Mechanically, this regulation sets how employers must value and report fringe benefits for payroll tax and the mental health levy. It prescribes when employers may elect to use estimated or actual values, how to calculate estimated and reconciliation amounts (using grossed‑up values), return periods, a 30‑day notice rule for amended FBT assessments, and penalties for non‑compliance.
It affects any employer that pays fringe benefits: employers bear the compliance and reporting costs, must apply in writing where commissioner consent is required, and the commissioner decides whether mid‑year elections are allowed.
This Regulation sets detailed rules for how fringe benefits are to be treated for Queensland payroll tax and the related mental health levy, specifies record and notice obligations linked to amended fringe‑benefits assessments, and provides transitional treatment for elections made under the prior regulation. Mechanically, it does the following.
Fixes the valuation rule for taxable wages provided in kind under the Act, by requiring the value to be the highest of three candidate amounts: the amount agreed under arrangements between employer and employee; the amount attributed by the employer having regard to those arrangements; or the amount worked out by a person appointed by the commissioner under the Act (s 4). The commissioner’s appointed valuator is therefore a statutory backstop (s 4(c)).
Excludes a particular class of benefit from the definition of fringe benefit, prescribing that a tax‑exempt body entertainment fringe benefit (as defined in the Fringe Benefits Assessment Act, s 136(1)) is not a fringe benefit for payroll tax purposes (s 5).
Imposes a 30‑day notice obligation requiring an employer to give the commissioner a copy of any notice of an amended assessment under the Fringe Benefits Assessment Act, with a maximum penalty of 20 penalty units (s 6).
Requires consistency in how fringe benefits are calculated across all returns and reporting that affect payroll tax and the mental health levy, including group disclosure to the designated group employer (DGE), and flags that non‑compliance may affect payroll tax and levy liabilities (s 7).
Creates an elective regime for employers who have paid, or were liable to pay, fringe benefits tax (FBT) for at least 15 consecutive months immediately before the start of a financial year (s 9). Those employers may elect either an estimated value basis (subdivision 2) or an actual value basis (subdivision 3) for reporting fringe benefits in periodic and annual returns (ss 8-13).
Current sections
Direct links to the current provisions in Payroll Tax Regulation 2019.
37
pt.1
Preliminary
Preliminary
sec.1
Short title
sec.1 Short title
This regulation may be cited as the Payroll Tax Regulation 2019 .
sec.2
Commencement
sec.2 Commencement
This regulation commences on 2 September 2019.
sec.3
Definitions
sec.3 Definitions
The dictionary in schedule 1 defines particular words used in this regulation.
pt.2
Liability to taxation
Liability to taxation
sec.4
Value of taxable wages— Act , s 13
sec.4 Value of taxable wages— Act , s 13
For section 13 (1) of the Act , the value of taxable wages paid or payable in kind by an employer (other than fringe benefits under the Fringe Benefits Assessment Act ) is the highest of the following amounts—
the amount agreed under arrangements between the employer and employee as the value of the taxable wages;
the amount attributed by the employer as the value of the taxable wages having regard to arrangements between the employer and employee;
the amount worked out by a person appointed by the commissioner under section 13 (3) of the Act as the value of the taxable wages having regard to arrangements between the employer and employee.
s 4 amd 2022 SL No. 168 s 7
(a) the amount agreed under arrangements between the employer and employee as the value of the taxable wages;
(b) the amount attributed by the employer as the value of the taxable wages having regard to arrangements between the employer and employee;
(c) the amount worked out by a person appointed by the commissioner under section 13 (3) of the Act as the value of the taxable wages having regard to arrangements between the employer and employee.
pt.3
Fringe benefits
Fringe benefits
pt.3-div.1
Preliminary
Preliminary
sec.5
Things that are not fringe benefits— Act , sch , definition fringe benefit
sec.5 Things that are not fringe benefits— Act , sch , definition fringe benefit
For the schedule of the Act , definition fringe benefit , paragraph (d) , a tax-exempt body entertainment fringe benefit is prescribed not to be a fringe benefit.
In this section—
tax-exempt body entertainment fringe benefit see the Fringe Benefits Assessment Act , section 136 (1) .
(sec.5-ssec.1) For the schedule of the Act , definition fringe benefit , paragraph (d) , a tax-exempt body entertainment fringe benefit is prescribed not to be a fringe benefit.
(sec.5-ssec.2) In this section— tax-exempt body entertainment fringe benefit see the Fringe Benefits Assessment Act , section 136 (1) .
sec.6
Notice of amended assessments under the Fringe Benefits Assessment Act
sec.6 Notice of amended assessments under the Fringe Benefits Assessment Act
An employer must, within 30 days of receiving a notice of an amended assessment under the Fringe Benefits Assessment Act , give the commissioner a copy of the notice.
Maximum penalty—20 penalty units.
sec.7
Calculation of fringe benefits on same basis
sec.7 Calculation of fringe benefits on same basis
An employer must calculate fringe benefits on the same basis for a financial year—
for each periodic, annual or final return lodged by the employer for the financial year; and
for working out the employer’s relevant payroll tax and levy liabilities for the financial year; and
if the employer is a non-DGE group member—for giving information to the DGE for the group under sections 88A , 88B , 88C or 88D of the Act in relation to the financial year; and
if the employer is the DGE for a group—for giving information to non-DGE group members under section 88A or 88E of the Act in relation to the financial year, to the extent the information relates to the DGE.
Non-compliance with subsection (1) may affect—
if the employer is not a group member or is the DGE for a group—the employer’s liability for payroll tax and the mental health levy; or
if the employer is a non-DGE group member—
the employer’s liability for payroll tax; and
the liability of the employer and the DGE for the group for the mental health levy.
This section is subject to sections 11 to 13 .
s 7 amd 2022 SL No. 168 s 8
(sec.7-ssec.1) An employer must calculate fringe benefits on the same basis for a financial year— for each periodic, annual or final return lodged by the employer for the financial year; and for working out the employer’s relevant payroll tax and levy liabilities for the financial year; and if the employer is a non-DGE group member—for giving information to the DGE for the group under sections 88A , 88B , 88C or 88D of the Act in relation to the financial year; and if the employer is the DGE for a group—for giving information to non-DGE group members under section 88A or 88E of the Act in relation to the financial year, to the extent the information relates to the DGE. Non-compliance with subsection (1) may affect— if the employer is not a group member or is the DGE for a group—the employer’s liability for payroll tax and the mental health levy; or if the employer is a non-DGE group member— the employer’s liability for payroll tax; and the liability of the employer and the DGE for the group for the mental health levy.
(sec.7-ssec.2) This section is subject to sections 11 to 13 .
(a) for each periodic, annual or final return lodged by the employer for the financial year; and
(b) for working out the employer’s relevant payroll tax and levy liabilities for the financial year; and
(c) if the employer is a non-DGE group member—for giving information to the DGE for the group under sections 88A , 88B , 88C or 88D of the Act in relation to the financial year; and
(d) if the employer is the DGE for a group—for giving information to non-DGE group members under section 88A or 88E of the Act in relation to the financial year, to the extent the information relates to the DGE.
(a) if the employer is not a group member or is the DGE for a group—the employer’s liability for payroll tax and the mental health levy; or
(b) if the employer is a non-DGE group member— (i) the employer’s liability for payroll tax; and (ii) the liability of the employer and the DGE for the group for the mental health levy.
(i) the employer’s liability for payroll tax; and
(ii) the liability of the employer and the DGE for the group for the mental health levy.
(i) the employer’s liability for payroll tax; and
(ii) the liability of the employer and the DGE for the group for the mental health levy.
pt.3-div.2
Basis for calculating fringe benefits— Act , s 91
Basis for calculating fringe benefits— Act , s 91
sec.8
Purpose of division
sec.8 Purpose of division
This division provides, for section 91 (1) and (3) (b) of the Act , for the election by an employer to include in returns an estimated value amount, or an actual value amount, for fringe benefits.
sec.9
Application of subdivision
sec.9 Application of subdivision
This subdivision applies to an employer who has paid, or is liable to pay, fringe benefits tax for at least 15 consecutive months immediately before the start of a financial year (a relevant financial year ).
sec.10
Election in first periodic return period for relevant financial year
sec.10 Election in first periodic return period for relevant financial year
The employer may elect to include in returns estimated value amounts and use those amounts to work out the employer’s prelevant payroll tax and levy liabilities.
The employer makes an election under subsection (1) by using an estimated value amount to work out the employer’s periodic liability and periodic levy liability for the first periodic return period for the relevant financial year.
An election under subsection (1) continues to apply until the employer elects, under subdivision 3 , to use actual value amounts to work out the employer’s relevant payroll tax and levy liabilities.
If an election under subsection (1) applies to the employer on 30 June in the relevant financial year or a later financial year, the employer must include an estimated value amount as part of the wages paid or payable during that year by the employer—
in the employer’s annual return for the financial year; and
if the employer is a non-DGE group member—in the information given to the DGE under section 88A (5) of the Act in relation to the financial year.
An election under subsection (1) applies for working out—
periodic liability and periodic levy liability for the periodic return period mentioned in subsection (2) ; and
all subsequent relevant payroll tax and levy liabilities for the employer while the election continues to apply.
s 10 amd 2022 SL No. 168 s 9
(sec.10-ssec.1) The employer may elect to include in returns estimated value amounts and use those amounts to work out the employer’s prelevant payroll tax and levy liabilities.
(sec.10-ssec.2) The employer makes an election under subsection (1) by using an estimated value amount to work out the employer’s periodic liability and periodic levy liability for the first periodic return period for the relevant financial year.
(sec.10-ssec.3) An election under subsection (1) continues to apply until the employer elects, under subdivision 3 , to use actual value amounts to work out the employer’s relevant payroll tax and levy liabilities.
(sec.10-ssec.4) If an election under subsection (1) applies to the employer on 30 June in the relevant financial year or a later financial year, the employer must include an estimated value amount as part of the wages paid or payable during that year by the employer— in the employer’s annual return for the financial year; and if the employer is a non-DGE group member—in the information given to the DGE under section 88A (5) of the Act in relation to the financial year.
(sec.10-ssec.5) An election under subsection (1) applies for working out— periodic liability and periodic levy liability for the periodic return period mentioned in subsection (2) ; and all subsequent relevant payroll tax and levy liabilities for the employer while the election continues to apply.
(a) in the employer’s annual return for the financial year; and
(b) if the employer is a non-DGE group member—in the information given to the DGE under section 88A (5) of the Act in relation to the financial year.
(a) periodic liability and periodic levy liability for the periodic return period mentioned in subsection (2) ; and
(b) all subsequent relevant payroll tax and levy liabilities for the employer while the election continues to apply.
sec.11
Election during relevant financial year
sec.11 Election during relevant financial year
This section applies if—
the employer wants to elect to include in returns estimated value amounts and use those amounts to work out the employer’s relevant payroll tax and levy liabilities for the relevant financial year; and
the employer has not made an election under section 10 (1) for the relevant financial year.
The employer must apply to the commissioner for consent to make the election.
An application under subsection (2) must be in writing.
The commissioner must consider the application and decide whether or not to give the consent.
