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This is a Bill, not an Act. For current law, see the Acts databases.
Western Australia
Business Tax Review (Assessment) Bill 2003
CONTENTS
Part 1 -- Preliminary
1. Short title 2
2. Commencement 2
Part 2 -- Land tax exemption for newly
subdivided land
3. The Act amended 3
4. Section 13 amended 3
5. Section 41 repealed 3
6. Glossary amended 3
7. Financial years before the commencement day 3
Part 3 -- Land tax exemption for life
tenants
8. Land Tax Assessment Act 2002 amended 5
9. Land Tax Assessment Act 1976 amended 5
10. Requirement to reassess 6
Part 4 -- Single marginal rate of
pay-roll tax
11. The Pay-roll Tax Assessment Act 2002 amended 7
12. Section 8 amended 7
13. Section 9 repealed 7
14. Section 10 amended 7
15. Section 11 amended 8
16. Section 12 replaced 9
17. Section 13 amended 10
18. Section 14 replaced 11
19. Section 15 amended 12
175--1 page i
Business Tax Review (Assessment) Bill 2003
Contents
20. Section 17 amended 13
21. Section 18 replaced 14
22. Section 19 amended 15
23. Section 23 amended 16
24. Section 27 amended 16
25. Section 29 amended 17
26. The Glossary amended 17
Part 5 -- Eligible termination payments
27. The Pay-roll Tax Assessment Act 2002 amended 18
28. The Glossary amended 18
page ii
Western Australia
LEGISLATIVE ASSEMBLY
Business Tax Review (Assessment) Bill 2003
A Bill for
An Act to amend --
· the Land Tax Assessment Act 2002;
· the Land Tax Assessment Act 1976; and
· the Pay-roll Tax Assessment Act 2002,
and for related purposes.
The Parliament of Western Australia enacts as follows:
page 1
Business Tax Review (Assessment) Bill 2003
Part 1 Preliminary
s. 1
Part 1 -- Preliminary
1. Short title
This Act may be cited as the Business Tax Review (Assessment)
Act 2003.
5 2. Commencement
(1) Subject to this section, this Act comes into operation on
1 July 2003.
(2) Section 8 is taken to have come into operation immediately after
the Land Tax Assessment Act 2002 came into operation.
10 (3) Section 9 is taken to have come into operation on 1 July 2002.
page 2
Business Tax Review (Assessment) Bill 2003
Land tax exemption for newly subdivided land Part 2
s. 3
Part 2 -- Land tax exemption for newly subdivided
land
3. The Act amended
The amendments in this Part are to the Land Tax Assessment
5 Act 2002*.
[* Act No. 52 of 2002.]
4. Section 13 amended
Section 13(3) is repealed.
5. Section 41 repealed
10 Section 41 is repealed.
6. Glossary amended
Clause 1 of the Glossary is amended as follows:
(a) by deleting the definitions of "concessional unimproved
value" and "original lot";
15 (b) in the definition of "unimproved value" --
(i) by inserting after paragraph (a) --
" and ";
(ii) at the end of paragraph (b) by deleting "; and"
and inserting a full stop instead; and
20 (iii) by deleting paragraph (c).
7. Financial years before the commencement day
(1) Despite the amendments effected by this Part, the Land Tax
Assessment Act 2002, as in force immediately before the
commencement day, continues to apply in relation to land tax
25 payable for financial years that commence before the
commencement day.
page 3
Business Tax Review (Assessment) Bill 2003
Part 2 Land tax exemption for newly subdivided land
s. 7
(2) In this section --
"commencement day" means the day on which this Part comes
into operation.
page 4
Business Tax Review (Assessment) Bill 2003
Land tax exemption for life tenants Part 3
s. 8
Part 3 -- Land tax exemption for life tenants
8. Land Tax Assessment Act 2002 amended
(1) The amendments in this section are to the Land Tax Assessment
Act 2002*.
5 [* Act No. 52 of 2002.]
(2) Section 22(b) and "and" after it are deleted and the following is
inserted instead --
"
(b) an individual identified in the will --
10 (i) is entitled under the will to the property
as a tenant for life; or
(ii) has a right under the will to use the
property as a place of residence for as
long as he or she wishes, but is not
15 entitled under the will to any estate of
freehold in possession of the property;
and
".
9. Land Tax Assessment Act 1976 amended
20 (1) The amendments in this section are to the Land Tax Assessment
Act 1976*.
[* Reprinted as at 23 Feb 2001.
For subsequent amendments see 2001 Index to Legislation of
Western Australia, Table 1, p. 200.
