid or payable on the\nvesting date.\n\n(2) If an employer grants a share or option to an employee and the value\nof the grant of the share or option is nil or, if the employer were to\nelect to treat the date of grant as the relevant day, the wages that are\nthe grant would not be liable to payroll tax, the employer is taken to\nhave elected to treat the wages that are the grant of that share or option\nas being paid or payable on the date when the share or option was\ngranted.\n","sortOrder":27},{"sectionNumber":"21","sectionType":"section","heading":"Effect of rescission, cancellation of share or option","content":"21 Effect of rescission, cancellation of share or option\n(1) If the grant of a share or option is withdrawn, cancelled or exchanged\nbefore the vesting date for any valuable consideration (other than the\ngrant of other shares or options)—\n(a) the date of withdrawal, cancellation or exchange is taken to be\nthe vesting date of the share or option; and\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 wages\non that date).\n(2) If an employer includes the value of a grant of a share or option in the\ntaxable wages of the employer for a financial year and the grant is\nrescinded because the conditions attaching to the grant were not met,\nthe taxable wages of the employer, in the financial year in which the\ngrant is rescinded, must be reduced by the value of the grant as\npreviously 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 the employee’s rights in\nrelation to a share or option.\n\n","sortOrder":28},{"sectionNumber":"22","sectionType":"section","heading":"Grant of share as result of exercise of option","content":"22 Grant of share as result of exercise of option\nThe grant of a share by an employer is not wages for this Act if the\nemployer is required to grant the share because of the exercise of an\noption by a person and—\n(a) the grant of the option to the person is wages for this Act; or\n(b) the option was granted to the person before 1 July 2005.\n","sortOrder":29},{"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 is wages under this division, the\namount paid or payable as wages is taken, for this Act, to be the value\nof the share or option (expressed in Australian currency) on the\nrelevant day, less the consideration (if any) paid or given by the\nemployee in relation to the share or option (other than consideration\nin the form of services performed).\n(2) The value of a share or option is—\n(a) the market value; or\n(b) the amount worked out as provided for by the Commonwealth\nincome tax provisions.\n(3) The employer may elect the method by which the value of a share or\noption is worked out in any return lodged under this Act.\n(4) However, the commissioner may determine the method by which the\nvalue of a share or option is worked out if the grant of the share or\noption is not included as wages in a return lodged by an employer as\nrequired under this Act.\n(5) In working out the market value of a share or option, anything that\nwould prevent or restrict conversion of the share or option to money\nmust be disregarded.\n\n(6) The Commonwealth income tax provisions apply with the following\nchanges, and any other necessary changes:\n(a) the value of an option must be worked out as if it were a right to\nacquire a beneficial interest in a share;\n(b) as if a reference to the acquisition of a beneficial interest in a\nshare or right were a reference to the grant of a share or option.\n(7) In this section:\nCommonwealth income tax provisions means the Income Tax\nAssessment Act 1997 (Cwlth), section 83A-315 (Market value of ESS\ninterest).\nNote 1 A reference to an Act includes a reference to the statutory instruments\nmade or in force under the Act, including any regulation (see Legislation\nAct, s 104).\nNote 2 See the Income Tax Assessment Regulations 1997 (Cwlth), div 83A\n(Employee share schemes).\n","sortOrder":30},{"sectionNumber":"24","sectionType":"section","heading":"Inclusion of shares and options granted to directors as","content":"24 Inclusion of shares and options granted to directors as\nwages\n(1) For this Act, wages includes the grant of a share or option by a\ncompany to a director of the company who is not an employee of the\ncompany as remuneration for the director’s appointment or services.\n(2) Also, the other provisions of this division apply in relation to the grant\nas if—\n(a) a reference to the employer were a reference to the company;\nand\n(b) a reference to the employee were a reference to the director of\nthe company; and\n(c) any other necessary changes, and any changes prescribed by\nregulation, were made.\n\n(3) However, if wages mentioned in this section are fringe benefits, the\nvalue of the wages must be worked out under division 3.2 (Fringe\nbenefits), not this division.\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.\nNote Section 13 (Meaning of wages) provides that a reference to an employee\nin this Act includes a reference to anyone to whom an amount that is\ntreated as wages under this Act is paid or payable. See also s 11 (Wages\ntaxable in the ACT), that deems the wages to be paid or payable in\nrelation to services performed.\n","sortOrder":31},{"sectionNumber":"26","sectionType":"section","heading":"Place where wages are payable","content":"26 Place where wages are payable\n(1) Wages that are the grant of a share or option are taken to be paid or\npayable in the ACT if—\n(a) for a share—the share is a share in a local company; or\n(b) for an option—the option is an option to acquire shares in a local\ncompany.\n(2) In any other case, wages that are the grant of a share or option are\ntaken to be paid or payable outside the ACT.\nNote The place where wages are paid or payable is sometimes relevant to\ndeciding whether the wages are liable to payroll tax under this Act (see\ns 11 (Wages taxable in the ACT)).\nlocal company means—\n(a) a company incorporated or taken to be incorporated under the\nCorporations Act that is taken to be registered in the ACT for\nthat Act; or\n\nTermination payments Division 3.5\n(b) any other body corporate that is incorporated under a territory\nlaw.\n","sortOrder":32},{"sectionNumber":"27","sectionType":"section","heading":"Definitions—div 3.5","content":"27 Definitions—div 3.5\nemployment termination payment means—\n(a) an employment termination payment under the ITAA,\nsection 82-130 (What is an employment termination payment?);\nor\n(b) a payment that would be an employment termination payment\nunder the ITAA, section 82-130 but for the fact that it was\nreceived later than 12 months after the termination of a person’s\nemployment; or\n(c) a transitional termination payment under the Income Tax\n(Transitional Provisions) Act 1997 (Cwlth), section 82-10 (Pre-\n10 May 2006 entitlements—transitional termination payments).\nrelevant contract—see section 32 (Meaning of relevant contract—\ndiv 3.7).\ntermination payment means—\n(a) a payment made because of the retirement from, or termination\nof, an office or employment of an employee, being—\n(i) an unused annual leave payment; or\n(ii) an unused long service leave payment; or\n\n(iii) so much of an employment termination payment paid or\npayable by an employer, whether or not paid to the\nemployee or to another entity, that would be included in\nthe assessable income of an employee under the ITAA,\npart 2-40 (Rules affecting employees and other taxpayers\nreceiving PAYG withholding payments) if all of the\nemployment termination payment had been paid to the\nemployee; or\n(b) an amount paid or payable by a company because of the\ntermination of the services or office of a director of the\ncompany, whether or not paid to the director or to another entity,\nthat would be an employment termination payment if that\namount had been paid or payable because of termination of\nemployment; or\n(c) an amount paid or payable by a person who is an employer under\na relevant contract because of the termination of the supply of\nthe services of an employee under the contract, whether or not\npaid to the employee or to anyone else, if the amount would be\nan employment termination payment if that amount had been\npaid or payable because of termination of employment.\nunused annual leave payment—see the ITAA, section 83-10\n(Unused annual leave payment is assessable).\nunused long service leave payment—see the ITAA, section 83-75\n(Meaning of unused long service leave payment).\n","sortOrder":33},{"sectionNumber":"28","sectionType":"section","heading":"Termination payments","content":"28 Termination payments\nFor this Act, wages includes a termination payment.\n\nAllowances Division 3.6\n","sortOrder":34},{"sectionNumber":"29","sectionType":"section","heading":"Motor vehicle allowances","content":"29 Motor vehicle allowances\n(1) For this Act, wages, for a financial year, does not include the exempt\ncomponent of a motor vehicle allowance paid or payable for the year.\n(2) Accordingly, if the total motor vehicle allowance paid or payable to\nan employee for a financial year does not exceed the exempt\ncomponent, the motor vehicle allowance is not wages for this Act.\n(3) If the total motor vehicle allowance paid or payable to an employee\nfor a financial year exceeds the exempt component (if any), only the\namount that exceeds the exempt component of the motor vehicle\nallowance is included as wages for this Act.\n(4) The exempt component of a motor vehicle allowance paid or payable\nfor a financial year is worked out as follows:\nE = K × R\nE means the exempt component.\nK means the number of business kilometres travelled in the financial\nR means the exempt rate for the financial year.\n(6) K is worked out using the continuous recording method, or the\naveraging method, whichever method is selected and used by the\nemployer under schedule 1, part 1.5 (Motor vehicle allowances).\n(7) A reference in subsection (6) to the method in schedule 1, part 1.5\nincludes that method as applied under schedule 2A, division 2A.2.5.\n\n(8) The commissioner may, in writing, approve the use by an employer\nof another method of working out K (including the use of an\nestimate).\nNote Power to make a statutory instrument includes power to make different\nprovision for different categories (see Legislation Act, s 48).\n(9) If the commissioner approves the use of a method under\nsubsection (8) for an employer for a financial year, the employer must\nuse the method to work out K.\n(10) The Minister may determine the exempt rate for a financial year.\n(11) A determination is a notifiable instrument.\n(12) For this section, the exempt rate for a financial year is—\n(a) the rate determined by legislative instrument under the ITAA,\nsection 28-25 (How to calculate your deduction) for working out\na deduction for car expenses using the cents per kilometre\nmethod in the financial year immediately before the financial\nyear in which the allowance is paid or payable; or\n(b) if there is more than 1 rate under the determination mentioned\nin paragraph (a), the highest of those rates; or\n(c) if no rate mentioned in paragraph (a) is prescribed—the rate\ndetermined by the Minister under subsection (10).\n30 Accommodation allowances\n(1) For this Act, wages, for a financial year, does not include an\naccommodation allowance paid or payable to an employee for a\nnight’s absence from the person’s usual place of residence that does\nnot exceed the exempt rate.\n(2) If the accommodation allowance paid or payable to an employee for\na night’s absence from the person’s usual place of residence exceeds\nthe exempt rate, wages includes the allowance only to the extent that\nit exceeds the exempt rate.\n\nContractor provisions Division 3.7\n(3) The Minister may determine the exempt rate for a financial year.\n(4) For this section, the exempt rate for a financial year is—\n(a) the total reasonable amount for daily travel allowance expenses\nusing the lowest capital city for the lowest salary band for the\nfinancial year determined by the Commissioner of Taxation of\nthe Commonwealth; or\n(b) if no determination mentioned in paragraph (a) is in force—the\nrate determined by the Minister under subsection (3).\n(5) A determination under this section is a notifiable instrument.\n","sortOrder":35},{"sectionNumber":"31","sectionType":"section","heading":"Definitions—div 3.7","content":"31 Definitions—div 3.7\ncontract includes an agreement, arrangement or undertaking, whether\nformal or informal and whether express or implied.\nresupply of goods (the relevant goods) acquired from a person\nincludes—\n(a) a supply to the person of goods in an altered form or condition;\nand\n(b) a supply to the person of goods in which the relevant goods have\nbeen incorporated; and\n(c) a supply to the person of something manufactured or produced\nfrom the goods.\nservices includes results (whether goods or services) of work\nperformed.\nsupply includes supply by sale, exchange, lease, hire or hire-purchase,\nand in relation to services includes the providing, granting or\nconferring of services.\n\n","sortOrder":36},{"sectionNumber":"32","sectionType":"section","heading":"Meaning of relevant contract—div 3.7","content":"32 Meaning of relevant contract—div 3.7\n(1) For this division, a relevant contract for a financial year is a contract\nunder which a person (the designated person) in the financial year, in\nthe course of a business carried on by the designated person—\n(a) supplies services to someone else in relation to the performance\nof work; or\n(b) has supplied to the designated person the services of people in\nrelation to the performance of work; or\n(c) gives out goods to individuals for work to be performed by them\nin relation to the goods and for resupply of the goods to the\ndesignated person or, if the designated person is a member of a\ngroup, to another member of the group.\n(2) However, a relevant contract does not include a contract of service\nor a contract under which a person (the designated person) in a\nfinancial year in the course of a business carried on by the designated\nperson—\n(a) is supplied with services in relation to the performance of work\nthat are ancillary to the supply of goods under the contract by\nthe person supplying the services or to the use of goods that are\nthe property of that person; or\n(b) is supplied with services in relation to the performance of work\nif—\n(i) the 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) the services are supplied under a contract to which\nsubparagraph (i) does not apply and the commissioner is\nsatisfied that the services are performed by a person who\nordinarily performs services of that kind to the public\ngenerally in the financial year; or\n\nContractor provisions Division 3.7\n(c) 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(3) Subsection (2) does not apply—\n(a) to a contract if the services supplied under the contract include\nservices that are not mentioned in that subsection; or\n(b) if the commissioner decides that the contract under which the\nservices are supplied was entered into with an intention of,\ndirectly or indirectly, avoiding or evading payment of tax by\nanyone.\n(4) For this section, an employment agency contract under which\nservices are supplied by an employment agent, or a service provider\nis procured by an employment agent, is not a relevant contract.\n","sortOrder":37},{"sectionNumber":"33","sectionType":"section","heading":"Contractors—people taken to be employers","content":"33 Contractors—people taken to be employers\n(1) For this Act, a person is taken to be an employer for a financial year\nif the person is someone, in the financial year—\n(a) who supplies services to someone else under a relevant contract;\nor\n(b) to whom, under a relevant contract, the services of people are\nsupplied in relation to the performance of work; or\n(c) who, under a relevant contract, gives out goods to other people.\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 people\nare supplied in relation to the performance of work is taken to\nbe 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\n","sortOrder":38},{"sectionNumber":"34","sectionType":"section","heading":"Contractors—people taken to be employees","content":"34 Contractors—people taken to be employees\nFor this Act, a person is taken to be an employee for a financial year\nif the person, in the financial year—\n(a) performs work in relation to which services are supplied to\nsomeone else under a relevant contract; or\n(b) if the person is an individual—resupplies goods to an employer\nunder a relevant contract.