The commissioner may give the consent only if reasonably satisfied—
the main purpose for the employer’s election is not to avoid or reduce the amount of payroll tax or mental health levy that would otherwise be payable for the relevant financial year if the payroll tax or mental health levy were calculated on an actual value basis; and
the employer, because of the employer’s circumstances, has compelling reasons for making the election.
The commissioner must give the employer written notice of the commissioner’s decision.
If the commissioner consents to the election, the employer must elect to include in returns estimated value amounts and use those amounts to work out the employer’s relevant payroll tax and levy liabilities.
An election under subsection (7) —
is made by the employer using an estimated value amount to work out the employer’s periodic liability and periodic levy liability for the first periodic return period after receiving the consent; and
continues to apply until the employer elects, under subdivision 3 , to use actual value amounts to work out the employer’s relevant payroll tax and levy liabilities; and
applies for working out—
periodic liability and periodic levy liability for the periodic return period mentioned in paragraph (a) ; and
all subsequent relevant payroll tax and levy liabilities for the employer while the election continues to apply.
If the employer makes an election under subsection (7) , the employer must—
use the value of the employer’s Queensland fringe benefits for the last year of tax to work out—
the employer’s annual liability for the relevant financial year; and
if the employer is not a group member or is the DGE for a group—the employer’s annual levy liability for the relevant financial year; and
include the value of the employer’s Queensland fringe benefits for the last year of tax as part of the wages paid or payable during the relevant financial year by the employer—
in the employer’s annual return for the financial year; and
if the employer is a non-DGE group member—in the information given to the DGE under section 88A (5) of the Act for the financial year.
If the election applies to the employer on 30 June in a financial year after the relevant financial year (a subsequent financial year ), the employer must include an estimated value amount as part of the wages paid or payable during the subsequent financial year—
in the employer’s annual return for that financial year; and
if the employer is a non-DGE group member—in the information given to the DGE under section 88A (5) of the Act for that financial year.
The employer must not purport to make an election under subsection (7) unless the employer has received a consent under this section.
Maximum penalty for subsection (11) —20 penalty units.
s 11 amd 2022 SL No. 168 s 10
(sec.11-ssec.1) This section applies if— the employer wants to elect to include in returns estimated value amounts and use those amounts to work out the employer’s relevant payroll tax and levy liabilities for the relevant financial year; and the employer has not made an election under section 10 (1) for the relevant financial year.
(sec.11-ssec.2) The employer must apply to the commissioner for consent to make the election.
(sec.11-ssec.3) An application under subsection (2) must be in writing.
(sec.11-ssec.4) The commissioner must consider the application and decide whether or not to give the consent.
(sec.11-ssec.5) The commissioner may give the consent only if reasonably satisfied— the main purpose for the employer’s election is not to avoid or reduce the amount of payroll tax or mental health levy that would otherwise be payable for the relevant financial year if the payroll tax or mental health levy were calculated on an actual value basis; and the employer, because of the employer’s circumstances, has compelling reasons for making the election.
(sec.11-ssec.6) The commissioner must give the employer written notice of the commissioner’s decision.
(sec.11-ssec.7) If the commissioner consents to the election, the employer must elect to include in returns estimated value amounts and use those amounts to work out the employer’s relevant payroll tax and levy liabilities.
(sec.11-ssec.8) An election under subsection (7) — is made by the employer using an estimated value amount to work out the employer’s periodic liability and periodic levy liability for the first periodic return period after receiving the consent; and continues to apply until the employer elects, under subdivision 3 , to use actual value amounts to work out the employer’s relevant payroll tax and levy liabilities; and applies for working out— periodic liability and periodic levy liability for the periodic return period mentioned in paragraph (a) ; and all subsequent relevant payroll tax and levy liabilities for the employer while the election continues to apply.
(sec.11-ssec.9) If the employer makes an election under subsection (7) , the employer must— use the value of the employer’s Queensland fringe benefits for the last year of tax to work out— the employer’s annual liability for the relevant financial year; and if the employer is not a group member or is the DGE for a group—the employer’s annual levy liability for the relevant financial year; and include the value of the employer’s Queensland fringe benefits for the last year of tax as part of the wages paid or payable during the relevant financial year by the employer— in the employer’s annual return for the financial year; and if the employer is a non-DGE group member—in the information given to the DGE under section 88A (5) of the Act for the financial year.
(sec.11-ssec.10) If the election applies to the employer on 30 June in a financial year after the relevant financial year (a subsequent financial year ), the employer must include an estimated value amount as part of the wages paid or payable during the subsequent financial year— in the employer’s annual return for that financial year; and if the employer is a non-DGE group member—in the information given to the DGE under section 88A (5) of the Act for that financial year.
(sec.11-ssec.11) The employer must not purport to make an election under subsection (7) unless the employer has received a consent under this section. Maximum penalty for subsection (11) —20 penalty units.
(a) the employer wants to elect to include in returns estimated value amounts and use those amounts to work out the employer’s relevant payroll tax and levy liabilities for the relevant financial year; and
(b) the employer has not made an election under section 10 (1) for the relevant financial year.
(a) the main purpose for the employer’s election is not to avoid or reduce the amount of payroll tax or mental health levy that would otherwise be payable for the relevant financial year if the payroll tax or mental health levy were calculated on an actual value basis; and
(b) the employer, because of the employer’s circumstances, has compelling reasons for making the election.
(a) is made by the employer using an estimated value amount to work out the employer’s periodic liability and periodic levy liability for the first periodic return period after receiving the consent; and
(b) continues to apply until the employer elects, under subdivision 3 , to use actual value amounts to work out the employer’s relevant payroll tax and levy liabilities; and
(c) applies for working out— (i) periodic liability and periodic levy liability for the periodic return period mentioned in paragraph (a) ; and (ii) all subsequent relevant payroll tax and levy liabilities for the employer while the election continues to apply.
(i) periodic liability and periodic levy liability for the periodic return period mentioned in paragraph (a) ; and
(ii) all subsequent relevant payroll tax and levy liabilities for the employer while the election continues to apply.
(i) periodic liability and periodic levy liability for the periodic return period mentioned in paragraph (a) ; and
(ii) all subsequent relevant payroll tax and levy liabilities for the employer while the election continues to apply.
(a) use the value of the employer’s Queensland fringe benefits for the last year of tax to work out— (i) the employer’s annual liability for the relevant financial year; and (ii) if the employer is not a group member or is the DGE for a group—the employer’s annual levy liability for the relevant financial year; and
(i) the employer’s annual liability for the relevant financial year; and
(ii) if the employer is not a group member or is the DGE for a group—the employer’s annual levy liability for the relevant financial year; and
(b) include the value of the employer’s Queensland fringe benefits for the last year of tax as part of the wages paid or payable during the relevant financial year by the employer— (i) in the employer’s annual return for the financial year; and (ii) if the employer is a non-DGE group member—in the information given to the DGE under section 88A (5) of the Act for the financial year.
(i) in the employer’s annual return for the financial year; and
(ii) if the employer is a non-DGE group member—in the information given to the DGE under section 88A (5) of the Act for the financial year.
(i) the employer’s annual liability for the relevant financial year; and
(ii) if the employer is not a group member or is the DGE for a group—the employer’s annual levy liability for the relevant financial year; and
(i) in the employer’s annual return for the financial year; and
(ii) if the employer is a non-DGE group member—in the information given to the DGE under section 88A (5) of the Act for the financial year.
(a) in the employer’s annual return for that financial year; and
(b) if the employer is a non-DGE group member—in the information given to the DGE under section 88A (5) of the Act for that financial year.
sec.12
Election in annual return
sec.12 Election in annual return
An employer, who has made an election under subdivision 2 that continues to apply, may elect to include in returns actual value amounts and use those amounts to work out the employer’s relevant payroll tax and levy liabilities.
An employer makes an election under subsection (1) by using a reconciliation amount to work out—
the employer’s annual liability for a financial year; and
if the employer is not a group member or is the DGE for a group—the employer’s annual levy liability for the financial year.
If an employer makes an election under subsection (1) , the employer must include a reconciliation amount as part of the wages paid or payable by the employer—
in the employer’s returns for the financial year; and
if the employer is a non-DGE group member—in the information given to the DGE under section 88A (5) of the Act for the financial year.
An election under subsection (1) continues to apply until the employer elects, under subdivision 2 , to use estimated value amounts to work out the employer’s relevant payroll tax and levy liabilities.
An election under subsection (1) applies for working out—
periodic liability for the first periodic return period for the financial year immediately after the financial year in which the employer uses a reconciliation amount to work out the employer’s annual liability and, for an employer who is not a group member or is the DGE for a group, the employer’s annual levy liability; and
all subsequent relevant liabilities for the employer while the election continues to apply.
In this section—
relevant liability , for an employer, means—
if the employer is not a group member or is the DGE for a group—the employer’s periodic liability, annual liability, final liability, periodic levy liability, annual levy liability and final liability; or
if the employer is a non-DGE group member—the employer’s periodic liability, annual liability, final liability and periodic levy liability.
s 12 amd 2022 SL No. 168 s 11
(sec.12-ssec.1) An employer, who has made an election under subdivision 2 that continues to apply, may elect to include in returns actual value amounts and use those amounts to work out the employer’s relevant payroll tax and levy liabilities.
(sec.12-ssec.2) An employer makes an election under subsection (1) by using a reconciliation amount to work out— the employer’s annual liability for a financial year; and if the employer is not a group member or is the DGE for a group—the employer’s annual levy liability for the financial year.
(sec.12-ssec.3) If an employer makes an election under subsection (1) , the employer must include a reconciliation amount as part of the wages paid or payable by the employer— in the employer’s returns for the financial year; and if the employer is a non-DGE group member—in the information given to the DGE under section 88A (5) of the Act for the financial year.
(sec.12-ssec.4) An election under subsection (1) continues to apply until the employer elects, under subdivision 2 , to use estimated value amounts to work out the employer’s relevant payroll tax and levy liabilities.
(sec.12-ssec.5) An election under subsection (1) applies for working out— periodic liability for the first periodic return period for the financial year immediately after the financial year in which the employer uses a reconciliation amount to work out the employer’s annual liability and, for an employer who is not a group member or is the DGE for a group, the employer’s annual levy liability; and all subsequent relevant liabilities for the employer while the election continues to apply.
(sec.12-ssec.6) In this section— relevant liability , for an employer, means— if the employer is not a group member or is the DGE for a group—the employer’s periodic liability, annual liability, final liability, periodic levy liability, annual levy liability and final liability; or if the employer is a non-DGE group member—the employer’s periodic liability, annual liability, final liability and periodic levy liability.
(i) the employer’s annual liability for a financial year; and
(ii) if the employer is not a group member or is the DGE for a group—the employer’s annual levy liability for the financial year.
(a) in the employer’s returns for the financial year; and
(b) if the employer is a non-DGE group member—in the information given to the DGE under section 88A (5) of the Act for the financial year.
(a) periodic liability for the first periodic return period for the financial year immediately after the financial year in which the employer uses a reconciliation amount to work out the employer’s annual liability and, for an employer who is not a group member or is the DGE for a group, the employer’s annual levy liability; and
(b) all subsequent relevant liabilities for the employer while the election continues to apply.
