PAYROLL TAX ACT 1971 - As at 1 July 2023 - Act 37 of 1971

Table of Provisions

• Long Title

PART 1 - PRELIMINARY

• 1 Short title
• 2 Dictionary
• 3 Meaning of superannuation contribution
• 3A Meaning of termination payment
• 4 Other provisions about meaning of wages—superannuation contributions and GST
4A. (Repealed)
• 5 Meaning of change of status
• 6 Meaning of final period
• 6A Reference to periodic return period or return period
• 7 Notes in text
• 8 Relationship of Act with Administration Act

PART 2 - LIABILITY TO TAXATION

Division 1 - Imposition of liability

• 8A Application of sdiv 1
• 9 Wages liable to payroll tax and mental health levy—nexus with Queensland
• 9A State in which employee is based
• 9B State in which employer is based
• 9C Place and day of payment of wages
Subdivision 2 - Other provisions about imposing liability for payroll tax
• 10 Imposition of payroll tax on taxable wages
• 10A Discount for regional employers
• 11 When liability for payroll tax arises
• 12 Employer to pay payroll tax
Subdivision 3 - Other provisions about imposing liability for mental health levy
• 12A Imposition of mental health levy on taxable wages
• 12B When liability for mental health levy arises
• 12C Particular employer to pay mental health levy
Subdivision 4 - Value of taxable wages
• 13 Value of taxable wages

Division 1A - Contractor provisions

• 13A Definitions for div 1A
• 13B Meaning of relevant contract
• 13C Persons taken to be employers
• 13D Persons taken to be employees
• 13E Amounts taken to be wages
• 13F Liability for payroll tax or mental health levy for payments taken to be wages

Division 1B - Employment agents

• 13G Meaning of employment agency contract
• 13H Persons taken to be employers
• 13I Persons taken to be employees
• 13J Amounts taken to be wages
• 13K Liability for payroll tax or mental health levy for payments taken to be wages
• 13L Employment agency contract reducing or avoiding liability to payroll tax or mental health levy
• 13LA Particular avoidance arrangements involving employment agents

Division 1C - Shares and options

• 13M Application of div 1C
• 13N Definitions for div 1C
• 13O When share or option is granted
• 13P Grant of share because of exercise of option
• 13Q Day on which wages are paid or payable
• 13R Election by grantor of relevant day
• 13S Automatic election of relevant day
• 13T Effect of rescission or cancellation of share or option
• 13U Value of taxable wages
• 13V When services are performed
• 13W Place where wages are paid or payable

Division 1D - Allowances

• 13X Definitions for sdiv 1
• 13Y Exempt component of motor vehicle allowance
• 13Z Working out the number of exempt kilometres
• 13ZA Continuous recording method
• 13ZB Averaging method—how it works
• 13ZC Averaging method—records to be kept by employer
• 13ZD Averaging method—what is the averaging period
• 13ZE Averaging method—recalculation of relevant percentage
• 13ZF Averaging method—replacing a business vehicle
• 13ZG Switching between continuous recording and averaging methods
Subdivision 2 - Accommodation allowances
• 13ZH Exempt rate for accommodation allowance

Division 2 - Exemptions

• 14 Exemption from payroll tax and mental health levy
• 14A Exemption for parental, adoption, surrogacy or cultural parent leave
• 15 Exemption from payroll tax and mental health levy—certain CWA wages
• 15A Exemption for services performed or rendered entirely in another country

Division 3 - Periodic liability for payroll tax

• 16 Application of sdiv 1
16J. (Repealed) 16K. (Repealed) 16L. (Repealed)
• 17 Definitions for sdiv 1
• 18 Meaning of calculation day
18A. (Repealed)
• 19 Meaning of significant wage change
• 20 Amount of periodic liability
• 21 Determination by commissioner of fixed periodic deduction
Subdivision 2 - DGE for a group
• 22 Application of sdiv 2
• 23 Definition for sdiv 2
• 24 Meaning of calculation day
• 25 Meaning of significant wage change
• 26 Amount of periodic liability
• 27 Determination by commissioner of fixed periodic deduction
Subdivision 3 - Rebate
• 27A Rebate for periodic liability