25 The Land Tax Assessment Act 1976 is to be repealed by the
Taxation Administration (Consequential Provisions)
Act 2002. However the amendments effected by this section
are to operate retrospectively from a date prior to that
repeal.]
page 5
Business Tax Review (Assessment) Bill 2003
Part 3 Land tax exemption for life tenants
s. 10
(2) The Schedule is amended as follows:
(a) by inserting the following paragraph after
clause 9(a)(x) --
"
5 (xa) the owner of which is an executor as trustee, or the
owners of which are executors as trustees, of a will
under which a natural person whose identity is
specified in the will is entitled to the property as a
tenant for life and that person uses the land solely or
10 principally as his or her sole or principal place of
residence;
";
(b) in clause 9(a)(xi)(I) by inserting after "paragraph (x)" --
" or (xa) ";
15 (c) in clause 9(b)(ib)(III) by inserting after
"paragraph (a)(x)," --
" (xa), ";
(d) in clause 9(b)(iva)(I) by inserting after
"paragraph (a)(x)" --
20 " or (xa) ".
10. Requirement to reassess
The Commissioner of State Revenue must make any
reassessment necessary to give effect to the amendments
effected by this Part.
page 6
Business Tax Review (Assessment) Bill 2003
Single marginal rate of pay-roll tax Part 4
s. 11
Part 4 -- Single marginal rate of pay-roll tax
11. The Pay-roll Tax Assessment Act 2002 amended
The amendments in this Part are to the Pay-roll Tax Assessment
Act 2002*.
5 [* Act No. 48 of 2002.]
12. Section 8 amended
(1) Section 8(1) is amended by deleting " 2002 is $675 000" and
inserting instead --
" 2003 is $750 000 ".
10 (2) Section 8(2) is amended by deleting "2002 is $56 250" and
inserting instead --
" 2003 is $62 500 ".
13. Section 9 repealed
Section 9 is repealed.
15 14. Section 10 amended
(1) Section 10(1) is amended as follows:
(a) by deleting "appropriate rate of pay-roll tax" and
inserting instead --
" pay-roll tax rate ";
20 (b) by deleting paragraph (b) and inserting the following
paragraph instead --
"
(b) the annual threshold amount for the assessment
year.
25 ".
page 7
Business Tax Review (Assessment) Bill 2003
Part 4 Single marginal rate of pay-roll tax
s. 15
(2) Section 10(2) is amended as follows:
(a) by deleting "appropriate rate of pay-roll tax" and
inserting instead --
" pay-roll tax rate ";
5 (b) by deleting paragraph (b) and inserting the following
paragraph instead --
"
(b) the apportioned threshold amount for that part
of the assessment year calculated in accordance
10 with section 12(1).
".
15. Section 11 amended
Section 11 is amended as follows:
(a) by deleting "appropriate rate of pay-roll tax" and
15 inserting instead --
" pay-roll tax rate ";
(b) by deleting paragraph (b) and inserting the following
paragraph instead --
"
20 (b) the apportioned threshold amount for the month
or part of the month calculated in accordance
with section 12(2).
".
page 8
Business Tax Review (Assessment) Bill 2003
Single marginal rate of pay-roll tax Part 4
s. 16
16. Section 12 replaced
Section 12 is repealed and the following section is inserted
instead --
"
5 12. Apportioned threshold amount -- local non-group
employers
(1) For the purposes of section 10(2)(b), the apportioned
threshold amount for part of an assessment year is A in
the formula --
P
10 A = T×
Y
where --
T is the annual threshold amount for the
assessment year;
P is the number of days in that part of the
15 assessment year;
Y is the number of days in the assessment year.
(2) For the purposes of section 11(b), the apportioned
threshold amount for a month or part of a month is A in
the formula --
D
20 A = T×
M
where --
T is the monthly threshold amount for the
assessment year;
D is the number of days in the month, or part of
25 the month, during which WA taxable wages
were paid or payable by the employer;
M is the number of days in the month.
".
page 9
Business Tax Review (Assessment) Bill 2003
Part 4 Single marginal rate of pay-roll tax
s. 17
17. Section 13 amended
(1) Section 13(1) is amended as follows:
(a) by deleting "appropriate rate of pay-roll tax" and
inserting instead --
5 " pay-roll tax rate ";
(b) by deleting paragraph (b) and inserting instead the
following paragraph --
"
(b) the apportioned threshold amount for the
10 assessment year calculated in accordance with
section 14(1).
".
(2) Section 13(2) is amended as follows:
(a) by deleting "appropriate rate of pay-roll tax" and
15 inserting instead --
" pay-roll tax rate ";
(b) by deleting paragraph (b) and inserting instead the
following paragraph --
"
20 (b) the apportioned threshold amount for that part
of the assessment year worked out in
accordance with section 14(2).