(a) if the employer is not a group member or is the DGE for a group—the employer’s periodic liability, annual liability, final liability, periodic levy liability, annual levy liability and final liability; or
(b) if the employer is a non-DGE group member—the employer’s periodic liability, annual liability, final liability and periodic levy liability.
sec.13
Election during financial year
sec.13 Election during financial year
This section applies if—
an employer wants to elect to include in returns actual value amounts and use those amounts to work out the employer’s relevant payroll tax and levy liabilities; and
the employer has made an election under subdivision 2 that continues to apply.
The employer must apply to the commissioner for consent to make the election.
An application under subsection (2) must be in writing.
The commissioner must consider the application and decide whether or not to give the consent.
The commissioner may give the consent only if reasonably satisfied—
the main purpose for the employer’s election is not to avoid or reduce the amount of payroll tax or mental health levy that would otherwise be payable for the financial year if the payroll tax or mental health levy were calculated on an estimated value basis; and
the employer, because of the employer’s circumstances, has compelling reasons for making the election.
The commissioner must give the employer written notice of the commissioner’s decision.
If the commissioner consents to the election, the employer must elect to include in returns actual value amounts and use those amounts to work out the employer’s relevant payroll tax and levy liabilities.
An election under subsection (7) —
is made by the employer using an actual value amount to work out the employer’s periodic liability and periodic levy liability for the first periodic return period after receiving the consent; and
continues to apply until the employer elects, under subdivision 2 , to use estimated value amounts to work out the employer’s relevant payroll tax and levy liabilities; and
applies for working out—
periodic liability and periodic levy liability for the periodic return period mentioned in paragraph (a) ; and
all subsequent relevant liabilities for the employer while the election continues to apply.
If the employer makes an election under subsection (7) , the employer must—
use a reconciliation amount to work out—
the employer’s annual liability for the financial year in which the election is made; and
if the employer is not a group member or is the DGE for a group—the employer’s annual levy liability for the relevant financial year; and
include the reconciliation amount as part of the wages paid or payable during the financial year by the employer—
in the employer’s annual return for the financial year; and
if the employer is a non-DGE group member—in the information given to the DGE under section 88A (5) of the Act for the financial year.
However, if the employer makes an election under subsection (7) and a change of status happens for the employer during the financial year in which the election is made, the employer must—
use a reconciliation amount to work out the employer’s final liability and, if the employer is not a group member or is the DGE for a group, the final levy liability for the final period for the change of status; and
include the reconciliation amount as part of the wages paid or payable during the final period by the employer—
in the employer’s final return for the final period; and
if the employer is a non-DGE group member—in the information given to the DGE under section 88B of the Act .
The employer must not purport to make an election under subsection (7) unless the employer has received a consent under this section.
Maximum penalty for subsection (11) —20 penalty units.
In this section—
relevant liability , for an employer, means—
if the employer is not a group member or is the DGE for a group—the employer’s periodic liability, annual liability, final liability, periodic levy liability, annual levy liability and final liability; or
if the employer is a non-DGE group member—the employer’s periodic liability, annual liability, final liability and periodic levy liability.
s 13 amd 2022 SL No. 168 s 12
(sec.13-ssec.1) This section applies if— an employer wants to elect to include in returns actual value amounts and use those amounts to work out the employer’s relevant payroll tax and levy liabilities; and the employer has made an election under subdivision 2 that continues to apply.
(sec.13-ssec.2) The employer must apply to the commissioner for consent to make the election.
(sec.13-ssec.3) An application under subsection (2) must be in writing.
(sec.13-ssec.4) The commissioner must consider the application and decide whether or not to give the consent.
(sec.13-ssec.5) The commissioner may give the consent only if reasonably satisfied— the main purpose for the employer’s election is not to avoid or reduce the amount of payroll tax or mental health levy that would otherwise be payable for the financial year if the payroll tax or mental health levy were calculated on an estimated value basis; and the employer, because of the employer’s circumstances, has compelling reasons for making the election.
(sec.13-ssec.6) The commissioner must give the employer written notice of the commissioner’s decision.
(sec.13-ssec.7) If the commissioner consents to the election, the employer must elect to include in returns actual value amounts and use those amounts to work out the employer’s relevant payroll tax and levy liabilities.
(sec.13-ssec.8) An election under subsection (7) — is made by the employer using an actual value amount to work out the employer’s periodic liability and periodic levy liability for the first periodic return period after receiving the consent; and continues to apply until the employer elects, under subdivision 2 , to use estimated value amounts to work out the employer’s relevant payroll tax and levy liabilities; and applies for working out— periodic liability and periodic levy liability for the periodic return period mentioned in paragraph (a) ; and all subsequent relevant liabilities for the employer while the election continues to apply.
(sec.13-ssec.9) If the employer makes an election under subsection (7) , the employer must— use a reconciliation amount to work out— the employer’s annual liability for the financial year in which the election is made; and if the employer is not a group member or is the DGE for a group—the employer’s annual levy liability for the relevant financial year; and include the reconciliation amount as part of the wages paid or payable during the financial year by the employer— in the employer’s annual return for the financial year; and if the employer is a non-DGE group member—in the information given to the DGE under section 88A (5) of the Act for the financial year.
(sec.13-ssec.10) However, if the employer makes an election under subsection (7) and a change of status happens for the employer during the financial year in which the election is made, the employer must— use a reconciliation amount to work out the employer’s final liability and, if the employer is not a group member or is the DGE for a group, the final levy liability for the final period for the change of status; and include the reconciliation amount as part of the wages paid or payable during the final period by the employer— in the employer’s final return for the final period; and if the employer is a non-DGE group member—in the information given to the DGE under section 88B of the Act .
(sec.13-ssec.11) The employer must not purport to make an election under subsection (7) unless the employer has received a consent under this section. Maximum penalty for subsection (11) —20 penalty units.
(sec.13-ssec.12) In this section— relevant liability , for an employer, means— if the employer is not a group member or is the DGE for a group—the employer’s periodic liability, annual liability, final liability, periodic levy liability, annual levy liability and final liability; or if the employer is a non-DGE group member—the employer’s periodic liability, annual liability, final liability and periodic levy liability.
(a) an employer wants to elect to include in returns actual value amounts and use those amounts to work out the employer’s relevant payroll tax and levy liabilities; and
(b) the employer has made an election under subdivision 2 that continues to apply.
(a) the main purpose for the employer’s election is not to avoid or reduce the amount of payroll tax or mental health levy that would otherwise be payable for the financial year if the payroll tax or mental health levy were calculated on an estimated value basis; and
(b) the employer, because of the employer’s circumstances, has compelling reasons for making the election.
(a) is made by the employer using an actual value amount to work out the employer’s periodic liability and periodic levy liability for the first periodic return period after receiving the consent; and
(b) continues to apply until the employer elects, under subdivision 2 , to use estimated value amounts to work out the employer’s relevant payroll tax and levy liabilities; and
(c) applies for working out— (i) periodic liability and periodic levy liability for the periodic return period mentioned in paragraph (a) ; and (ii) all subsequent relevant liabilities for the employer while the election continues to apply.
(i) periodic liability and periodic levy liability for the periodic return period mentioned in paragraph (a) ; and
(ii) all subsequent relevant liabilities for the employer while the election continues to apply.
(i) periodic liability and periodic levy liability for the periodic return period mentioned in paragraph (a) ; and
(ii) all subsequent relevant liabilities for the employer while the election continues to apply.
(a) use a reconciliation amount to work out— (i) the employer’s annual liability for the financial year in which the election is made; and (ii) if the employer is not a group member or is the DGE for a group—the employer’s annual levy liability for the relevant financial year; and
(i) the employer’s annual liability for the financial year in which the election is made; and
(ii) if the employer is not a group member or is the DGE for a group—the employer’s annual levy liability for the relevant financial year; and
(b) include the reconciliation amount as part of the wages paid or payable during the financial year by the employer— (i) in the employer’s annual return for the financial year; and (ii) if the employer is a non-DGE group member—in the information given to the DGE under section 88A (5) of the Act for the financial year.
(i) in the employer’s annual return for the financial year; and
(ii) if the employer is a non-DGE group member—in the information given to the DGE under section 88A (5) of the Act for the financial year.
(i) the employer’s annual liability for the financial year in which the election is made; and
(ii) if the employer is not a group member or is the DGE for a group—the employer’s annual levy liability for the relevant financial year; and
(i) in the employer’s annual return for the financial year; and
(ii) if the employer is a non-DGE group member—in the information given to the DGE under section 88A (5) of the Act for the financial year.
(a) use a reconciliation amount to work out the employer’s final liability and, if the employer is not a group member or is the DGE for a group, the final levy liability for the final period for the change of status; and
(b) include the reconciliation amount as part of the wages paid or payable during the final period by the employer— (i) in the employer’s final return for the final period; and (ii) if the employer is a non-DGE group member—in the information given to the DGE under section 88B of the Act .
(i) in the employer’s final return for the final period; and
(ii) if the employer is a non-DGE group member—in the information given to the DGE under section 88B of the Act .
(i) in the employer’s final return for the final period; and
(ii) if the employer is a non-DGE group member—in the information given to the DGE under section 88B of the Act .
(a) if the employer is not a group member or is the DGE for a group—the employer’s periodic liability, annual liability, final liability, periodic levy liability, annual levy liability and final liability; or
(b) if the employer is a non-DGE group member—the employer’s periodic liability, annual liability, final liability and periodic levy liability.
pt.3-div.3
Value of fringe benefits— Act , s 97
Value of fringe benefits— Act , s 97
sec.14
Purpose of division
sec.14 Purpose of division
This division prescribes, for section 97 (2) (d) of the Act , what is to be included in a return as the value of fringe benefits paid or payable by an employer.
sec.15
Definition for subdivision
sec.15 Definition for subdivision
In this subdivision—
grossed-up value , of a fringe benefit, means the value of the benefit worked out using the formula stated in section 13 (5) of the Act .
sec.16
Value of Queensland fringe benefits for estimated value amount
sec.16 Value of Queensland fringe benefits for estimated value amount
For calculating the estimated value amount for a financial year, the value of Queensland fringe benefits for the previous year of tax or the last year of tax is the grossed-up value of the benefits.
sec.17
Value of Queensland fringe benefits for reconciliation amount, final return and information given under Act, s 88B
sec.17 Value of Queensland fringe benefits for reconciliation amount, final return and information given under Act, s 88B
This section applies for calculating a reconciliation amount or the value of fringe benefits to be included in—
an employer’s final return under section 22 ; and
if the employer is a non-DGE group member—the information given to the DGE for the group under section 88B of the Act .
The value of Queensland fringe benefits for the last year of tax is the grossed-up value of the benefits.
The value of Queensland fringe benefits for the year of tax ending in the employer’s election year is the grossed-up value of the benefits.
s 17 amd 2022 SL No. 168 s 13
(sec.17-ssec.1) This section applies for calculating a reconciliation amount or the value of fringe benefits to be included in— an employer’s final return under section 22 ; and if the employer is a non-DGE group member—the information given to the DGE for the group under section 88B of the Act .
(sec.17-ssec.2) The value of Queensland fringe benefits for the last year of tax is the grossed-up value of the benefits.
(sec.17-ssec.3) The value of Queensland fringe benefits for the year of tax ending in the employer’s election year is the grossed-up value of the benefits.
