Part 4 Groups with no designated group employer
10 Application of Part
This Part applies only to an employer who is a member of a group
for which there is no designated group employer.
11 Definition
concerned (as a member of the group) during the relevant financial
year.
12 Calculation of payroll tax
Each member of the group is liable to pay as payroll tax for the
financial year the amount of dollars calculated in accordance with
the following formula:
Payroll Tax Act 2009 71
Part 5 Motor vehicle allowances
13 Continuous recording method
If an employer selects the continuous recording method for
determining the number of business kilometres travelled during a
financial year, the following details are required to be recorded by
the employer:
(a) the odometer readings at the beginning and end of each
business journey undertaken by the person during the
financial year by means of a motor vehicle provided or
maintained by the person;
(b) the specific purpose for which each such business journey
was taken;
(c) the distance travelled by the person during the financial year
in the course of all such business journeys (which is taken to
be the number of business kilometres travelled during the
financial year), calculated on the basis of the odometer
readings mentioned in paragraph (a).
14 Averaging method
(1) If an employer selects the averaging method for determining the
number of business kilometres travelled during a financial year, the
following details are required to be recorded by the employer:
(a) the odometer readings at the beginning and end of each
business journey undertaken by the person during the relevant
12-week period by means of a motor vehicle provided or
maintained by the person;
Note for paragraph (a)
Clause 15 defines the relevant 12-week period.
(b) the specific purpose for which each such business journey
was taken;
(c) the distance travelled by the person during the relevant
12-week period in the course of all such business journeys,
calculated on the basis of the odometer readings mentioned in
paragraph (a);
(d) the odometer readings at the beginning and end of the
relevant 12-week period for each motor vehicle provided or
maintained by the person for undertaking business journeys;
Payroll Tax Act 2009 72
(e) the distance travelled by each such vehicle during the relevant
12-week period, calculated on the basis of the odometer
readings mentioned in paragraph (d);
(f) the distance travelled by the person in the course of business
the relevant 12-week period, calculated as a percentage of the
distance travelled by that vehicle during that period (the
relevant percentage);
(g) the odometer readings at the beginning and end of the
financial year for each vehicle provided or maintained by the
person for undertaking business journeys;
(h) the distance travelled by each such vehicle during the financial
year, calculated on the basis of the odometer readings
mentioned in paragraph (g);
(i) the distance travelled by the person in the course of business
the financial year (which is taken to be the number of
business kilometres travelled during the financial year),
calculated on the basis that the percentage of that distance
that was travelled by the person in the course of business
the financial year is the same as the relevant percentage.
(2) For the next succeeding 4 financial years after the first financial
year in which odometer details are recorded in accordance with
subclause (1), an employer is not required to calculate the relevant
percentage, or record the details mentioned in subclause (1)(a)
to (f), for the person but is required to record the other details
mentioned in that subclause.
(3) Accordingly, for the next succeeding 4 financial years after the first
financial year in which odometer details are recorded in accordance
with subclause (1), the number of business kilometres travelled
during the financial year is to be calculated (as mentioned in
subclause (1)(i)) on the basis of the relevant percentage calculated
for the first financial year.
(4) Despite subclauses (2) and (3), an employer is required to calculate
the relevant percentage for a financial year, and record the details
mentioned in subclause (1)(a) to (f), if:
(a) the Commissioner serves a notice on the employer before the
commencement of a financial year during that period directing
the employer to keep the details mentioned in subclause (1)(a)
to (f) for that financial year; or
Payroll Tax Act 2009 73
(b) the employer wishes to use the recording method mentioned
in this clause for 1 or more additional motor vehicles used by
the person in any financial year or for any other reason.
(5) In a situation mentioned in subclause (4), the new record for the
financial year replaces the relevant percentage details previously
recorded and subclauses (2) and (3) apply in relation to the new
record for the financial year as if it were the first financial year in
which odometer details were recorded.
