Sch 1Calculation of payroll tax liability

Schedule 1—Calculation of payroll tax liability Part 1—Interpretation 1—Interpretation EA is $600 000 financial year means the financial year commencing on 1 July 2009 or on 1 July in any subsequent financial year relevant financial year means the financial year to which the calculation of the relevant payroll tax relates TA or threshold amount is $1 500 000. Part 2—Employers who are not members of a group 2—Application of Part This Part applies only to an employer who is not a member of a group. 3—Interpretation C is the number of days in the relevant financial year in respect of which the employer paid or was liable to pay taxable wages or interstate wages (otherwise than as a member of a group) IW represents the total interstate wages paid or payable by the employer concerned (otherwise than as a member of a group) during the relevant financial year TW represents the total taxable wages paid or payable by the employer concerned (otherwise than as a member of a group) during the relevant financial year. 4—Payroll of employer under threshold An employer is not liable to pay payroll tax for a financial year if the total taxable wages and interstate wages paid or payable by the employer (otherwise than as a member of a group) during that year is not more than the employer's threshold amount, being the amount calculated in accordance with the following formula: 5—Payroll of employer over threshold (1) If the total taxable wages and interstate wages paid or payable by an employer (otherwise than as a member of a group) during a financial year is more than the employer's threshold amount, the employer is liable to pay as payroll tax for that year the amount of dollars calculated in accordance with the following formula: (2) In this clause— (a) if the employer's total annualised relevant wages for the relevant financial year is more than $1 500 000 and not more than $1 700 000, R is calculated in accordance with the following formula: (b) if the employer's total annualised relevant wages for the relevant financial year is more than $1 700 000, R is 4.95%. (3) For the purposes of this clause, an employer's total annualised relevant wages or TARW in respect of a financial year is calculated in accordance with the following formula: Part 3—Groups with a designated group employer 6—Application of Part This Part applies only to an employer who is a member of a group for which there is a designated group employer. 7—Interpretation C is the number of days in the relevant financial year in respect of which at least one member of the group paid or was liable to pay (as a member of the group) taxable wages or interstate wages GIW represents the total interstate wages paid or payable by the group concerned during the relevant financial year GTW represents the total taxable wages paid or payable by the group concerned during the relevant financial year TW represents the total taxable wages paid or payable by the employer concerned (as a member of the group) during the relevant financial year. 8—Payroll of group under threshold None of the members of a group is liable to pay payroll tax for the financial year if the total taxable wages and interstate wages paid or payable by the group during that year is not more than the group threshold amount, being the amount calculated in accordance with the following formula: 9—Payroll of group over threshold (1) If the total taxable wages and interstate wages paid or payable by a group during the financial year is more than the group threshold amount, payroll tax is payable as provided by subclauses (2) and (3). (2) The designated group employer for the group is liable to pay as payroll tax for the financial year the amount of dollars calculated in accordance with the following formula: (3) Each member of the group (other than that designated group employer) is liable to pay as payroll tax for the financial year the amount of dollars calculated in accordance with the following formula: (a) if the group's total annualised relevant wages for the relevant financial year is more than $1 500 000 and not more than $1 700 000, R is calculated in accordance with the following formula: (b) if the group's total annualised relevant wages for the relevant financial year is more than $1 700 000, R is 4.95%. (5) For the purposes of this clause, a group's total annualised relevant wages or TARW in respect of a financial year is calculated in accordance with the following formula: Part 4—Motor vehicle allowances 10—Continuous recording method If an employer selects the continuous recording method for the purposes of determining the number of business kilometres travelled during the financial year, the following details are required to be recorded by the employer: (a) the odometer readings at the beginning and end of each business journey undertaken by the person during a financial year by means of a motor vehicle provided or maintained by the person; (b) the specific purpose for which each such business journey was taken; (c) the distance travelled by the person during the financial year in the course of all such business journeys (which is taken to be the number of business kilometres travelled during the financial year), calculated on the basis of the odometer readings referred to in paragraph (a). 