\n","sortOrder":39},{"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 in a financial\nyear in relation to the performance of work relating to a relevant\ncontract or the resupply of goods by an employee under a relevant\ncontract are taken to be wages paid or payable in the 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 in a\nfinancial year, the commissioner may determine the part of the larger\namount that is not attributable to the performance of work relating to\nthe relevant contract or the resupply of goods by an employee under\nthe relevant contract.\n(3) An amount paid or payable in relation to the performance of work\nunder a relevant contract is taken to include—\n(a) any payment made by a person who is taken to be an employer\nunder a relevant contract in relation to a person who is taken to\nbe an employee under the relevant contract that would be a\nsuperannuation contribution if made in relation to a person in\nthe capacity of an employee; and\n\nEmployment agents Division 3.8\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 contract\nin relation to a person who is taken to be an employee under the\nrelevant contract that would be included as wages under\ndivision 3.4 (Shares and options) if provided to a person in the\ncapacity of an employee.\n","sortOrder":40},{"sectionNumber":"36","sectionType":"section","heading":"Contractors—liability provisions","content":"36 Contractors—liability provisions\nIf, in relation to a payment in relation to the performance of work that\nis taken to be wages under this division, payroll tax is paid by a person\nwho is taken to be an employer under this division (the relevant\nperson)—\n(a) no-one else is liable to payroll tax in relation to the payment;\nand\n(b) if someone else is liable to make a payment in relation to the\nwork—that person is not liable to payroll tax in relation to the\npayment unless it, or the payment by the relevant person, is\nmade with an intention of, directly or indirectly, avoiding or\nevading the payment of tax by anyone.\n","sortOrder":41},{"sectionNumber":"37","sectionType":"section","heading":"Definitions—Act","content":"37 Definitions—Act\n(1) For this Act, an employment agency contract is a contract, whether\nformal or informal and whether express or implied, under which a\nperson (an employment agent) procures the services of someone else\n(a service provider) for a client of the employment agent.\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.\n\ncontract includes agreement, arrangement and undertaking.\n","sortOrder":42},{"sectionNumber":"38","sectionType":"section","heading":"Employment agents—people taken to be employers","content":"38 Employment agents—people taken to be employers\nFor this Act, the employment agent under an employment agency\ncontract is taken to be an employer.\n","sortOrder":43},{"sectionNumber":"39","sectionType":"section","heading":"Employment agents—people taken to be employees","content":"39 Employment agents—people taken to be employees\nFor this Act, the person who performs work in relation to which\nservices are supplied to the client under an employment agency\ncontract is taken to be an employee of the employment agent.\n","sortOrder":44},{"sectionNumber":"40","sectionType":"section","heading":"Amounts taken to be wages","content":"40 Amounts taken to be wages\nFor 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 in relation to the service provider in\nrelation to the provision of services in relation to the\nemployment agency contract;\n(b) the value of any benefit provided in relation to the provision of\nservices in relation to the employment agency contract that\nwould be a fringe benefit if provided to a person in the capacity\nof an employee;\n(c) any payment made in relation to the service provider that would\nbe a superannuation contribution if made in relation to a person\nin the capacity of an employee.\n","sortOrder":45},{"sectionNumber":"41","sectionType":"section","heading":"Employment agents—liability","content":"41 Employment agents—liability\nIf, in relation to wages paid in relation to the performance of work,\npayroll tax is paid by an employment agent, no-one else is liable to\npayroll tax in relation to the payment.\n\nWages—other Division 3.9\n","sortOrder":46},{"sectionNumber":"42","sectionType":"section","heading":"Employment agents—agreement to reduce or avoid","content":"42 Employment agents—agreement to reduce or avoid\nliability to payroll tax\nIf the effect of an employment agency contract is to reduce or avoid\nthe liability of any party to the contract to the assessment, imposition\nor 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 relation to the contract is\ntaken to be wages for this Act.\n","sortOrder":47},{"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 able to be\nworked out for the wages from, arrangements between the\nemployer and the employee, whichever is the greater; and\n(b) if a regulation prescribes how the value of the wages must be\nworked out—the value worked out under the regulation.\n","sortOrder":48},{"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 or\npayable to the person relate, the amount or value of the wages on\nwhich payroll tax is payable is the amount or value of the wages paid\nor payable to the person minus the relevant proportion of the amount\nof GST payable by the person on the supply to which the wages relate.\n(2) Subsection (1) does not apply in relation to the value of wages that\nare a fringe benefit.\n\nconsideration has the same meaning as in the A New Tax System\n(Goods and Services Tax) Act 1999 (Cwlth).\nrelevant proportion, in relation to GST payable on a supply to which\nwages relate, means the proportion that the amount or value of the\nwages bears to the consideration for the supply to which the wages\nrelate.\n","sortOrder":49},{"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 a\nmember of a group if the member were the employer of the employee\nto whom the wages were paid.\n","sortOrder":50},{"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 taken\nto be wages paid or payable by the employer to the employee:\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 as\nan 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 as\nthe 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 person\nother than the employee.\n\nWages—other Division 3.9\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, as remuneration for\nthe appointment or services of the director to the company, by a\nperson other than the company;\n(b) any money or other valuable consideration paid or given, or to\nbe paid or given, by a company, as remuneration for the\nappointment or services of a director to the company, to a person\nother than the director;\n(c) any money or other valuable consideration paid or given, or to\nbe paid or given, by anyone, as remuneration for the\nappointment or services of a director to the company, to a person\nother than the director.\ndirector, of a company—see section 24 (4).\n","sortOrder":51},{"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\nIf anyone enters into any agreement, transaction or arrangement,\nwhether in writing or otherwise, under which an individual performs,\non behalf of another person, services in relation to which any payment\nis made to someone else related or connected to the individual\nperforming the services and the effect of the agreement, transaction\nor arrangement is to reduce or avoid the liability of anyone to the\nassessment, imposition or payment of payroll tax, the commissioner\nmay—\n(a) disregard the agreement, transaction or arrangement; and\n\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 relation to the agreement,\ntransaction or arrangement is taken to be wages for this Act.\n\nCharitable organisations Division 4.1\nDivision 4.1 Charitable organisations\n48 Charitable organisations\nWages mentioned in schedule 2, part 2.2 are exempt wages.\nDivision 4.1A Employment agents\n48A Employments agents and subcontractors\nWages mentioned in schedule 2, part 2.3 are exempt wages.\nDivision 4.2 Education and training\n49 Educational services and training\nWages mentioned in schedule 2, part 2.4 are exempt wages.\nDivision 4.3 Hospitals\n51 Hospitals\nWages mentioned in schedule 2, part 2.5 are exempt wages.\nDivision 4.4 Maternity, adoption and primary carer\nleave\n53 Maternity and adoption leave\n(1) Wages are exempt wages if they are paid or payable to an employee\nin relation to maternity leave or adoption leave.\n(2) Subsection (1) applies—\n(a) only in relation to wages paid or payable for a maximum of\n14 weeks leave for any 1 pregnancy, birth or adoption; and\n\n","sortOrder":52},{"sectionNumber":"Div 4","sectionType":"division","heading":"4 Maternity, adoption and primary carer leave","content":"Division 4.4 Maternity, adoption and primary carer leave\n(b) only in relation to leave taken before the relevant day for the\npregnancy, birth or adoption; and\n(c) only if, in relation to the leave, the employee has given the\nemployer a required document for the leave.\n(3) To remove any doubt—\n(a) the reference in subsection (2) (a) to wages paid or payable for\n14 weeks leave is taken to be a reference to—\n(i) for a full-time employee who takes the leave on less than\nfull pay—wages paid or payable for a period equivalent to\n14 weeks leave on full pay; and\n(ii) for a part-time employee who takes the leave at less than\nthe employee’s average rate of pay over the 6 weeks\nimmediately before the leave is taken—wages paid or\npayable for a period equivalent to 14 weeks leave at that\naverage rate of pay; and\n(iii) for any other part-time employee—wages paid or payable\nfor a period equivalent to 14 weeks leave at the rate of pay\nof the employee immediately before the leave was taken;\nand\n(b) a reference to 1 birth includes a reference to a multiple birth; and\n(c) a reference to 1 adoption includes a reference to the adoption of\nmore than 1 child at the same time.\n(4) The exemption does not apply to any part of wages paid or payable\nin relation to maternity or adoption leave that consists of fringe\nbenefits.\n\nMaternity, adoption and primary carer leave Division 4.4\nadoption leave, for an employee, means leave given to the employee\nin relation to the adoption of a child by the employee (whether the\nleave is taken before or after the adoption), but does not include leave\ngiven to the employee as leave of another kind.\nExamples for this section of leave of another kind\n1 sick leave\n2 annual leave\n3 long service leave\nmaternity leave, for an employee, means leave given to a female\nemployee in relation to her pregnancy or the birth of her child\n(whether the leave is taken during or after the pregnancy), but does\nnot include leave given to the employee as leave of another kind.\nrelevant day means—\n(a) for a birth—the day 6 months after the day of the birth; or\n(b) for a pregnancy that ends other than by a birth—the day\n6 months after the day the pregnancy ends; or\n(c) for an adoption—the day 6 months after the day that the child is\nplaced, for the purpose of adoption, in the care of the adoptive\nparent.\nrequired document means—\n(a) for maternity leave—\n(i) a birth certificate for the child; or\n(ii) a medical certificate stating that the employee was\npregnant and the date of the end of the pregnancy; or\n(b) for adoption leave—a statement setting out the following:\n(i) that a child has been placed, for the purpose of adoption, in\nthe care of the employee as the adoptive parent;\n\nDivision 4.5 Volunteer firefighters, emergency service volunteers and other\nvolunteers under the Emergencies Act\n(ii) the date of the placement; or\n(c) any other document prescribed by regulation.\nNote 1 A certificate, statement or other document must be kept for at least 5 years\n(unless the commissioner authorises earlier destruction) and produced if\nthe commissioner requires its production (see Taxation Administration\nAct 1999, s 57 (Requirement to keep proper records), s 62 (Accessibility)\nand s 64 (Period record to be kept)).\nNote 2 It is an offence to make a false or misleading statement, give false or\nmisleading information or produce a false or misleading document (see\nCriminal Code, pt 3.4).\n","sortOrder":53},{"sectionNumber":"53A","sectionType":"section","heading":"Primary carer leave","content":"53A Primary carer leave\nWages mentioned in schedule 2, part 2.6 are exempt wages.\nDivision 4.5 Volunteer firefighters, emergency\nservice volunteers and other\nvolunteers under the Emergencies\nAct\n","sortOrder":54},{"sectionNumber":"55","sectionType":"section","heading":"Volunteer firefighters","content":"55 Volunteer firefighters\nunder the Emergencies Act 2004 as—\n(a) a volunteer member of the rural fire service; or\n(b) a volunteer member of a community fire unit.\n","sortOrder":55},{"sectionNumber":"56","sectionType":"section","heading":"Emergency service volunteers","content":"56 Emergency service volunteers\nunder the Emergencies Act 2004 as a volunteer member of the SES.\n\nGovernor-General and defence Division 4.7\n","sortOrder":56},{"sectionNumber":"56A","sectionType":"section","heading":"Other volunteers under Emergencies Act","content":"56A Other volunteers under Emergencies Act\nunder the Emergencies Act 2004 as—\n(a) a casual volunteer; or\n(b) an emergency services support volunteer.\n","sortOrder":57},{"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 sick\nleave.\nDivision 4.7 Governor-General and defence\n61 Governor-General\nWages paid or payable by the Governor-General are exempt wages.\n62 Defence personnel\nin relation to any period when the employee was on leave from\nemployment because of being a member of—\n(a) the Defence Force; or\n(b) an armed force of a Commonwealth country.\nDivision 4.8 Foreign government representatives\n","sortOrder":58},{"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\n","sortOrder":59},{"sectionNumber":"66A","sectionType":"section","heading":"Wages paid or payable in relation to services performed","content":"66A Wages paid or payable in relation to services performed\nin other countries\nWages are exempt wages if they are paid or payable in relation to\nservices performed by an employee entirely in 1 or more other\ncountries for a continuous period of more than 6 months beginning\non the day when wages were first paid or payable to the employee for\nthe services.\nDivision 4.10 Exemptions—other\n66B Wages paid or payable to certain unemployed people\nWages mentioned in schedule 2, part 2.7 are exempt wages.\n66C Wages paid or payable from certain bank accounts\nWages mentioned in schedule 2, part 2.8 are exempt wages.\n66D Wages paid or payable by territory authority\nWages mentioned in schedule 2, part 2.9 are exempt wages.\n\nInterpretation—pt 5 Division 5.1\n","sortOrder":60},{"sectionNumber":"67","sectionType":"section","heading":"Definitions—pt 5","content":"67 Definitions—pt 5\nassociated person means a person who is associated with someone\nelse in accordance with any of the following:\n(a) people are associated people if they are related people;\n(b) individuals are associated people if they are partners in a\npartnership to which the Partnership Act 1963 applies;\n(c) private companies are associated people if common\nshareholders have a majority interest in each private company;\n(d) trustees are associated people if anyone is a beneficiary common\nto the trusts (not including a public unit trust scheme) of which\nthey are trustees;\n(e) a private company and a trustee are associated people if a related\nbody corporate of the company is a beneficiary of the trust (not\nincluding a public unit trust scheme) of which the trustee is a\ntrustee.\nbusiness includes the following, whether carried on by 1 person or 2\nor more people together:\n(a) a profession or trade;\n(b) any other activity carried on for fee, gain or reward;\n(c) the activity of employing 1 or more people who perform duties\nin connection with another business;\n(d) the carrying on of a trust (including a dormant trust);\n\n(e) the activity of holding any money or property used in connection\nwith another business.