(a) an employer’s final return under section 22 ; and
(b) if the employer is a non-DGE group member—the information given to the DGE for the group under section 88B of the Act .
sec.18
Application of subdivision
sec.18 Application of subdivision
This subdivision applies to an employer for whom an election under division 2 , subdivision 2 applies.
sec.19
Periodic return on estimated value basis
sec.19 Periodic return on estimated value basis
The estimated value amount for the employer to be included in a periodic return for a periodic return period of 1 month in a financial year is one-twelfth of the value of the employer’s Queensland fringe benefits for the previous year of tax.
The estimated value amount for the employer to be included in a periodic return for a periodic return period of 3 months in a financial year is one-quarter of the value of the employer’s Queensland fringe benefits for the previous year of tax.
The estimated value amount for the employer to be included in a periodic return for a periodic return period of 6 months in a financial year is one-half of the value of the employer’s Queensland fringe benefits for the previous year of tax.
(sec.19-ssec.1) The estimated value amount for the employer to be included in a periodic return for a periodic return period of 1 month in a financial year is one-twelfth of the value of the employer’s Queensland fringe benefits for the previous year of tax.
(sec.19-ssec.2) The estimated value amount for the employer to be included in a periodic return for a periodic return period of 3 months in a financial year is one-quarter of the value of the employer’s Queensland fringe benefits for the previous year of tax.
(sec.19-ssec.3) The estimated value amount for the employer to be included in a periodic return for a periodic return period of 6 months in a financial year is one-half of the value of the employer’s Queensland fringe benefits for the previous year of tax.
sec.20
Annual return and information given on estimated value basis
sec.20 Annual return and information given on estimated value basis
This section applies for—
the employer’s annual return for a financial year; and
if the employer is a non-DGE group member—the information given to the DGE for the group under section 88A (5) of the Act for the financial year.
The estimated value amount to be included in the annual return and information is the value of the employer’s Queensland fringe benefits for the last year of tax.
s 20 sub 2022 SL No. 168 s 14
(sec.20-ssec.1) This section applies for— the employer’s annual return for a financial year; and if the employer is a non-DGE group member—the information given to the DGE for the group under section 88A (5) of the Act for the financial year.
(sec.20-ssec.2) The estimated value amount to be included in the annual return and information is the value of the employer’s Queensland fringe benefits for the last year of tax.
(a) the employer’s annual return for a financial year; and
(b) if the employer is a non-DGE group member—the information given to the DGE for the group under section 88A (5) of the Act for the financial year.
sec.21
Application of subdivision
sec.21 Application of subdivision
This subdivision applies to an employer if, when a change of status happens for the employer, an election under division 2 , subdivision 2 applies.
sec.22
Final return and information given on estimated value basis
sec.22 Final return and information given on estimated value basis
This section applies for—
the employer’s final return for a final period; and
if the employer is a non-DGE group member—the information given to the DGE for the group under section 88B of the Act .
The value of fringe benefits to be included in the final return and information as part of the wages paid or payable during the final period for the final return by the employer is the difference between the following amounts—
the total of—
the value of the employer’s Queensland fringe benefits for the last year of tax; and
the value of any Queensland fringe benefits paid or payable by the employer in April, May or June of the final period;
one-quarter of the value of the employer’s Queensland fringe benefits for the year of tax ending in the employer’s election year.
s 22 amd 2022 SL No. 168 s 15
(sec.22-ssec.1) This section applies for— the employer’s final return for a final period; and if the employer is a non-DGE group member—the information given to the DGE for the group under section 88B of the Act .
(sec.22-ssec.2) The value of fringe benefits to be included in the final return and information as part of the wages paid or payable during the final period for the final return by the employer is the difference between the following amounts— the total of— the value of the employer’s Queensland fringe benefits for the last year of tax; and the value of any Queensland fringe benefits paid or payable by the employer in April, May or June of the final period; one-quarter of the value of the employer’s Queensland fringe benefits for the year of tax ending in the employer’s election year.
(a) the employer’s final return for a final period; and
(b) if the employer is a non-DGE group member—the information given to the DGE for the group under section 88B of the Act .
(a) the total of— (i) the value of the employer’s Queensland fringe benefits for the last year of tax; and (ii) the value of any Queensland fringe benefits paid or payable by the employer in April, May or June of the final period;
(i) the value of the employer’s Queensland fringe benefits for the last year of tax; and
(ii) the value of any Queensland fringe benefits paid or payable by the employer in April, May or June of the final period;
(b) one-quarter of the value of the employer’s Queensland fringe benefits for the year of tax ending in the employer’s election year.
(i) the value of the employer’s Queensland fringe benefits for the last year of tax; and
(ii) the value of any Queensland fringe benefits paid or payable by the employer in April, May or June of the final period;
pt.4
Transitional provisions
Transitional provisions
pt.4-div.1
Transitional provisions for SL No. 147 of 2019
Transitional provisions for SL No. 147 of 2019
sec.23
Definition for part
sec.23 Definition for part
In this part—
expired regulation means the Payroll Tax Regulation 2009 as in force immediately before the commencement.
sec.24
Continuation of election under s 12 of expired regulation
sec.24 Continuation of election under s 12 of expired regulation
An election made by an employer under section 12(1) of the expired regulation, that applies immediately before the commencement, is taken to be an election by the employer under section 10(1).
sec.25
Application, consent and continuation of election under s 13 of expired regulation
sec.25 Application, consent and continuation of election under s 13 of expired regulation
An application for consent made by an employer under section 13(2) of the expired regulation, that has not been decided by the commissioner before the commencement, is taken to be an application for consent under section 11(2).
Consent given by the commissioner under section 13 of the expired regulation is taken to be consent given by the commissioner under section 11.
An election made by an employer under section 13(7) of the expired regulation, that applies immediately before the commencement, is taken to be an election by the employer under section 11(7).
(sec.25-ssec.1) An application for consent made by an employer under section 13(2) of the expired regulation, that has not been decided by the commissioner before the commencement, is taken to be an application for consent under section 11(2).
(sec.25-ssec.2) Consent given by the commissioner under section 13 of the expired regulation is taken to be consent given by the commissioner under section 11.
(sec.25-ssec.3) An election made by an employer under section 13(7) of the expired regulation, that applies immediately before the commencement, is taken to be an election by the employer under section 11(7).
sec.26
Continuation of election under s 14 of expired regulation
sec.26 Continuation of election under s 14 of expired regulation
An election made by an employer under section 14(1) of the expired regulation, that applies immediately before the commencement, is taken to be an election by the employer under section 12(1).
sec.27
Application, consent and continuation of election under s 15 of expired regulation
sec.27 Application, consent and continuation of election under s 15 of expired regulation
An application for consent made by an employer under section 15(2) of the expired regulation, that has not been decided by the commissioner before the commencement, is taken to be an application for consent under section 13(2).
Consent given by the commissioner under section 15 of the expired regulation is taken to be consent given by the commissioner under section 13.
An election made by an employer under section 15(7) of the expired regulation, that applies immediately before the commencement, is taken to be an election by the employer under section 13(7).
(sec.27-ssec.1) An application for consent made by an employer under section 15(2) of the expired regulation, that has not been decided by the commissioner before the commencement, is taken to be an application for consent under section 13(2).
(sec.27-ssec.2) Consent given by the commissioner under section 15 of the expired regulation is taken to be consent given by the commissioner under section 13.
(sec.27-ssec.3) An election made by an employer under section 15(7) of the expired regulation, that applies immediately before the commencement, is taken to be an election by the employer under section 13(7).
pt.4-div.2
Transitional provision for Revenue Legislation Amendment Regulation 2022
Transitional provision for Revenue Legislation Amendment Regulation 2022
sec.28
Basis for calculating fringe benefits applies in relation to mental health levy
sec.28 Basis for calculating fringe benefits applies in relation to mental health levy
This section applies to an employer if a relevant election made by the employer applied to the employer immediately before the commencement.
From the commencement, and until the employer makes another election under part 3 , division 2 , the relevant election also applies for working out—
the employer’s periodic levy liability; and
if the employer is not a group member or is the DGE for a group—the employer’s annual levy liability.
In this section—
relevant election , for an employer, means an election made by the employer under part 3 , division 2 to include in returns estimated value amounts or actual value amounts and use those amounts to work out the employer’s periodic and annual liability.
s 28 ins 2022 SL No. 168 s 17
(sec.28-ssec.1) This section applies to an employer if a relevant election made by the employer applied to the employer immediately before the commencement.
(sec.28-ssec.2) From the commencement, and until the employer makes another election under part 3 , division 2 , the relevant election also applies for working out— the employer’s periodic levy liability; and if the employer is not a group member or is the DGE for a group—the employer’s annual levy liability.
(sec.28-ssec.3) In this section— relevant election , for an employer, means an election made by the employer under part 3 , division 2 to include in returns estimated value amounts or actual value amounts and use those amounts to work out the employer’s periodic and annual liability.
(a) the employer’s periodic levy liability; and
(b) if the employer is not a group member or is the DGE for a group—the employer’s annual levy liability.
Source text: opening excerpt
Sourced from Queensland Legislation (legislation.qld.gov.au), CC BY 4.0.
pt.1 Preliminary
Preliminary
sec.1 Short title
sec.1 Short title
This regulation may be cited as the Payroll Tax Regulation 2019 .
sec.2 Commencement
sec.2 Commencement
This regulation commences on 2 September 2019.
sec.3 Definitions
sec.3 Definitions
The dictionary in schedule 1 defines particular words used in this regulation.
pt.2 Liability to taxation
Liability to taxation
sec.4 Value of taxable wages— Act , s 13
sec.4 Value of taxable wages— Act , s 13
For section 13 (1) of the Act , the value of taxable wages paid or payable in kind by an employer (other than fringe benefits under the Fringe Benefits Assessment Act ) is the highest of the following amounts—
the amount agreed under arrangements between the employer and employee as the value of the taxable wages;
the amount attributed by the employer as the value of the taxable wages having regard to arrangements between the employer and employee;
the amount worked out by a person appointed by the commissioner under section 13 (3) of the Act as the value of the taxable wages having regard to arrangements between the employer and employee.
s 4 amd 2022 SL No. 168 s 7
(a) the amount agreed under arrangements between the employer and employee as the value of the taxable wages;
(b) the amount attributed by the employer as the value of the taxable wages having regard to arrangements between the employer and employee;
(c) the amount worked out by a person appointed by the commissioner under section 13 (3) of the Act as the value of the taxable wages having regard to arrangements between the employer and employee.
pt.3 Fringe benefits
Fringe benefits
pt.3-div.1 Preliminary
Preliminary
sec.5 Things that are not fringe benefits— Act , sch , definition fringe benefit
sec.5 Things that are not fringe benefits— Act , sch , definition fringe benefit
For the schedule of the Act , definition fringe benefit , paragraph (d) , a tax-exempt body entertainment fringe benefit is prescribed not to be a fringe benefit.
In this section—
tax-exempt body entertainment fringe benefit see the Fringe Benefits Assessment Act , section 136 (1) .
(sec.5-ssec.1) For the schedule of the Act , definition fringe benefit , paragraph (d) , a tax-exempt body entertainment fringe benefit is prescribed not to be a fringe benefit.
