PAY-ROLL TAX ASSESSMENT AMENDMENT BILL 2008

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This is a Bill, not an Act. For current law, see the Acts databases.

PAY-ROLL TAX ASSESSMENT AMENDMENT BILL 2008

Western Australia Pay-roll Tax Assessment Amendment Bill 2008 CONTENTS Part 1 -- Preliminary 1. Short title 2 2. Commencement 2 Part 2 -- Amendment of the Pay-roll Tax Assessment Act 2002 Division 1 -- Act amended 3. The Act amended 3 Division 2 -- Amendments to commence on or after 1 July 2008 4. Section 5 amended 3 5. Sections 6A and 6B inserted 3 6A. The term "WA taxable wages" 3 6B. Wages not referable to services performed in a particular month 5 6. Part 2 Division 2A inserted 6 Division 2A -- Wages Subdivision 1 -- General concept of wages 9AA. The term "wages" 6 Subdivision 2 -- Fringe benefits and specified taxable benefits 9BA. Wages include fringe benefits and specified taxable benefits 7 9BB. Actual value of a fringe benefit 8 9BC. Basis for including the value of fringe benefits in returns 8 9BD. Eligibility to use estimated value method 9 9BE. Returns (other than annual returns) using the estimated value method 9 9BF. Annual returns using the estimated value method 10 283--1 page i

Pay-roll Tax Assessment Amendment Bill 2008 Contents 9BG. Final returns using the estimated value method 10 9BH. Changing method of valuing fringe benefits 11 9BI. Value of a specified taxable benefit 13 Subdivision 3 -- Superannuation contributions 9CA. Terms used in this Subdivision 13 9CB. Wages include superannuation contributions and other similar amounts 13 9CC. Superannuation contributions 15 9CD. Notional contributions 16 Subdivision 4 -- Shares and options 9DA. Wages include shares and options granted to employees 17 9DB. Relevant day -- choice of 18 9DC. Relevant day -- special cases 19 9DD. Value of shares and options 19 9DE. Effect of rescission, cancellation etc. of share or option 20 9DF. Grant of share under exercise of option 21 9DG. Wages include certain shares and options granted to directors 22 9DH. When services considered to have been performed 22 9DI. Place where wages (as shares or options) are payable 23 Subdivision 5 -- Termination payments 9EA. Wages include termination payments 23 Subdivision 6 -- Allowances 9FA. Motor vehicle allowances 25 9FB. Accommodation allowances 26 Subdivision 7 -- Employment agents 9GA. Wages include amounts paid by employment agents 26 Subdivision 8 -- Miscellaneous provisions 9HA. Value of wages paid in kind 27 9HB. GST excluded from wages 27 9HC. Wages paid by or to third parties 27 7. Section 26 amended 29 8. Section 27 amended 30 9. Section 40 amended 30 10. Section 45 amended 30 11. Section 46 and Schedule 1 inserted 30 46. Transitional provisions 30 page ii

Pay-roll Tax Assessment Amendment Bill 2008 Contents Schedule 1 -- Transitional provisions Division 1 -- Provisions for the Pay-roll Tax Assessment Amendment Act 2008 1. Notices under regulation 26(1) or (2) of the Pay-roll Tax Assessment Regulations 2003 30 2. Liability to tax if the Pay-roll Tax Assessment Amendment Act 2008 comes into operation after the start of the assessment year 31 12. Glossary amended 31 Division 3 -- Amendments to commence on 1 July 2009 13. Section 31 amended 34 14. Section 32 amended 34 15. Section 33 amended 34 16. Section 35 replaced by sections 35A to 35D 34 35A. Groups arising from tracing of interests in corporations 34 35B. Direct interests 37 35C. Indirect interests 37 35D. Aggregate interests 38 17. Section 36 amended 39 18. Section 38 amended 39 19. Glossary amended 40 Part 3 -- Amendment of the Pay-roll Tax Assessment Regulations 2003 20. The regulations amended 41 21. Regulation 5 amended 41 22. Regulation 6 amended 41 23. Regulations 12 and 14 amended 41 24. Regulations 16 to 18 repealed 41 25. Regulations 19 to 26 repealed 41 26. Heading to Part 3 amended 41 Part 3 -- Allowances 27. Regulations 28 and 29 repealed 42 28. Regulation 30 amended 42 29. Regulation 31 repealed 42 30. Part 3 Division 2 repealed 42 31. Regulation 41 amended 42 32. Regulation 42 amended 42 page iii

Pay-roll Tax Assessment Amendment Bill 2008 Contents 33. Regulation 43 repealed 43 34. Regulation 44 amended 43 35. Glossary amended 43 36. Power to amend or repeal regulations unaffected 44 page iv

Western Australia LEGISLATIVE ASSEMBLY Pay-roll Tax Assessment Amendment Bill 2008 A Bill for An Act to amend the Pay-roll Tax Assessment Act 2002 and the Pay-roll Tax Assessment Regulations 2003. The Parliament of Western Australia enacts as follows: page 1

Pay-roll Tax Assessment Amendment Bill 2008 Part 1 Preliminary s. 1 Part 1 -- Preliminary 1. Short title This is the Pay-roll Tax Assessment Amendment Act 2008. 2. Commencement 5 This Act comes into operation as follows: (a) Part 1 -- on the day on which this Act receives the Royal Assent ("assent day"); (b) Part 2 Divisions 1 and 2 and Part 3 -- (i) if assent day is not later than 1 July 2008 -- on 10 1 July 2008; or (ii) if assent day is later than 1 July 2008 -- on assent day; (c) Part 2 Division 3 -- 1 July 2009. page 2

Pay-roll Tax Assessment Amendment Bill 2008 Amendment of the Pay-roll Tax Assessment Act 2002 Part 2 Act amended Division 1 s. 3 Part 2 -- Amendment of the Pay-roll Tax Assessment Act 2002 Division 1 -- Act amended 3. The Act amended 5 The amendments in this Part are to the Pay-roll Tax Assessment Act 2002. Division 2 -- Amendments to commence on or after 1 July 2008 4. Section 5 amended (1) Section 5(1) is amended by deleting "taxable in Western 10 Australia under subsection (2) except wages that are exempt under section 40" and inserting instead -- " WA taxable wages ". (2) Section 5(2) is repealed. 5. Sections 6A and 6B inserted 15 After section 5 the following sections are inserted -- " 6A. The term "WA taxable wages" (1) "WA taxable wages" are wages, other than exempt wages, that are paid or payable by an employer for 20 services performed and that are paid or payable -- (a) in Western Australia, other than wages so paid or payable for -- (i) services performed wholly in one other State; or 25 (ii) services performed by a person wholly in another country for a continuous period of more than 6 months beginning on the day on which wages were first page 3