(6) An employer who has adopted and employed the method of
recording mentioned in subclauses (2) and (3) for a person for
4 successive financial years must, in the next succeeding financial
year, make a fresh recording of all the details specified in
subclause (1) if the employer intends to continue to use the same
method of recording for the person. Subclauses (2) and (3) then
apply in relation to the new record for the financial year as if it were
the first financial year in which odometer details were recorded.
(7) If the odometer of a motor vehicle is replaced or recalibrated during
any period for which its readings are relevant for this clause, the
odometer readings immediately before and after the replacement or
recalibration are to be recorded.
15 Meaning of relevant 12-week period
(1) In clause 14, relevant 12-week period means a continuous period
of at least 12 weeks, selected by the employer, throughout which a
motor vehicle is provided or maintained by a person. If the motor
vehicle is provided or maintained for less than 12 weeks, the period
must be the entire period for which the motor vehicle is provided or
maintained.
(2) The period may overlap the start or end of the financial year, so
long as it includes part of the year.
(3) If the averaging method is used for 2 or more motor vehicles for the
same financial year, the odometer readings for those motor
vehicles must cover periods that are concurrent.
16 Replacing 1 motor vehicle with another motor vehicle
(1) For using the averaging method, an employer may nominate a
motor vehicle as having replaced another motor vehicle with effect
from a day specified in the nomination.
Payroll Tax Act 2009 74
(2) After the nomination takes effect, the replacement motor vehicle is
treated as the original motor vehicle, and the original motor vehicle
is treated as a different motor vehicle. An employer need not repeat
for the replacement vehicle the steps already taken for the original
motor vehicle.
(3) An employer must record the nomination in writing in the financial
year in which the nomination takes effect.
(4) However, the Commissioner may allow an employer to record the
nomination at a later time.
17 Changing method of recording
(1) An employer may change from using the averaging method to using
the continuous recording method with effect from the beginning of a
financial year if the employer complies with clause 13 in respect of
the financial year.
(2) An employer may change from using the continuous recording
method to using the averaging method with effect from the
beginning of a financial year if the employer complies with
clause 14 in respect of the financial year.
18 Definition
business journey means:
(a) a journey undertaken in a motor vehicle by a person otherwise
than in the application of the vehicle to a private use, being an
application that, if the person is paid a motor vehicle
allowance for that use, results in the provision of a fringe
benefit (within the meaning of the FBTA Act) by the employer;
or
(b) a journey undertaken in a motor vehicle by a person in the
course of producing assessable income of the person (within
the meaning of the Income Tax Assessment Act 1936 (Cth)).
Payroll Tax Act 2009 75
sections 8 and 100
Part 1 Introduction to Schedule
1 Application of Schedule
This Schedule sets out provisions that apply only in this jurisdiction.
2 Definitions
In this Schedule:
baseline count, see clause 20A.
financial year means the financial year commencing on
1 July 2009 or on 1 July in any subsequent financial year.
group threshold amount, see clause 8 of Schedule 1.
resident employee, see clause 20A.
Part 2 Calculation of monthly payroll tax
Division 1 Rate of payroll tax
3 Rate of payroll tax
The rate of payroll tax in this jurisdiction is 5.5%.
Division 2 Employers who are not members of a group
4 Application of Division
This Division applies only to an employer who is not a member of a
5 Amount of payroll tax to be paid each month
(1) The amount of payroll tax payable by an employer on taxable
wages paid or payable by the employer in a month is the amount of
dollars calculated in accordance with the following formula:
( ) RDTW ×−
Payroll Tax Act 2009 76
(otherwise than as a member of a group) during the month.
D is the deductible amount mentioned in clause 6 or 7 (as the case
requires).
R is the rate of payroll tax mentioned in clause 3.
(2) If D is equal to or more than TW in respect of a month, the
employer is not required to pay payroll tax in respect of that month.
6 Deductible amount for employer who does not pay interstate
wages
(1) For an employer who pays or is liable to pay taxable wages in a
month but does not pay and is not liable to pay interstate wages in
that month, the deductible amount in respect of that month is an
amount not exceeding the amount in dollars calculated in
accordance with the following formula, as determined in a manner
approved by the Commissioner:
TA
(2) Subclause (1) applies whether the employer pays or is liable to pay
wages for the whole of the month or only part of the month.