(sec.5-ssec.2) In this section— tax-exempt body entertainment fringe benefit see the Fringe Benefits Assessment Act , section 136 (1) .
Prescribes how estimated amounts are to be computed, tying estimated periodic instalments to the grossed‑up value of the employer’s Queensland fringe benefits for the prior year of tax and setting monthly/quarterly/half‑year fractions (s 16, s 19, s 20). It prescribes that reconciliation amounts and values included in final returns are the grossed‑up values for specified tax years (ss 15-17, 22).
Limits in‑year switching between estimated and actual bases by requiring written applications to the commissioner and conditioning consent on two tests: the main purpose of the employer’s election must not be to avoid or reduce payroll tax or the mental health levy, and the employer must have compelling reasons to make the election (ss 11(2)-(6), 13(2)-(6)). Written notice of the commissioner’s decision is required (ss 11(6), 13(6)).
Provides transitional continuity for elections, consents and applications made under the previous regulation immediately before commencement (ss 24-27), and extends certain elections to apply for mental health levy calculations by virtue of the 2022 Amendment (s 28).
The Regulation therefore operationalises valuation, election mechanics, timing and reconciliation of fringe benefits for payroll tax/levy returns, sets compliance steps and penalties, and maps older elections into the new scheme. The text itself contains declared purposes in narrow form , for example, it states that the division provides for the election to include estimated or actual amounts in returns (s 8) , but does not contain a second‑reading speech or an explanatory memorandum in the material provided here. The practical effects that follow from each provision are set out and tested in later sections, with exact section citations.
Main concepts
The instrument structures a limited set of technical concepts that recur through its provisions. These concepts are defined either in the Regulation, by reference to the Act, or by reference to the Fringe Benefits Assessment Act.
Estimated value amount and actual value amount (part 3, division 2): The Regulation implements the Act’s s 91 by allowing an eligible employer to elect to report either an estimated value (based on a prior year’s grossed‑up Queensland fringe benefits) or an actual value (using reconciliation) for fringe benefits in returns. The election is made by the manner specified in ss 10-13.
Reconciliation amount (ss 12, 13): When an employer elects to move to actual values in the annual return or during a financial year, the employer must use a reconciliation amount to work out the employer’s annual liability (and where applicable annual levy liability). The reconciliation amount must be included as part of wages in returns (s 12(2)-(3); s 13(9)-(10)).
Grossed‑up value (s 15): The Regulation adopts the gross‑up concept for a fringe benefit, defined to mean the value of the benefit worked out using the formula in s 13(5) of the Act. The grossed‑up value is used consistently for calculating estimated amounts (s 16) and reconciliation/final return values (s 17).
Queensland fringe benefits / last year of tax / previous year of tax / year of tax ending in the election year: The Regulation repeatedly refers to the value of the employer’s Queensland fringe benefits for specific reference years , the previous year of tax, the last year of tax, or the year of tax ending in the employer’s election year , and requires those values to be the grossed‑up value of benefits for the relevant year (ss 16-17). Practitioners must map an employer’s tax years to those terms.
Periodic return periods and instalment fractions (s 19): For employers on the estimated basis, the Regulation prescribes that periodic instalments are fixed fractions of the prior year’s grossed‑up Queensland fringe benefits: one‑twelfth for monthly periods, one‑quarter for quarterly periods, and one‑half for six‑monthly periods (s 19).
Designated Group Employer (DGE), non‑DGE group members, and group information flows: Several rules condition reporting and inclusion obligations on whether an employer is a DGE or a non‑DGE group member, referring to specified Act provisions (ss 7, 10(4), 11(9), 12(3), 13(9)-(10), 20(1)). The Regulation requires inclusion of estimated or reconciliation amounts in information given to the DGE under s 88A(5) (and references s 88B, s 88E) of the Act.
Change of status and final returns (ss 21-22, 13): When an employer’s status changes during a financial year (for example because of group membership changes or ceasing to be an employer), special rules determine the value of fringe benefits to include in the final return. The final return calculation for an employer on the estimated basis is the difference between (i) the total of the last year of tax plus any Queensland fringe benefits paid in April-June of the final period and (ii) one‑quarter of the value for the year of tax ending in the election year (s 22).
Commissioner discretion and appointed valuator (ss 4(c), 11-13): The commissioner is given two kinds of decision power: (i) to appoint a person under the Act to value taxable wages in kind, producing a value that forms one of the three candidate amounts in s 4; and (ii) to grant or refuse consent to elections entered in‑year or during a financial year, subject to statutory satisfaction tests (ss 11(5), 13(5)). The commissioner must give written notice of decisions (ss 11(6), 13(6)).
These concepts interact mechanically: estimated instalments are computed from prior‑year grossed‑up values (ss 16, 19, 20); switching between bases requires written consent and triggers reconciliation obligations (ss 11-13); final returns on change of status use the formula in s 22. The Regulation therefore provides a small vocabulary and arithmetic rules that determine timing, amounts and documentation for fringe benefits in payroll tax reporting.
Who it affects
The Regulation primarily affects employers who provide fringe benefits and have a history of fringe‑benefits tax liability. The text identifies several distinct cohorts and stakeholders.
Employers who have paid, or are liable to pay, fringe‑benefits tax (FBT) for at least 15 consecutive months before the start of a financial year (s 9). That eligibility threshold determines who may use the estimated/actual election regime in part 3, division 2. Employers with shorter FBT histories are excluded from that elective pathway by the Regulation’s application rule.
Employers who provide taxable wages in kind: s 4 governs how the value of taxable wages paid or payable in kind is determined for payroll tax purposes. That affects employers who remunerate staff with non‑cash benefits that fall outside the Fringe Benefits Assessment Act’s specified FBT items.
Employers who pay or are liable for payroll tax and the mental health levy: The Regulation repeatedly links fringe‑benefit reporting to both payroll tax and the mental health levy liabilities (for example s 7 and the 2022 insertion, s 28). Employers subject to either or both levies must follow the calculation and election rules where applicable.
DGE and non‑DGE group members: Group structures are explicitly covered. The Regulation conditions particular reporting obligations on whether the employer is the DGE or a non‑DGE group member, specifying what must be included in information given to the DGE under the Act’s group information sections (for example ss 7(1)(c)-(d), 10(4), 12(3), 13(9)-(10), 20). Employers in groups will need to co‑ordinate their elections and data so the DGE can meet consolidated reporting.
Tax‑exempt bodies providing entertainment fringe benefits: The Regulation prescribes that a tax‑exempt body entertainment fringe benefit is not a fringe benefit for payroll tax purposes (s 5). That affects the tax treatment for such entities and removes those specific benefits from fringe‑benefit valuation for payroll tax.
Employers who receive amended FBT assessments: s 6 imposes an administrative obligation to supply the commissioner with a copy of any notice of an amended assessment under the Fringe Benefits Assessment Act within 30 days, subject to a 20‑penalty‑unit maximum.
Employers undergoing a change of status: s 21-22 target employers who experience a change of status during a tax year (for example, ceasing employer status or joining/leaving a group). Such employers face a specific final return calculation that uses tax‑year‑specific grossed‑up values and any fringe benefits paid or payable in April-June of the final period (s 22).
Employers with elections under the expired regulation: Transitional provisions automatically convert elections, applications and consents made under the expired regulation into the corresponding elections and consents under the 2019 Regulation (ss 24-27). That preserves continuity for affected employers and reduces immediate administrative disruption.
Who pays and who decides. The employer pays the payroll tax and the mental health levy; the Regulation prescribes how fringe‑benefit values contribute to the wages base for those liabilities. The commissioner decides whether to grant consent to in‑year election changes (ss 11(4)-(6), 13(4)-(6)), and the commissioner (or a person appointed by the commissioner under the Act) may determine values for in‑kind taxable wages (s 4(c)). Penalties (20 penalty units) flow from certain failures to supply notices or from purporting to make elections without the required consent (ss 6, 11(11), 13(11)).
In short, the Regulation affects the accounting and reporting choices of employers with an FBT history, places information and filing duties on them (and on group DGEs), and concentrates decision power over in‑year election switching in the commissioner’s hands.
Key duties and rights
The Regulation creates clear, enumerated duties for employers, and limited procedural rights (primarily the right to apply and to receive a written decision) with important conditions.
Key duties
Valuation duty for in‑kind taxable wages: Employers must treat the value of taxable wages paid or payable in kind as the highest of the employer/employee‑agreed amount, the amount attributed by the employer with regard to arrangements, or the amount worked out by a person appointed by the commissioner under the Act (s 4). Employers must therefore retain documentary evidence of agreements and employer attributions to support the chosen value where the commissioner’s appointed valuation is the alternative.
Notice obligation on amended FBT assessments: An employer who receives a notice of an amended assessment under the Fringe Benefits Assessment Act must give the commissioner a copy within 30 days (s 6). Non‑compliance carries a maximum penalty of 20 penalty units.
Consistent basis rule: Employers must calculate fringe benefits on the same basis across all periodic, annual and final returns for a financial year, and in information supplied to the DGE or non‑DGE group members where relevant (s 7). The duty requires operational consistency between periodic returns, annual reconciliation, and group reporting.
Election‑related duties: If an employer elects to use estimated value amounts (s 10), the employer must include the estimated amounts in periodic returns and annual returns (s 10(4)). When an employer elects to use actual values (s 12), the employer must use a reconciliation amount in the annual return and include it in returns and, if applicable, in the information to the DGE (s 12(2)-(3)). If electing during a financial year to switch bases, the employer must apply in writing and, if consent is given, include the reconciliation amount in the annual or final return as prescribed (s 13).
Final return duty on change of status: When a change of status occurs in a year in which an employer has made an election under the estimated basis, the employer must include the specified final return value (the difference between specified amounts) in the employer’s final return and, for non‑DGE members, in information to the DGE (s 22).
Documentation for switching: Applications to the commissioner for consent to elect in a financial year must be in writing (ss 11(3), 13(3)). The employer must not purport to make an election without having received written consent from the commissioner; doing so is an offence attracting a maximum penalty of 20 penalty units (s 11(11), s 13(11)).
Key rights and procedural protections
Right to elect: Eligible employers (those who have paid/been liable for FBT for at least 15 consecutive months before the financial year) have a statutory right to elect estimated or actual value bases, subject to the timing rules and commissioner consent for some in‑year elections (ss 9-13).
Right to apply and to written decision: Employers seeking to elect during a financial year must apply in writing and are entitled to a written decision by the commissioner (ss 11(3)-(6), 13(3)-(6)). The commissioner’s decision is constrained by statutory tests: the main purpose of the election must not be to avoid or reduce payroll tax or the mental health levy, and the employer must have compelling reasons (ss 11(5), 13(5)).
Transitional rights: Elections, applications and consents made under the expired regulation immediately before commencement are taken to be elections, applications and consents under the new Regulation (ss 24-27), so affected employers retain the operational position they had pre‑commencement.
DGE information flows: Employers who are DGE or non‑DGE have specified duties to include estimated, reconciliation or final amounts in group information flows under the Act’s s 88A/88B/88E references; these duties are rights where they provide the mechanism for DGE to fulfil consolidated reporting responsibilities (s 10(4), s 11(9)-(10), s 12(3), s 13(9)-(10), s 20(1), s 22(1)).