Pay-roll Tax Assessment Amendment Bill 2008 Part 2 Amendment of the Pay-roll Tax Assessment Act 2002 Division 2 Amendments to commence on or after 1 July 2008 s. 5 paid or payable to that person for services so performed; or (b) outside Western Australia for services 5 performed wholly in Western Australia; or (c) outside Australia for services performed mainly in Western Australia. (2) For the purposes of subsection (1), wages that are payable to a person by the person's employer, but have 10 not been paid (not being wages that under the terms of employment are payable in Western Australia or in another State) are to be taken -- (a) if those wages are payable in respect of services performed wholly in Western Australia -- to be 15 wages payable to that person in Western Australia; and (b) if those wages are not payable in respect of services performed wholly in Western Australia or wholly in one other State and the wages last 20 paid or payable to that person by that employer were specified or required to be specified in a return under this Act -- to be wages payable to that person in Western Australia; and (c) if those wages are not taken by paragraph (a) or 25 (b) or by any provision in a corresponding law that corresponds to either of those paragraphs to be wages payable to that person in Western Australia or in another State -- to be wages payable to that person by that employer at the 30 place where that person last performed any services for that employer before those wages became payable. page 4

Pay-roll Tax Assessment Amendment Bill 2008 Amendment of the Pay-roll Tax Assessment Act 2002 Part 2 Amendments to commence on or after 1 July 2008 Division 2 s. 5 (3) If, for the purpose of the payment of wages -- (a) an instrument is sent or given or an amount is transferred by an employer to a person or a person's agent at a place in Australia; or 5 (b) an instruction is given by an employer for the crediting of an amount to the account of a person or a person's agent at a place in Australia, those wages are to be taken to have been paid at that 10 place and to have been paid when the instrument was sent or given, the amount was transferred or the account is credited in accordance with the instruction (as the case requires). (4) Whether services are performed wholly or mainly in 15 Western Australia or another State is to be determined on a monthly basis, taking into account only those services performed during the month in question. (5) In subsection (3) -- "instrument" includes a cheque, bill of exchange, 20 promissory note, money order or a postal order issued by a post office. 6B. Wages not referable to services performed in a particular month Wages that are not paid or payable in respect of 25 services performed by a person in a particular month are to be taken to be paid or payable in respect of services performed by the person in the month, and in the State, in which the wages were paid or became payable. 30 ". page 5

Pay-roll Tax Assessment Amendment Bill 2008 Part 2 Amendment of the Pay-roll Tax Assessment Act 2002 Division 2 Amendments to commence on or after 1 July 2008 s. 6 6. Part 2 Division 2A inserted After Part 2 Division 1 the following Division is inserted -- " Division 2A -- Wages 5 Subdivision 1 -- General concept of wages 9AA. The term "wages" (1) "Wages" means -- (a) wages, remuneration, salary, commission, bonuses or allowances paid or payable to or in 10 relation to an employee; and (b) an amount paid or payable by way of remuneration to a person holding an office under, or in the service of, the Crown in right of the State of Western Australia; and 15 (c) an amount paid or payable under a contract in a class of contract prescribed under section 45(2)(g), to the extent to which that payment is attributable to labour; and (d) an amount paid or payable by a company by 20 way of remuneration to or in relation to a director of that company; and (e) an amount paid or payable by way of commission to an insurance or time-payment canvasser or collector; and 25 (f) an amount that is taken to be wages paid or payable by an employer to a person by another provision of this Division; and (g) a motor vehicle allowance paid or payable to an employee for a financial year, to the extent to 30 which it exceeds the exempt component determined under section 9FA; and page 6

Pay-roll Tax Assessment Amendment Bill 2008 Amendment of the Pay-roll Tax Assessment Act 2002 Part 2 Amendments to commence on or after 1 July 2008 Division 2 s. 6 (h) an accommodation allowance paid or payable to an employee in a financial year in respect of a night's absence from the person's usual place of residence, to the extent to which it exceeds 5 the exempt rate determined under section 9FB. (2) Wages, remuneration, salary, commission, bonuses, allowances or other amounts referred to in subsection (1) are wages -- (a) whether paid or payable at piece work rates or 10 otherwise; and (b) whether paid or payable in cash or in kind. Subdivision 2 -- Fringe benefits and specified taxable benefits 9BA. Wages include fringe benefits and specified taxable 15 benefits (1) The value of a fringe benefit or a specified taxable benefit that is provided by an employer to or in relation to an employee is to be taken to be wages paid by the employer to the employee unless the benefit is a fringe 20 benefit constituted by the grant of a share or an option the value of which is taken to be wages under Subdivision 4. (2) Subsection (1) does not apply to benefits that are exempt benefits for the purposes of the FBTA Act, 25 other than deposits to the Superannuation Holding Accounts Special Account within the meaning of the Small Superannuation Accounts Act 1995 of the Commonwealth. page 7

Pay-roll Tax Assessment Amendment Bill 2008 Part 2 Amendment of the Pay-roll Tax Assessment Act 2002 Division 2 Amendments to commence on or after 1 July 2008 s. 6 9BB. Actual value of a fringe benefit (1) The value of a fringe benefit ("V") is to be calculated in accordance with the formula -- 1 V = TV � 1 - FBT rate 5 where -- "FBT rate" is the rate of fringe benefits tax, imposed for the purposes of the FBTA Act, that applies when the liability to pay-roll tax under this Act arises; 10 "TV" is the taxable value of the benefit as a fringe benefit for the purposes of the FBTA Act. (2) The value of a fringe benefit calculated in accordance with subsection (1) is the "actual value" of the fringe benefit. 15 9BC. Basis for including the value of fringe benefits in returns (1) If an employer is required to specify in a return WA taxable wages that include the value of fringe benefits provided by the employer, the employer may, instead 20 of including the actual value of the fringe benefits, include a value of the fringe benefits calculated using the estimated value method, if the employer is eligible to do so. (2) An employer must use the same basis upon which to 25 include the value of fringe benefits in returns for all returns for an assessment year unless the Commissioner allows a change during that year under section 9BH(4). page 8

Pay-roll Tax Assessment Amendment Bill 2008 Amendment of the Pay-roll Tax Assessment Act 2002 Part 2 Amendments to commence on or after 1 July 2008 Division 2 s. 6 9BD. Eligibility to use estimated value method An employer is eligible to use the estimated value method to calculate the value of fringe benefits provided by the employer in an assessment year if the 5 employer -- (a) has provided WA fringe benefits for at least the 15 months ending immediately before the beginning of the assessment year; and (b) lodges monthly returns for the assessment year. 10 9BE. Returns (other than annual returns) using the estimated value method (1) If an employer, other than one who lodges an annual return, uses the estimated value method for an assessment year, the value of the fringe benefits ("V") 15 to be included in each return for the year except the last return is to be calculated in accordance with the formula -- 1 V = AV � N where -- 20 "AV" is the actual value of the fringe benefits provided by the employer in relation to the FBT year ending on 31 March in the financial year immediately before the assessment year; "N" is the number of returns in the assessment year. 25 (2) The value of the fringe benefits to be included in the employer's last return for the assessment year is the amount equal to the difference between -- (a) the actual value of the WA fringe benefits provided by the employer during the FBT year 30 that ended on 31 March in the assessment year; and page 9

