Western Australia
Pay-roll Tax Assessment Act 2002
CONTENTS
Part 1 — Preliminary
1.Short title2
2.Commencement2
3.Relationship with other Acts2
4.Meaning of terms used in this Act2
Part 2 — Liability and assessment
Division 1 — Liability to pay‑roll tax
5.Pay‑roll tax on wages3
6.Time for payment of pay‑roll tax3
7.Liability to pay‑roll tax3
8.The tax threshold4
9.Determinations of reduced monthly rates4
Division 2 — Non‑group employers’ liability
10.Annual tax liability — local non‑group employers5
11.Tax payable with returns — local non‑group employers6
12.Allowable deductions — local non‑group employers6
13.Annual tax liability — interstate non‑group employers7
14.Allowable deductions — interstate non‑group employers8
15.Tax payable with monthly returns — interstate non‑group employers9
16.Annual reconciliation — non‑group employers10
Division 3 — Group employers’ liability
17.Annual tax liability — groups11
18.Allowable deductions — groups12
19.Tax payable with monthly returns — groups13
20.Annual reconciliation — groups15
Division 4 — Assessment generally
21.Tax‑reducing arrangements15
22.Adjustments for changes in annual threshold amount16
23.Taxable wages not paid throughout assessment year16
Part 3 — Registration and returns
24.Applications for registration as an employer18
25.Registration and cancellation of registration18
26.Monthly returns19
27.Additional returns for reconciliation purposes19
28.Further returns20
29.Exemptions from lodging monthly returns20
Part 4 — Constitution of business groups
30.Grouping corporations22
31.Grouping where employees used in another business22
32.Grouping commonly controlled businesses23
33.Controlling interest in business24
34.Value of beneficial interest in discretionary trusts25
35.Grouping head and branch businesses26
36.Smaller groups subsumed into larger groups26
37.Grouping provisions operate independently27
38.Exclusion from groups27
39.Designated group employer28
Part 5 — Miscellaneous
40.Exempt wages30
41.Exempting charitable bodies or organisations33
42.Tax payable when employer leaves Australia33
43.Agents and trustees34
44.Keeping books and accounts35
45.Regulations36
Glossary
1.Definitions38
2.Wages — meaning45
3.GST excluded from wages46
4.Place of payment of wages46
5.Provider of fringe benefits or specified taxable benefits47
6.Value of wages paid in kind and other benefits47
7.The value of fringe benefits48
8.Superannuation benefits49
9.Superannuation fund contributions49
10.Contributions to defined superannuation benefit schemes50
11.Unfunded credit to certain unregulated schemes50
12.Superannuation guarantee charge51
Western Australia
Pay-roll Tax Assessment Act 2002
An Act relating to the assessment and collection of tax on wages paid by employers.
[Assented to 20 March 2003]
The Parliament of Western Australia enacts as follows:
This Act may be cited as the Pay-roll Tax Assessment Act 2002.
This Act comes into operation on the day on which the Taxation Administration Act 2003 comes into operation.
3.Relationship with other Acts
The Taxation Administration Act 2003 and the Pay‑roll Tax Act 2002 are to be read with this Act as if they formed a single Act.
4.
Part
Division 1 — Liability to pay‑roll tax
(1)Pay‑roll tax is payable, in accordance with the pay‑roll tax Acts, on wages that are taxable in Western Australia under subsection (2) except wages that are exempt under section 40.
(2)The following kinds of wages are taxable in Western Australia —
(a)wages that are paid or payable for services carried out wholly in Western Australia, irrespective of where the wages are paid or payable;
(b)wages that are paid or payable in Western Australia, except where they are for services carried out wholly in one other State.
6.Time for payment of pay‑roll tax
Pay‑roll tax is due for payment on the last day for lodging the return of the wages on which the pay‑roll tax is payable.
(3)A liability arising under subsection (2) does not affect the liability of an employer under subsection (1).
(4)A person who is liable to pay pay‑roll tax is also liable to pay any penalties, interest or other amounts payable under a pay‑roll tax Act in connection with the pay‑roll tax.
9.
(1)An interstate non‑group employer or the DGE of a group may apply to the Commissioner to determine that the monthly rate of pay‑roll tax payable by the employer or the members of the group for an assessment year is the rate determined under section 9(b) or 11(b) of the Pay‑roll Tax Act 2002.
(2)An application must —
(a)be in the approved form;
(b)include estimates of the total interstate taxable wages and WA taxable wages that the employer or the members of the group expects or expect to pay throughout Australia during the assessment year; and
(c)be accompanied by any other relevant information required by the Commissioner.
(3)The Commissioner may make the determination if satisfied, on the basis of the estimates and other information, that it is appropriate to do so.
(4)The Commissioner may at any time revoke or vary a determination.
(5)If the Commissioner makes, revokes or varies a determination, the Commissioner is to inform the employer or the DGE of the group accordingly, giving particulars of the determination, revocation or variation, and the date on which it takes effect.
Division 2 — Non‑group employers’ liability
10.Annual tax liability — local non‑group employers
(1)If an employer is a local non‑group employer for the whole of an assessment year, the amount of pay‑roll tax payable by the employer for the assessment year is the amount calculated by applying the appropriate rate of pay‑roll tax to the amount equal to the difference between —
(a)the total amount of WA taxable wages paid or payable by the employer during the assessment year; and
(b)the allowable deduction for the employer for the assessment year calculated in accordance with section 12(1).