Division 4 - Annual liability for payroll tax

• 28 Application of sdiv 1
• 29 Definitions for sdiv 1
• 30 Amount of annual liability
• 31 Entitlement to annual refund amount
Subdivision 2 - DGE for a group
• 32 Application of sdiv 2
• 33 Definitions for sdiv 2
• 34 Amount of DGE’s annual liability
• 35 Entitlement to annual refund amount
Subdivision 3 - Rebate
• 35A Rebate for annual payroll tax amount

Division 5 - Final liability for payroll tax

• 36 Application of sdiv 1
• 37 Definitions for sdiv 1
• 38 Amount of final liability
• 39 Entitlement to final refund amount
Subdivision 2 - DGE for a group
• 40 Application of sdiv 2
• 41 Definitions for sdiv 2
• 42 Amount of DGE’s final liability
• 43 Entitlement to final refund amount
Subdivision 3 - Rebate
• 43A Rebate for final payroll tax amount

Division 5A - Periodic liability for mental health levy

• 43B Application of division
• 43C Meaning of adjusted primary threshold
• 43D Meaning of adjusted additional threshold
• 43E Meaning of primary periodic threshold and additional periodic threshold
• 43EA Meaning of current financial year
• 43EB Meaning of calculation day
• 43EC Meaning of significant wage change
• 43F Amount of periodic levy liability

Division 5B - Annual liability for mental health levy

• 43G Application of division
• 43H Meaning of combined periodic liability
• 43I Definitions for division
• 43J Amount of annual levy liability
• 43K Entitlement to annual levy refund amount

Division 5C - Final liability for mental health levy

• 43L Application of division
• 43M Definitions for division
• 43N Amount of final levy liability
• 43O Entitlement to final levy refund amount

Division 6 - Sharing of excess deduction by group members

• 44 Definitions for div 6
• 45 Meaning of excess deduction
• 46 Nomination by DGE of group members to share in excess deduction
46A. (Repealed) 46B. (Repealed) 46C. (Repealed)
• 47 Determination by commissioner of group members to share in excess deduction
• 48 Sharing of excess deduction by entitled group members at end of financial year
• 49 Sharing of excess deduction by entitled group members on group ceasing to exist

Division 6A - Sharing of excess rebate by group members

• 49A Definitions for div 6A
• 49B Meaning of excess rebate
• 49C Nomination by DGE of group members to share in excess rebate
• 49D Determination by commissioner of group members to share in excess rebate
• 49E Sharing of excess rebate by entitled group members at end of relevant financial year
• 49F Sharing of excess rebate by entitled group members on group ceasing to exist

Division 7 - Avoidance arrangements

• 50 Arrangements for avoidance of tax may be disregarded

Division 8 - Miscellaneous provisions

• 51 Wages paid by or to third parties
• 51A Joint and several liability of group members

PART 3 - REGISTRATION AND RETURNS

Division 1 - Registration

• 52 Meaning of criteria for registration
• 53 Application for registration
• 54 Registration of employer without application
• 55 Notice of registration
• 56 Amendment of registration
• 57 Cancellation of registration

Division 2 - Returns

• 58 Definition for div 2
• 59 Periodic returns
• 60 Duration of periodic return period
• 61 Deemed lodgement of periodic return—payment by electronic transfer of funds
• 62 Exemption from requirement to lodge periodic returns
• 63 Annual return
• 64 Final return
• 65 Further returns

PART 4 - GROUPING PROVISIONS

Division 1 - Interpretation

• 66 Definitions for pt 4
• 67 Grouping provisions to operate independently

Division 2 - Business groups

• 68 Constitution of groups
• 69 Groups of corporations
• 70 Groups arising from the use of common employees
• 71 Groups of commonly controlled businesses
• 72 Groups arising from tracing of interests in corporations
• 73 Smaller groups subsumed into larger groups
• 74 Exclusion of persons from groups

Division 2A - Business groups—interpretation provisions for tracing of interests in corporations