Pay-roll Tax Assessment Amendment Bill 2008 Part 2 Amendment of the Pay-roll Tax Assessment Act 2002 Division 2 Amendments to commence on or after 1 July 2008 s. 6 (b) the sum of the amounts included in each of the previous returns for the assessment year under subsection (1). 9BF. Annual returns using the estimated value method 5 If an employer who lodges an annual return for an assessment year uses the estimated value method for the assessment year, the value of the fringe benefits to be included in the return is the amount equal to the actual value of the WA fringe benefits provided by the 10 employer for the FBT year that ended on 31 March in the assessment year. 9BG. Final returns using the estimated value method If an employer who uses the estimated value method lodges a final return for an assessment year, the value 15 of the fringe benefits to be included in the return is the amount equal to the difference between -- (a) the sum of -- (i) the WA fringe benefits provided by the employer for the FBT year that ended 20 on 31 March in the assessment year; and (ii) the WA fringe benefits provided by the employer for April, May and June in the assessment year (if any); and 25 (b) the sum of -- (i) one quarter of the WA fringe benefits provided by the employer for the FBT year that ended in the first financial year for which the employer last chose to 30 make returns using the estimated value method; and page 10

Pay-roll Tax Assessment Amendment Bill 2008 Amendment of the Pay-roll Tax Assessment Act 2002 Part 2 Amendments to commence on or after 1 July 2008 Division 2 s. 6 (ii) the total of the amounts of WA fringe benefits included in the returns for the assessment year. 9BH. Changing method of valuing fringe benefits 5 (1) An employer may commence using the estimated value method for an assessment year if the employer -- (a) is eligible to use the estimated value method; and (b) gives the Commissioner notice of the intention 10 to do so before the day on which the first or only return for the assessment year is required to be lodged by the employer. (2) An employer may cease using the estimated value method for an assessment year if the employer gives 15 the Commissioner notice of the intention to do so before the day on which the first or only return for the assessment year is required to be lodged by the employer. (3) A notice under subsection (1) or (2) must be in a form 20 approved by the Commissioner. (4) On the written application of an employer, the Commissioner may allow the employer to change the basis upon which to include the value of fringe benefits in returns during an assessment year if the 25 Commissioner is satisfied that -- (a) there is a compelling reason for making the change; and (b) where relevant -- if the change were not made, the amount of pay-roll tax paid by the employer 30 during the assessment year would be substantially greater than the amount payable for the assessment year on the actual value of the fringe benefits provided by the employer for the assessment year. page 11

Pay-roll Tax Assessment Amendment Bill 2008 Part 2 Amendment of the Pay-roll Tax Assessment Act 2002 Division 2 Amendments to commence on or after 1 July 2008 s. 6 (5) If an employer ceases using the estimated value method during an assessment year, the value of the fringe benefits to be included in the last return lodged by the employer for the assessment year is the amount 5 equal to the difference between -- (a) the sum of -- (i) the actual value of the WA fringe benefits provided by the employer for the FBT year ending on 31 March in the 10 assessment year; and (ii) the actual value of the WA fringe benefits provided by the employer in April, May and June of the assessment year (if any); 15 and (b) the sum of -- (i) one quarter of the actual value of the WA fringe benefits provided by the employer for the FBT year that ended in 20 the first financial year in which the employer last chose to make returns using the estimated value method; and (ii) the total of the amounts of the WA fringe benefits included in the 25 employer's returns for the assessment year. (6) If an employer commences using the estimated value method during an assessment year, the value of the fringe benefits to be included in the last return lodged 30 by the employer for the assessment year is the amount equal to the difference between -- (a) the actual value of the WA fringe benefits provided by the employer for the FBT year ending on 31 March in the assessment year; and page 12

Pay-roll Tax Assessment Amendment Bill 2008 Amendment of the Pay-roll Tax Assessment Act 2002 Part 2 Amendments to commence on or after 1 July 2008 Division 2 s. 6 (b) the total of the amounts of the WA fringe benefits included in the employer's returns for the assessment year. 9BI. Value of a specified taxable benefit 5 The value of a specified taxable benefit is the prescribed value, or the value calculated in the prescribed manner (as the case requires). Subdivision 3 -- Superannuation contributions 9CA. Terms used in this Subdivision 10 For the purposes of this Subdivision -- "employee" includes -- (a) any person to whom, because of paragraph (a), (b), (c), (d) or (e) of the definition of "wages" in section 9AA(1), an 15 amount paid or payable in the circumstances referred to in that paragraph constitutes wages; and (b) a director referred to in section 9DG(1); "notional contribution" has the meaning given in 20 section 9CD; "superannuation contribution" has the meaning given in section 9CC. 9CB. Wages include superannuation contributions and other similar amounts 25 (1) The amount of each of the following is to be taken to be wages paid by the employer to the employee in the return period -- (a) a superannuation contribution made by an employer in respect of an employee in a return 30 period of the employer; page 13

Pay-roll Tax Assessment Amendment Bill 2008 Part 2 Amendment of the Pay-roll Tax Assessment Act 2002 Division 2 Amendments to commence on or after 1 July 2008 s. 6 (b) a notional contribution taken to have been made by an employer in respect of an employee in a return period of the employer; (c) an individual superannuation guarantee 5 shortfall that an employer has for an employee for a return period of the employer. (2) If a notional contribution is taken to have been made by an employer, in respect of an employee, to a superannuation fund in a return period no contribution 10 made to the fund by the employer, in respect of the employee, in the return period to make provision for the cost referred to in section 9CD(3) is to be taken to be wages under subsection (1). (3) If -- 15 (a) a superannuation contribution that was payable, but not paid, or was required to be credited as a contribution, but was not, by an employer in respect of an employee is taken to be wages paid by the employer to the employee in a 20 return period under subsection (1); and (b) an individual superannuation guarantee shortfall results wholly or in part from the employer's failure to pay or credit the contribution, 25 the amount of the individual superannuation guarantee shortfall is reduced (but not to below zero) by the amount of the superannuation contribution referred to in paragraph (a). (4) Section 6A(2) applies to -- 30 (a) a superannuation contribution that is payable but not paid or is or is required to be credited as a contribution; and (b) a notional contribution; and page 14

Pay-roll Tax Assessment Amendment Bill 2008 Amendment of the Pay-roll Tax Assessment Act 2002 Part 2 Amendments to commence on or after 1 July 2008 Division 2 s. 6 (c) an individual superannuation guarantee shortfall, as if -- (d) it referred to contributions rather than wages; 5 and (e) an amount that is or is required to be credited as a contribution, a notional contribution and an individual superannuation guarantee shortfall were contributions payable. 10 (5) For the purposes of subsection (1)(c) -- (a) the individual superannuation guarantee shortfall referred to is reduced by any amount of the shortfall arising under section 19 of the Superannuation Guarantee Act because of 15 contributions not made in compliance with the choice of fund requirements; and (b) if an employer has an individual superannuation guarantee shortfall for an employee for a quarter (within the meaning 20 given in section 6 of the Superannuation Guarantee Act), the shortfall is to be taken to be for the last month of the quarter. 9CC. Superannuation contributions (1) A superannuation contribution is made by an employer 25 in respect of an employee if -- (a) a contribution is paid or payable by an employer to or as a superannuation fund in respect of the employee; or (b) an amount, although not paid or payable, is or 30 is required to be credited under a superannuation fund as an employer's contribution in respect of an employee. page 15