7 Deductible amount for employer who pays interstate wages
(1) The deductible amount for an employer who pays or is liable to pay
taxable wages and interstate wages in a month is an amount
determined in a manner approved by the Commissioner.
(2) The deductible amount claimed cannot be more than the amount
mentioned in clause 6(1).
Division 3 Groups with designated group employer
8 Application of Division
This Division applies only to an employer who is a member of a
group of which there is a designated group employer.
Payroll Tax Act 2009 77
9 Amount of payroll tax to be paid each month
(1) If an approval is in force under section 87(2) for the designated
group employer to lodge a joint return:
(a) the amount of payroll tax payable by the designated group
employer on taxable wages paid or payable in a month by the
employers covered by the return is the amount of dollars
calculated in accordance with the following formula:
( ) RDJTW ×−
JTW is the total taxable wages paid or payable during the
month by the employers covered by the return (as members of
a group).
D is the deductible amount mentioned in clause 10 or 11 (as
the case requires).
R is the rate of tax mentioned in clause 3; and
(b) the amount of payroll tax payable by each employer who is a
member of the group but is not covered by the return on
taxable wages paid or payable by the employer in a month is
the amount of dollars calculated in accordance with the
concerned (as a member of the group) during the relevant
(2) If an approval under section 87(2) is not in force for the designated
group employer:
(a) the amount of payroll tax payable by the designated group
employer on taxable wages paid or payable by the designated
group employer in a month is the amount of dollars calculated
in accordance with the following formula:
( ) RDTW ×−
Payroll Tax Act 2009 78
TW is the total taxable wages paid or payable by the
designated group employer (as a member of a group) during
the month.
D is the deductible amount mentioned in clause 10 or 11 (as
the case requires).
R is the rate of tax mentioned in clause 3; and
(b) the amount of payroll tax payable by each employer who is a
member of the group on taxable wages paid or payable by the
employer in a month is the amount of dollars calculated in
concerned (as a member of the group) during the relevant
(3) For subclauses (1)(a) and (2)(a), if D is equal to or more than JTW
or TW in respect of a month (as the case requires), the designated
group employer is not required to pay payroll tax in respect of that
10 Deductible amount for groups that do not pay interstate wages
(1) For a group in which 1 or more members pay or are liable to pay
taxable wages in a month but no members pay or are liable to pay
interstate wages in that month, the deductible amount in respect of
that month is an amount not exceeding the amount in dollars
calculated in accordance with the following formula, as determined
in a manner approved by the Commissioner:
TA
(2) Subclause (1) applies whether group members pay or are liable to
pay wages for the whole of the month or only part of the month.
Payroll Tax Act 2009 79
11 Deductible amount for groups that pay interstate wages
(1) The deductible amount for a group in which 1 or more members
pay or are liable to pay taxable wages or interstate wages in a
month is an amount determined in a manner approved by the
Commissioner.
(2) The deductible amount claimed cannot be more than the amount
mentioned in clause 10(1).
Division 4 Groups with no designated group employer
12 Application of Division
This Division applies only to an employer who is a member of a
group of which there is no designated group employer.
13 Amount of payroll tax to be paid each month
The amount of payroll tax payable by each member of the group on
taxable wages paid or payable by the member in a month is the
amount of dollars calculated in accordance with the following
formula:
concerned (as a member of the group) during the relevant month.
Part 3 Payroll tax for financial year
14 Payroll tax for financial year for group that has designated
group employer
(1) This clause applies to a group if:
(a) there is a designated group employer of the group; and
(b) the total taxable wages and interstate wages paid or payable
by the group during the financial year is more than the group
threshold amount; and
(c) clause 9 of Schedule 1 does not apply to the group.