11—Averaging method (1) If an employer selects the averaging method for the purposes of determining the number of business kilometres travelled during the financial year, the following details are required to be recorded by the employer: (a) the odometer readings at the beginning and end of each business journey undertaken by the person during the relevant 12‑week period by means of a motor vehicle provided or maintained by the person; Clause 12 defines the relevant 12‑week period. (b) the specific purpose for which each such business journey was taken; (c) the distance travelled by the person during the relevant 12‑week period in the course of all such business journeys, calculated on the basis of the odometer readings referred to in paragraph (a); (d) the odometer readings at the beginning and end of the relevant 12‑week period for each motor vehicle provided or maintained by the person for the purpose of undertaking business journeys; (e) the distance travelled by each such vehicle during the relevant 12‑week period, calculated on the basis of the odometer readings referred to in paragraph (d); (f) the distance travelled by the person in the course of business journeys undertaken by means of each such vehicle during the relevant 12‑week period, calculated as a percentage of the distance travelled by that vehicle during that period (the relevant percentage); (g) the odometer readings at the beginning and end of the financial year for each vehicle provided or maintained by the person for the purpose of undertaking business journeys; (h) the distance travelled by each such vehicle during the financial year, calculated on the basis of the odometer readings referred to in paragraph (g); (i) the distance travelled by the person in the course of business journeys undertaken by means of each such vehicle during the financial year (which is taken to be the number of business kilometres travelled during the financial year), calculated on the basis that the percentage of that distance that was travelled by the person in the course of business journeys undertaken by means of each such vehicle during the financial year is the same as the relevant percentage. (2) For the next succeeding 4 financial years after the first financial year in which odometer details are recorded in accordance with subclause (1), an employer is not required to calculate the relevant percentage, or record the details referred to in subclause (1)(a)—(f), for the person but is required to record the other details referred to in that subclause. (3) Accordingly, for the next succeeding 4 financial years after the first financial year in which odometer details are recorded in accordance with subclause (1), the number of business kilometres travelled during the financial year is to be calculated (as referred to in subclause (1)(i)) on the basis of the relevant percentage calculated for the first financial year. (4) Despite subclauses (2) and (3), an employer is required to calculate the relevant percentage for a financial year, and record the details referred to in subclause (1)(a)—(f), if— (a) the Commissioner serves a notice on the employer before the commencement of a financial year during that period directing the employer to keep the details referred to in subclause (1)(a)—(f) for that financial year; or (b) the employer wishes to use the recording method referred to in this clause for 1 or more additional motor vehicles used by the person in any financial year or for any other reason. (5) In a situation referred to in subclause (4), the new record for the financial year replaces the relevant percentage details previously recorded and subclauses (2) and (3) apply in relation to the new record for the financial year as if it were the first financial year in which odometer details were recorded. (6) An employer who has adopted and employed the method of recording referred to in subclauses (2) and (3) for a person for 4 successive financial years must, in the next succeeding financial year, make a fresh recording of all the details specified in subclause (1) if the employer intends to continue to use the same method of recording for the person. Subclauses (2) and (3) then apply in relation to the new record for the financial year as if it were the first financial year in which odometer details were recorded. (7) If the odometer of a motor vehicle is replaced or recalibrated during any period for which its readings are relevant for the purposes of this clause, the odometer readings immediately before and after the replacement or recalibration are to be recorded. 12—Meaning of relevant 12‑week period (1) In clause 11, relevant 12‑week period means a continuous period of at least 12 weeks, selected by the employer, throughout which a motor vehicle is provided or maintained by a person. If the motor vehicle is provided or maintained for less than 12 weeks, the period must be the entire period for which the motor vehicle is provided or maintained. (2) The period may overlap the start or end of the financial year, so long as it includes part of the year. (3) If the averaging method is used for 2 or more motor vehicles for the same financial year, the odometer readings for those motor vehicles must cover periods that are concurrent. 13—Replacing 1 motor vehicle with another motor vehicle (1) For the purposes of using the averaging method, an employer may nominate 1 motor vehicle as having replaced another motor vehicle with effect from a day specified in the nomination. (2) After the nomination takes effect, the replacement motor vehicle is treated as the original motor vehicle, and the original motor vehicle is treated as a different motor vehicle. An employer need not repeat for the replacement vehicle the steps already taken for the original motor vehicle. (3) An employer must record the nomination in writing in the financial year in which the nomination takes effect. (4) However, the Commissioner may allow an employer to record the nomination at a later time. 14—Changing method of recording (1) An employer may change from using the averaging method to using the continuous recording method with effect from the beginning of a financial year if the employer complies with clause 10 in respect of the financial year. (2) An employer may change from using the continuous recording method to using the averaging method with effect from the beginning of a financial year if the employer complies with clause 11 in respect of the financial year. 15—Definition business journey means— (a) a journey undertaken in a motor vehicle by a person otherwise than in the application of the vehicle to a private use, being an application that, if the person is paid a motor vehicle allowance for that use, results in the provision of a fringe benefit (within the meaning of the FBTA Act) by the employer; or (b) a journey undertaken in a motor vehicle by a person in the course of producing assessable income of the person (within the meaning of the Income Tax Assessment Act 1936 of the Commonwealth).