The Regulation therefore balances duties (valuation, notice, consistent calculation, documentation and filing) with a constrained right of election. However, the ability to switch between estimated and actual reporting in‑year is tightly constrained by the commissioner’s consent tests and the written‑consent procedural bar, making the practical right to switch conditional rather than absolute.
Penalties and enforcement
The Regulation prescribes a small set of penalties and embeds several enforcement points through the commissioner’s discretionary powers.
Penalties specified in the text
Failure to deliver an amended FBT assessment to the commissioner within 30 days attracts a maximum penalty of 20 penalty units (s 6). The Regulation does not specify whether the penalty is strict liability or requires mens rea; it is framed as a maximum penalty for non‑compliance with the notice obligation.
Employers who purport to make an election under s 11(7) or s 13(7) without having received the commissioner’s consent commit an offence attracting a maximum penalty of 20 penalty units (s 11(11); s 13(11)). The text thus criminalises (or at least makes punishable) falsely claiming to have consent for in‑year election changes.
No other express monetary penalties are set out in the Regulation text provided. The Regulation does, however, state that non‑compliance with the consistent calculation obligation in s 7 may affect payroll tax and mental health levy liabilities (s 7(2)), which signals administrative or liability consequences rather than an express fine.
Enforcement mechanisms and discretion
Commissioner consent and written decisions: The commissioner is the gatekeeper for in‑year election consents (ss 11(4)-(6), 13(4)-(6)). The commissioner must consider written applications and provide written notice of decisions (ss 11(3), 11(6); ss 13(3), 13(6)). This creates an administrative enforcement point: the commissioner can refuse consent on statutory grounds (main purpose is avoidance/reduction of tax or insufficient compelling reasons), which prevents an employer from switching bases and obliges them to continue using the existing reporting basis.
Appointed valuator: Under s 4(c), one of the permissible valuation bases is the amount worked out by a person appointed by the commissioner under the Act (s 13(3) of the Act is referenced). The commissioner’s appointment and valuation act as an enforcement mechanism where employer and employee attributions are disputed or contested.
Reporting and reconciliation regimes: The structural requirements for periodic instalments, annual reconciliations and final return calculations (ss 10-13; ss 16-22) give the commissioner points at which to check and to adjust tax liabilities. The Regulation requires inclusion of reconciliation amounts and the use of grossed‑up values; departures from those arithmetic rules can prompt assessments or adjustments under the Act’s enforcement powers.
Transitional continuity and data flow to DGE: Transitional provisions preserve prior elections and consents (ss 24-27), which reduces immediate dispute risk stemming from sudden regulatory change. The Regulation also compels employers in groups to include estimated/reconciliation/final amounts in information given to the DGE (ss 10(4), 11(9)-(10), 12(3), 13(9)-(10), 20, 22). Those reporting flows give the commissioner consolidated sight of group positions under the Act’s group reporting regime referenced in the Regulation.
Limits of enforcement detail in the text
The Regulation sets particular offences and maximum penalties but does not, in the provided text, specify the enforcement machinery for monetary penalty recovery, civil assessment adjustments, interest, or the internal penalty unit valuation. Those matters are governed by the Act and other legislation not contained in the text supplied. Practitioners will need to consult the Act and relevant revenue administration laws for detailed enforcement procedures, interest rates, and the current value of a penalty unit.
The commissioner’s discretion is defined by statutory tests in ss 11 and 13, but the Regulation does not set process standards beyond the written‑application requirement and the obligation to give written notice of the commissioner’s decision. There is no express requirement in the Regulation for the commissioner to publish reasons or to provide review rights; review and appeal rights will rest with the Act and administrative law principles outside the Regulation’s text.
In summary, the Regulation creates a small number of expressly punishable failures (20 penalty units) tied to amended FBT notices and unauthorised election claims, while embedding the commissioner as the principal enforcement actor through consent processes and the ability to require or use appointed valuations.
How it interacts with other laws
The Regulation is a subordinate instrument that operationalises and references multiple provisions of the Payroll Tax Act and imports concepts from the Fringe Benefits Assessment Act. Its operation therefore depends on cross‑references and interactions.
References to the Act
The Regulation interprets and implements the Act’s provisions on the value of taxable wages and calculation bases for fringe benefits. Section 4 is expressly for the Act, s 13(1), setting the value of taxable wages in kind. Division titles repeatedly refer to the Act (for example, "Basis for calculating fringe benefits , Act, s 91" and "Value of fringe benefits , Act, s 97"). The Regulation therefore functions within the Act’s statutory framework: elections under the Regulation are embodiments of rights or processes the Act contemplates (e.g. s 91 and s 97 of the Act).
Group reporting references: The Regulation repeatedly requires inclusion of estimated, reconciliation or final amounts in information given under the Act’s ss 88A, 88B, 88C, 88D and 88E. Those Act provisions govern group consolidation, designated group employer reporting, and information flows; the Regulation prescribes what numbers must flow into those data exchanges (for example ss 7, 10(4), 11(9)-(10), 12(3), 13(9)-(10), 20, 22).
Commissioner appointments and valuations: s 4(c) references a person appointed by the commissioner under s 13(3) of the Act to work out the value of taxable wages. That cross‑reference gives the commissioner an Act‑based appointment power to determine valuations that the Regulation then treats as a candidate for the payroll tax valuation.
References to the Fringe Benefits Assessment Act
Definition and valuation concepts: s 5 explicitly imports the Fringe Benefits Assessment Act’s definition of "tax‑exempt body entertainment fringe benefit" (Fringe Benefits Assessment Act s 136(1)) and prescribes those benefits not to be fringe benefits for payroll tax purposes. The Regulation therefore changes the payroll tax sweep by excluding a specified class of FBT item.
Notice of amended assessments: s 6 places a duty on employers to supply the commissioner with a copy of any notice of an amended assessment under the Fringe Benefits Assessment Act. The timing (30 days) ties payroll tax administration to FBT administrative events under the other Act.
Transitional and amendment interactions
Continuity with the expired regulation: Part 4 gives transitional operation to existing elections and consents made under the expired Payroll Tax Regulation 2009, mapping them into the 2019 Regulation (ss 24-27). This reduces legal discontinuity when the subordinate instrument changed.
2022 Revenue Legislation Amendment Regulation insertion: s 28, inserted by the 2022 instrument (2022 SL No. 168), extends the base‑calculation elections to apply for mental health levy periodic and annual levy liabilities (where an election applied immediately before the commencement). That amendment aligns the fringe‑benefit election mechanics with mental health levy liabilities, integrating that levy into the existing payroll‑tax fringe‑benefit calculation framework.
Matters not contained in the Regulation but relevant
The grossing formula: s 15 states that "grossed‑up value" is the value of a benefit worked out using the formula in s 13(5) of the Act. Practitioners must consult the Act for the exact gross‑up formula and the rates to be applied, since the Regulation delegates actual calculation mechanics to the Act.
Penalty unit value and recovery procedures: The Regulation uses penalty units but does not specify the monetary amount of a penalty unit or the recovery mechanism; those details are in broader statutory instruments and the Act.
Administrative review and judicial review: The Regulation requires written decisions by the commissioner but does not itself set out merits or judicial review pathways. Those routes will be determined by the Act and general administrative law.
In summary, the Regulation is deliberately interdependent with the Payroll Tax Act for valuation formulas, group reporting structures and appointment powers, and with the Fringe Benefits Assessment Act for the underlying FBT definitions and assessment events. Practitioners must therefore read the Regulation alongside the named Act provisions and the Fringe Benefits Assessment Act to apply it accurately.
Amendment history
The text contains internal amendment annotations and a transitional division mapping prior‑regulation instruments into the new framework. The amendments recorded in the text supplied are limited but concrete.
Commencement: The Regulation commenced on 2 September 2019 (s 2). That marks the operative date for the 2019 instrument.
2022 amendments (SL No. 168): Several sections include the marginal note "amd 2022 SL No. 168 s X" or "ins 2022 SL No. 168 s 17" indicating that a subsequent subordinate instrument, Revenue Legislation Amendment Regulation 2022 (SL No. 168), made amendments or insertions in 2022. The annotation appears against multiple sections: s 4, s 7, s 10, s 11, s 12, s 13, s 17, s 20, s 22 and explicitly s 28 is shown as inserted in 2022 (s 28 ins 2022 SL No. 168 s 17).
Nature of the 2022 insertion (s 28): Section 28, described as a "Transitional provision for Revenue Legislation Amendment Regulation 2022", was inserted by SL No. 168 (2022). It makes clear that if an employer had a "relevant election" immediately before the commencement of the 2022 amendment, that election would also apply to the calculation of the employer’s periodic levy liability and, for non‑group employers or a DGE, the employer’s annual levy liability (s 28). The insertion therefore extended the existing election regime to encompass the mental health levy where previously it may have applied only to payroll tax.
Transitional mapping from expired regulation: Parts 4, divisions 1 and 2, provide explicit transitional provisions mapping elections, applications, consents and related items made under the expired Payroll Tax Regulation 2009 to corresponding items under the 2019 Regulation (ss 23-27). These are not "amendments" to the 2019 text in the narrow sense, but they preserve the legal effect of instruments under the older regulation at the point of migration to the new text.
Minor textual amendments: The repeated "amd 2022 SL No. 168 s X" notes at multiple sections indicate that the 2022 instrument made textual or substantive changes spread across the Regulation. The supplied text often repeats the same subsection text immediately after the amendment annotation, suggesting consolidation. The Regulation also contains editorial marginal notes indicating where subsections were renumbered or clarified.
No earlier amendment history in the supplied text: The material provided does not display any amendment history prior to the 2019 commencement date other than the transformation from the expired 2009 regulation (which is addressed by the transitional provisions). The supplied annotations thus record the principal amendments relevant to the material: commencement in 2019, and the 2022 SL No. 168 changes, principally relating to levy calculation alignment.
For a complete amendment chronology, practitioners will need to consult the Queensland legislation register or Gazette entries for SL No. 147 of 2019 (which appears to be the 2019 instrument) and SL No. 168 of 2022 to see the precise amending text, reasons and dates. The Regulation itself, as supplied, embeds only the 2019 text and the 2022 insertion annotations.
Litigation history
The supplied Regulation text contains no judicial decisions, citations of cases, or explicit litigation history. It does not name any cases, nor does it record any judicial interpretation or challenge of its provisions.
What the text does provide that is relevant to potential litigation
Commissioner discretion and statutory tests: Sections 11 and 13 set out the test for commissioner consent to in‑year election switching and require the commissioner to be "reasonably satisfied" on two points: the employer’s main purpose is not to avoid or reduce payroll tax or the mental health levy, and the employer has compelling reasons for the election (ss 11(5), 13(5)). These are discretion‑laden standards that could be subject to judicial review or merits review if the commissioner refuses consent and the applicant seeks administrative law relief.
Penalty provisions: The Regulation creates specific offences tied to failure to supply an amended FBT assessment and to purporting to make an election without consent (ss 6, 11(11), 13(11)). Those penalty provisions could lead to litigated disputes about whether the statutory offence elements were made out, including factual disputes about copies of amended assessments and whether consent had been received.