Pay-roll Tax Assessment Amendment Bill 2008 Part 2 Amendment of the Pay-roll Tax Assessment Act 2002 Division 2 Amendments to commence on or after 1 July 2008 s. 6 (2) Subsection (1)(b) applies only in respect of an Australian superannuation fund that does not provide for any defined superannuation benefits in respect of any person. 5 (3) Setting aside any money or anything that is worth money as, or as part of, a superannuation fund is to be taken to be paying a contribution. (4) Making a contribution of anything that is worth money is to be taken to be paying a contribution of the amount 10 equal to its value, and its value is to be worked out in accordance with section 9HA as if that section referred to the contribution instead of to wages. 9CD. Notional contributions (1) Notional contributions are to be taken to have been 15 made by an employer in respect of an employee if -- (a) the employee is a member of an Australian superannuation fund; and (b) the fund is a defined benefit fund. (2) For each return period of the employer in which the 20 employee accrues an entitlement to a defined superannuation benefit from the fund, a notional contribution is to be taken to have been made to the fund in the return period by the employer in respect of the employee. 25 (3) The amount of the notional contribution is the amount that an actuary determines would be sufficient to meet the expected long-term cost to the employer of that benefit. (4) The regulations may include provisions about how an 30 actuary is to determine an amount under subsection (3). page 16

Pay-roll Tax Assessment Amendment Bill 2008 Amendment of the Pay-roll Tax Assessment Act 2002 Part 2 Amendments to commence on or after 1 July 2008 Division 2 s. 6 Subdivision 4 -- Shares and options 9DA. Wages include shares and options granted to employees (1) The value of a share or an option granted by an 5 employer to an employee in respect of the appointment of or services performed by the employee is to be taken to be wages paid by the employer to the employee unless the share or option is wages under a paragraph of section 9AA(1) other than paragraph (f). 10 (2) A share or an option is granted to a person in the following circumstances -- (a) in the case of a share -- if the person acquires the share -- (i) in accordance with section 139G of the 15 Income Tax Assessment Act 1936 of the Commonwealth; or (ii) in circumstances prescribed for the purposes of this paragraph by the regulations; 20 (b) in the case of an option -- if the person acquires a right to the share to which the option relates and the right is acquired -- (i) in accordance with section 139G of the Income Tax Assessment Act 1936 of the 25 Commonwealth; or (ii) in circumstances prescribed for the purposes of this paragraph by the regulations. (3) Wages constituted by the value of a share or an option 30 are to be taken to be paid on the relevant day. page 17

Pay-roll Tax Assessment Amendment Bill 2008 Part 2 Amendment of the Pay-roll Tax Assessment Act 2002 Division 2 Amendments to commence on or after 1 July 2008 s. 6 (4) The "relevant day" is the day that the employer elects, in accordance with this Subdivision, to treat as the day on which the wages are paid. (5) If the grant of a share or an option by an employer to 5 an employee is in respect of the appointment of the employee, but not for services performed, the grant is to be taken to be for services performed by the employee in the place or places where it may reasonably be expected that the services of the 10 employee will be performed. (6) To avoid doubt, a share or an option is valuable consideration for the purposes of section 9HC. 9DB. Relevant day -- choice of (1) The employer may elect to treat as the relevant day 15 either the day on which the share or option is granted to the employee or the vesting day. (2) The "vesting day" in respect of a share is the day on which the share vests in the employee, that is, when any conditions applying to the grant of the share have 20 been met and the employee's legal or beneficial interest in the share cannot be rescinded. (3) The "vesting day" in respect of an option is the earlier of the following days -- (a) the day on which the share to which the option 25 relates is granted to the employee; and (b) the day on which the employee exercises a right under the option to have the share the subject of the option transferred to, allotted to or vest in him or her. page 18

Pay-roll Tax Assessment Amendment Bill 2008 Amendment of the Pay-roll Tax Assessment Act 2002 Part 2 Amendments to commence on or after 1 July 2008 Division 2 s. 6 9DC. Relevant day -- special cases (1) If -- (a) an employer grants a share or an option to an employee the value of which is taken to be 5 wages under this Subdivision; and (b) the value of the share or option is not specified as WA taxable wages in a return in the financial year in which the share or option was granted, the employer is to be taken to have elected to treat the 10 wages constituted by the value of that share or option as being paid on the vesting day. (2) If -- (a) an employer grants a share or an option to an employee the value of which is taken to be 15 wages under this Subdivision; and (b) either -- (i) the value of the share or option is nil; or (ii) if the employer were to elect to treat the day on which the share or option was 20 granted as the relevant day -- the wages constituted by the value of the share or option would not be liable to pay-roll tax, the employer is to be taken to have elected to treat the 25 wages constituted by the value of the share or option as being paid or payable on the day on which the share or option was granted. 9DD. Value of shares and options (1) The value of a share or an option taken to be wages 30 under this Subdivision is the market value of the share or option (expressed in Australian currency) on the relevant day, less the consideration (if any) paid or page 19

Pay-roll Tax Assessment Amendment Bill 2008 Part 2 Amendment of the Pay-roll Tax Assessment Act 2002 Division 2 Amendments to commence on or after 1 July 2008 s. 6 given by the employee in respect of the share or option (other than consideration in the form of services performed). (2) The market value of a share or an option on the 5 relevant day is to be determined in accordance with the Commonwealth income tax provisions. (3) For that purpose, the Commonwealth income tax provisions apply with the following modifications, and any other necessary modifications -- 10 (a) the market value of an option is to be determined as if it were a right to acquire a share; (b) a reference to a taxpayer is to be read as a reference to the employee; 15 (c) a reference to the Commissioner of Taxation is to be read as a reference to either that Commissioner or the Commissioner of State Revenue. (4) In this section -- 20 "Commonwealth income tax provisions" means the provisions of Subdivision F of Division 13A of Part III of the Income Tax Assessment Act 1936 of the Commonwealth. 9DE. Effect of rescission, cancellation etc. of share or 25 option (1) If an employer grants a share or an option to an employee the value of which is taken to be wages under this Subdivision and the grant of the share or option is withdrawn, cancelled or exchanged before the 30 vesting day for any valuable consideration (other than the grant of other shares or options) -- (a) the day of withdrawal, cancellation or exchange is to be taken to be the relevant day in relation to the share or option; and page 20

