Victorian Consolidated Legislation

PAYROLL TAX ACT 2007

No. 26 of 2007
Version incorporating amendments as at 31 March 2009

TABLE OF PROVISIONS

           Section Page

   PART 1-PRELIMINARY

   1.      Purposes
   2.      Commencement
   3.      Definitions
   4.      Taxation Administration Act 1997.
   5.      Act binds the Crown

   PART 2-IMPOSITION OF PAYROLL TAX

           Division 1-Imposition of tax

   6.      Imposition of payroll tax
   7.      Who is liable for payroll tax?
   8.      Amount of payroll tax
   9.      When must payroll tax be paid?

           Division 2-Taxable wages

   10.     What are taxable wages?
   11.     Wages not referable to services performed in a particular month

           Division 3-Other

   12.     Payroll tax paid under corresponding applied law

   PART 3-WAGES

           Division 1-General concept of wages

   13.     What are wages?

           Division 2-Fringe benefits

   14.     Wages include fringe benefits
   15.     Value of wages comprising fringe benefits
   16.     Employer election regarding taxable value of fringe benefits

           Division 3-Superannuation contributions

   17.     Wages include superannuation contributions

           Division 4-Shares and options

   18.     Inclusion of grant of shares and options as wages
   19.     Choice of relevant day
   20.     Deemed choice of relevant day in special cases
   21.     Effect of rescission, cancellation of share or option
   22.     Grant of share pursuant to exercise of option
   23.     Value of shares and options
   24.     Inclusion of shares and options granted to directors as wages
   25.     When services considered to have been performed
   26.     Place where wages are payable

           Division 5-Termination payments

   27.     Definitions
   28.     Termination payments

           Division 6-Allowances

   29.     Motor vehicle allowances
   30.     Accommodation allowances

           Division 7-Contractor provisions

   31.     Definitions
   32.     What is a relevant contract?
   33.     Persons taken to be employers
   34.     Persons taken to be employees
   35.     Amounts under relevant contracts taken to be wages
   36.     Liability provisions

           Division 8-Employment agents

   37.     Definitions
   38.     Persons taken to be employers
   39.     Persons taken to be employees
   40.     Amounts taken to be wages
   41.     Liability provisions
   42.     Agreement to reduce or avoid liability to payroll tax

           Division 9-Other

   43.     Value of wages paid in kind
   44.     GST excluded from wages
   45.     Wages paid by group employers
   46.     Wages paid by or to third parties
   47.     Agreement etc. to reduce or avoid liability to payroll tax

   PART 4-EXEMPTIONS

           Division 1-Non-profit organisations

   48.     Non-profit organisations

           Division 2-Education and training

   49.     Schools and educational services and training
   50.     Community Development Employment Project

           Division 3-Health care service providers

   51.     Health care service providers
   52.     Division not to limit other exemptions

           Division 4-Maternity and adoption leave

   53.     Maternity and adoption leave
   54.     Administrative requirements for exemption

           Division 5-Volunteer firefighters and emergency service
           volunteers

   55.     Volunteer firefighters
   56.     Emergency service volunteers
   57.     Limitation of exemption

           Division 6-Local government

   58.     Municipal councils
   59.     Local government business entities
   60.     Limitation on local government exemptions

           Division 7-Other government and defence

   61.     State Governors
   62.     Defence personnel
   63.     War Graves Commission

           Division 8-Foreign government representatives and international agencies

   64.     Consular and non-diplomatic representatives
   65.     Trade commissioners
   66.     Australian-American Fulbright Commission

   PART 5-GROUPING OF EMPLOYERS

           Division 1-Interpretation

   67.     Definitions
   68.     Grouping provisions to operate independently

           Division 2-Business groups

   69.     Constitution of groups
   70.     Groups of corporations
   71.     Groups arising from the use of common employees
   72.     Groups of commonly controlled businesses
   73.     Groups arising from tracing of interests in corporations
   74.     Smaller groups subsumed by larger groups

           Division 3-Business groups-tracing of interests in corporations

   75.     Application
   76.     Direct interest
   77.     Indirect interest
   78.     Aggregation of interests

           Division 4-Miscellaneous

   79.     Exclusion of persons from groups
   80.     Designated group employers
   81.     Joint and several liability

   PART 6-ADJUSTMENTS OF TAX

   82.     Determination of correct amount of payroll tax
   83.     Annual adjustment of payroll tax
   84.     Adjustment of payroll tax when employer changes
           circumstances
   85.     Special provision where wages fluctuate

   PART 7-REGISTRATION AND RETURNS

   86.     Registration
   87.     Returns

   PART 8-COLLECTION AND RECOVERY OF TAX

           Division 1-Agents and trustees generally

   88.     Application
   89.     Agents and trustees are answerable
   90.     Returns by agent or trustee
   91.     Liability to pay tax
   92.     Indemnity for agent or trustee

