Part 3Wages

Part 3—Wages Division 1—General concept of wages 13—What are wages? (1) For the purposes of this Act, wages mean wages, remuneration, salary, commission, bonuses or allowances paid or payable to an employee, including— (a) an amount paid or payable by way of remuneration to a person holding an office under the Crown or in the service of the Crown; and (b) an amount paid or payable under any prescribed classes of contracts to the extent to which that payment is attributable to labour; and (c) an amount paid or payable by a company by way of remuneration to or in relation to a director of that company; and (d) an amount paid or payable by way of commission to an insurance or time payment canvasser or collector; and (e) an amount or benefit that is included as or taken to be wages by any other provision of this Act. (2) For the purposes of this Act, wages, remuneration, salary, commission, bonuses or allowances are wages— (a) whether paid or payable at piece work rates or otherwise; and (b) whether paid or payable in cash or in kind. (2a) This Act applies in respect of wages referred to in subsection (1)(a) to (e) that are paid or payable to or in relation to a person who is not an employee in the same way as it applies to wages paid or payable to an employee (as if a reference in this Act to an employee included a reference to any such person). (3) Wages do not include anything that is prescribed by the regulations not to be wages for the purposes of this Act. Division 2—Fringe benefits 14—Wages include fringe benefits (1) For the purposes of this Act, wages include a fringe benefit. (2) Subsection (1) does not apply to benefits that are exempt benefits for the purposes of the FBTA Act (other than deposits to the Superannuation Holding Accounts Special Account within the meaning of the Small Superannuation Accounts Act 1995 of the Commonwealth). 15—Value of wages comprising fringe benefits (1) For the purposes of this Act, the value of wages comprising a fringe benefit is to be determined in accordance with the formula—

FBT rate is the rate of fringe benefits tax imposed by the FBTA Act that applies when the liability to payroll tax under this Act arises TV is the value that would be the taxable value of the benefit as a fringe benefit for the purposes of the FBTA Act. (2) In this Act, a reference to taxable wages that were paid or payable by an employer during a month is, in relation to taxable wages comprising fringe benefits— (a) a reference to the value of the fringe benefits paid or payable by the employer during the month; or (b) if an election by the employer is in force under section 16, a reference to an amount calculated in accordance with that section. (3) In this Act, a reference to taxable wages that were paid or payable by an employer during a year is, in relation to taxable wages comprising fringe benefits, a reference to an amount calculated by adding together the amounts under subsection (2)(a) or (b) (or subsection (2)(a) and (b)) as the case requires, for the months of that year. 16—Employer election regarding taxable value of fringe benefits (1) An employer who has paid or is liable to pay fringe benefits tax imposed by the FBTA Act in respect of a period of not less than 15 months before 30 June in any year may elect to include as the value of the fringe benefits paid or payable by the employer during the month concerned— (a) in a return lodged in relation to each of the first 11 months occurring after 30 June in that year—1/12th of the amount determined in accordance with subsection (2) or that part of that amount as, in accordance with section 10, comprises taxable wages for the year of tax (within the meaning of the FBTA Act) ending on 31 March preceding the commencement of the current financial year; and (b) in the return lodged in relation to the 12th month—the amount determined in accordance with subsection (2) or that part of that amount as, in accordance with section 10, comprises taxable wages for the year of tax (within the meaning of the FBTA Act) ending on 31 March preceding that month, less the total of the amounts of fringe benefits included in the returns for each of the preceding 11 months. (2) The amount determined in accordance with this subsection is to be determined in accordance with the formula—