Pay-roll Tax Assessment Amendment Bill 2008 Amendment of the Pay-roll Tax Assessment Act 2002 Part 2 Amendments to commence on or after 1 July 2008 Division 2 s. 6 (b) the market value of the share or option, on the relevant day, is to be taken to be the amount of the valuable consideration. (2) If -- 5 (a) an employer grants a share or an option to an employee the value of which is taken to be wages under this Subdivision; and (b) the value of the share or option is specified as WA taxable wages in a return; and 10 (c) the grant is rescinded because the conditions attaching to the grant were not met, the WA taxable wages of the employer, in the return period in which the grant is rescinded, are to be reduced by the value of the share or option as specified 15 in the earlier return. (3) Subsection (2) does not apply just because an employee fails to exercise an option or to otherwise exercise his or her rights in respect of a share or an option. 20 9DF. Grant of share under exercise of option The value of a share granted by an employer to an employee is not to be taken to be wages under this Subdivision if -- (a) the employer is required to grant the share as a 25 consequence of the exercise of an option by a person; and (b) the value of the option granted to the person was taken to be wages under this Subdivision. page 21

Pay-roll Tax Assessment Amendment Bill 2008 Part 2 Amendment of the Pay-roll Tax Assessment Act 2002 Division 2 Amendments to commence on or after 1 July 2008 s. 6 9DG. Wages include certain shares and options granted to directors (1) If the value of a share or an option granted by a company to a director of the company by way of 5 remuneration for the appointment or services of the director would be taken to be wages under this Subdivision if the director were an employee of the company, the value of the share or option is to be taken to be wages paid by the company (as an employer) to 10 the director. (2) For the purposes of subsection (1), the other provisions of this Subdivision apply in respect of any such grant as if a reference to the employer were a reference to the company and a reference to the employee were a 15 reference to the director of the company. (3) In this section, a reference to a director of the company includes a reference to the following -- (a) a person who, under a contract or other arrangement, is to be appointed as a director of 20 the company; (b) a former director of the company. (4) If the grant of a share or an option by a company to a director of the company is by way of remuneration for the appointment of the director, but not for services 25 performed, the grant is to be taken to be for services performed by the director in respect of the company in the place or places where it may reasonably be expected that the services of the director in respect of the company will be performed. 30 9DH. When services considered to have been performed If the value of a share or an option is taken to be wages under this Subdivision, the services in respect of which the share or option was granted are to be taken to have page 22

Pay-roll Tax Assessment Amendment Bill 2008 Amendment of the Pay-roll Tax Assessment Act 2002 Part 2 Amendments to commence on or after 1 July 2008 Division 2 s. 6 been performed during the month in which the relevant day occurs. 9DI. Place where wages (as shares or options) are payable 5 (1) Wages constituted by the value of a share or an option are to be taken to be paid in Western Australia if the share is a share in a local company or, in the case of an option, an option to acquire shares in a local company. (2) In any other case, wages constituted by the value of a 10 share or an option are to be taken to be paid outside Western Australia. (3) In this section -- "local company" means -- (a) a company incorporated or taken to be 15 incorporated under the Corporations Act that is taken to be registered in Western Australia for the purposes of that Act; or (b) any other body corporate that is incorporated under a written law. 20 Subdivision 5 -- Termination payments 9EA. Wages include termination payments (1) The amount of a termination payment is to be taken to be wages paid or payable by the employer to the employee, or by the company (as an employer) to the 25 director. (2) For the purposes of subsection (1) -- "employment termination payment" means -- (a) an employment termination payment within the meaning of section 82-130 of the ITA 30 Act; or page 23

Pay-roll Tax Assessment Amendment Bill 2008 Part 2 Amendment of the Pay-roll Tax Assessment Act 2002 Division 2 Amendments to commence on or after 1 July 2008 s. 6 (b) a payment that would be an employment termination payment within the meaning of section 82-130 of the ITA Act but for the fact that it was received later than 12 months 5 after the termination of a person's employment; or (c) a transitional termination payment within the meaning of section 82-10 of the Income Tax (Transitional Provisions) Act 1997 of the 10 Commonwealth; "termination payment" means -- (a) a payment made in consequence of the retirement from, or termination of, any office or employment of an employee, being -- 15 (i) an unused annual leave payment; or (ii) an unused long service leave payment; or (iii) so much of an employment termination payment paid or payable 20 by an employer, whether or not paid to the employee or to any other person or body, that would be included in the assessable income of an employee under Part 2-40 of the 25 ITA Act if the whole of the employment termination payment had been paid to the employee; or (b) an amount paid or payable by a company as 30 a consequence of the termination of the services or office of a director of the company, whether or not paid to the director or to any other person or body, that would be an employment termination payment if that page 24

Pay-roll Tax Assessment Amendment Bill 2008 Amendment of the Pay-roll Tax Assessment Act 2002 Part 2 Amendments to commence on or after 1 July 2008 Division 2 s. 6 amount had been paid or payable as a consequence of termination of employment; "unused annual leave payment" has the meaning given in section 83-10 of the ITA Act; 5 "unused long service leave payment" has the meaning given in section 83-75 of the ITA Act. Subdivision 6 -- Allowances 9FA. Motor vehicle allowances (1) For the purposes of section 9AA(1)(g), the exempt 10 component ("E") of a motor vehicle allowance paid or payable in respect of a financial year is calculated in accordance with the formula -- E = K�R where -- 15 K is the number of business kilometres travelled during the financial year under subsection (2); R is the exempt rate under subsection (3). (2) The number of business kilometres travelled during the financial year is to be determined -- 20 (a) if paragraph (b) does not apply to the employer -- in accordance with the applicable recording method in the regulations; or (b) if the Commissioner has, by order in writing, approved the use, by an employer or class of 25 employer, of another method (including the use of an estimate) of determining the number of business kilometres travelled during the financial year -- in accordance with the method approved by the Commissioner. page 25

Pay-roll Tax Assessment Amendment Bill 2008 Part 2 Amendment of the Pay-roll Tax Assessment Act 2002 Division 2 Amendments to commence on or after 1 July 2008 s. 6 (3) The exempt rate for the financial year concerned is -- (a) the rate prescribed by the regulations under section 28-25 of the ITA Act for calculating a deduction for car expenses for a large car using 5 the "cents per kilometre method" in the financial year immediately preceding the financial year in which the allowance is paid or payable; or (b) if no rate referred to in paragraph (a) is 10 prescribed under that Act -- the rate prescribed in the regulations. 9FB. Accommodation allowances For the purposes of section 9AA(1)(h), the exempt rate for the financial year concerned is -- 15 (a) the total reasonable amount for daily travel allowance expenses using the lowest capital city for the lowest salary band for the financial year determined by the Commissioner of Taxation of the Commonwealth; or 20 (b) if no determination referred to in paragraph (a) is in force -- the rate prescribed in the regulations. Subdivision 7 -- Employment agents 9GA. Wages include amounts paid by employment agents 25 An amount in respect of services that is paid or payable by an employment agent, directly or indirectly, to a person who was engaged to perform the services for a client of the employment agent, or to some other person, as a result of which engagement the 30 employment agent receives payment, directly or indirectly, whether by way of a lump sum or an ongoing fee, in relation to the period during which the page 26