Valuation by appointed person: Section 4 allows an amount worked out by a person appointed by the commissioner under the Act to form the value of taxable wages in kind (s 4(c)). Procedural fairness issues could arise if an employer disputes such an appointed valuation, and judicial review or an Act‑based appeal against the commissioner’s action may be pursued.
Group reporting disputes: The Regulation requires specific information to be provided to a DGE and creates cross‑effect obligations between DGE and non‑DGE members (e.g. ss 7, 10(4), 11(9)-(10), 12(3), 13(9)-(10)). Disputes over compliance, apportionment, or whether the correct amounts were included in the DGE’s consolidated return could produce litigation between group members or between a group and the revenue authority.
Absence of case law in the text
Because the provided material does not include any reported decisions, practitioners are left without statutoryly supplied judicial interpretation. Any case law that has interpreted these provisions since their commencement (or since the 2022 amendment) is not present in the text and must be located in external databases and law reports. The Regulation itself, as provided, offers no litigation history.
Practical implication
Where legal challenge is considered (for example, on a refused consent), the statutory language of ss 11 and 13 suggests avenues for administrative review: employers will likely need to engage with the commissioner’s written decision procedure, preserve documentation that evidences the purpose of the election, and be prepared to argue that their reasons meet the "compelling reasons" threshold. Any judicial challenge would engage standard administrative law grounds (unreasonableness, failure to observe procedural fairness, error of law), but the Regulation’s text supplies only the statutory standards; outcomes will depend on subsequent rulings not present in the Regulation.
In short, no litigation history is recorded in the text supplied; the Regulation sets up decision points and penalties that are predictable sources of potential disputes and judicial review.
Gotchas
This section lists specific traps, friction points and operational surprises that arise directly from the Regulation’s text and mechanics. Each item references the relevant sections.
Eligibility requirement for the election (s 9): Only employers who have paid, or are liable to pay, FBT for at least 15 consecutive months immediately before the start of a financial year are eligible for the estimated/actual election regime. An employer who has not met the 15‑month continuous FBT criterion cannot rely on the elective regime even if they paid FBT previously. Practitioners must map FBT liability periods carefully to confirm eligibility.
Earlier year dependency for estimated instalments (ss 16, 19, 20): The estimated basis uses the grossed‑up value of Queensland fringe benefits for the previous year of tax or last year of tax. For the periodic instalments the Regulation fixes the fraction (monthly/quarterly/half‑year) of the previous year’s grossed‑up value (s 19). Employers with materially different current year fringe benefits may find the instalments misaligned with the actual current year exposure.
Reconciliation obligation and timing trap (ss 12-13): When an employer shifts from estimated to actual amounts by election in the annual return, or if the commissioner consents mid‑year, reconciliation amounts must be used to work out the annual liability and be included in the returns and group information (s 12(2)-(3); s 13(9)-(10)). Missing the reconciliation or miscomputing the reconciliation could produce a mismatch between periodic instalments and final liability.
Strict consent gate for in‑year switching (ss 11(2)-(6), 13(2)-(6)): Employers cannot make an in‑year election to change basis without written consent. The commissioner may consent only if the main purpose is not avoidance/reduction of payroll tax or the levy and the employer has compelling reasons. That is a high‑hurdle standard that gives the commissioner significant discretion. Employers seeking flexibility mid‑year should expect evidentiary scrutiny and possible refusal.
Penalty for purporting to make an election without consent (ss 11(11), 13(11)): There is an express 20 penalty‑unit maximum for purporting to make an in‑year election without receiving consent. That penal exposure is separate from any tax adjustment risk and can be engaged even where the substantive tax shortfall is small.
The gross‑up formula is in the Act, not the Regulation (s 15): The Regulation defines "grossed‑up value" by reference to the Act’s s 13(5) formula. Practitioners must consult the Act to apply the correct gross‑up multipliers and rates; assuming a standard or intuitive gross‑up without checking the Act risks misstatement of the value.
Final return formula on change of status uses April-June specifics (s 22): The final return value for an employer on the estimated basis is the difference between (i) the total of the last year of tax plus any Queensland fringe benefits paid or payable in April, May or June of the final period and (ii) one‑quarter of the value for the year of tax ending in the employer’s election year (s 22). Employers with fringe benefits concentrated in the April-June quarter must account for that specific timing rule; the inclusion of "paid or payable" in that quarter affects accrual accounting and may produce counterintuitive results.
Consistency requirement across returns and group information (s 7): Employers must calculate fringe benefits on the same basis for each periodic return, for working out payroll tax and levy liabilities, and for group reporting where applicable. Piecemeal use of estimated values for some returns and actual values for others in the same financial year will breach s 7 and may change liabilities. This constrains bookkeeping processes and may increase compliance costs where payroll and benefits accounting systems are not in sync.
Interaction with group reporting (multiple sections): The Regulation repeatedly requires information to be included under Act s 88A(5) and other group reporting sections. Where employers are part of groups with a DGE, the election chosen by a non‑DGE member affects the DGE’s consolidated numbers. Failure to coordinate or miscommunication between group members can give rise to adjustment and internal disputes.
Transitional mapping preserves old elections but not necessarily their economic rationale (ss 24-27): Elections made under the expired regulation are taken to be elections under the new sections. Practitioners should not assume that the mapping is a substantive revalidation; existing elections are preserved but new compliance steps and different reporting obligations (e.g. for the mental health levy under s 28) may now apply.
Extension of elections to levy by 2022 amendment (s 28): The 2022 insertion extended the operation of a "relevant election" to mental health levy calculations. Employers who made elections before the 2022 amendment may now have those elections affect levy calculations in ways that were not contemplated at the time of the original election.
Operationally, these "gotchas" mean that employers and advisers must (i) verify election eligibility periods; (ii) calculate periodic instalments and reconciliations using the Act’s gross‑up formula; (iii) maintain consistent basis across all returns and group communications; (iv) prepare written applications and supporting evidence for commissioner consent where in‑year switching is sought; and (v) understand the final return arithmetic when an employer’s status changes mid‑year.
How to comply
This section sets out a practical compliance checklist, grounded in the Regulation’s text and sequenced by the key operational steps an employer or tax adviser will need to take. Each step cites the relevant section.
Confirm eligibility for the election regime (s 9)
Check whether the employer has paid, or been liable to pay, fringe‑benefits tax for at least 15 consecutive months immediately before the start of the financial year. Only eligible employers can use the estimated/actual election pathways set out in part 3, division 2 (s 9).
Decide which reporting basis to use (s 8-12)
If electing the estimated basis in the first periodic return period for the year, make the election by using an estimated value amount to calculate the employer’s periodic liability for that first periodic return period (s 10(2)). The election then continues until an election to use actual values is made (s 10(3)).
If preferring actual values, an employer who has made an election to use estimated values may elect to include actual value amounts by using a reconciliation amount in the annual return (s 12(1)-(2)). This changes the basis for subsequent periodic liabilities from the first periodic return period after using the reconciliation (s 12(5)).
Compute the estimated value amounts correctly (ss 15-20)
Determine the grossed‑up value of the employer’s Queensland fringe benefits for the relevant prior year(s) using the gross‑up formula in s 13(5) of the Act, as the Regulation defines "grossed‑up value" by reference to the Act (s 15).
For periodic returns on the estimated basis, include fractions of the prior year grossed‑up value: one‑twelfth for monthly periods, one‑quarter for quarterly periods, and one‑half for six‑monthly periods (s 19).
For the annual return, include as the estimated value amount the value of the employer’s Queensland fringe benefits for the last year of tax (s 20(2)).
Prepare reconciliation amounts and final return calculations (ss 12, 13, 17, 22)
If switching to actual values, compute the reconciliation amount that works out the employer’s annual liability for the financial year and include that amount in returns and, where relevant, in information to the DGE (s 12(2)-(3)).
If electing actual values during a financial year with commissioner consent, use a reconciliation amount for the annual liability or, where a change of status occurs, for the final liability (s 13(9)-(10)). For final periods under a change of status, compute the final return value per s 22: (value of last year of tax + any QLD FB paid or payable in April-June of the final period) minus one‑quarter of the QLD FB value for the year of tax ending in the election year.
Coordinate with group reporting obligations (ss 7, 10(4), 11(9), 12(3), 13(9)-(10), 20, 22)
If the employer is a non‑DGE group member, include the necessary estimated or reconciliation amounts in the information provided to the DGE under s 88A(5) of the Act (s 10(4); s 12(3); s 13(9)-(10); s 20(1); s 22(1)).
If the employer is the DGE, ensure that information provided by non‑DGE members is consistent with s 7’s requirement to calculate fringe benefits on the same basis.
Apply for commissioner consent where required (ss 11, 13)
If the employer did not elect the estimated basis in the first periodic return period but wishes to do so during the relevant financial year, the employer must apply in writing to the commissioner for consent (s 11(2)-(3)).
If the employer wants to elect to include actual value amounts during the financial year (and has made an estimated election that continues to apply), the employer must apply in writing to the commissioner for consent (s 13(2)-(3)).
Prepare the application to address the statutory consent tests: demonstrate that the main purpose of the election is not to avoid or reduce payroll tax/the levy, and set out the compelling reasons that justify the election (ss 11(5), 13(5)). Expect the commissioner to issue a written decision (ss 11(6), 13(6)).
Maintain consistent basis and documentation (s 7)
Once a basis is adopted for a financial year, apply it consistently for each periodic return, the employer’s annual and final returns, and group reporting where applicable (s 7(1)). Maintain documentation showing the basis chosen and the computations that produced periodic and reconciliation amounts.
Retain copies of agreements or attributions used to determine values for in‑kind wages, and any communications about valuations with a commissioner‑appointed valuator (s 4).
Supply amended FBT assessment notices promptly (s 6)
If the employer receives a notice of an amended assessment under the Fringe Benefits Assessment Act, give the commissioner a copy within 30 days (s 6). Maintain a docketed process to capture such assessments and to produce copies quickly. Non‑compliance risks a penalty of up to 20 penalty units.
Avoid purporting to make elections without consent (ss 11(11), 13(11))
Do not claim to have changed the election basis mid‑year unless the commissioner’s written consent has been received. There is a distinct offence for purporting to make an election without consent, with a maximum penalty of 20 penalty units.
Check the mental health levy interaction (s 28)
If a relevant election applied immediately before the 2022 amendment, it also applies to the employer’s periodic levy liability and, for non‑group employers or DGEs, annual levy liability until another election is made (s 28). Employers should verify whether their historic elections now affect mental health levy calculations.
Reconcile systems and accounting treatment
Since estimated instalments are fixed fractions of the prior year’s grossed‑up value (s 19), payroll and accounting systems must be capable of mapping those estimated instalments to the employer’s payroll tax filing periods, and of reconciling to actual fringe‑benefit values at year‑end.
Review the Act and Fringe Benefits Assessment Act for related rules
The Regulation relies on definitions and formulas located in the Act (for grossing up, and for appointment powers) and in the Fringe Benefits Assessment Act (for the tax‑exempt body entertainment fringe benefit and assessment events). Practitioners must consult those Acts for the complete set of calculation rules, definitions and enforcement mechanisms (s 15; s 5; s 4(c); s 6 referencing the Fringe Benefits Assessment Act).
