PAYROLL TAX ACT 2007 - SCHEDULE 1

PAYROLL TAX ACT 2007 - SCHEDULE 1

SCHEDULE 1 – Calculation of payroll tax liability for financial year commencing 1 July 2007 and subsequent financial years

(Sections 8, 82)

Part 1 - Interpretation

1 Definitions

In this Schedule--


"financial year" means the financial year commencing on 1 July 2007 or on 1 July in any subsequent financial year.


"FY" is the number of days in the financial year.


"R" is--

(a) 6% until 1 January 2009, and

(b) 5.75% on and from 1 January 2009 until the end of 31 December 2009, and

(c) 5.65% on and from 1 January 2010 until the end of 30 June 2010, and

(d) 5.5% on and from 1 July 2010 until the end of 31 December 2010, and

(e) 5.45% on and from 1 January 2011 until the end of 30 June 2020, and

(f) 4.85% on and from 1 July 2020 until the end of 30 June 2022, and

(g) 5.45% on and from 1 July 2022.

(a) $600,000 for a financial year before the financial year commencing on 1 July 2008, or

(b) for the financial year commencing on 1 July 2008 and subsequent financial years up to and including the financial year commencing on 1 July 2012--the threshold amount for that financial year determined in accordance with clause 1A, or

(c) for the financial year commencing on 1 July 2013 and subsequent financial years up to and including the financial year commencing on 1 July 2017--$750,000, or

(d) for the financial year commencing on 1 July 2018--$850,000, or

(e) for the financial year commencing on 1 July 2019--$900,000, or

(f) for the financial year commencing on 1 July 2020 and subsequent financial years--$1,200,000.

1A Indexation of threshold amount (financial years 2008-2012)

(1) This clause applies to the determination of the threshold amount for the financial year commencing on 1 July 2008 and subsequent financial years up to and including the financial year commencing on 1 July 2012.

(2) The threshold amount for a financial year is to be determined by multiplying $600,000 by A/B, where--


"A" is the Sydney CPI number for March in the financial year before the financial year for which the threshold amount is to be determined, and


"B" is the Sydney CPI number for March 2007, and


"A/B" is calculated to 3 decimal places.

(3) If the threshold amount for a financial year determined in accordance with subclause (2) would be an amount that is less than the threshold amount for the previous financial year, the threshold amount for the financial year is to be determined to be the same as the threshold amount for that previous financial year.

(4) If the threshold amount determined under this clause for a financial year is not a multiple of $1,000, the amount is to be rounded to the nearest $1,000 (with an amount of $500 to be rounded down).

(5) The Chief Commissioner is to publish a notice in the Gazette before the start of each financial year (starting with the financial year commencing on 1 July 2009 and ending with the financial year commencing on 1 July 2012) specifying the threshold amount determined under this clause for the financial year.

Note : The threshold amount for the 2008 financial year determined under this clause is $623,000.

(6) In this clause--


"Sydney CPI number" means the Consumer Price Index (All Groups Index) for Sydney issued by the Australian Statistician.

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 Definitions

In this Part--

"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 not more than 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

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--

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 Definitions

In this Part--

"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 not more than 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--

Part 4 - Groups with no designated group employer

10 Application of Part

This Part applies only to an employer who is a member of a group for which there is no designated group employer.

11 Definitions

In this Part--

"TW" represents the total taxable wages paid or payable by the employer concerned (as a member of the group) during the relevant financial year.

12 Calculation of payroll tax

Each member of the group is liable to pay as payroll tax for the financial year the amount of dollars calculated in accordance with the following formula--

Part 5 - Motor vehicle allowances

13 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).

14 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,

Note : Clause 15 defines the relevant 12-week period.

(b) the specific purpose for which each such business journey was taken,

(c) the distance travelled by the person during the relevant 12-week period in the course of all such business journeys, calculated on the basis of the odometer readings 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 Chief 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 one 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.

15 Meaning of relevant 12-week period

(1) In clause 14,
"relevant 12-week period" means a continuous period of at least 12 weeks, selected by the employer, throughout which a motor vehicle is provided or maintained by a person. If the motor vehicle is provided or maintained for less than 12 weeks, the period must be the entire period for which the motor vehicle is provided or maintained.

(2) The period may overlap the start or end of the financial year, so long as it includes part of the year.

(3) If the averaging method is used for 2 or more motor vehicles for the same financial year, the odometer readings for those motor vehicles must cover periods that are concurrent.

16 Replacing one motor vehicle with another motor vehicle

(1) For the purposes of using the averaging method, an employer may nominate one 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 Chief Commissioner may allow an employer to record the nomination at a later time.

17 Changing method of recording

(1) An employer may change from using the averaging method to using the continuous recording method with effect from the beginning of a financial year if the employer complies with clause 13 in respect of the financial year.

(2) An employer may change from using the continuous recording method to using the averaging method with effect from the beginning of a financial year if the employer complies with clause 14 in respect of the financial year.

18 Definition

In this Part--


"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).