Pay-roll Tax Assessment Amendment Bill 2008 Amendment of the Pay-roll Tax Assessment Act 2002 Part 2 Amendments to commence on or after 1 July 2008 Division 2 s. 6 services are performed for the client by the person engaged to perform them is to be taken to be wages paid or payable by the agent (as an employer) to the person. 5 Subdivision 8 -- Miscellaneous provisions 9HA. Value of wages paid in kind The value of wages (except fringe benefits or specified taxable benefits) that are paid or payable in kind is the greater of -- 10 (a) the value agreed or the value attributed to the wages in, or the value ascertainable for the wages from, arrangements between the employer and the employee, which ever is the greater of the 3 amounts; and 15 (b) if the regulations prescribe how the value of wages of that type is to be determined -- the value determined in accordance with the regulations. 9HB. GST excluded from wages 20 (1) If wages paid or payable to a person relate to a supply on which the person is liable to pay GST, the amount or value of the wages is reduced by the amount of GST payable by the person in respect of the services to which the wages relate. 25 (2) Subsection (1) does not apply in respect of the value of wages comprising a fringe benefit. 9HC. Wages paid by or to third parties (1) If any of the following amounts of money or other valuable consideration would, if paid or given directly 30 by an employer to an employee, be or be taken to be wages paid or payable by the employer to the employee page 27

Pay-roll Tax Assessment Amendment Bill 2008 Part 2 Amendment of the Pay-roll Tax Assessment Act 2002 Division 2 Amendments to commence on or after 1 July 2008 s. 6 for the purposes of this Act, they are to be taken to be wages paid or payable by the employer to the employee -- (a) any money or other valuable consideration paid 5 or given, or to be paid or given, to an employee, for the employee's services as an employee of an employer, by a person other than the employer; (b) any money or other valuable consideration paid 10 or given, or to be paid or given, by an employer, for an employee's services as the employee of the employer, to a person other than the employee; (c) any money or other valuable consideration paid 15 or given, or to be paid or given, by a person other than an employer, for an employee's services as an employee of the employer, to a person other than the employee. (2) If any of the following amounts of money or other 20 valuable consideration would, if paid or given directly by a company to a director of the company, be or be taken to be wages paid or payable by the company to the director for the purposes of this Act, they are to be taken to be wages paid or payable by the company to 25 the director -- (a) any money or other valuable consideration paid or given, or to be paid or given, to a director of a company, by way of remuneration for the appointment or services of the director to the 30 company, by a person other than the company; (b) any money or other valuable consideration paid or given, or to be paid or given, by a company, by way of remuneration for the appointment or services of the director to the company, to a 35 person other than the director; page 28

Pay-roll Tax Assessment Amendment Bill 2008 Amendment of the Pay-roll Tax Assessment Act 2002 Part 2 Amendments to commence on or after 1 July 2008 Division 2 s. 7 (c) any money or other valuable consideration paid or given, or to be paid or given, by any person, by way of remuneration for the appointment or services of a director to the company, to a 5 person other than the director. (3) In this section, a reference to a director of a company includes a reference to -- (a) a person who, under a contract or other arrangement, is to be appointed as a director of 10 the company; and (b) a former director of the company. ". 7. Section 26 amended Section 26(2) is repealed and the following subsections are 15 inserted instead -- " (2) A monthly return must be in the approved form. (3) A monthly return must -- (a) for a month other than June -- be lodged within 20 7 days after the end of the month, or within any further time allowed by the Commissioner in a particular case; and (b) for June -- be lodged within 21 days after the end of the month, or within any further time 25 allowed by the Commissioner in a particular case. Penalty: $5 000. ". page 29

Pay-roll Tax Assessment Amendment Bill 2008 Part 2 Amendment of the Pay-roll Tax Assessment Act 2002 Division 2 Amendments to commence on or after 1 July 2008 s. 8 8. Section 27 amended Section 27(2)(c) is amended by deleting "2 months" and inserting instead -- " 21 days ". 5 9. Section 40 amended Section 40(3) is repealed. 10. Section 45 amended Section 45(2)(g) is amended by deleting "clause 2(1)(e) of the Glossary" and inserting instead -- 10 " section 9AA(1)(c) ". 11. Section 46 and Schedule 1 inserted After section 45 the following section and Schedule are inserted -- " 15 46. Transitional provisions Schedule 1 contains transitional provisions relating to amendments made to this Act. Schedule 1 -- Transitional provisions [s. 46] 20 Division 1 -- Provisions for the Pay-roll Tax Assessment Amendment Act 2008 1. Notices under regulation 26(1) or (2) of the Pay-roll Tax Assessment Regulations 2003 A notice under regulation 26(1) or (2) of the Pay-roll Tax 25 Assessment Regulations 2003 in relation to the assessment year commencing on 1 July 2008 (whether given before, on page 30

Pay-roll Tax Assessment Amendment Bill 2008 Amendment of the Pay-roll Tax Assessment Act 2002 Part 2 Amendments to commence on or after 1 July 2008 Division 2 s. 12 or after 1 July 2008) has effect as if it were given under section 9BH(1) or (2), which ever is relevant. 2. Liability to tax if the Pay-roll Tax Assessment Amendment Act 2008 comes into operation after the start 5 of the assessment year (1) This clause applies if the Pay-roll Tax Assessment Amendment Act 2008 receives the Royal Assent later than 1 July 2008. (2) A person's liability to pay-roll tax under this Act for the 10 assessment year commencing on 1 July 2008 is to be determined as if the Pay-roll Tax Assessment Amendment Act 2008 had come into operation on 1 July 2008. ". 12. Glossary amended 15 (1) The Glossary clause 1 is amended as follows: (a) in the definition of "defined superannuation benefit" by deleting "scheme" and inserting instead -- " fund "; (b) in the definition of "defined superannuation benefit" by 20 deleting "participant's" in each place where it occurs and inserting instead -- " member's "; (c) in the definition of "individual superannuation guarantee shortfall" by deleting "Superannuation Guarantee 25 (Administration) Act 1992 of the Commonwealth" and inserting instead -- " Superannuation Guarantee Act "; (d) in the definition of "value", paragraph (b), by deleting "clause 7" and inserting instead -- 30 " section 9BB "; page 31