• 74A Application of div 2A
• 74B Definitions for div 2A
• 74C Who are associated persons
• 74D Who are related persons
• 74E Direct interest
• 74F Indirect interest
• 74G Aggregate interest

Division 3 - Designated group employer

• 75 Designation of group member as DGE

PART 5 - PROVISIONS ABOUT ASSESSMENTS

Division 1 - Reassessments

• 76 When registered employer may make reassessment
• 77 Reassessment—determination of periodic deduction
• 77A Reassessment—determination of primary periodic threshold or additional periodic threshold
• 78 Reassessment—annual liability of non-group employer who has lodged a final return
• 78A Reassessment—annual levy liability of non-group employer who has lodged a final return
• 79 Reassessment of payroll tax liability—change of DGE
• 79A Reassessment of levy liability—change of DGE
• 80 Reassessment of payroll tax liability—making or revocation of order excluding a person from a group
• 80A Reassessment of levy liability—making or revocation of order excluding a person from a group

Division 2 - Provisions about particular assessments made by the commissioner

• 81 Provision about payroll tax assessments made by commissioner—employer who is required to lodge periodic returns
• 81A Provision about levy assessments made by commissioner—employer who is required to lodge periodic returns
• 82 Provision about payroll tax assessments made by commissioner—employer who is exempt from lodging periodic returns
• 82A Provision about levy assessments made by commissioner—employer who is exempt from lodging periodic returns

PART 6 - MISCELLANEOUS

Division 1 - Refund provisions

• 83 Application of annual refund amount, annual levy refund amount, final refund amount or final levy refund amount
• 84 Provision for refunds under Administration Act to group members
• 85 Entitlement to a refund

Division 2 - Notification requirements

• 87 Notification requirement—employers exempt from lodging periodic returns
• 87A Notification requirement—employers authorised to lodge periodic returns for periods other than a month
• 88 Notification requirement—particular group members
• 88A Notification requirements—annual information for groups
• 88B Notification requirements—final return information for non-DGE group member
• 88C Notification requirements—final return information for DGE
• 88D Notification requirements—employer joining a group
• 88E Notification requirements—revised group wage information
• 89 Notification requirement—liquidators and other administrators

Division 3 - Other provisions

• 89A Commissioner may give group information to incoming DGE
• 90 Commissioner may require payment of penalty
• 91 Period for keeping particular records relating to fringe benefits tax
• 92 Application of Act to trustees
• 93 Avoiding taxation
• 94 Notice of change of address for service
• 95 Cents to be disregarded for calculations
• 96 Approval of forms
• 97 Regulation-making power
• 97A Application of particular amendments

PART 7 - SAVINGS AND TRANSITIONAL PROVISIONS FOR PAYROLL TAX ADMINISTRATION AMENDMENT ACT 2004

Division 1 - Preliminary

• 98 Definitions for pt 7

Division 2 - Application of amended Act and Administration Act

• 99 Application of amended Act in relation to liabilities etc. arising on or after commencement
• 100 Registration under s 54 of person required to register before commencement
• 101 Application of amended ss 58–62 for previous return periods
• 102 Assessment under amended s 81 in relation to particular pre-commencement liabilities
• 103 Application of amended s 95 to calculations made under previous provisions
• 104 This Act as a revenue law for the Administration Act
• 105 Application of Administration Act, s 38
• 106 Second or subsequent offences

Division 3 - Application of previous provisions

• 107 Application of previous provisions to particular liabilities etc.