\nentity means—\n(a) a person; or\n(b) 2 or more people who are associated people.\ngroup means a group under this part, but does not include any\nmember of the group in relation to whom a determination under\ndivision 5.4 (Groups—miscellaneous) is in force.\nprivate company means a company that is not limited by shares, or\nwhose shares are not quoted on the Australian Stock Exchange or any\nexchange of the World Federation of Exchanges.\nrelated body corporate—see the Corporations Act, section 9\n(Dictionary).\nrelated person means a person who is related to someone else in\naccordance with any of the following:\n(a) individuals are related people if—\n(i) they are domestic partners; or\nNote The Legislation Act, s 169 defines domestic partner.\n(ii) the relationship between them is that of parent and child,\nbrothers, sisters, or brother and sister;\n(b) private companies are related people if they are related bodies\ncorporate;\n(c) an individual and a private company are related people if the\nindividual is a majority shareholder or director of the company\nor of another private company that is a related body corporate of\nthe company;\n\n(d) an individual and a trustee are related people if the individual is\na beneficiary of the trust (not being a public unit trust scheme)\nof which the trustee is a trustee;\n(e) a private company and a trustee are related people if the\ncompany, or a majority shareholder or director of the company,\nis a beneficiary of the trust (not being a public unit trust scheme)\nof which the trustee is a trustee.\n","sortOrder":61},{"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 under a provision\nof this part does not prevent the person from being a member of a\ngroup under another provision of this part.\n","sortOrder":62},{"sectionNumber":"69","sectionType":"section","heading":"Make up of groups","content":"69 Make up of groups\nA group is made up of all the people or bodies forming a group that\nis not part of a larger group.\n","sortOrder":63},{"sectionNumber":"70","sectionType":"section","heading":"Groups of corporations","content":"70 Groups of corporations\nCorporations make up a group if they are related bodies corporate.\n","sortOrder":64},{"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 in connection\nwith 1 or more businesses carried on by the employer and 1 or more\nother people, the employer and each of the other people make up a\n(2) If 1 or more employees of an employer are employed solely or mainly\nto perform duties in connection with 1 or more businesses carried on\nby 1 or more other people, the employer and each of the other people\nmake up a group.\n\n(3) If 1 or more employees of an employer perform duties in connection\nwith 1 or more businesses carried on by 1 or more other people, and\nthe duties are performed in connection with, or in fulfilment of the\nemployer’s obligation under, an agreement, arrangement or\nundertaking for the provision of services to any 1 or more of the other\npeople in connection with the business or businesses, the employer\nand each of the other people make up a group.\n(4) Subsection (3) applies to an agreement, arrangement or\nundertaking—\n(a) whether the agreement, arrangement or undertaking is formal or\ninformal, express or implied; and\n(b) whether or not the agreement, arrangement or undertaking\nprovides for duties to be performed by the employees or states\nthe duties to be performed by them.\n","sortOrder":65},{"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 people has a controlling interest in each of\n2 businesses, the people who carry on the businesses make up a\n(2) For this section, a person or set of people has a controlling interest in\na business if—\n(a) for 1 person—the person is the sole owner (whether or not as\ntrustee) of the business; or\n(b) for a set of people—the people are together as trustees the sole\nowners of the business; or\n\n(c) for a business carried on by a corporation—\n(i) the person or each of the set of people is a director of the\ncorporation and the person or set of people is entitled to\nexercise more than 50% of the voting power at meetings of\nthe 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 at\nmeetings of the directors of the corporation is under an\nobligation, whether formal or informal, to act in\naccordance with the direction, instructions or wishes of the\nperson or set of people; or\n(d) for a business carried on by a body corporate or unincorporated\nbody—the person or set of people make up more than 50% of\nthe board of management (however described) of the body or\ncontrol the composition of the board; or\n(e) for a business carried on by a corporation that has a share\ncapital—the person or set of people can, directly or indirectly,\nexercise, control the exercise of, or substantially influence the\nexercise of, more than 50% of the voting power attached to the\nvoting shares, or any class of voting shares, issued by the\ncorporation; or\n(f) for a business carried on by a partnership—the person or set of\npeople—\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) for a business carried on under a trust (the first trust)—the\nperson or set of people (whether or not as a trustee of, or\nbeneficiary under, another trust) is the beneficiary in relation to\nmore than 50% of the value of the interests in the first trust.\n\n(3) If—\n(a) 2 corporations are related bodies corporate; and\n(b) 1 of the corporations has a controlling interest in a business;\nthe other corporation has a controlling interest in the business.\n(4) If—\n(a) a person or set of people has a controlling interest in a business;\nand\n(b) a person or set of people who carry on the business has a\ncontrolling interest in another business;\nthe person or set of people mentioned in paragraph (a) has a\ncontrolling interest in the other business.\n(5) If—\n(a) a person or set of people is the beneficiary of a trust in relation\nto more than 50% of the value of the interests in the trust; and\ntrustee or trustees) has a controlling interest in the business of\nanother trust;\nthe person or set of people has a controlling interest in the business.\n(6) A person who may benefit from a discretionary trust because the\ntrustee or someone else, or the trustee and someone else, exercises or\nfails to exercise a power or discretion, is taken, for this part, to be a\nbeneficiary in relation to more than 50% of the value of the interests\nin the trust.\n\n(7) If—\n(a) a person or set of people has a controlling interest in the business\nof a trust; and\ntrustee or trustees) has a controlling interest in the business of a\ncorporation;\nthe person or set of people is taken to have a controlling interest in\nthe business of the corporation.\n(8) If—\n(a) a person or set of people has a controlling interest in the business\nof a trust; and\ntrustee or trustees) has a controlling interest in the business of a\npartnership;\nthe person or set of people is taken to have a controlling interest in\nthe business of the partnership.\n","sortOrder":66},{"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 corporation\nif the corporation has share capital and—\n(a) the entity has a direct interest in the corporation and the value of\nthe direct interest exceeds 50%; or\n(b) the entity has an indirect interest in the corporation and the value\nof the indirect interest exceeds 50%; or\n\n(c) the entity has an aggregate interest in the corporation and the\nvalue of the aggregate interest exceeds 50%.\n(3) Division 5.3 (Business groups—tracing of interests in corporations)\napplies to this section.\nNote Division 5.3 sets out the way of working out if an entity has a direct\ninterest, indirect interest or aggregate interest in a corporation, and the\nvalue of the interest.\n","sortOrder":67},{"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 make up a group.\n(2) If 2 or more members of a group have together a controlling interest\nin a business, all the members of the group and the person or people\nwho carry on the business together make up a group.\ncontrolling interest, in a business—see section 72 (Groups of\ncommonly controlled businesses).\n","sortOrder":68},{"sectionNumber":"Div 5","sectionType":"division","heading":"3 Business groups—tracing of interests","content":"Division 5.3 Business groups—tracing of interests\nin corporations\n","sortOrder":69},{"sectionNumber":"75","sectionType":"section","heading":"Application—div 5.3","content":"75 Application—div 5.3\nThis division applies to section 73 (Groups arising from tracing of\ninterests in corporations).\n\nBusiness groups—tracing of interests in corporations Division 5.3\n","sortOrder":70},{"sectionNumber":"76","sectionType":"section","heading":"Direct interest","content":"76 Direct interest\n(1) An entity has a direct interest in a corporation if—\n(a) for an entity that is a person—the person can, directly or\ninfluence the exercise of, the voting power attached to any\nvoting shares issued by the corporation; or\n(b) for an entity that is 2 or more people who are associated\npeople—each of the associated people can, directly or indirectly,\nexercise, control the exercise of, or substantially influence the\nexercise of, the voting power attached to any voting shares\nissued 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) for an entity that is a person—the person can, directly or\ninfluence the exercise of, as mentioned in subsection (1); or\n(b) for an entity that is 2 or more people who are associated\npeople—the associated people can, if acting together, directly or\ninfluence the exercise of, as mentioned in subsection (1).\n\n","sortOrder":71},{"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 corporation)\nin 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 direct\ninterest in the next corporation in the chain.\nCorporation A (a directly controlled corporation) has a direct interest in corporation\nB. Corporations A and B form part of a chain of corporations, and corporation B is\nlinked to corporation A. Accordingly, an entity that has a direct interest in\ncorporation A also has an indirect interest in corporation B.\nCorporation B also has a direct interest in corporation C. In this case, corporations\nA, B and C form part of a chain of corporations. Both corporations B and C are\nlinked to corporation A. The entity that has a direct interest in corporation A has\nan indirect interest in both corporations B and C.\nCorporation B also has a direct interest in corporation D. There are now 2 chains\nof corporations, 1 consisting of A, B and C, and 1 consisting of A, B and D.\nCorporations B, C and D are all linked to corporation A and an entity that has a\ndirect interest in corporation A would have an indirect interest in corporations B, C\nand D. An entity that has a direct interest in corporation B would have an indirect\ninterest in corporations C and D. However, an entity that has a direct interest in\ncorporation C only would not have an indirect interest in corporation D, as\ncorporation D is not linked to corporation C.\n(3) 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 worked out by multiplying together the\nfollowing:\n(a) the value of the direct interest of the entity in the directly\ncontrolled corporation;\n\nBusiness groups—tracing of interests in corporations Division 5.3\n(b) the value of each direct interest that forms a link in the chain of\ncorporations by which the indirectly controlled corporation is\nlinked to the directly controlled corporation.\nAn entity has a direct interest (with a value of 80%) in corporation A. Corporation\nA has a direct interest (with a value of 70%) in corporation B. The value of the\nindirect interest of the entity in corporation B is 80%  70% (that is, 56%).\nAccordingly, the entity has a controlling interest in corporation B under s 73\n(Groups arising from tracing of interests in corporations).\nCorporation B also has a direct interest (with a value of 40%) in corporation C. The\nvalue of the indirect interest of the entity in corporation C is 80%  70%  40%\n(that is, 224%). Accordingly, the entity does not have a controlling interest in\ncorporation C.\n(4) It is possible for an entity to have more than 1 indirect interest in a\ncorporation.\nExamples\n1 An entity may have more than 1 indirect interest in a corporation if the\ncorporation is linked to more than 1 corporation in which the entity has a direct\ninterest.\n","sortOrder":72},{"sectionNumber":"2","sectionType":"section","heading":"An entity may have more than 1 indirect interest in a corporation if the","content":"2 An entity may have more than 1 indirect interest in a corporation if the\ncorporation is linked to only 1 corporation in which the entity has a direct\ninterest, but is linked through more than 1 chain of corporations. In this case,\nthe entity has an aggregate interest in the corporation (see s 78).\n","sortOrder":73},{"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 the entity has—\n(a) a direct interest and 1 or more indirect interests in the\ncorporation; or\n(b) more than 1 indirect interest in the corporation.\n(2) The value of the aggregate interest of an entity in a corporation is\nworked out by adding together the following:\n(a) the value of the direct interest (if any) of the entity in the\ncorporation;\n\n(b) the value of each indirect interest of the entity in the corporation.\nAn entity has a direct interest (with a value of 40%) in corporation B.\nThe entity also has a direct interest (with a value of 25%) in corporation A, which\nin turn has a direct interest (with a value of 60%) in corporation B. Accordingly,\nthe entity also has an indirect interest in corporation B with a value of 15% (that is,\n25%  60%).\nThe value of the entity’s aggregate interest in corporation B is the total of the direct\ninterest (40%) and the indirect interest (15%), which is 55%.\nAccordingly, the entity has a controlling interest in corporation B under s 73\n(Groups arising from tracing of interests in corporations).\n","sortOrder":74},{"sectionNumber":"79","sectionType":"section","heading":"Exclusion of people from groups","content":"79 Exclusion of people from groups\n(1) The commissioner may, by written notice given to the person,\ndetermine that a person who would, but for the determination, be a\nmember of a group is not a member of the group.\n(2) The commissioner may make a determination only if satisfied, having\nregard to the nature and degree of ownership and control of the\nbusinesses, the nature of the businesses and any other matters the\ncommissioner considers relevant, that a business carried on by the\nperson is carried on independently of, and is not connected with the\ncarrying on of, a business carried on by any other member of the\n(3) The commissioner must not exclude a person from a group if the\nperson is a body corporate that, because of the Corporations Act,\nsection 50 (Related bodies corporate), is related to another body\ncorporate that is a member of the group.\n(4) This section extends to a group made up because of section 74\n(Smaller groups subsumed by larger groups).\n\nGroups—miscellaneous Division 5.4\n(5) The commissioner may, by written notice given to the person, revoke\na determination that applies to a person if satisfied that the\ncircumstances in which the determination was made do not apply to\nthe person.\n(6) A determination (including a revocation of a determination) may\nprovide that it commences on a date earlier than the date of the\ndetermination.\n","sortOrder":75},{"sectionNumber":"80","sectionType":"section","heading":"Designated group employers","content":"80 Designated group employers\n(1) The members of a group may, with the commissioner’s approval,\ndesignate a qualified member of the group to be the designated group\nemployer for the group for this Act.\n(2) A member of a group is a qualified member if the member—\n(a) has in the previous financial year paid wages exceeding the\nthreshold amount for the financial year; or\n(b) is likely in the current financial year to pay wages that are likely\nto exceed that amount.