Pay-roll Tax Assessment Amendment Bill 2008 Part 2 Amendment of the Pay-roll Tax Assessment Act 2002 Division 2 Amendments to commence on or after 1 July 2008 s. 12 (e) in the definition of "value", paragraph (c), by deleting "clause 6" and inserting instead -- " section 9BI "; (f) in the definition of "value", paragraph (d), by deleting 5 "clause 3" and inserting instead -- " section 9HB "; (g) in the definition of "value", paragraph (e), by deleting "clause 6" and inserting instead -- " section 9HA "; 10 (h) in the definition of "wages" by deleting "definition given in clause 2" and inserting instead -- " meaning given in section 9AA "; (i) by inserting in the appropriate alphabetical positions -- " 15 "actual value", of a fringe benefit, has the meaning given in section 9BB(2); "Australian superannuation fund" means a superannuation fund that -- (a) was established in Australia, or has any asset 20 situated in Australia; and (b) has its central management and control in Australia; "defined benefit fund" has the meaning given to "defined benefit superannuation scheme" in section 6 of the 25 Superannuation Guarantee Act; "director" of a company includes a member of the governing body of the company; "FBT year" means a year ending on 31 March; "ITA Act" means the Income Tax Assessment Act 1997 of 30 the Commonwealth; "motor vehicle allowance" means an allowance paid by an employer to a person who provides or maintains a motor vehicle used for business journeys; page 32

Pay-roll Tax Assessment Amendment Bill 2008 Amendment of the Pay-roll Tax Assessment Act 2002 Part 2 Amendments to commence on or after 1 July 2008 Division 2 s. 12 "option" means an option or right, whether actual, prospective or contingent, of a person to acquire a share or to have a share transferred or allotted to the person; 5 "paid", in relation to wages, includes provided, conferred and assigned and "pay" and "payable" have corresponding meanings; "share" means a share in a company and includes a stapled security within the meaning of section 139GCD of the 10 Income Tax Assessment Act 1936 of the Commonwealth; "superannuation fund" includes -- (a) a superannuation fund within the meaning of the Superannuation Industry (Supervision) Act 1993 15 of the Commonwealth; (b) any other form of superannuation, provident or retirement fund or scheme including -- (i) the Superannuation Holding Accounts Special Account within the meaning of 20 the Small Superannuation Accounts Act 1995 of the Commonwealth; and (ii) a retirement savings account within the meaning of the Retirement Savings Accounts Act 1997 of the 25 Commonwealth; "Superannuation Guarantee Act" means the Superannuation Guarantee (Administration) Act 1992 of the Commonwealth; "WA fringe benefits" means fringe benefits that are WA 30 taxable wages on which fringe benefits tax (imposed under the Fringe Benefits Tax Act 1986 of the Commonwealth) is paid or payable; "WA taxable wages" has the meaning given in section 6A. "; 35 (j) by deleting the definitions of "assessable income", "Australian superannuation scheme", "eligible termination payment", " `otherwise deductible' rule", page 33

Pay-roll Tax Assessment Amendment Bill 2008 Part 2 Amendment of the Pay-roll Tax Assessment Act 2002 Division 3 Amendments to commence on 1 July 2009 s. 13 "participant", "regulated superannuation fund", "superannuation fund", "superannuation guarantee charge", "superannuation scheme", "unfunded public sector superannuation scheme", "WA taxable wages" 5 and "work-related benefit". (2) The Glossary clauses 2 to 12 are repealed. Division 3 -- Amendments to commence on 1 July 2009 13. Section 31 amended Section 31(4) is amended by deleting all of the subsection from 10 and including "if the Commissioner" and inserting a full stop instead. 14. Section 32 amended Section 32(3) and (4) are repealed and the following subsection is inserted instead -- 15 " (3) The Commissioner may exclude a person from a group in accordance with section 38. ". 15. Section 33 amended 20 Section 33(7) is amended by deleting "related corporation" and inserting instead -- " related body corporate ". 16. Section 35 replaced by sections 35A to 35D Section 35 is repealed and the following sections are inserted 25 instead -- " 35A. Groups arising from tracing of interests in corporations (1) An entity and a corporation form part of a group if the 30 entity has a controlling interest in the corporation. page 34

Pay-roll Tax Assessment Amendment Bill 2008 Amendment of the Pay-roll Tax Assessment Act 2002 Part 2 Amendments to commence on 1 July 2009 Division 3 s. 16 (2) An entity has a controlling interest in a corporation if the corporation has share capital and -- (a) the entity has a direct interest in the corporation the value of which exceeds 50%; or 5 (b) the entity has an indirect interest in the corporation the value of which exceeds 50%; or (c) the entity has an aggregate interest in the corporation the value of which exceeds 50%. (3) The Commissioner may exclude an entity from a group 10 in accordance with section 38. (4) For the purposes of this section -- "associated person" means a person who is associated with another person in accordance with any of the following -- 15 (a) persons are associated persons if they are related persons; (b) individuals are associated persons if they are partners in a partnership; (c) private companies are associated persons if 20 common shareholders have a majority interest in each private company; (d) trustees are associated persons if any person is a beneficiary common to the trusts (not including a public unit trust scheme) of 25 which they are trustees; (e) a private company and a trustee are associated persons if a related body corporate of the company is a beneficiary of the trust (not including a public unit trust 30 scheme) of which the trustee is a trustee; "entity" means -- (a) a person; or page 35

Pay-roll Tax Assessment Amendment Bill 2008 Part 2 Amendment of the Pay-roll Tax Assessment Act 2002 Division 3 Amendments to commence on 1 July 2009 s. 16 (b) 2 or more persons who are associated persons; "private company" means a company that is not limited by shares, or whose shares are not quoted 5 on the Australian Stock Exchange or any exchange of the World Federation of Exchanges; "related person" means a person who is related to another person in accordance with any of the following -- 10 (a) individuals are related persons if -- (i) one is the spouse or de facto partner of the other; or (ii) the relationship between them is that of parent and child, brothers, sisters, 15 or brother and sister; (b) private companies are related persons if they are related bodies corporate; (c) an individual and a private company are related persons if the individual is a majority 20 shareholder or director of the company or of another private company that is a related body corporate of the company; (d) an individual and a trustee are related persons if the individual is a beneficiary of 25 the trust (not being a public unit trust scheme) of which the trustee is a trustee; (e) a private company and a trustee are related persons if the company, or a majority shareholder or director of the company, is a 30 beneficiary of the trust (not being a public unit trust scheme) of which the trustee is a trustee. page 36

Pay-roll Tax Assessment Amendment Bill 2008 Amendment of the Pay-roll Tax Assessment Act 2002 Part 2 Amendments to commence on 1 July 2009 Division 3 s. 16 35B. Direct interests (1) An entity has a "direct interest" in a corporation if -- (a) in the case of an entity that is a person -- the person can, directly or indirectly, exercise, 5 control the exercise of, or substantially influence the exercise of, the voting power attached to any voting shares issued by the corporation; or (b) in the case of an entity that is 2 or more persons 10 who are associated persons -- each of the associated persons can, directly or indirectly, exercise, control the exercise of, or substantially influence the exercise of, the voting power attached to any voting shares 15 issued by the corporation. (2) The value of the direct interest of the entity in the corporation is the proportion (expressed as a percentage) of the voting power of all voting shares issued by the corporation that -- 20 (a) in the case of an entity that is a person -- the person can directly or indirectly exercise, control the exercise of, or substantially influence the exercise of; or (b) in the case of an entity that is 2 or more persons 25 who are associated persons -- the associated persons can, if acting together, directly or indirectly exercise, control the exercise of, or substantially influence the exercise of. 35C. Indirect interests 30 (1) An entity has an "indirect interest" in a corporation if the corporation is linked to another corporation (the "directly controlled corporation") in which the entity has a direct interest. page 37