".
page 10
Business Tax Review (Assessment) Bill 2003
Single marginal rate of pay-roll tax Part 4
s. 18
18. Section 14 replaced
Section 14 is repealed and the following section is inserted
instead --
"
5 14. Apportioned threshold amounts -- interstate
non-group employers
(1) For the purposes of section 13(1)(b), the apportioned
threshold amount for an assessment year is A in the
formula --
W
10 A = T×
(W + I )
where --
T is the annual threshold amount for the
assessment year;
W is the total amount of WA taxable wages paid
15 or payable by the employer during the
assessment year;
I is the total amount of interstate taxable wages
paid or payable by the employer during the
assessment year.
20 (2) For the purposes of section 13(2)(b), the apportioned
threshold amount for a part of the assessment year is A
in the formula --
W P
A = T× ×
(W + I ) Y
where --
25 T is the annual threshold amount for the
assessment year;
W is the total amount of WA taxable wages paid
or payable by the employer during that part of
the assessment year;
30 I is the total amount of interstate taxable wages
paid or payable by the employer during that
part of the assessment year;
page 11
Business Tax Review (Assessment) Bill 2003
Part 4 Single marginal rate of pay-roll tax
s. 19
P is the number of days in that part of the
assessment year;
Y is the number of days in the assessment year.
".
5 19. Section 15 amended
(1) Section 15(1) is amended as follows:
(a) by deleting "appropriate rate of pay-roll tax" and
inserting instead --
" pay-roll tax rate ";
10 (b) in paragraph (b) by deleting "or (4)".
(2) Section 15(2), (3), (4) and (5) are repealed and the following
subsections are inserted instead --
"
(2) The employer's nominated deduction for an assessment
15 year is --
(a) the amount nominated by the Commissioner
having regard to the amounts of WA taxable
wages and interstate taxable wages previously
paid or payable by the employer and any other
20 relevant matters; or
(b) any other amount nominated by the
Commissioner, at his or her discretion, on the
request of the employer under subsection (3).
(3) The employer may ask the Commissioner to nominate
25 a different amount if the employer expects that the
amounts of WA taxable wages and interstate taxable
wages payable by the employer for the assessment year
will vary significantly from the amounts of WA taxable
wages and interstate taxable wages previously paid or
30 payable by the employer.
".
page 12
Business Tax Review (Assessment) Bill 2003
Single marginal rate of pay-roll tax Part 4
s. 20
20. Section 17 amended
(1) Section 17(2) is amended as follows:
(a) by deleting "appropriate rate of pay-roll tax" and
inserting instead --
5 " pay-roll tax rate ";
(b) by deleting paragraph (b) and inserting instead the
following paragraph --
"
(b) the apportioned threshold amount for the
10 assessment year calculated in accordance with
section 18(1).
".
(2) Section 17(4) is amended as follows:
(a) by deleting "appropriate rate of pay-roll tax" and
15 inserting instead --
" pay-roll tax rate ";
(b) by deleting paragraph (b) and inserting the following
paragraph instead --
"
20 (b) the apportioned threshold amount for that part
of the assessment year calculated in accordance
with section 18(2).
".
page 13
Business Tax Review (Assessment) Bill 2003
Part 4 Single marginal rate of pay-roll tax
s. 21
21. Section 18 replaced
Section 18 is repealed and the following section is inserted
instead --
"
5 18. Apportioned threshold amounts -- groups
(1) For the purposes of section 17(2)(b), the apportioned
threshold amount for an assessment year is A in the
formula --
W
A = T×
(W + I )
10 where --
T is the annual threshold amount for the
assessment year;
W is the total amount of WA taxable wages paid
or payable by the group for the assessment
15 year;
I is the total amount of interstate taxable wages
paid or payable by the group during the
assessment year.
(2) For the purposes of section 17(4)(b), the apportioned
20 threshold amount for part of the assessment year is A
in the formula --
W P
A = T× ×
(W + I ) Y
where --
T is the annual threshold amount for the
25 assessment year;
W is the total amount of WA taxable wages paid
or payable by the group for that part of the
assessment year;
I is the total amount of interstate taxable wages
30 paid or payable by the group during that part of
the assessment year;
page 14
Business Tax Review (Assessment) Bill 2003
Single marginal rate of pay-roll tax Part 4
s. 22
P is the number of days in that part of the
assessment year;
Y is the number of days in the assessment year.
".
5 22. Section 19 amended
(1) Section 19(1) is amended by deleting "appropriate rate of
pay-roll tax" and inserting instead --
" pay-roll tax rate ".