\n(3) The members of a group may, with the commissioner’s approval,\ndesignate a member of the group to be the designated group employer\nfor the group for this Act if none of the members of the group is a\nqualified member but the members together—\n(a) have in the previous financial year paid wages exceeding the\nthreshold amount for the financial year; or\n(b) are, in the commissioner’s opinion, likely in the current financial\nyear to pay wages that will exceed that amount.\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 a member of the group as the designated group\n\n(5) The designated group employer of a group stops being the designated\ngroup employer on the earlier of the following days:\n(a) the first day of a return period when there is a change in the\nmembership of the group;\n(b) the first day of a return period when the members of the group\nrevoke the designation.\n(6) The designation of a designated group employer under subsection (1)\nor (3) must be—\n(a) by written notice; and\n(b) executed by or on behalf of each member of the group; and\n(c) served on the commissioner.\n(7) In this section:\nthreshold amount—see schedule 1, section 1.1, definition of TA (or\nthreshold amount).\n","sortOrder":76},{"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 relation to any period, every member\nof the group is liable jointly and severally to pay the amount to the\ncommissioner.\n(2) If 2 or more people are jointly or severally liable to pay an amount\nunder this section, the commissioner may recover all of the amount\nfrom them, or any of them, or any 1 of them.\n(3) If, under this section, 2 or more people are jointly and severally liable\nto pay an amount that is payable by any 1 of them, each person is also\njointly and severally liable to pay—\n(a) any amount payable to the commissioner under this Act or\nanother law in relation to the amount, including any interest and\npenalty tax; and\n\nGroups—miscellaneous Division 5.4\n(b) any costs and expenses incurred in relation to the recovery of the\namount that the commissioner is entitled to recover from the\nperson.\n(4) This Act does not prevent a person who is jointly and severally liable\nto pay an amount of tax and who pays the amount to the commissioner\nfrom recovering a contribution from anyone else who is liable to pay\nall or part of the amount.\n(5) This section applies whether or not the person was an employer in the\nrelevant period.\n\n","sortOrder":77},{"sectionNumber":"81A","sectionType":"section","heading":"Definitions—pt 6","content":"81A Definitions—pt 6\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":78},{"sectionNumber":"82","sectionType":"section","heading":"Calculation of correct amount of payroll tax","content":"82 Calculation of correct amount of payroll tax\n(1) For this part, the correct amount of payroll tax payable by an\nemployer for a financial year is the amount worked out under the\nfollowing parts of schedule 1 for the financial year:\n(a) part 1.2 (Employers who are not members of a group);\n(b) part 1.3 (Groups with a designated group employer);\n(c) part 1.4 (Groups with no designated group employer).\n(2) However, the correct amount of payroll tax payable by an employer\nfor the financial year beginning on 1 July 2025, if the total wages paid\nor payable by the employer for the financial year are more than\n$150 million, is the amount worked out under the following divisions\nof schedule 2A for the financial year:\n(a) division 2A.2.2 (Employers who are not members of a group);\n(b) division 2A.2.3 (Groups with a designated group employer);\n(c) division 2A.2.4 (Groups with no designated group employer).\n(3) This part applies in relation to payroll tax paid or payable by an\nemployer whether as a group employer or individual employer.\n\nAdjustments of tax Part 6\n(4) If an employer is liable for payroll tax both as an individual employer\nand group employer (for different periods in the same financial year),\nseparate adjustments must be made under this part for any period as\na group employer and any period as an individual employer (and\nseparate calculations of the correct amount of payroll tax payable by\nthe employer must be made).\ntotal wages, for the financial year beginning on 1 July 2025—see\nschedule 2A (Special provisions for 2025-2026 financial year),\nsection 2A.2 (4).\n","sortOrder":79},{"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 when the\nemployer lodges the returns for a financial year is greater than the\ncorrect amount of payroll tax payable by the employer for the\nfinancial year, the commissioner (on application by the employer)\nmust refund to the employer an amount equal to the difference.\n(2) If the amount of payroll tax paid or payable by an employer when the\nemployer lodges the returns for a financial year is less than the correct\namount of payroll tax payable by the employer for the financial year,\nthe employer must pay to the commissioner as payroll tax an amount\nequal to the difference.\n(3) However, if the difference payable by an employer under\nsubsection (2) is less than $20, the commissioner must determine that\nthe difference is $0.\n(4) Any amount payable by an employer under this section for a financial\nyear must be paid within the period in which the employer is required\nto lodge a return under this Act for the return period that is or includes\nJune in the financial year.\n\n(5) The amount of any refund payable to an employer for a financial year\nunder this section must be reduced by the amount of any other refund\nof payroll tax made for the financial year to the employer (under this\nsection or otherwise) before the time of the refund under this section.\n","sortOrder":80},{"sectionNumber":"84","sectionType":"section","heading":"Adjustment of payroll tax if employer changes","content":"84 Adjustment of payroll tax if employer changes\ncircumstances\n(1) This section applies if an employer’s circumstances change in a\n(2) The employer must, if the amount of payroll tax paid or payable by\nthe employer when the employer lodges returns for the relevant\nperiod before the change of circumstances is less than the correct\namount of payroll tax payable by the employer for the financial year,\npay to the commissioner as payroll tax an amount equal to the\ndifference.\n(3) A change of circumstances happens if 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\n(4) The relevant period before a change of circumstances is the period\nbefore the change (in the financial year and after any earlier change\nof circumstances) for which the employer paid or was liable to pay\ntaxable wages or interstate wages.\n(5) In working out for this section the correct amount of payroll tax\npayable by the employer, the wages paid or payable by the employer\nin the relevant period are taken to be the only wages paid or payable\nby the employer in the financial year.\n\nAdjustments of tax Part 6\n(6) Any amount payable by an employer under this section for a relevant\nperiod must be paid within the period in which the employer is\nrequired to lodge a return under this Act for the relevant period or the\nlast return under this Act for the relevant period.\n(7) Any payroll tax paid or payable by an employer under this section\nmust be included as payroll tax paid or payable by the employer for\nthe purpose of the annual adjustment of payroll tax under this part.\nIf an employer ceases to be a group employer in a financial year an adjustment will\nbe made under this section. If later in that financial year the employer ceases to\npay wages there will be a further adjustment under this section. The first adjustment\nwill adjust payroll tax paid for the period as a group employer against the correct\namount of tax that should have been paid (based on the assumption that the period\nas a group employer is the only period for which the employer paid wages\nthroughout the year). The second adjustment will adjust payroll tax paid for the\nperiod as an individual employer against the correct amount of tax that should have\nbeen paid (based on the assumption that the period as an individual employer is the\nonly period for which the employer paid wages throughout the year). Any amount\nof payroll tax paid under this section is taken into account for the purpose of the\nannual adjustment of payroll tax.\n","sortOrder":81},{"sectionNumber":"85","sectionType":"section","heading":"Special provision if wages fluctuate","content":"85 Special provision if wages fluctuate\n(1) This section applies if a person did not pay and was not liable to pay\ntaxable wages or interstate wages for any part of a financial year.\n(2) If the person satisfies the commissioner that, because of the nature of\nthe person’s trade or business, the taxable wages and interstate wages,\nif any, paid or payable by the person fluctuate with different periods\nof the financial year, the commissioner may decide that the person\nmust be treated for this part—\n(a) if the person has conducted the trade or business in Australia in\nall of the financial year—as an employer who pays or is liable\nto pay taxable wages throughout that financial year; or\n\n(b) if the person has conducted the trade or business in Australia in\npart only of the financial year—as an employer who pays or is\nliable to pay taxable wages throughout that part of the financial\nThe effect of a decision under this section is that when the correct amount of payroll\ntax is worked out (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 employer\nmust be treated as paying wages, and not just for the period for which the employer\nactually pays wages. Without the decision, an employer may only receive the\nbenefit of a proportion of the threshold amount that is equivalent to the proportion\nof the whole financial year for which the employer actually pays wages.\n\n","sortOrder":82},{"sectionNumber":"86","sectionType":"section","heading":"Registration","content":"86 Registration\n(1) This section applies to an employer if—\n(a) the employer is not already registered; and\n(b) either—\n(i) the total of all taxable wages paid or payable anywhere by\nthe employer in a month exceeds the amount determined\nfor this section under the Taxation Administration\nAct 1999, section 139; or\n(ii) the employer is a member of a group and the total of all\ntaxable wages paid or payable anywhere by the members\nof the group together in a month exceeds the amount\ndetermined for this section under the Taxation\nAdministration Act 1999, section 139.\n(2) The employer must apply for registration as an employer under this\nAct.\n(3) The application for registration must be made to the commissioner\nwithin 7 days after the end of the month.\n(4) The commissioner must register the applicant as an employer under\nthis Act.\n(5) 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 mentioned in subsection (1).\n\n(6) If the commissioner cancels the registration of a person as an\nemployer in a financial year and the person later pays or is liable to\npay taxable wages in the financial year, the person may, despite the\nfact that the person is not required to apply for registration, apply to\nthe commissioner for registration as an employer, and the\ncommissioner must then register the person as an employer under this\nAct.\n(7) An employer commits an offence if—\n(a) the employer is not already registered under this part; and\n(b) the total of all taxable wages paid or payable in Australia by the\nemployer in the month exceeds the amount determined for this\nsection under the Taxation Administration Act 1999,\nsection 139; and\n(c) the employer does not apply to be registered under this part\nwithin 7 days after the end of the month.\nMaximum penalty: 250 penalty units.\n","sortOrder":83},{"sectionNumber":"87","sectionType":"section","heading":"Returns","content":"87 Returns\n(1) This section applies to an employer if the employer is registered or\nrequired to apply for registration as an employer under this Act.\n(2) The employer must—\n(a) within 7 days after the end of each month except June, lodge\nwith the commissioner a return relating to the month; and\n(b) within 28 days after the end of June in each year, lodge with the\ncommissioner a return relating to June and to the adjustment of\npayroll tax paid or payable by the employer in the financial year\nending at the end of June.\n\n(3) The designated group employer for a group may, with the\ncommissioner’s approval, lodge a joint return for this section\ncovering stated members of the group, including the designated group\n(4) 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":84},{"sectionNumber":"87A","sectionType":"section","heading":"Monthly returns—lodgment variation","content":"87A Monthly returns—lodgment variation\n(1) An employer may apply to the commissioner for variation of the\nperiods in relation to which, or the time within which, the employer\nmust lodge returns.\n(2) An application must—\n(a) be in writing, addressed to the commissioner; and\n(b) state—\n(i) the applicant’s name and address; and\n(ii) the grounds on which the variation is sought.\n(3) The commissioner may, by written notice given to the employer\n(a variation notice), vary the periods in relation to which, or the time\nwithin which, the employer must lodge returns if the commissioner is\nsatisfied on reasonable grounds that it would be unduly onerous for\nthe employer to lodge a return—\n(a) in relation to each month; or\n(b) within 7 days after the end of each month.\n(4) If a variation notice is in force for an employer, the employer must—\n(a) lodge returns in accordance with the notice; and\n\n(b) pay any tax that is payable in relation to each return worked out\nin accordance with schedule 1, parts 1.2 to 1.4 as if—\n(i) a reference in the parts to a financial year (other than the\nreference in the definition of FY) were a reference to the\nperiod as varied by the commissioner; and\n(ii) any other necessary changes, and any changes prescribed\nby regulation, were made.\n(5) The commissioner may, by written notice given to the employer,\nrevoke a variation notice for the employer if the commissioner is no\nlonger satisfied that it would be unduly onerous for the employer to\nlodge returns in relation to each month or within 7 days after the end\nof each month.\n","sortOrder":85},{"sectionNumber":"87B","sectionType":"section","heading":"Monthly returns—exemptions","content":"87B Monthly returns—exemptions\n(1) An employer may apply to the commissioner for an exemption from\nlodging returns under section 87 (Returns) if the employer considers\n(a) the employer is not liable to pay tax; or\n(b) tax the employer pays will be refunded.\n(2) An application must—\n(a) be in writing, addressed to the commissioner; and\n(b) state—\n(i) the amount of wages payable by the employer; and\n(ii) the amount of tax (if any) that, in the employer’s opinion,\nthe employer is liable to pay.\n\n(3) The commissioner may give a certificate (an exemption certificate)\nto the employer exempting the employer from lodging returns under\nsection 87 if the commissioner is satisfied on reasonable grounds\n(a) tax will not be payable by the employer; or\n(b) tax paid by the employer will be refunded.\n(4) If an exemption certificate is in force in relation to an employer, the\nemployer—\n(a) need not lodge returns under section 87; and\n(b) must lodge a return relating to each financial year or other period\nstated in the certificate within 21 days after the end of the\nfinancial year or within any other period stated in the certificate.\n(5) The commissioner may, by written notice given to the employer,\ncancel an employer’s exemption certificate if the commissioner is no\nlonger satisfied that tax will not be payable by the employer or, if tax\nis payable, that it will be refunded.\n\nPart 8A Notification and review of decisions\nPart 8A Notification and review of\ndecisions\n87C Meaning of reviewable decision—pt 8A\nreviewable decision means a decision mentioned in schedule 3,\ncolumn 3 under a provision of this Act mentioned in column 2 in\nrelation to the decision.\n","sortOrder":86},{"sectionNumber":"87D","sectionType":"section","heading":"Reviewable decision notices","content":"87D Reviewable decision notices\nIf the commissioner makes a reviewable decision, the commissioner\nmust give a reviewable decision notice to each entity mentioned in\nschedule 3, column 4 in relation to the decision.\nNote The commissioner must also take reasonable steps to give a reviewable\ndecision notice to any other person whose interests are affected by the\ndecision (see ACT Civil and Administrative Tribunal Act 2008, s 67A).