Payroll Tax Act 2009 80
(2) The designated group employer of the group is liable to pay as
payroll tax for the financial year the amount of dollars calculated in
RAD
GIWGTW
GTW
GTW ×
×
+
−
(3) In this clause:
GIW is the total interstate wages paid or payable by the members
of the group during the relevant financial year.
GTA, see Schedule 1, clause 8.
GTW is the total taxable wages paid or payable by the members of
the group during the relevant financial year.
R is 5.5%.
Note for clause 14
For the calculation of the payroll tax payable for a financial year by an employer
who is a member of a group of which there is no designated group employer, see
clause 12 of Schedule 1.
15 Adjustment of payroll tax for group
(1) If an amount of payroll tax paid for a financial year in respect of a
group is greater than the correct amount of payroll tax payable in
respect of the financial year for the group, the Commissioner (on
application by a member of the group) is to refund the amount
equal to the difference to the designated group employer of the
group or, if the Commissioner considers it appropriate, another
member of the group.
(2) If an amount of payroll tax paid for a financial year in respect of a
group is less than the correct amount of payroll tax payable in
respect of the financial year for the group, the designated group
employer of the group or, if the Commissioner considers it
appropriate, another member of the group, must pay the
Payroll Tax Act 2009 81
Commissioner as payroll tax an amount equal to the difference.
Division 1 Education and training
16 Schools and colleges
Wages are exempt wages if they are paid or payable by a school
or college (other than a technical school or a technical college) that:
(a) provides education at or below, but not above, the secondary
level of education; and
(b) is carried on by a body corporate, society or association
otherwise than for the purpose of profit or gain to the individual
members of the body corporate, society or association and is
not carried on by or on behalf of the Territory.
17 Apprentices and trainees
employee who is an apprentice or trainee.
(2) Despite subsection (1), wages paid or payable to a trainee by an
employer are not exempt wages if, immediately before the
commencement of the trainee's traineeship with the employer, the
trainee had been employed by the employer for a continuous period
of:
(a) for a full-time employee – 3 months or more; or
(b) for a part-time or casual employee – 12 months or more.
(3) In this clause:
apprentice, see section 5 of the Training and Skills Development
Act 2016.
trainee, see section 6 of the Training and Skills Development
Act 2016.
Division 2 Health care service providers
19 What is a health care service provider
For Part 4, Division 3 of this Act, a health care service provider is:
(a) a public hospital; or
Payroll Tax Act 2009 82
(b) a hospital that is carried on by a society or association
otherwise than for the profit or gain to the individual members
of the society or association.
Division 3 Paternity leave
20 Paternity leave
employee in respect of leave (paternity leave):
(a) given to a male employee in connection with:
(i) the pregnancy of a female carrying his unborn child; or
(ii) the birth of his child; and
(b) that is not sick leave, recreation leave, annual leave or any
similar leave.
(2) For subclause (1), it is immaterial whether the leave is taken during
or after the pregnancy.
(3) The exemption is limited to wages paid or payable in respect of a
maximum of 14 weeks paternity leave given to an employee in
respect of any one pregnancy.
(4) In subclause (3):
(a) a reference to 14 weeks paternity leave includes a reference
to an equivalent period of leave at a reduced rate of pay; and
(b) a reference to wages paid or payable in respect of a period of
leave is a reference to the total wages that would normally
have been paid or payable for that period of leave.
Example for subclause (4)
For a part-time employee, the exemption may apply to wages paid or payable for
paternity leave that extends to 28 weeks at half of the part-time rate of pay that
would normally apply to the employee.
(5) The exemption does not apply to any part of wages paid or payable
in respect of paternity leave that comprises fringe benefits.
(6) An employer wishing to claim an exemption in respect of paternity
leave given to an employee must obtain and keep a statutory
declaration by the employee stating that:
(a) a female is or was pregnant with the employee's unborn child;
or
Payroll Tax Act 2009 83
(b) the employee's child has been born and the date of the birth.
Note for subclause (6)
Division 4 Hiring resident employees
Part Part 4 - Payroll Tax Act 2009 - Groups with no designated group employer | Zoe