PAYROLL TAX ACT 2007 (NO. 26 OF 2007)

Table of Provisions

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  
• 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  

Division 3--sets out the manner for determining whether an entity has a direct interest, indirect interest or aggregate interest in a corporation, and the value of such an interest.

• 74 Smaller groups subsumed by larger groups  
• 75 Application  
• 76 Direct interest  
• 77 Indirect interest  
• 78 Aggregation of interests  
• 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
• SCHEDULE 2
• SCHEDULE 3
ENDNOTES