\n","sortOrder":87},{"sectionNumber":"87E","sectionType":"section","heading":"Applications for review","content":"87E Applications for review\nThe following may apply to the ACAT for review of a reviewable\ndecision:\n(a) an entity mentioned in schedule 3, column 4 in relation to the\ndecision;\n(b) any other person whose interests are affected by the decision.\n\nMiscellaneous Part 9\n","sortOrder":88},{"sectionNumber":"Part 9","sectionType":"part","heading":"Miscellaneous","content":"Part 9 Miscellaneous\n","sortOrder":89},{"sectionNumber":"101","sectionType":"section","heading":"Regulation-making power","content":"101 Regulation-making power\nThe Executive may make regulations for this Act.\n\nPart 1.1 Interpretation—sch 1\nSection 1.1\n","sortOrder":90},{"sectionNumber":"Sch 1","sectionType":"schedule","heading":"Calculation of payroll tax","content":"Schedule 1 Calculation of payroll tax\nliability\n(see s 8, s 29 (6) and s 82)\nPart 1.1 Interpretation—sch 1\n1.1 Definitions—sch 1\nIn this schedule:\nfinancial year means the financial year beginning on 1 July 2011 or\n1 July in any later financial year.\nFY means the number of days in the financial year.\nAct 1999, section 139 for this schedule.\nTA (or threshold amount) means the amount determined under the\nTaxation Administration Act 1999, section 139 for this schedule.\n\nEmployers who are not members of a group Part 1.2\nSection 1.2\nPart 1.2 Employers who are not members\nof a group\n1.2 Application—pt 1.2\nThis part applies only to an employer who is not a member of a group.\n1.3 Definitions—pt 1.2\nC, for a financial year, means the number of days in the financial year\nfor which the employer paid or was liable to pay taxable wages or\ninterstate wages (otherwise than as a member of a group).\nIW, for a financial year, means the total interstate wages paid or\npayable by the employer (otherwise than as a member of a group) in\nthe financial year.\nTW, for a financial year, means the total taxable wages paid or\npayable by the employer (otherwise than as a member of a group) in\nthe financial year.\n1.4 Payroll of employer not more than threshold\nThe 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) in that year is not\nmore than the employer’s threshold amount worked out as follows:\nTA × C\nFY\n\nPart 1.2 Employers who are not members of a group\nSection 1.5\n1.5 Payroll of employer over threshold\nIf the total taxable wages and interstate wages paid or payable by an\nemployer (otherwise than as a member of a group) in a financial year\nis more than the employer’s threshold amount, the employer is liable\nto pay as payroll tax for that year the amount worked out as follows:\n[TW − [ TW\nTW + IW × TA × C\nFY]] × R\n\nGroups with a designated group employer Part 1.3\nSection 1.6\nPart 1.3 Groups with a designated group\n1.6 Application—pt 1.3\nThis part applies only to an employer who is a member of a group for\nwhich there is a designated group employer.\n1.7 Definitions—pt 1.3\nC, for a financial year, means the number of days in the financial year\nin relation to which at least 1 member of the group paid or was liable\nto pay (as a member of the group) taxable wages or interstate wages.\nGIW, for a financial year, means the total interstate wages paid or\npayable by the group in the financial year.\nGTW, for a financial year, means the total taxable wages paid or\npayable by the group in the financial year.\nTW, for a financial year, means the total taxable wages paid or\npayable by the employer (as a member of the group) in the financial\n1.8 Payroll of group not more than threshold\nNone of the members of a group is liable to pay payroll tax for a\nfinancial year if the total taxable wages and interstate wages paid or\npayable by the group in that year is not more than the group threshold\nTA X C\nFY\n\nPart 1.3 Groups with a designated group employer\nSection 1.9\n1.9 Payroll of group over threshold\n(1) If the total taxable wages and interstate wages paid or payable by a\ngroup in a financial year is more than the group threshold amount,\npayroll tax is payable in accordance with subsections (2) and (3).\n(2) The designated group employer for the group is liable to pay as\npayroll tax for the financial year the amount worked out as follows:\n[TW − [ GTW\nGTW + GIW × TA × C\nFY]] × R\n(3) Each member of the group (other than the designated group\nemployer) is liable to pay as payroll tax for the financial year the\n\nGroups with no designated group employer Part 1.4\nSection 1.10\nPart 1.4 Groups with no designated\ngroup employer\n1.10 Application—pt 1.4\nThis part applies only to an employer who is a member of a group for\nwhich there is no designated group employer.\n1.11 Meaning of TW—pt 1.4\nTW¸ for a financial year, means the total taxable wages paid or\npayable by the employer (as a member of the group) in the financial\n1.12 Calculation of payroll tax\nEach member of the group is liable to pay as payroll tax for the\nfinancial year the amount worked out as follows:\n\nSection 1.12A\n1.12A Meaning of business journey—pt 1.5\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, that is an\napplication that, if the person is paid a motor vehicle allowance\nfor the use, results in the provision of a fringe benefit (under the\nFBTA Act) by the employer; or\n(b) a journey undertaken in a motor vehicle by a person in the course\nof producing assessable income of the person (under the Income\nTax Assessment Act 1936 (Cwlth)).\n1.13 Continuous recording method\nIf an employer selects the continuous recording method for the\npurpose of working out the number of business kilometres travelled\nin a financial year, the following details are required to be recorded\nby the employer:\n(a) the odometer readings at the beginning and end of each business\njourney (a relevant business journey) undertaken by the person\nin the financial year by means of a motor vehicle provided or\nmaintained by the person;\n(b) the specific purpose for which each relevant business journey\nwas taken;\n(c) the distance travelled by the person in the financial year in the\ncourse of all relevant business journeys (which is taken to be the\nnumber of business kilometres travelled in the financial year),\nworked out on the basis of the odometer readings mentioned in\nparagraph (a).\n\n1.14 Averaging method\n(1) If an employer selects the averaging method for the purpose of\nworking out the number of business kilometres travelled in a financial\nyear, the following details are required to be recorded by the\nemployer:\n(a) the odometer readings at the beginning and end of each business\njourney (a relevant business journey) undertaken by the person\nin the relevant 12-week period by means of a motor vehicle\nprovided or maintained by the person;\nNote Relevant 12-week period is defined in s 1.15.\n(b) the specific purpose for which each relevant business journey\nwas taken;\n(c) the distance travelled by the person in the relevant 12-week\nperiod in the course of all relevant business journeys, worked\nout on the basis of the odometer readings mentioned in\nparagraph (a);\n(d) the odometer readings at the beginning and end of the relevant\n12-week period for each motor vehicle (a relevant motor\nvehicle) provided or maintained by the person for the purpose of\nundertaking business journeys;\n(e) the distance travelled by each relevant motor vehicle in the\nrelevant 12-week period, worked out on the basis of the\nodometer readings mentioned in paragraph (d);\n(f) the distance travelled by the person in the course of business\njourneys undertaken by means of each relevant motor vehicle in\nthe relevant 12-week period, worked out as a percentage of the\ndistance travelled by the vehicle in the period (the relevant\npercentage);\n\n(g) the odometer readings at the beginning and end of the financial\nyear for each motor vehicle (a relevant vehicle) provided or\nmaintained by the person for the purpose of undertaking\nbusiness journeys;\n(h) the distance travelled by each relevant vehicle in the financial\nyear, worked out on the basis of the odometer readings\nmentioned in paragraph (g);\n(i) the distance travelled by the person in the course of business\njourneys undertaken by means of each relevant vehicle in the\nfinancial year (which is taken to be the number of business\nkilometres travelled in the financial year), worked out on the\nbasis that the percentage of the distance that was travelled by the\nperson in the course of business journeys undertaken by means\nof each relevant vehicle in the financial year is the same as the\nrelevant percentage.\n(2) For the next 4 financial years after the first financial year in which\nodometer details are recorded in accordance with subsection (1), an\nemployer is not required to work out the relevant percentage, or\nrecord the details mentioned in subsection (1) (a) to (f), for the person\nbut is required to record the other details mentioned in subsection (1).\n(3) Accordingly, for the next 4 financial years after the first financial year\nin which odometer details are recorded in accordance with\nsubsection (1), the number of business kilometres travelled in the\nfinancial year must be worked out (as mentioned in subsection (1) (i))\non the basis of the relevant percentage worked out for the first\n\n(4) Despite subsections (2) and (3), an employer is required to work out\nthe relevant percentage for a financial year, and record the details\nmentioned in subsection (1) (a) to (f), if—\n(a) the commissioner serves a notice on the employer before the\nbeginning of a financial year in the 4-year period directing the\nemployer to keep the details mentioned in subsection (1) (a) to\n(f) for the financial year; or\n(b) the employer wishes to use the recording method mentioned in\nthis section for 1 or more additional motor vehicles used by the\nperson in any financial year or for any other reason.\n(5) In a situation mentioned in subsection (4), the new record for the\nfinancial year replaces the relevant percentage details previously\nrecorded and subsections (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 recording\nmentioned in subsections (2) and (3) for a person for 4 successive\nfinancial years must, in the next succeeding financial year, make a\nfresh recording of all the details stated in subsection (1) if the\nemployer intends to continue to use the same method of recording for\nthe person.\n(7) Subsections (2) and (3) apply in relation to the new record under\nsubsection (6) for the financial year as if it were the first financial\nyear in which odometer details were recorded.\n(8) If the odometer of a motor vehicle is replaced or recalibrated in any\nperiod for which its readings are relevant for this section, the\nodometer readings immediately before and after the replacement or\nrecalibration must be recorded.\n\nSection 1.15\n1.15 Meaning of relevant 12-week period—s 1.16\n(1) For section 1.14, 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.\n(2) If the motor vehicle is provided or maintained for less than 12 weeks,\nthe period must be the entire period for which the motor vehicle is\nprovided or maintained.\n(3) The period may overlap the beginning or end of the financial year, so\nlong as it includes part of the year.\n(4) If the averaging method is used for 2 or more motor vehicles for the\nsame financial year, the odometer readings for those motor vehicles\nmust cover periods that are concurrent.\n1.16 Replacing one motor vehicle with another motor vehicle\n(1) For the purpose of using the averaging method, an employer may\nnominate 1 motor vehicle as having replaced another motor vehicle\nwith effect from a day stated in the nomination.\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.\n(3) An employer need not repeat for the replacement vehicle the steps\nalready taken for the original motor vehicle.\n(4) An employer must record the nomination in writing in the financial\nyear when the nomination takes effect.\n(5) However, the commissioner may allow an employer to record the\nnomination at a later time.\n\nSection 1.17\n1.17 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 section 1.13 (Continuous\nrecording method) for the financial year.\n(2) An employer may change from using the continuous recording\nmethod to using the averaging method with effect from the beginning\nof a financial year if the employer complies with section 1.14\n(Averaging method) for the financial year.\n\nDivision 2.1.1 Employer not member of group\nSection 2.1\n(see s 8, ss 48 to 51 and s 53A)\nPart 2.1 Calculation of monthly payroll\ntax\nDivision 2.1.1 Employer not member of group\n2.1 Application—div 2.1.1\nThis division applies only to an employer who is not a member of a\n2.2 Employer not member of group—amount of tax payable\neach month\n(1) The amount of payroll tax payable by an employer on taxable wages\npaid or payable by the employer in a month is the amount worked out\n(TW − D) × R\n(2) If D is equal to or more than TW for a month, the employer is not\nrequired to pay payroll tax for the month.\nD means the deductible amount mentioned in section 2.3 or\nsection 2.4 for the employer.\n(otherwise than as a member of a group) in the month.\n\nEmployer not member of group Division 2.1.1\nSection 2.3\n2.3 Employer not member of group—deductible amount for\nemployer not paying interstate wages\n(1) For an employer who pays or is liable to pay taxable wages in a month\nbut does not pay and is not liable to pay interstate wages in the month,\nthe deductible amount for the month is the amount determined for\nsection 86 (Registration).\n(2) Subsection (1) applies whether the employer pays or is liable to pay\nwages for all of the month or only part of the month.\n2.4 Employer not member of group—deductible amount for\nemployer who pays taxable and 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—\n(a) if notice has been given under subsection (2) and no\ndetermination under subsection (6) is in force—the amount\nstated in the most recent notice given under subsection (2); or\n(b) if a determination is in force under subsection (6)—the amount\nstated in the determination.\n(2) From time to time, the employer may give a notice to the\ncommissioner, containing the information required by the\ncommissioner, of an amount, worked out in accordance with\nsubsection (3), that the employer claims to be the employer’s\ndeductible amount for the month and later months.\n(3) The amount must be worked out as follows:\nD = A × T\n(T + I)\n(4) In subsection (3):\nA means the amount determined for section 86 (Registration).\nD means the deductible amount for the month.\n\nDivision 2.1.2 Group with designated group employer\nSection 2.5\nI means the estimated interstate wages in the financial year in\nwhich D occurs.\nT means the estimated taxable wages in the financial year in which D\noccurs.\n(5) The deductible amount claimed must not be more than the amount\nmentioned in section 2.3 (1).\n(6) At any time, the commissioner may, by written notice to the\nemployer, determine an amount, not more than the amount mentioned\nin section 2.3 (1), as the deductible amount for the employer for 1 or\nmore months stated in the determination.\n(7) A determination under subsection (6) may be made on application by\nthe employer or on the commissioner’s own initiative.\n(8) At any time, the commissioner may, by written notice to the\nemployer, revoke a determination made under subsection (6).\nDivision 2.1.2 Group with designated group\n2.5 Application—div 2.1.2\nfor which there is a designated group employer.\n2.6 Group with designated group employer—amount of tax\npayable each month if approval in force\n(1) If an approval is in force under section 87 (3) (Returns) for the\ndesignated group 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 worked out as\nfollows:\n(JTW - D) × R\n\nGroup with designated group employer Division 2.1.2\nSection 2.7\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 taxable\nwages paid or payable by the employer in a month is the amount\nworked out as follows:\n(2) If D is equal to or more than JTW for a month, the designated group\nemployer is not required to pay payroll tax for the month.