Use transitional mappings where relevant (ss 24-27)
If an employer had elections, consents or applications under the expired 2009 regulation immediately before the 2019 Regulation commenced, treat those instruments as continuing under the corresponding new sections (ss 24-27). Recordkeeping should capture the original election dates and the mapping to the new section numbers.
Keep auditable records
Maintain contemporaneous records supporting agreed values, employer attributions, calculations of grossed‑up values, periodic instalment computations, reconciliation amounts, applications for consent, and copies of commissioner communications. The Regulation’s cross‑referencing to the Act and the Fringe Benefits Assessment Act means that revenue authorities will expect documentation aligning with both statutes.
Following this checklist implements the Regulation’s express duties and procedural steps. It also reduces the likelihood of triggering the specified penalties (ss 6, 11(11), 13(11)) and provides a defensible record should the commissioner require justification for an election or a valuation.
Section sec.4Value of taxable wages— Act , s 13
sec.6 Notice of amended assessments under the Fringe Benefits Assessment Act
sec.6 Notice of amended assessments under the Fringe Benefits Assessment Act
An employer must, within 30 days of receiving a notice of an amended assessment under the Fringe Benefits Assessment Act , give the commissioner a copy of the notice.
Maximum penalty—20 penalty units.
sec.7 Calculation of fringe benefits on same basis
sec.7 Calculation of fringe benefits on same basis
An employer must calculate fringe benefits on the same basis for a financial year—
for each periodic, annual or final return lodged by the employer for the financial year; and
for working out the employer’s relevant payroll tax and levy liabilities for the financial year; and
if the employer is a non-DGE group member—for giving information to the DGE for the group under sections 88A , 88B , 88C or 88D of the Act in relation to the financial year; and
if the employer is the DGE for a group—for giving information to non-DGE group members under section 88A or 88E of the Act in relation to the financial year, to the extent the information relates to the DGE.
Non-compliance with subsection (1) may affect—
if the employer is not a group member or is the DGE for a group—the employer’s liability for payroll tax and the mental health levy; or
if the employer is a non-DGE group member—
the employer’s liability for payroll tax; and
the liability of the employer and the DGE for the group for the mental health levy.
This section is subject to sections 11 to 13 .
s 7 amd 2022 SL No. 168 s 8
(sec.7-ssec.1) An employer must calculate fringe benefits on the same basis for a financial year— for each periodic, annual or final return lodged by the employer for the financial year; and for working out the employer’s relevant payroll tax and levy liabilities for the financial year; and if the employer is a non-DGE group member—for giving information to the DGE for the group under sections 88A , 88B , 88C or 88D of the Act in relation to the financial year; and if the employer is the DGE for a group—for giving information to non-DGE group members under section 88A or 88E of the Act in relation to the financial year, to the extent the information relates to the DGE. Non-compliance with subsection (1) may affect— if the employer is not a group member or is the DGE for a group—the employer’s liability for payroll tax and the mental health levy; or if the employer is a non-DGE group member— the employer’s liability for payroll tax; and the liability of the employer and the DGE for the group for the mental health levy.
(sec.7-ssec.2) This section is subject to sections 11 to 13 .
(a) for each periodic, annual or final return lodged by the employer for the financial year; and
(b) for working out the employer’s relevant payroll tax and levy liabilities for the financial year; and
(c) if the employer is a non-DGE group member—for giving information to the DGE for the group under sections 88A , 88B , 88C or 88D of the Act in relation to the financial year; and
(d) if the employer is the DGE for a group—for giving information to non-DGE group members under section 88A or 88E of the Act in relation to the financial year, to the extent the information relates to the DGE.
(a) if the employer is not a group member or is the DGE for a group—the employer’s liability for payroll tax and the mental health levy; or
(b) if the employer is a non-DGE group member— (i) the employer’s liability for payroll tax; and (ii) the liability of the employer and the DGE for the group for the mental health levy.
(i) the employer’s liability for payroll tax; and
(ii) the liability of the employer and the DGE for the group for the mental health levy.
(i) the employer’s liability for payroll tax; and
(ii) the liability of the employer and the DGE for the group for the mental health levy.
pt.3-div.2 Basis for calculating fringe benefits— Act , s 91
Basis for calculating fringe benefits— Act , s 91
sec.8 Purpose of division
sec.8 Purpose of division
This division provides, for section 91 (1) and (3) (b) of the Act , for the election by an employer to include in returns an estimated value amount, or an actual value amount, for fringe benefits.
sec.9 Application of subdivision
sec.9 Application of subdivision
This subdivision applies to an employer who has paid, or is liable to pay, fringe benefits tax for at least 15 consecutive months immediately before the start of a financial year (a relevant financial year ).
sec.10 Election in first periodic return period for relevant financial year
sec.10 Election in first periodic return period for relevant financial year
The employer may elect to include in returns estimated value amounts and use those amounts to work out the employer’s prelevant payroll tax and levy liabilities.
The employer makes an election under subsection (1) by using an estimated value amount to work out the employer’s periodic liability and periodic levy liability for the first periodic return period for the relevant financial year.
An election under subsection (1) continues to apply until the employer elects, under subdivision 3 , to use actual value amounts to work out the employer’s relevant payroll tax and levy liabilities.
If an election under subsection (1) applies to the employer on 30 June in the relevant financial year or a later financial year, the employer must include an estimated value amount as part of the wages paid or payable during that year by the employer—
in the employer’s annual return for the financial year; and
if the employer is a non-DGE group member—in the information given to the DGE under section 88A (5) of the Act in relation to the financial year.
An election under subsection (1) applies for working out—
periodic liability and periodic levy liability for the periodic return period mentioned in subsection (2) ; and
all subsequent relevant payroll tax and levy liabilities for the employer while the election continues to apply.
s 10 amd 2022 SL No. 168 s 9
(sec.10-ssec.1) The employer may elect to include in returns estimated value amounts and use those amounts to work out the employer’s prelevant payroll tax and levy liabilities.
(sec.10-ssec.2) The employer makes an election under subsection (1) by using an estimated value amount to work out the employer’s periodic liability and periodic levy liability for the first periodic return period for the relevant financial year.
(sec.10-ssec.3) An election under subsection (1) continues to apply until the employer elects, under subdivision 3 , to use actual value amounts to work out the employer’s relevant payroll tax and levy liabilities.
(sec.10-ssec.4) If an election under subsection (1) applies to the employer on 30 June in the relevant financial year or a later financial year, the employer must include an estimated value amount as part of the wages paid or payable during that year by the employer— in the employer’s annual return for the financial year; and if the employer is a non-DGE group member—in the information given to the DGE under section 88A (5) of the Act in relation to the financial year.
(sec.10-ssec.5) An election under subsection (1) applies for working out— periodic liability and periodic levy liability for the periodic return period mentioned in subsection (2) ; and all subsequent relevant payroll tax and levy liabilities for the employer while the election continues to apply.
(a) in the employer’s annual return for the financial year; and
(b) if the employer is a non-DGE group member—in the information given to the DGE under section 88A (5) of the Act in relation to the financial year.
(a) periodic liability and periodic levy liability for the periodic return period mentioned in subsection (2) ; and
(b) all subsequent relevant payroll tax and levy liabilities for the employer while the election continues to apply.
sec.11 Election during relevant financial year
sec.11 Election during relevant financial year
This section applies if—
the employer wants to elect to include in returns estimated value amounts and use those amounts to work out the employer’s relevant payroll tax and levy liabilities for the relevant financial year; and
the employer has not made an election under section 10 (1) for the relevant financial year.
The employer must apply to the commissioner for consent to make the election.
An application under subsection (2) must be in writing.
The commissioner must consider the application and decide whether or not to give the consent.
The commissioner may give the consent only if reasonably satisfied—
the main purpose for the employer’s election is not to avoid or reduce the amount of payroll tax or mental health levy that would otherwise be payable for the relevant financial year if the payroll tax or mental health levy were calculated on an actual value basis; and
the employer, because of the employer’s circumstances, has compelling reasons for making the election.
The commissioner must give the employer written notice of the commissioner’s decision.
If the commissioner consents to the election, the employer must elect to include in returns estimated value amounts and use those amounts to work out the employer’s relevant payroll tax and levy liabilities.
An election under subsection (7) —
is made by the employer using an estimated value amount to work out the employer’s periodic liability and periodic levy liability for the first periodic return period after receiving the consent; and
continues to apply until the employer elects, under subdivision 3 , to use actual value amounts to work out the employer’s relevant payroll tax and levy liabilities; and
applies for working out—
periodic liability and periodic levy liability for the periodic return period mentioned in paragraph (a) ; and
all subsequent relevant payroll tax and levy liabilities for the employer while the election continues to apply.
If the employer makes an election under subsection (7) , the employer must—
use the value of the employer’s Queensland fringe benefits for the last year of tax to work out—
the employer’s annual liability for the relevant financial year; and
if the employer is not a group member or is the DGE for a group—the employer’s annual levy liability for the relevant financial year; and
include the value of the employer’s Queensland fringe benefits for the last year of tax as part of the wages paid or payable during the relevant financial year by the employer—
in the employer’s annual return for the financial year; and
if the employer is a non-DGE group member—in the information given to the DGE under section 88A (5) of the Act for the financial year.
If the election applies to the employer on 30 June in a financial year after the relevant financial year (a subsequent financial year ), the employer must include an estimated value amount as part of the wages paid or payable during the subsequent financial year—
in the employer’s annual return for that financial year; and
if the employer is a non-DGE group member—in the information given to the DGE under section 88A (5) of the Act for that financial year.
The employer must not purport to make an election under subsection (7) unless the employer has received a consent under this section.
Maximum penalty for subsection (11) —20 penalty units.
s 11 amd 2022 SL No. 168 s 10
(sec.11-ssec.1) This section applies if— the employer wants to elect to include in returns estimated value amounts and use those amounts to work out the employer’s relevant payroll tax and levy liabilities for the relevant financial year; and the employer has not made an election under section 10 (1) for the relevant financial year.
(sec.11-ssec.2) The employer must apply to the commissioner for consent to make the election.
(sec.11-ssec.3) An application under subsection (2) must be in writing.
(sec.11-ssec.4) The commissioner must consider the application and decide whether or not to give the consent.
(sec.11-ssec.5) The commissioner may give the consent only if reasonably satisfied— the main purpose for the employer’s election is not to avoid or reduce the amount of payroll tax or mental health levy that would otherwise be payable for the relevant financial year if the payroll tax or mental health levy were calculated on an actual value basis; and the employer, because of the employer’s circumstances, has compelling reasons for making the election.
(sec.11-ssec.6) The commissioner must give the employer written notice of the commissioner’s decision.
(sec.11-ssec.7) If the commissioner consents to the election, the employer must elect to include in returns estimated value amounts and use those amounts to work out the employer’s relevant payroll tax and levy liabilities.
(sec.11-ssec.8) An election under subsection (7) — is made by the employer using an estimated value amount to work out the employer’s periodic liability and periodic levy liability for the first periodic return period after receiving the consent; and continues to apply until the employer elects, under subdivision 3 , to use actual value am
This is an opening excerpt, not the complete document.