(2) Section 19(2) is amended as follows:
10 (a) by deleting "appropriate rate of pay-roll tax" and
inserting instead --
" pay-roll tax rate ";
(b) in paragraph (b) by deleting "or 5".
(3) Section 19(3), (4), (5) and (6) are repealed and the following
15 subsections are inserted instead --
"
(3) The group's nominated deduction for an assessment
year is --
(a) the amount nominated by the Commissioner
20 having regard to the amounts of WA taxable
wages and interstate taxable wages previously
paid or payable by the group and any other
relevant matters; or
(b) any other amount nominated by the
25 Commissioner, at his or her discretion, on the
request of a member of the group under
subsection (4).
(4) A member of the group may ask the Commissioner to
nominate a different amount if the member expects that
30 the amounts of WA taxable wages and interstate
taxable wages payable by the group for the assessment
year will vary significantly from the amounts of WA
page 15
Business Tax Review (Assessment) Bill 2003
Part 4 Single marginal rate of pay-roll tax
s. 23
taxable wages and interstate taxable wages previously
paid or payable by the group.
".
23. Section 23 amended
5 Section 23(2) and (3) are repealed and the following subsections
are inserted instead --
"
(2) If the employer conducted the trade or business in
Australia during the whole of the assessment year, then
10 the employer's liability to pay pay-roll tax is to be
assessed as if the employer had paid or been liable to
pay wages throughout the assessment year.
(3) If the employer has conducted the trade or business in
Australia during part only of the assessment year, then
15 the employer's liability is to be assessed as if the
employer had paid or been liable to pay wages only
during that part of the assessment year.
".
24. Section 27 amended
20 Section 27(1) is repealed and the following subsections are
inserted instead --
"
(1) If a non-group employer who lodges monthly returns
pays or is liable to pay any interstate taxable wages for
25 an assessment year, then the employer must also lodge
an additional return for the assessment year specifying
the amount of interstate taxable wages paid or payable
by the employer for the whole assessment year.
(1a) If any member of a group pays or is liable to pay
30 interstate taxable wages for an assessment year, the
DGE of the group must lodge an additional return for
the assessment year specifying the amount of interstate
page 16
Business Tax Review (Assessment) Bill 2003
Single marginal rate of pay-roll tax Part 4
s. 25
taxable wages paid or payable by each member of the
group for the whole assessment year.
".
25. Section 29 amended
5 Section 29(2) is amended by deleting all the words and
punctuation after "lodge" and inserting instead --
" monthly returns. ".
26. The Glossary amended
The Glossary is amended in clause 1 as follows:
10 (a) by deleting the definitions of "allowable deduction" and
"appropriate rate";
(b) by inserting the following definitions in their
appropriate alphabetical positions --
"
15 "apportioned threshold amount" means --
(a) in relation to a group -- the amount calculated in
accordance with section 18;
(b) in relation to an interstate non-group
employer -- the amount calculated in accordance
20 with section 14;
(c) in relation to a local non-group employer -- the
amount calculated in accordance with section 12;
"pay-roll tax rate", in relation to an assessment year or
return period, means the rate of pay-roll tax fixed for
25 the year or the return period by the Pay-roll Tax
Act 2002;
".
page 17
Business Tax Review (Assessment) Bill 2003
Part 5 Eligible termination payments
s. 27
Part 5 -- Eligible termination payments
27. The Pay-roll Tax Assessment Act 2002 amended
The amendments in this Part are to the Pay-roll Tax Assessment
Act 2002*.
5 [* Act No. 48 of 2002.]
28. The Glossary amended
(1) The Glossary is amended in clause 1 by inserting the following
definitions in their appropriate alphabetical positions --
"
10 "assessable income", in relation to an eligible termination
payment paid or payable to a person, means the
assessable income of the person under Part III,
Division 2, Subdivision AA of the Income Tax
Assessment Act 1936 of the Commonwealth;
15 "eligible termination payment" has the meaning given in
section 27A of the Income Tax Assessment Act 1936 of
the Commonwealth;
".
(2) The Glossary is amended in clause 2(1) as follows:
20 (a) after paragraph (h) by deleting "and";
(b) after paragraph (i) by deleting the full stop and
inserting --
"
; and
25 (j) so much of an eligible termination payment that
is paid or payable by an employer as a
consequence of the retirement from, or
termination of, any office or employment of a
person (the "retiree"), (whether or not the
30 payment is made to the retiree or to any other
person or body) as would be included in the
assessable income of the retiree if the whole of
page 18
Business Tax Review (Assessment) Bill 2003
Eligible termination payments Part 5
s. 28
the eligible termination payment had been paid
to the retiree.
".
page 19
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