\nD means the deductible amount mentioned in section 2.8 (Group with\ndesignated group employer—deductible amount for groups not\npaying interstate wages) or section 2.9 (Group with designated group\nemployer—deductible amount for groups paying taxable and\ninterstate wages) for the group.\nJTW means the total taxable wages paid or payable in the month by\nthe employers covered by the return (as members of a group).\n2.7 Group with designated group employer—amount of tax\npayable each month if approval not in force\n(1) If an approval under section 87 (3) (Returns) is not in force for the\ndesignated group employer to lodge a group return—\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 worked out as follows:\n(GTW − D) × R\n\nDivision 2.1.2 Group with designated group employer\nSection 2.8\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 worked out as follows:\n(2) If D is equal to or more than GTW for a month, the designated group\nemployer is not required to pay payroll tax for the month.\nD means the deductible amount mentioned in section 2.8 (Group with\ndesignated group employer—deductible amount for groups not\npaying interstate wages) or section 2.9 (Group with designated group\nemployer—deductible amount for groups paying taxable and\ninterstate wages) for the group.\nGTW means the total taxable wages paid or payable in the month by\nthe designated group employer (as a member of a group).\n2.8 Group with designated group employer—deductible\namount for groups not paying 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 the month, the deductible amount for the month\nis the amount determined for section 86 (Registration).\n(2) Subsection (1) applies whether group members pay or are liable to\npay wages for all of the month or only part of the month.\n\nGroup with designated group employer Division 2.1.2\nSection 2.9\n2.9 Group with designated group employer—deductible\namount for groups paying taxable and interstate wages\n(1) The deductible amount for a group in which 1 or more members pay\nor are liable to pay taxable wages or interstate wages in a month is—\n(a) if notice has been given under subsection (2) and no\ndetermination under subsection (6) is in force—the amount\nstated in the most recent notice given under subsection (2); or\n(b) if a determination is in force under subsection (6)—the amount\nstated in the determination.\n(2) From time to time, the designated group employer may give a notice\nto the commissioner, containing the information required by the\ncommissioner, of an amount, worked out in accordance with\nsubsection (3), that the employer claims to be the group’s deductible\namount for the month and later months.\n(3) The amount must be worked out as follows:\nD = A × T\n(T + I)\n(4) In subsection (3):\nA means the amount determined for section 86 (Registration).\nD means the deductible amount for the month.\nI means the estimated interstate wages payable by the group in the\nfinancial year in which D occurs.\nT means the estimated taxable wages payable by the group in the\nfinancial year in which D occurs.\n(5) The deductible amount claimed must not be more than the amount\nmentioned in section 2.8 (1).\n\nDivision 2.1.3 Group with no designated group employer\nSection 2.10\n(6) At any time, the commissioner may, by written notice to the\ndesignated group employer, determine an amount, not more than the\namount mentioned in section 2.8 (1), as the deductible amount for the\ngroup for 1 or more months stated in the determination.\n(7) A determination under subsection (6) may be made on application by\nthe designated group employer or on the commissioner’s own\ninitiative.\n(8) At any time, the commissioner may, by written notice to the\ndesignated group employer, revoke a determination made under\nsubsection (6).\nDivision 2.1.3 Group with no designated group\n2.10 Application—div 2.1.3\nfor which there is no designated group employer.\n2.11 Group with no designated group employer—amount of\ntax payable each month\n(1) The 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\n(2) In this section:\n\nCharitable organisations Part 2.2\nSection 2.12\nPart 2.2 Charitable organisations\n2.12 Meaning of charitable organisation—pt 2.2\ncharitable organisation, for a tax law—see the Taxation\nAdministration Act 1999, section 18B.\n2.13 Exemption from payroll tax—charitable organisations\nWages are exempt wages if they are paid or payable—\n(a) by a charitable organisation (other than a charitable organisation\ncarried on for an educational purpose); or\n(b) by a charitable organisation that is a school or college (other than\na technical school or college) carried on by a body corporate,\nsociety or association and providing education at or below, but\nnot above, the secondary level of education.\n\nPart 2.3 Employment agents\nSection 2.14\nPart 2.3 Employment agents\n2.14 Employment agents and subcontractors\n(1) Wages are exempt wages if they are paid or payable by an\nemployment agent to a person (the subcontractor) under a contract\nbetween the agent and the subcontractor for work performed by the\nsubcontractor for a client of the agent in any of the following cases:\n(a) the subcontractor also supplies goods to the client under the\ncontract and the wages amount to less than 50% of the value of\nthe consideration paid or payable by the agent to the\nsubcontractor for services and goods supplied to that client;\n(b) the services provided by the subcontractor to the client are of a\nkind not ordinarily required by the employment agent and the\nsubcontractor ordinarily provides services of that kind to the\npublic generally;\n(c) the subcontractor is a body corporate and individuals of both the\n(i) a director or shareholder of the body;\n(ii) an employee of the body who is not a director or\nshareholder;\n(d) the subcontractor is a partnership and individuals of both the\n(i) a partner;\n(ii) an employee of the partnership;\n\nEmployment agents Part 2.3\nSection 2.14\n(e) the subcontractor is a sole trader and individuals of both of the\n(i) the subcontractor;\n(ii) an employee of the subcontractor;\n(f) the individuals who perform the work for which the wages are\npaid or payable together work for not more than 8 days in any\nmonth under a contract with the agent.\n(2) For this section—\n(a) a reference to a contract is taken to include a reference to an\nagreement, arrangement or undertaking, whether formal or\ninformal and whether express or implied; and\n(b) a reference to supply is taken to include a reference to supply by\nsale, exchange, lease, hire or hire-purchase, and in relation to\nservices includes the providing, granting or conferring of\nservices; and\n(c) a reference to services is taken to include a reference to results\n(whether goods or services) of work performed.\n\nSection 2.15\n2.15 Exemption from tax—new starters\n(1) This section applies to a person (the new starter) if the new starter\nis—\n(a) employed for the first time in an industry or occupation; and\n(b) receiving eligible training for work in the industry or\noccupation.\n(2) For this section, eligible training is training that—\n(a) is recognised training; and\n(b) takes place in a single continuous period (the training period)\n(i) starts within the first 12 months after the new starter is first\nemployed in the industry or occupation; and\n(ii) continues for not more than 12 months.\n(3) Wages are exempt wages if they are paid or payable to the new starter\nfor employment in the industry or occupation in the training period.\n(4) Subsection (3) applies to the new starter only in relation to 1 single\ncontinuous period of training that is eligible training.\n(5) Subsection (3) applies even if—\n(a) the new starter is employed at any time in the training period by\nan employer or employers different from the employer who first\nemployed the new starter in the industry or occupation; or\n(b) the new starter is not continuously employed in the industry or\noccupation in the training period; or\n(c) the eligible training is a part of a course of training that began\nbefore the start of the training period, or continues after the end\nof the training period.\n\nEducation and training Part 2.4\nSection 2.16\n(6) The Minister may declare that approved training is not recognised\ntraining.\n(7) A declaration is a disallowable instrument.\n(8) In this section:\napproved training means training under an approved training\ncontract.\napproved training contract—see the Training and Tertiary\nEducation Act 2003, dictionary.\nrecognised training means approved training other than training\ndeclared under subsection (6) not to be recognised training.\n2.16 Exemption from tax—apprentices or trainees under\napproved training contracts\n(1) This section applies to an apprentice or trainee if an approved group\ntraining organisation employs the apprentice or trainee under an\napproved training contract.\n(2) Wages are exempt wages if they are paid or payable to the apprentice\nor trainee by the approved group training organisation.\n(3) On application by an entity, the commissioner may approve the entity\nas a group training organisation if satisfied that the entity—\n(a) is a not-for-profit entity; and\n(b) provides training to apprentices or trainees under approved\ntraining contracts; and\n(c) makes apprentices or trainees available to work for other people.\napprentice or trainee—see the Training and Tertiary Education\nAct 2003, dictionary.\nNote Apprentice or trainee is defined as a person who undertakes an\napprenticeship or traineeship under an approved training contract.\n\nSection 2.16\napproved group training organisation means an organisation that is\napproved by the commissioner under subsection (3).\napproved training contract—see the Training and Tertiary\nEducation Act 2003, dictionary.\n\nHospitals Part 2.5\nSection 2.17\nPart 2.5 Hospitals\n2.17 Hospitals\nWages are exempt wages if they are paid or payable by a hospital that\nis a recognised hospital under the Health Insurance Act 1973 (Cwlth).\n\n2.18 Primary carer leave\n(1) Wages are exempt wages if they are paid or payable to an employee\nin relation to primary carer leave.\n(2) Subsection (1) applies—\n(a) only in relation to wages paid or payable for a maximum of\n14 weeks leave for any 1 birth or adoption; and\n(b) only in relation to leave taken before the relevant day for the\nbirth or adoption; and\n(c) only if, in relation to the leave, the employee has given the\nemployer a required document for the leave.\n(3) To remove any doubt—\n(a) the reference in subsection (2) (a) to wages paid or payable for\n14 weeks leave is taken to be a reference to—\n(i) for a full-time employee who takes the leave on less than\nfull pay—wages paid or payable for a period equivalent to\n14 weeks leave on full pay; and\n(ii) for a part-time employee who takes the leave at less than\nthe employee’s average rate of pay over the 6 weeks\nimmediately before the leave is taken—wages paid or\npayable for a period equivalent to 14 weeks leave at that\naverage rate of pay; and\n(iii) for any other part-time employee—wages paid or payable\nfor a period equivalent to 14 weeks leave at the rate of pay\nof the employee immediately before the leave was taken;\nand\n(b) a reference to 1 birth includes a reference to a multiple birth; and\n\nPrimary carer leave Part 2.6\n(c) a reference to 1 adoption includes a reference to the adoption of\nmore than 1 child at the same time.\n(4) The exemption does not apply to any part of wages paid or payable\nin relation to primary carer leave that consists of fringe benefits.\nprimary carer leave, for an employee—\n(a) means leave given to the employee as the primary carer of a\nchild in relation to the birth or adoption of the child (whether the\nleave is taken before or after the birth or adoption); but\n(b) does not include leave given to the employee as leave of another\nkind.\nExamples—primary carers\n1 a parent of the child\n2 the domestic partner of a parent of the child\n3 a grandparent of the child\nExamples—leave of another kind\n1 sick leave\n2 annual leave\n3 long service leave\nNote For the meaning of domestic partner, see the Legislation Act, s 169.\nrelevant day means—\n(a) for a birth—the day 6 months after the day of the birth; or\n(b) for an adoption—the day 6 months after the day that the child is\nplaced, for the purpose of adoption, in the care of the adoptive\nparent.\nrequired document means, for primary carer leave in relation to—\n(a) a newly born child—\n(i) a birth certificate for the child; and\n\n(ii) a statement to the effect that the employee is the primary\ncarer for the child; or\n(b) a child placed for adoption—a statement setting out the\nfollowing:\n(i) that the child has been placed, for adoption, in the care of\nthe adoptive parent;\n(ii) the date of the placement;\n(iii) that the employee is the primary carer for the child; or\n(c) any other document prescribed by regulation.\nNote 1 A certificate, statement or other document must be kept for at least 5 years\n(unless the commissioner authorises earlier destruction) and produced if\nthe commissioner requires its production (see Taxation Administration\nAct 1999, s 57 (Requirement to keep proper records), s 62 (Accessibility)\nand s 64 (Period record to be kept)).\nNote 2 It is an offence to make a false or misleading statement, give false or\nmisleading information or produce a false or misleading document (see\nCriminal Code, pt 3.4).\n\nCertain unemployed people Part 2.7\nSection 2.19\nPart 2.7 Certain unemployed people\n2.19 Certain unemployed people\n(1) Wages are exempt wages if they are paid or payable to a prescribed\nperson, if the wages are in relation to the period of 2 years beginning\non the first day of the person’s employment by the employer by whom\nthose wages were paid or are payable.\n(2) In this section:\nprescribed person, in relation to an employer, means a person who\nwas, for longer than 12 months immediately before starting\nemployment with the employer—\n(a) unemployed; and\n(b) receiving an allowance under the Social Security Act 1991\n(Cwlth) for that unemployment.\n(3) For subsection (2), definition of prescribed person, a period of not\nlonger than 4 weeks, or periods totalling not longer than 4 weeks,\nwhen a person was employed, or was not receiving an allowance\nunder the Social Security Act 1991 (Cwlth) for unemployment, must\nbe disregarded in working out whether a period is a period of longer\nthan 12 months mentioned in the definition.\n\nPart 2.8 Certain bank accounts\nSection 2.20\nPart 2.8 Certain bank accounts\n2.20 Certain bank accounts\n(1) Wages are exempt wages if they are paid or payable from a bank\naccount kept under the Financial Management Act 1996, part 5,\nunless—\n(a) the bank account is nominated by the Minister for this\nparagraph; or\n(b) the wages are paid or payable by an entity prescribed for the\nTaxation (Government Business Enterprises) Act 2003,\nsection 9; or\n(c) the wages are paid or payable by an entity to which a direction\nunder the Taxation (Government Business Enterprises)\nAct 2003, section 10 applies to make the entity liable to tax\nunder this Act.\n(2) A nomination under subsection (1) (a) is a disallowable instrument.\n\nTerritory authorities Part 2.9\nSection 2.21\nPart 2.9 Territory authorities\n2.21 Territory authorities\nWages are exempt wages if they are paid or payable by a territory\nauthority funded solely by money appropriated from the public\nmoney of the Territory by an Act unless—\n(a) the wages are paid or payable by a territory authority prescribed\nfor the Taxation (Government Business Enterprises) Act 2003,\nsection 9; or\n(b) the wages are paid or payable by a territory authority to which a\ndirection under the Taxation (Government Business\nEnterprises) Act 2003, section 10 applies to make the authority\nliable to tax under this Act.\n\nPart 2A.1 Preliminary\nSection 2A.1\n","sortOrder":91},{"sectionNumber":"Sch 2A","sectionType":"schedule","heading":"Special provisions for","content":"Schedule 2A Special provisions for\n2025-2026 financial year\n(see s 8 (2), 29 (7) and 82 (2))\nPart 2A.1 Preliminary\n2A.1 Definitions—sch 2A\nIn this schedule:\n2025-2026 financial year means the financial year beginning on\nannual threshold amount means the amount determined under the\nTaxation Administration Act 1999, section 139 for this Act,\nschedule 1 for the 2025-2026 financial year.