Division 4 - Provisions about periodic liability after commencement

• 108 Fixed periodic deduction for periodic return periods after commencement—existing determination
• 109 Fixed periodic deduction for periodic return periods after commencement—existing nomination
• 110 Application of fixed periodic deduction to particular non-group employers after commencement

Division 5 - Provisions for annual liability for transitional year

• 111 Purpose of div 5
• 112 Basic principles for working out employer’s annual liability
• 113 Employer who was not a group member for a prescribed period during the transitional year
• 114 Employer who is a DGE on 30 June in the transitional year

Division 6 - Provisions for final liability for transitional final period

• 115 Purpose of div 6
• 116 When transitional final period starts
• 117 Employer who is a DGE on the last day of a transitional final period

Division 7 - Miscellaneous provisions

• 118 Commissioner assessment—employer who becomes a DGE in a transitional year before commencement
• 119 Commissioner assessment—employer who ceases to be a DGE in a transitional year before commencement
• 120 Delegations under previous s 4A
• 121 Employers registered under previous s 12 immediately before commencement
• 122 Notices given by commissioner under previous s 13
• 123 Continuing effect of exemptions given by commissioner under previous s14
• 124 Continuing use of particular forms
• 125 Application of ss 83 and 84
• 126 Application of s 88 notification requirement in relation to a transitional year
• 127 Application of s 89 to particular liquidators
• 128 Application of s 94 to particular employers
• 129 References in amended Act
• 130 (Expired)

PART 8 - TRANSITIONAL PROVISIONS FOR PAYROLL TAX (HARMONISATION) AMENDMENT ACT 2008

• 131 Interpretation of amended provisions
• 132 Application of amended Act
• 133 Application of avoidance provision for employment agency contracts
• 134 Continuation of orders excluding person from group

PART 9 - TRANSITIONAL PROVISIONS FOR REVENUE AND OTHER LEGISLATION AMENDMENT ACT 2010

Division 1 - Interpretation

• 135 Definitions for pt 9

Division 2 - Application of amended Act and Administration Act

• 136 Application of amended Act
• 137 Exemption of penalty under s 90
• 138 Remission of unpaid tax interest and penalty tax under the Administration Act
• 139 Exemption for offences
• 140 Reassessment—final return included excluded wages

PART 10 - TRANSITIONAL PROVISIONS FOR REVENUE AND OTHER LEGISLATION AMENDMENT ACT 2011

• 141 Assessment and payment of payroll tax for shares and options
• 142 Application of pt 2, div 1C for granting of particular shares or options

PART 11 - TRANSITIONAL PROVISION FOR REVENUE AMENDMENT AND TRADE AND INVESTMENT QUEENSLAND ACT 2013

• 143 Exemption under s 14A

PART 12 - TRANSITIONAL PROVISION FOR PAYROLL TAX REBATE, REVENUE AND OTHER LEGISLATION AMENDMENT ACT 2015

• 144 Application of s 13B

PART 13 - TRANSITIONAL PROVISION FOR REVENUE LEGISLATION AMENDMENT ACT 2018

• 145 Retrospective application of increased rebate under ss 27A, 35A and 43A

PART 14 - TRANSITIONAL PROVISION FOR REVENUE AND OTHER LEGISLATION AMENDMENT ACT 2018

• 146 Retrospective operation of amended s 13Y

PART 15 - TRANSITIONAL PROVISIONS FOR REVENUE LEGISLATION AMENDMENT ACT 2022

Division 1 - Extension of apprentice and trainee rebate

• 147 Retrospective application of particular provisions

Division 2 - Provisions about changes to deductions for financial year ending 30 June 2023

• 148 Purpose of division
• 148A Definitions for division
Subdivision 2 - Working out payroll tax for transitional financial year
• 148B Working out fixed periodic deductions for transitional financial year
• 148C Working out annual deduction for transitional financial year—employer other than the DGE for a group
• 148D Working out annual deduction for transitional financial year—DGE for a group
• 148E Working out final deduction for transitional financial year—employer other than the DGE for a group
• 148F Working out final deduction for transitional financial year—DGE for a group
Subdivision 3 - Provisions for returns
• 148G Additional information required for particular annual returns
• 148H Additional information required for particular final returns

PART 16 - TRANSITIONAL PROVISIONS FOR BETTING TAX AND OTHER LEGISLATION AMENDMENT ACT 2022

• 149 Imposition and calculation of mental health levy for 2022–23 financial year
• 150 Notification requirements for groups in January 2023
• 151 Notification requirements under s 88A for 2022–23 financial year
• SCHEDULE - Dictionary