Pay-roll Tax Assessment Amendment Bill 2008 Part 2 Amendment of the Pay-roll Tax Assessment Act 2002 Division 3 Amendments to commence on 1 July 2009 s. 16 (2) A corporation is linked to a directly controlled corporation if the corporation is part of a chain of corporations -- (a) that starts with the directly controlled 5 corporation; and (b) in which a link in the chain is formed if a corporation has a direct interest in the next corporation in the chain. (3) The value of the indirect interest of an entity in a 10 corporation (an "indirectly controlled corporation") that is linked to a directly controlled corporation is calculated by multiplying together the following -- (a) the value of the direct interest of the entity in the directly controlled corporation; 15 (b) the value of each direct interest that forms a link in the chain of corporations by which the indirectly controlled corporation is linked to the directly controlled corporation. (4) If an entity has more than one indirect interest in a 20 corporation, the value of those interests is worked out under section 35D. 35D. Aggregate interests (1) An entity has an "aggregate interest" in a corporation if -- 25 (a) the entity has a direct interest and one or more indirect interests in the corporation; or (b) the entity has more than one indirect interest in the corporation. (2) The value of the aggregate interest of an entity in a 30 corporation is the sum of the following -- (a) the value of the direct interest (if any) of the entity in the corporation; page 38

Pay-roll Tax Assessment Amendment Bill 2008 Amendment of the Pay-roll Tax Assessment Act 2002 Part 2 Amendments to commence on 1 July 2009 Division 3 s. 17 (b) the value of each indirect interest of the entity in the corporation. ". 17. Section 36 amended 5 (1) Section 36(3) is amended by deleting all of the subsection from and including "except for the purpose of " and inserting a full stop instead. (2) After section 36(3) the following subsection is inserted -- " 10 (4) The Commissioner may exclude a person from a group in accordance with section 38. ". 18. Section 38 amended Section 38(1) is repealed and the following subsection is 15 inserted instead -- " (1) The Commissioner may exclude a person from a group under section 31(4), 32(3), 35A(3) or 36(4) in relation to a business carried on by the person if satisfied that 20 the business is carried on independently of, and is not connected with the carrying on of, a business carried on by any other member of the group, having regard to -- (a) the nature and degree of ownership and control 25 of the businesses; and (b) the nature of the businesses; and (c) any other matters the Commissioner considers relevant. ". page 39

Pay-roll Tax Assessment Amendment Bill 2008 Part 2 Amendment of the Pay-roll Tax Assessment Act 2002 Division 3 Amendments to commence on 1 July 2009 s. 19 19. Glossary amended The Glossary clause 1 is amended as follows: (a) by inserting the following in the appropriate alphabetical position -- 5 " "related body corporate" has the meaning given in section 9 of the Corporations Act; "; (b) by deleting the definition of "related corporation". page 40

Pay-roll Tax Assessment Amendment Bill 2008 Amendment of the Pay-roll Tax Assessment Regulations 2003 Part 3 s. 20 Part 3 -- Amendment of the Pay-roll Tax Assessment Regulations 2003 20. The regulations amended The amendments in this Part are to the Pay-roll Tax Assessment 5 Regulations 2003. 21. Regulation 5 amended Regulation 5 is amended by deleting "clause 2(1)(e) in the Glossary to" and inserting instead -- " section 9AA(1)(c) of ". 10 22. Regulation 6 amended Regulation 6(c) is deleted. 23. Regulations 12 and 14 amended Regulations 12 and 14 are amended by deleting "clause 6 in the Glossary to" and inserting instead -- 15 " section 9BI of ". 24. Regulations 16 to 18 repealed Regulations 16, 17 and 18 are repealed. 25. Regulations 19 to 26 repealed Regulations 19, 20, 21, 22, 23, 24, 25 and 26 are repealed. 20 26. Heading to Part 3 amended The heading to Part 3 is deleted and the following heading is inserted instead -- " Part 3 -- Allowances 25 ". page 41

Pay-roll Tax Assessment Amendment Bill 2008 Part 3 Amendment of the Pay-roll Tax Assessment Regulations 2003 s. 27 27. Regulations 28 and 29 repealed Regulations 28 and 29 are repealed. 28. Regulation 30 amended Regulation 30 is amended by deleting "The number" and 5 inserting instead -- " For the purposes of section 9FA(2), the number ". 29. Regulation 31 repealed Regulation 31 is repealed. 30. Part 3 Division 2 repealed 10 Part 3 Division 2 is repealed. 31. Regulation 41 amended Regulation 41(1) is amended by deleting "If an amount contributed to a superannuation scheme is taken by clause 8 in the Glossary to the Act to be paid" and inserting instead -- 15 " If a superannuation contribution to a superannuation fund is taken by section 9CB of the Act to be wages paid ". 20 32. Regulation 42 amended (1) Regulation 42(1) is amended by deleting "participant" and inserting instead -- " member of a fund ". (2) Regulation 42(2) and (4) are amended by deleting "participants 25 in a scheme" and inserting instead -- " members ". page 42

Pay-roll Tax Assessment Amendment Bill 2008 Amendment of the Pay-roll Tax Assessment Regulations 2003 Part 3 s. 33 (3) Regulation 42(3) is amended by deleting "participant" and inserting instead -- " member ". 33. Regulation 43 repealed 5 Regulation 43 is repealed. 34. Regulation 44 amended (1) Regulation 44(1), (2), (3) and (4) are amended by deleting "participant" and inserting instead -- " member ". 10 (2) Regulation 44(1), (2) and (3) are amended by deleting "participants" and inserting instead -- " member ". 35. Glossary amended The Glossary clause 1 is amended as follows: 15 (a) in the definition of "redundancy benefits scheme" by deleting "as defined in clause 1 in the Glossary to the Act"; (b) in the definition of "vehicle" by deleting "vehicle;" and inserting instead -- 20 " vehicle. "; (c) by deleting the definitions of "actual value method", "adjustment period", "contribution day", "employee share acquisition scheme", "estimated value method", "FBT year", "fringe benefits tax", "grossed-up value", 25 "motor vehicle allowance", "qualified valuer", "recognised financial market", "unlisted public unit trust" and "WA fringe benefits". Note: The heading to regulation 42 will be altered by deleting "participants" and inserting instead "members". page 43

Pay-roll Tax Assessment Amendment Bill 2008 Part 3 Amendment of the Pay-roll Tax Assessment Regulations 2003 s. 36 36. Power to amend or repeal regulations unaffected This Part does not prevent the Pay-roll Tax Assessment Regulations 2003 from being amended or repealed under the Pay-roll Tax Assessment Act 2002. 5 page 44

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