\nNote The annual threshold amount under the Taxation Administration\n(Amounts and Rates—Payroll Tax) Determination 2025 (DI2025-161) is\n$2 000 000.\nN means each of the following periods:\n(a) the period beginning on 1 July 2025 and ending on\n31 December 2025;\n(b) the period beginning on 1 January 2026 and ending on\nR means—\n(a) for the period beginning on 1 July 2025 and ending on\n31 December 2025—the rate determined under the Taxation\nAdministration Act 1999, section 139 for schedule 1 or\nschedule 2, part 2.1 for the 2025-2026 financial year; and\nNote The applicable rate under the Taxation Administration (Amounts\nand Rates—Payroll Tax) Determination 2025 (DI2025-161) is\n7.85%.\n\nPreliminary Part 2A.1\nSection 2A.2\n(b) for the period beginning on 1 January 2026 and ending on\n30 June 2026—8.75%.\n2A.2 Application—sch 2A\n(1) This schedule applies to an employer if the total wages paid or\npayable by the employer for the 2025-2026 financial year are more\nthan $150 million.\n(2) Despite subsection (1), this schedule does not apply to the following\nemployers:\n(a) Australian Catholic University;\n(b) Charles Sturt University;\n(c) Australian National University;\n(d) University of New South Wales;\n(e) University of Canberra.\n(3) This schedule applies for the purpose of working out the payroll tax\npayable by the employer for the 2025-2026 financial year.\ntotal wages, for the 2025-2026 financial year, means—\n(a) for an employer who is not a member of a group—the total\ntaxable wages and interstate wages paid or payable by the\nemployer in the 2025-2026 financial year; or\n(b) for an employer who is a member of a group for which there is\na designated group employer—the total taxable wages and\ninterstate wages paid or payable by the group in the 2025-2026\nfinancial year; or\n(c) for an employer who is a member of a group for which there is\nno designated group employer—the total taxable wages and\ninterstate wages paid or payable by the group in the 2025-2026\n\nDivision 2A.2.1 Preliminary\nSection 2A.3\nDivision 2A.2.1 Preliminary\n2A.3 Calculation of payroll tax for 2025-2026 financial year\nThe amount of payroll tax payable by the employer in the 2025-2026\nfinancial year is the sum of—\n(a) the amount payable by the employer for the period beginning on\n1 July 2025 and ending on 31 December 2025 worked out in\naccordance with this schedule; and\n(b) the amount payable by the employer for the period beginning on\n1 January 2026 and ending on 30 June 2026 worked out in\naccordance with this schedule.\nDivision 2A.2.2 Employers who are not members of a\ngroup\n2A.4 Application—div 2A.2.2\nThis division applies only to an employer who is not a member of a\n2A.5 Definitions—div 2A.2.2\nC means the number of days in N in relation to which the employer\npaid or was liable to pay taxable wages or interstate wages (otherwise\nthan as a member of a group).\nIW means the total interstate wages paid or payable by the employer\n(otherwise than as a member of a group) for N.\nTA (or threshold amount), for the 2025-2026 financial year, means\nthe amount calculated by multiplying the annual threshold amount by\nC/365.\n\nCalculation of payroll tax liability Part 2A.2\nGroups with a designated group employer Division 2A.2.3\nSection 2A.6\n(otherwise than as a member of a group) for N.\n2A.6 Calculation of payroll tax\nThe employer is liable to pay as payroll tax for the 2025-2026\nfinancial year the amount worked out as follows:\n[TW - [ TW\nTW+IW × TA ]] × R\nDivision 2A.2.3 Groups with a designated group\n2A.7 Application—div 2A.2.3\nfor which there is a designated group employer.\n2A.8 Definitions—div 2A.2.3\nC means the number of days in N in relation to which at least\n1 member of the group paid or was liable to pay taxable wages or\ninterstate wages (as a member of a group).\nGIW means the total interstate wages paid or payable by the group\nfor N.\nGTW means the total taxable wages paid or payable by the group\nfor N.\nTA (or threshold amount), for the 2025-2026 financial year, means\nthe amount calculated by multiplying the annual threshold amount by\nC/365.\n(as a member of the group) for N.\n\nDivision 2A.2.4 Groups with no designated group employer\nSection 2A.9\n2A.9 Calculation of payroll tax\n(1) The designated group employer for the group is liable to pay as\npayroll tax for the 2025-2026 financial year the amount worked out\n[TW - [ GTW\nGTW+GIW × TA]] × R\n(2) Each member of the group (other than the designated group\nemployer) is liable to pay as payroll tax for the 2025-2026 financial\nyear the amount worked out as follows:\nDivision 2A.2.4 Groups with no designated group\n2A.10 Application—div 2A.2.4\nfor which there is no designated group employer.\n2A.11 Meaning of TW—div 2A.2.4\n(as a member of the group) for N.\n2A.12 Calculation of payroll tax\nEach member of the group is liable to pay as payroll tax for the\n2025-2026 financial year the amount worked out as follows:\n\nCalculation of monthly payroll tax Part 2A.3\nMotor vehicle allowances Division 2A.2.5\nSection 2A.13\nDivision 2A.2.5 Motor vehicle allowances\n2A.13 Working out business kilometres\nSchedule 1, part 1.5 applies to this schedule for the purpose of\nworking out K and the exempt component of a motor vehicle\nallowance paid or payable for the 2025-2026 financial year under\nsection 29.\nPart 2A.3 Calculation of monthly payroll\ntax\n2A.14 Calculation of monthly payroll tax\n(1) Schedule 2 applies for the purpose of calculating the payroll tax\npayable by an employer in a month in the 2025-2026 financial year.\n(2) However, subsection (3) also applies if the total taxable wages paid\nor payable by an employer, or members of a group of which the\nemployer is a member, in a month are more than $12 500 000 for a\nmonth in the period beginning on 1 January and ending on 30 June in\nthe 2025-2026 financial year.\n(3) A reference in a provision of schedule 2 to R, or the rate determined\nunder the Taxation Administration Act 1999, section 139 for the\nprovision, is taken to be a reference to 8.75% for the purpose of\ncalculating the payroll tax payable by the employer for the period\nbeginning on 1 January and ending on 30 June in the 2025-2026\n\n","sortOrder":92},{"sectionNumber":"Sch 3","sectionType":"schedule","heading":"Reviewable decisions","content":"Schedule 3 Reviewable decisions\nSchedule 3 Reviewable decisions\n(see pt 8A)\ncolumn 1\nitem\ncolumn 2\nsection\ncolumn 3\ndecision\ncolumn 4\nentity\n1 32 (3) contract entered into with intention\neither directly or indirectly of avoiding\nor evading payment of tax\nparty to contract\n2 35 (2) determine part of amount not\nattributable to performance of work\nparty to contract\n3 42 disregard contract etc person taken to be\n4 47 disregard agreement, transaction or\narrangement etc\nperson taken to be\n5 79 (1) refuse to determine that person is not\nmember of group\nperson who seeks\ndetermination\n6 79 (5) revoke determination that person is not\nmember of group\nperson who has\ndetermination\nrevoked\n7 87A (3) refuse to give variation notice applicant for\nvariation\n8 87A (5) revoke employer’s variation notice employer\n9 87B (3) refuse to give exemption certificate applicant for\ncertificate\n10 87B (5) cancel employer’s exemption\ncertificate\n11 sch 2,\ns 2.16 (3)\nrefuse to approve entity as group\ntraining organisation\napplicant for\napproval\n\n(see s 3)\nNote 1 The Legislation Act contains definitions and other provisions relevant to\nthis Act.\nNote 2 For example, the Legislation Act, dict, pt 1, defines the following terms:\n• ACAT\n• ACT\n• Corporations Act\n• domestic partner (see s 169 (1))\n• domestic partnership (see s 169 (2))\n• exercise (a function)\n• financial year\n• function\n• GST\n• individual\n• in relation to\n• liability\n• person\n• reviewable decision notice\n• rural fire service\n• SES\n• State\n• territory authority\n• the Territory\n• under.\nABN means the ABN (Australian Business Number) for an entity\nunder the A New Tax System (Australian Business Number) Act\n1999 (Cwlth).\nagent includes—\n(a) a person who, in the ACT, on behalf of someone else outside the\nACT, holds or has the management or control of the business of\nthe other person, and\n\n(b) a person who, by an order of the commissioner, is declared to be\nan agent or the sole agent for anyone else for this Act and on\nwhom notice of that order has been served.\nassociated person, for part 5 (Grouping of employers)—see\nsection 67.\nAustralian jurisdiction means the ACT, another Territory or a State.\nbusiness, for part 5 (Grouping of employers)—see section 67.\ncompany includes all bodies and associations (corporate and\nunincorporate) and partnerships.\ncontract, for division 3.7 (Contractor provisions)—see section 31.\ncorporation—see the Corporations Act, section 9.\ncorrect amount of payroll tax, for part 6 (Adjustments of tax)—see\nsection 82.\ncorresponding law means a law of a State or another Territory\nrelating to the imposition on employers of a tax on wages paid or\npayable by them and the assessment and collection of that tax.\ndesignated group employer means a member designated for a group\nunder section 80.\ndirector of a company includes a member of the governing body of\nthe company.\nemployer means a person who pays or is liable to pay wages, and\nincludes—\n(a) the Territory or a territory authority; and\n(b) a person taken to be an employer under this Act; and\n(c) a public, local or municipal body or authority constituted under\nthe law of the Commonwealth, a State or Territory unless, being\nan authority constituted under the law of the Commonwealth, it\nis immune from the operation of this Act.\nemployment agency contract—see section 37.\n\nemployment agent—see section 37.\nemployment termination payment, for division 3.5 (Termination\nentity, for part 5 (Grouping of employers)—see section 67.\nexempt wages mean wages that are declared under this Act to be\nexempt wages.\nFBTA Act means the Fringe Benefits Tax Assessment Act 1986\n(Cwlth).\nfringe benefit—see section 14 (3).\ngranted, for a share or option, for division 3.4 (Shares and options)—\nsee section 19 (2).\ngroup, for part 5 (Grouping of employers)—see section 67.\ngroup employer, for part 6 (Adjustments of tax)—see section 81A.\nindividual employer, for part 6 (Adjustments of tax)—see\nsection 81A.\ninstrument includes a cheque, bill of exchange, promissory note,\nmoney order or a postal order issued by a post office.\ninterstate wages means wages that are taxable wages under a\ncorresponding law.\nITAA means the Income Tax Assessment Act 1997 (Cwlth).\nmonth means the month of January, February, March, April, May,\nJune, July, August, September, October, November and December.\noption means an option or right, whether actual, prospective or\ncontingent, of a person to acquire a share or to have a share transferred\nor allotted to the person.\npaid, in relation to wages, includes provided, conferred and assigned.\npayroll tax means tax imposed by section 6.\nperform, in relation to services, includes render.\n\nprivate company for part 5 (Grouping of employers)—see section 67.\nregistered business address, for an entity that has an ABN, means the\naddress shown in the Australian Business Register as the entity’s\naddress for service under the A New Tax System (Australian Business\nNumber) Act 1999 (Cwlth).\nrelated body corporate, for part 5 (Grouping of employers)—see\nsection 67.\nrelated person, for part 5 (Grouping of employers)—see section 67.\nrelevant contract—\n(a) for division 3.5 (Termination payments)—see section 27; and\n(b) for division 3.7 (Contractor provisions)—see section 32.\nrelevant day, for division 3.4 (Shares and options)—see\nsection 18 (3).\nresupply, of goods, for division 3.7 (Contractor provisions)—see\nsection 31.\nreturn period, in relation to an employer, means a period for which\nthe employer must lodge a return under this Act.\nreviewable decision, for part 8A (Notification and review of\ndecisions)—see section 87C.\nservice provider—see section 37.\nservices, for division 3.7 (Contractor provisions)—see section 31.\nshare means a share in a company, and includes a stapled security.\nsuperannuation contribution—see section 17 (2).\nsupply, for division 3.7 (Contractor provisions)—see section 31.\ntaxable wages—see section 10.\ntermination payment, for division 3.5 (Termination payments)—see\nsection 27.\n\nunused annual leave payment, for division 3.5 (Termination\nunused long service leave payment, for division 3.5 (Termination\nvesting date, for division 3.4 (Shares and options)—\n(a) in relation to a share—see section 19 (4); and\n(b) in relation to an option—see section 19 (5).\nvoting share—see the Corporations Act, section 9.\nwages—see part 3.\n\n1 About the endnotes\n1 About the endnotes\nAmending and modifying laws are annotated in the legislation history and the\namendment history. Current modifications are not included in the republished law\nbut are set out in the endnotes.\nNot all editorial amendments made under the Legislation Act 2001, part 11.3 are\nannotated in the amendment history. Full details of any amendments can be\nobtained from the Parliamentary Counsel’s Office.\nUncommenced amending laws are not included in the republished law. The details\nof these laws are underlined in the legislation history. Uncommenced expiries are\nunderlined in the legislation history and amendment history.\nIf all the provisions of the law have been renumbered, a table of renumbered\nprovisions gives details of previous and current numbering.\nThe endnotes also include a table of earlier republications.\n2 Abbreviation key\nA = Act NI = Notifiable instrument\nAF = Approved form o = order\nam = amended om = omitted/repealed\namdt = amendment ord = ordinance\nAR = Assembly resolution orig = original\nch = chapter par = paragraph/subparagraph\nCN = Commencement notice pres = present\ndef = definition prev = previous\nDI = Disallowable instrument (prev...) = previously\ndict = dictionary pt = part\ndisallowed = disallowed by the Legislative r = rule/subrule\nAssembly reloc = relocated\ndiv = division renum = renumbered\nexp = expires/expired R[X] = Republication No\nGaz = gazette RI = reissue\nhdg = heading s = section/subsection\nIA = Interpretation Act 1967 sch = schedule\nins = inserted/added sdiv = subdivision\nLA = Legislation Act 2001 SL = Subordinate law\nLR = legislation register sub = substituted\nLRA = Legislation (Republication) Act 1996 underlining = whole or part not commenced\nmod = modified/modification or to be expired\n\nLegislation history 3\n3 Legislation history\nPayroll Tax Act 2011 A2011-18\nnotified LR 30 June 2011\ns 1, s 2 commenced 30 June 2011 (LA s 75 (1))\nremainder commenced 1 July 2011 (s 2)\nas amended by\nPayroll Tax Amendment Act 2013 A2013-48\nnotified LR 3 December 2013\ns 1, s 2 commenced 3 December 2013 (LA s 75 (1))\nremainder commenced 4 December 2013 (s 2)\nPayroll Tax Amendment Act 2014 A2014-35\nnotified LR 22 August 2014\ns 1, s 2 commenced 22 August 2014 (LA s 75 (1))\nremainder commenced 1 January 2015 (s 2)\nTraining and Tertiary Education Amendment Act 2014 A2014-48 sch 1\npt 1.13\nnotified LR 6 November 2014\ns 1, s 2 commenced 6 November 2014 (LA s 75 (1))\nsch 1 pt 1.13 commenced 20 November 2014 (s 2)\nRevenue (Charitable Organisations) Legislation Amendment Act 2015\nA2015-48 pt 3\nnotified LR 24 November 2015\ns 1, s 2 commenced 24 November 2015 (LA s 75 (1))\npt 3 commenced 25 November 2015 (s 2)\nRevenue Legislation Amendment Act 2015 A2015-49 pt 6\nnotified LR 24 November 2015\ns 1, s 2 commenced 24 November 2015 (LA s 75 (1))\npt 6 commenced 25 November 2015 (s 2)\nRed Tape Reduction Legislation Amendment Act 2016 A2016-18\nsch 3 pt 3.33\nnotified LR 13 April 2016\ns 1, s 2 commenced 13 April 2016 (LA s 75 (1))\nsch 3 pt 3.33 commenced 27 April 2016 (s 2)\n\n3 Legislation history\nRevenue Legislation Amendment Act 2017 A2017-1 sch 1 pt 1.7\nnotified LR 22 February 2017\ns 1, s 2 commenced 22 February 2017 (LA s 75 (1))\nsch 1 pt 1.7 commenced 18 September 2017 (s 2 (1) and CN2017-5)\nRevenue Legislation Amendment Act 2018 A2018-2 sch 1 pt 1.7\nnotified LR 28 February 2018\ns 1, s 2 commenced 28 February 2018 (LA s 75 (1))\nsch 1 pt 1.7 commenced 1 March 2018 (s 2)\nRevenue Legislation Amendment Act 2019 (No 2) A2019-46 pt 5\nnotified LR 9 December 2019\ns 1, s 2 commenced 9 December 2019 (LA s 75 (1))\npt 5 commenced 10 December 2019 (s 2 (1))\nCOVID-19 Emergency Response Legislation Amendment Act 2020\nA2020-14 sch 1 pt 1.21\nnotified LR 13 May 2020\ns 1, s 2 taken to have commenced 30 March 2020 (LA s 75 (2))\namdt 1.107, amdt 1.108 taken to have commenced 30 March 2020\n(s 2 (3))\nsch 1 pt 1.21 remainder commenced 14 May 2020 (s 2 (1))\nRevenue Legislation Amendment Act 2021 A2021-10 sch 1 pt 1.4\nnotified LR 19 May 2021\ns 1, s 2 commenced 19 May 2021 (LA s 75 (1))\nsch 1 pt 1.4 commenced 20 May 2021 (s 2 (1))\nStatute Law Amendment Act 2021 A2021-12 sch 3 pt 3.41\nnotified LR 9 June 2021\ns 1, s 2 commenced 9 June 2021 (LA s 75 (1))\nsch 3 pt 3.41 commenced 23 June 2021 (s 2 (1))\nStatute Law Amendment Act 2025 A2025-29 sch 4 pt 4.134\nnotified LR 6 November 2025\ns 1, s 2 commenced 6 November 2025 (LA s 75 (1))\nsch 4 pt 4.134 commenced 26 December 2025 (s 2 (7))\nPayroll Tax Amendment Act 2025 A2025-38\nnotified LR 15 December 2025\ns 1, s 2 taken to have commenced 1 July 2025 (LA s 75 (2))\nremainder taken to have commenced 1 July 2025 (s 2)\n\nCommencement\ns 2 om LA s 89 (4)\nAmount of payroll tax\ns 8 am A2025-38 s 4\nWhen must payroll tax be paid?