           Division 2-Special cases

   93.     Tax not paid during lifetime
   94.     Payment of tax by executors or administrators
   95.     Assessment if no probate within 6 months of death
   96.     Person in receipt or control of money for absentee
   97.     Agent for absentee principal winding-up business
   98.     Recovery of tax paid on behalf of another person
   99.     Liquidator to give notice

   PART 9-GENERAL

   100.    Provisions specific to this jurisdiction
   101.    Regulations

   PART 10-REPEALS, AMENDMENTS AND TRANSITIONAL PROVISIONS

           Division 1-Pay-roll Tax Act 1971.

   102.    Repeal of Pay-roll Tax Act 1971.
   103.    Repeal of amending Act

           Division 2-Taxation Administration Act 1997.

   104.    Taxation laws
   105.    Reassessments and refunds up to 5 years
   106.    Objections
   107.    New clause 16 inserted in Schedule 1.

           Division 3-Amendment of this Act

   108.    Education and training

           Division 4-Other Acts

   109.    County Court Act 1958.
   110.    Duties Act 2000.
   111.    New clause 26 inserted in Schedule 2 to the Duties Act 2000.
   112.    Land Tax Act 2005.
   113.    Local Government Act 1989.
   114.    Magistrates' Court Act 1989.
   115.    Taxation (Reciprocal Powers) Act 1987.
   116.    Victorian Civil and Administrative Tribunal Act 1998.

           Division 5-Transitional provisions

   117.    Transitional provisions
           __________________
           SCHEDULE 1-Calculation of Payroll Tax Liability

   PART 1-INTERPRETATION
   1. Definitions

   PART 2-EMPLOYERS WHO ARE NOT MEMBERS OF A GROUP
   2. Application of Part
   3. Definitions
   4. Payroll of employer not more than threshold
   5. Payroll of employer over threshold

   PART 3-GROUPS WITH A DESIGNATED GROUP
   EMPLOYER
   6. Application of Part
   7. Definitions
   8. Payroll of group not more than threshold
   9. Payroll of group over threshold

   PART 4-GROUPS WITH NO DESIGNATED GROUP EMPLOYER
   10. Application of Part
   11. Definition
   12. Calculation of payroll tax

   PART 5-MOTOR VEHICLE ALLOWANCES
   13. Continuous recording method
   14. Averaging method
   15. Meaning of relevant 12-week period
   16. Replacing one motor vehicle with another motor vehicle
   17. Changing method of recording
   18. Definition
           SCHEDULE 2-Victoria specific provisions

   PART 1-INTRODUCTION
   1. Introduction to Schedule

   PART 2-CALCULATION OF MONTHLY PAYROLL TAX

           Division 1-Rate of payroll tax
           2. Rate of payroll tax

           Division 2-Employers who are not members of a group
           3. Application of Division
           4. Amount of payroll tax to be paid each month
           5. Deductible amount for employer who does not pay interstate wages
           6. Deductible amount for employer who pays interstate wages

           Division 3-Groups with a designated group employer
           7. Application of Division
           8. Amount of payroll tax to be paid each month
           9. Deductible amount for groups that do not pay interstate
           wages
           10. Deductible amount for groups that pay interstate wages

           Division 4-Groups with no designated group employer
           11. Application of Division
           12. Amount of payroll tax to be paid each month

   PART 3-EXEMPTIONS

           Division 1-Education and training
           13. Definitions
           14. Schools and school councils
           15. Persons providing educational services
           16. Approved training schemes

           Division 2-Health care service providers
           17. What is a health care service provider?

           Division 3-Local government
           18. Limitation on local government exemptions

           Division 4-Other exemptions
           19. Specialized agencies

   PART 4-RETURNS AND REFUNDS
   20. Further returns
   21. Notification of change in circumstances
   22. Time limit for refund applications

   PART 5-GENERAL
   23. Disregarding cents
           SCHEDULE 3-Transitional provisions
           1. Definition
           2. Savings and transitional regulations
           3. Application of Interpretation of Legislation Act 1984.
           4. Continuation of old Act and regulations
           5. Application of this Act and old Act
           6. Fringe benefits
           7. Superannuation contributions relating to pre-1 July 1997
           service
           8. Superannuation contributions not readily related to particular employees
           9. Employment agents
           10. Exemption continues for certain schools
           11. Approved training schemes
           12. Exemption continues for public hospitals
           13. Registration of employers
           14. Designated group employers
           15. State Taxation Acts Amendment Act 2008.
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           ENDNOTES
           1. General Information
           2. Table of Amendments
           3. Explanatory Details