\ns 9 am A2021-10 amdt 1.15\nWages includes fringe benefits\ns 14 am A2025-29 amdt 4.135\nEmployer election for taxable value of fringe benefits\ns 16 am A2021-12 amdt 3.97\nMotor vehicle allowances\ns 29 am A2018-2 amdt 1.17; pars renum R11 LA; A2025-38 s 5;\nss renum R19 LA; A2025-29 amdt 4.135\nAccommodation allowances\ns 30 am A2025-29 amdt 4.135\nMeaning of relevant contract—div 3.7\ns 32 am A2015-49 s 32, s 33\nMaternity and adoption leave\ns 53 am A2016-18 amdts 3.159-3.161\nWages—jobkeeper payments\ns 66BA ins A2020-14 amdt 1.107\nexp 28 March 2022 (s 66BA (2))\nExclusion of people from groups\ns 79 am A2019-46 ss 35-37\n(7), (8) exp 10 December 2021 (s 79 (8))\nam A2025-29 amdt 4.135\nCalculation of correct amount of payroll tax\ns 82 am A2025-38 s 6, s 7; ss renum R19 LA\nAnnual adjustment of payroll tax\ns 83 am A2017-1 amdt 1.110; ss renum R10 LA\nRegistration\ns 86 am A2021-12 amdt 3.97\nReturns\ns 87 am A2021-10 amdt 1.15; A2021-12 amdt 3.97\nReviewable decision notices\ns 87D am A2025-29 amdt 4.135\n\nApplications for review\ns 87E am A2025-29 amdt 4.135\nRegulation-making power\ns 101 am A2025-29 amdt 4.135\nLegislation amended—sch 4\ns 103 om LA s 89 (3)\nLegislation repealed\ns 104 om LA s 89 (3)\nTransitional\npt 10 hdg exp 1 July 2016 (s 212)\nMeaning of old Act—pt 10\ns 200 exp 1 July 2016 (s 212)\nApplication of this Act and old Act\ns 201 exp 1 July 2016 (s 212)\nGeneral saving\ns 202 exp 1 July 2016 (s 212)\nFringe benefits—employer election\ns 203 exp 1 July 2016 (s 212)\nSuperannuation contributions relating to pre-1 July 1996 service\ns 204 exp 1 July 2016 (s 212)\nApproval relating to motor vehicle allowance\ns 205 exp 1 July 2016 (s 212)\nDesignated group employer\ns 206 exp 1 July 2016 (s 212)\nRegistration of employers\ns 207 exp 1 July 2016 (s 212)\nApproval relating to group training organisation\ns 208 exp 1 July 2016 (s 212)\nVariation of time for lodging returns\ns 209 exp 1 July 2016 (s 212)\nExemption from lodging returns\ns 210 exp 1 July 2016 (s 212)\nTransitional regulations\ns 211 exp 1 July 2013 (s 211 (4))\nExpiry—pt 10\ns 212 exp 1 July 2016 (s 212)\n\nMeaning of charitable organisation—pt 2.2\nsch 2 s 2.12 def charitable organisation sub A2015-48 s 12\nEmployment agents and subcontractors\nsch 2 s 2.14 am A2014-35 s 4\nExemption from tax—new starters\nsch 2 s 2.15 am A2025-29 amdt 4.135\nExemption from tax—apprentices or trainees under approved training\ncontracts\nsch 2 s 2.16 hdg sub A2014-48 amdt 1.24\nsch 2 s 2.16 am A2014-48 amdts 1.25-1.29; A2021-12 amdt 3.97\nPrimary carer leave\nsch 2 s 2.18 am A2016-18 amdts 3.162-3.165\nJobkeeper payments\nsch 2 pt 2.7A hdg ins A2020-14 amdt 1.108\nJobkeeper payments\nsch 2 s 2.19A ins A2020-14 amdt 1.108\nNotification offence—revocation of entitlement to jobkeeper payments\nsch 2 s 2.19B ins A2020-14 amdt 1.109\nExpiry—pt 2.7A\nsch 2 s 2.19C ins A2020-14 amdt 1.108\nCertain bank accounts\nsch 2 s 2.20 am A2025-29 amdt 4.135\nDisability employment concession\nsch 2 pt 2.10 hdg ins A2013-48 s 4\nDisability employment concession\nsch 2 s 2.22 ins A2013-48 s 4\nDisability employment concession guidelines\nsch 2 s 2.23 ins A2013-48 s 4\nExpiry—pt 2.10\nsch 2 s 2.24 ins A2013-48 s 4\n\nSpecial provisions for 2025-2026 financial year\nsch 2A hdg ins A2025-38 s 8\nPreliminary\nsch 2A pt 2A.1 hdg ins A2025-38 s 8\nDefinitions—sch 2A\nsch 2A s 2A.1 ins A2025-38 s 8\ndef 2025-2026 financial year ins A2025-38 s 8\ndef annual threshold amount ins A2025-38 s 8\ndef N ins A2025-38 s 8\ndef R ins A2025-38 s 8\nApplication—sch 2A\nsch 2A s 2A.2 ins A2025-38 s 8\nCalculation of payroll tax liability\nsch 2A pt 2A.2 hdg ins A2025-38 s 8\nPreliminary\nsch 2A div 2A.2.1 hdg ins A2025-38 s 8\nCalculation of payroll tax for 2025-2026 financial year\nsch 2A s 2A.3 ins A2025-38 s 8\nEmployers who are not members of a group\nsch 2A div 2A.2.2 hdg ins A2025-38 s 8\nApplication—div 2A.2.2\nsch 2A s 2A.4 ins A2025-38 s 8\nDefinitions—div 2A.2.2\nsch 2A s 2A.5 ins A2025-38 s 8\ndef C ins A2025-38 s 8\ndef IW ins A2025-38 s 8\ndef TA (or threshold amount) ins A2025-38 s 8\ndef TW ins A2025-38 s 8\nsch 2A s 2A.6 ins A2025-38 s 8\nGroups with a designated group employer\nsch 2A div 2A.2.3 hdg ins A2025-38 s 8\nApplication—div 2A.2.3\nsch 2A s 2A.7 ins A2025-38 s 8\nDefinitions—div 2A.2.3\nsch 2A s 2A.8 ins A2025-38 s 8\ndef C ins A2025-38 s 8\ndef GIW ins A2025-38 s 8\ndef GTW ins A2025-38 s 8\ndef TA (or threshold amount) ins A2025-38 s 8\n\ndef TW ins A2025-38 s 8\nsch 2A s 2A.9 ins A2025-38 s 8\nGroups with no designated group employer\nsch 2A div 2A.2.4 hdg ins A2025-38 s 8\nApplication—div 2A.2.4\nsch 2A s 2A.10 ins A2025-38 s 8\nMeaning of TW—div 2A.2.4\nsch 2A s 2A.11 ins A2025-38 s 8\nsch 2A s 2A.12 ins A2025-38 s 8\nMotor vehicle allowances\nsch 2A div 2A.2.5 hdg ins A2025-38 s 8\nWorking out business kilometres\nsch 2A s 2A.13 ins A2025-38 s 8\nCalculation of monthly payroll tax\nsch 2A pt 2A.3 hdg ins A2025-38 s 8\nCalculation of monthly payroll tax\nsch 2A s 2A.14 ins A2025-38 s 8\nConsequential amendments\nsch 4 om LA s 89 (3)\n\nSome earlier republications were not numbered. The number in column 1 refers to\nthe publication order.\nSince 12 September 2001 every authorised republication has been published in\nelectronic pdf format on the ACT legislation register. A selection of authorised\nrepublications have also been published in printed format. These republications are\nmarked with an asterisk (*) in column 1. Electronic and printed versions of an\nauthorised republication are identical.\nfor\n1 July 2011–\nnot amended new Act\nR1 (RI)\n1 July 2011–\nnot amended reissue for textual\nITAA\n2 July 2013–\n3 Dec 2013\nnot amended expiry of\nprovision (s 211)\nR2 (RI)\n2 July 2013–\n3 Dec 2013\nnot amended reissue for textual\nITAA\n4 Dec 2013\n4 Dec 2013–\n19 Nov 2014\nA2013-48 amendments by\nA2013-48\nR3 (RI)\n4 Dec 2013–\n19 Nov 2014\nA2013-48 reissue for textual\nITAA\n20 Nov 2014\n20 Nov 2014–\n31 Dec 2014\nA2014-48 amendments by\nA2014-48\nR4 (RI)\n20 Nov 2014–\n31 Dec 2014\nA2014-48 reissue for textual\nITAA\n1 Jan 2015\n1 Jan 2015–\n24 Nov 2015\nA2014-48 amendments by\nA2014-35\n\nEarlier republications 5\nfor\nR5 (RI)\n1 Jan 2015–\n24 Nov 2015\nA2014-48 reissue for textual\nITAA\n25 Nov 2015\n25 Nov 2015–\n1 Jan 2016\nA2015-49 amendments by\nA2015-48 and\nA2015-49\nR6 (RI)\n25 Nov 2015–\n1 Jan 2016\nA2015-49 reissue for textual\nITAA\n2 Jan 2016\n2 Jan 2016–\n26 Apr 2016\nA2015-49 expiry of provision\n(sch 2 pt 2.10)\nR7 (RI)\n2 Jan 2016–\n26 Apr 2016\nA2015-49 reissue for textual\nITAA\n27 Apr 2016\n27 Apr 2016–\nA2016-18 amendments by\nA2016-18\nR8 (RI)\n27 Apr 2016–\nA2016-18 reissue for textual\nITAA\n2 July 2016–\n17 Sept 2017\nA2016-18 expiry of\nprovisions (pt 10)\nR9 (RI)\n2 July 2016–\n17 Sept 2017\nA2016-18 reissue for textual\nITAA\n18 Sept 2017\n18 Sept 2017–\n28 Feb 2018\nA2017-1 amendments by\nA2017-1\n1 Mar 2018\n1 Mar 2018–\n9 Dec 2019\nA2018-2 amendments by\nA2018-2\n10 Dec 2019\n10 Dec 2019–\n29 Mar 2020\nA2019-46 amendments by\nA2019-46\n\nfor\n30 Mar 2020–\nA2020-14 amendments by\nA2020-14\n14 May 2020–\nA2020-14 amendments by\nA2020-14\n20 May 2021–\nA2021-10 amendments by\nA2021-10\n23 June 2021–\n10 Dec 2021\nA2021-12 amendments by\nA2021-12\n11 Dec 2021\n11 Dec 2021–\n28 Mar 2022\nA2021-12 expiry of\nprovisions\n(s 79 (7), (8))\n29 Mar 2022–\nA2021-12 expiry of provisions\n(s 66BA, sch 2\npt 2.7A)\n15 Dec 2025\n1 July 2025–\n25 Dec 2025\nA2025-38 retrospective\namendments by\nA2025-38\n\nExpired transitional or validating provisions 6\n6 Expired transitional or validating provisions\nThis Act may be affected by transitional or validating provisions that have expired.\nThe expiry does not affect any continuing operation of the provisions (see\nLegislation Act 2001, s 88 (1)).\nExpired provisions are removed from the republished law when the expiry takes\neffect and are listed in the amendment history using the abbreviation ‘exp’ followed\nby the date of the expiry.\nTo find the expired provisions see the version of this Act before the expiry took\neffect. The ACT legislation register has point-in-time versions of this Act.","sortOrder":93}],"analysis":{"kimi_summary":{"_metrics":{"completionTokens":752},"content_quality":"ok","complexity_score":8,"scope_assessment":{"changed":true,"description":"The Act has grown significantly beyond its original 2011 scope. Key expansions include: (1) the 2025-2026 special provisions (Schedule 2A) creating a temporary surtax regime for very large employers; (2) expanded definitions of 'wages' to capture employee share schemes, termination payments, and broader contractor arrangements; (3) complex grouping provisions that aggregate related businesses; and (4) detailed anti-avoidance provisions targeting employment agency structures and artificial arrangements."},"complexity_factors":["Multiple calculation methods depending on employer type (individual, grouped with designated employer, grouped without designated employer)","Extensive cross-referencing between Parts, Schedules, and the Taxation Administration Act 1999 for rates and thresholds","Complex grouping rules in Part 5 with multiple tests for common control, tracing of corporate interests, and aggregation formulas","Special temporary Schedule 2A for 2025-2026 financial year with different rates and thresholds that overrides normal calculations","Detailed record-keeping requirements for motor vehicle allowances with continuous recording vs averaging methods","Multiple exemption categories with varying conditions (e.g., 14-week limit on maternity leave exemptions)","Deemed employer provisions for contractors and employment agents that reclassify commercial relationships","Jurisdictional nexus tests in sections 11-11C to determine if wages are 'taxable in the ACT'","Fringe benefits valuation requires gross-up calculations using FBT rates"],"plain_english_summary":"This is the ACT's **Payroll Tax Act 2011**, which imposes a tax on wages paid by employers in the Australian Capital Territory.\n\n**What it does:**\n- **Imposes payroll tax** on \"taxable wages\" — broadly, money and benefits paid to employees for work performed in the ACT (section 6)\n- **Sets out who pays:** Generally the employer who pays or is liable to pay wages (section 7)\n- **Defines what's taxable:** Wages include salaries, commissions, bonuses, allowances, fringe benefits, superannuation contributions, shares/options granted to employees, termination payments, and certain contractor payments (Part 3)\n- **Exempts certain wages:** Including wages paid by charities, hospitals, for maternity/adoption/primary carer leave (up to 14 weeks), for volunteer emergency services, to certain unemployed people, and wages for services performed overseas for more than 6 months (Part 4)\n- **Groups related employers:** Related businesses (through common control, shared employees, or corporate relationships) are treated as a single group for tax purposes, with joint and several liability (Part 5)\n- **Provides special 2025-2026 rules:** A temporary Schedule 2A applies higher tax rates (7.85% then 8.75%) to very large employers paying over $150 million in wages that year, with different calculation methods (sections 8(2), Schedule 2A)\n\n**Who it affects:**\n- Any business, organisation or individual employing people in the ACT whose total Australian wages exceed the tax-free threshold (currently $2 million annually)\n- Groups of related businesses must aggregate their wages\n- Employment agents and certain contractors are deemed to be employers\n\n**Why it matters:**\nPayroll tax is a significant state/territory revenue source. This Act determines how much tax ACT employers owe, when they must pay it (monthly, with annual reconciliation), and what exemptions apply. The 2025-2026 special provisions represent a temporary surcharge on very large payrolls."},"flash_summary":{"complexity_score":8,"scope_assessment":{"changed":true,"description":"The republished Act includes a new, time-limited calculation path for the 2025–2026 financial year that applies to employers whose total wages for that year exceed $150 million (s 8(2); s 82(2); sch 2A). Schedule 2A imposes different mid-year rates (defined in sch 2A s 2A.1) and prorated threshold mechanics (sch 2A, ss 2A.4–2A.9), and it explicitly excludes a small set of named universities (sch 2A s 2A.2(2)). Those additions modify the Act’s scope for large employers for that specific financial year and override the ordinary schedule calculations for affected employers (s 8(2); s 82(2); sch 2A)."},"complexity_factors":["Multiple interlocking calculation routes (annual schedules, monthly provisions, and a separate temporary schedule for 2025–26) increase procedural complexity (s 8; sch 1; sch 2; sch 2A).","Extensive cross-references to Commonwealth tax laws (FBTA Act, ITAA) for valuation and timing of items treated as wages (ss 14–16; ss 18, 23).","Detailed grouping and tracing rules that require ownership, voting, direct/indirect/aggregate interest calculations across chains of corporations (Part 5; ss 72–78).","Contractor and employment-agent rules that recharacterise commercial contracts and payments as wages or employer liabilities, with exception carve-outs and commissioner powers to treat contracts as avoidance (div 3.7; ss 32–36; 37–42).","Multiple employer elections and timing choices (fringe benefit election s 16; ESS grant/vesting election ss 19–21) that change tax timing and recordkeeping obligations.","Substantial commissioner discretion to determine deductible amounts, exclude group members, approve variations, and disregard avoidance arrangements (ss 2.4, 2.9, 35(2), 42, 47, 79, 87A).","Detailed recordkeeping and evidentiary requirements for specific exemptions and allowances (parental leave documentary proof, motor vehicle odometer methods—s 53; sch 1 pt 1.5).","Joint-and-several liability across group members and retrospective adjustments under the annual reconciliation and change-of-circumstances rules (s 81; Part 6)."],"plain_english_summary":"The Act imposes a payroll tax on employers for a broad definition of “taxable wages” (cash and many non‑cash items), sets registration, reporting and payment timings, and creates grouping rules that can aggregate related entities and assign joint liability. It gives the commissioner wide administrative and anti‑avoidance powers, creates recordkeeping and penalty obligations, and includes a temporary, separate calculation pathway for very large employers in 2025–26."},"flash_summary_failed":{"failed":true,"reason":"A positive credit balance is required for all requests, including BYOK, so fallback providers remain available. Add credits at https://vercel.com/d?to=%2F%5Bteam%5D%2F%7E%2Fai%3Fmodal%3Dtop-up to continue.","source":"analysis-cron"},"issue_detection":{"absurdities":[],"contradictions":[]}},"importantCases":[],"_links":{"self":"/api/acts/payroll-tax-act-2011","history":"/api/acts/payroll-tax-act-2011/history","analysis":"/api/acts/payroll-tax-act-2011/analysis","conflicts":"/api/acts/payroll-tax-act-2011/conflicts","importantCases":"/api/acts/payroll-tax-act-2011/important-cases","documents":"/api/acts/payroll-tax-act-2011/documents"}}