(2)If an employer is a local non‑group employer for only part of an assessment year, the amount of pay‑roll tax payable by the employer for that part of the assessment year is the amount calculated by applying the appropriate rate of pay‑roll tax to the amount equal to the difference between —
(a)the total amount of WA taxable wages paid or payable by the employer during that part of the assessment year; and
(b)the allowable deduction for the employer for that part of the assessment year calculated in accordance with section 12(2).
11.Tax payable with returns — local non‑group employers
The amount of pay‑roll tax payable by a local non‑group employer for a monthly return period or for part of a month is the amount calculated by applying the appropriate rate of pay‑roll tax to the amount equal to the difference between —
(a)the total amount of WA taxable wages paid or payable by the employer during the month or part of the month; and
(b)the allowable deduction for the employer for the month, or part of the month, worked out in accordance with section 12(3).
(1)For the purposes of section 10(1)(b), the allowable deduction for the employer for the assessment year is A in the formula —
where —
Tis the annual threshold amount for the assessment year;
Wis the total amount of WA taxable wages paid or payable by the employer during the assessment year.
(2)For the purposes of section 10(2)(b), the allowable deduction for the employer for that part of the assessment year is A in the formula —
where —
Pis the number of days in that part of the assessment year;
Tis the annual threshold amount for the assessment year;
Wis the total amount of WA taxable wages paid or payable by the employer during that part of the assessment year;
Yis the number of days in the assessment year.
(3)For the purposes of section 11(b), the allowable deduction for the employer for the month, or part of the month, is A in the formula —
where —
Dis the number of days in the month, or part of the month, during which WA taxable wages were paid or payable by the employer;
Mis the number of days in the month;
Sis the monthly threshold amount for the assessment year;
Wis the total amount of WA taxable wages paid or payable by the employer during the month or part of the month.
13.Annual tax liability — interstate non‑group employers
(1)If an employer is an interstate non‑group employer for the whole of an assessment year, the amount of pay‑roll tax payable by the employer for the assessment year is the amount calculated by applying the appropriate rate of pay‑roll tax to the amount equal to the difference between —
(a)the total amount of WA taxable wages paid or payable by the employer during the assessment year; and
(b)the allowable deduction for the employer for the assessment year calculated in accordance with section 14(1).
(2)If an employer is an interstate non‑group employer for only part of an assessment year, the amount of pay‑roll tax payable by the employer for that part of the assessment year is the amount calculated by applying the appropriate rate of pay‑roll tax to the amount equal to the difference between —
(a)the total amount of WA taxable wages paid or payable by the employer during that part of the assessment year; and
(b)the allowable deduction for the employer for that part of the assessment year calculated in accordance with section 14(2).
14.Allowable deductions — interstate non‑group employers
(1)For the purposes of section 13(1)(b), the allowable deduction for the employer for the assessment year is A in the formula —
where —
Iis the total amount of interstate taxable wages paid or payable by the employer during the assessment year;
Tis the annual threshold amount for the assessment year;
Wis the total amount of WA taxable wages paid or payable by the employer during the assessment year.
(2)For the purposes of section 13(2)(b), the allowable deduction for the employer for that part of the assessment year is A in the formula —
where —
Iis the total amount of interstate taxable wages paid or payable by the employer during that part of the assessment year;
Pis the number of days in that part of the assessment year;
Tis the annual threshold amount for the assessment year;
Wis the total amount of WA taxable wages paid or payable by the employer during that part of the assessment year;
Yis the number of days in the assessment year.
(1)The amount of pay‑roll tax payable by an interstate non‑group employer for a month is the amount calculated by applying the appropriate rate of pay‑roll tax to the amount equal to the difference between —
(a)the total amount of WA taxable wages paid or payable by the employer during the month; and
(b)the amount of the employer’s nominated deduction under subsection (2) or (4).
(2)The employer may nominate an amount, or ask the Commissioner to nominate an amount, as the employer’s nominated deduction for a return period.
(3)The employer must include with the nomination or request for nomination particulars of the estimates on which the nomination is or is to be made.
(4)The Commissioner may accept the amount nominated by an employer, or nominate another amount instead, or nominate an amount on his or her initiative, as the employer’s nominated deduction for the return period.
(5)The nominated amount is to be calculated on the basis of estimates of the amounts of WA taxable wages and interstate taxable wages likely to be paid or payable by the employer during the assessment year or part‑year.
(6)The Commissioner must notify the employer as soon as practicable of the nomination of an amount or the cancellation of a nomination.
(7)If there is no nominated amount for an employer, the nominated deduction for the employer is taken to be nil.
(8)A nomination remains in force for each subsequent return period in the assessment year unless it is cancelled.
(9)The Commissioner may cancel a nomination at any time.
(1)If the sum of the amounts of pay‑roll tax paid or payable by a non‑group employer under section 11 or 15 for the return periods in an assessment year is greater than the amount of pay‑roll tax payable by the employer for the year under section 10 or 13, the employer is entitled to a refund or rebate of the difference.
(2)If the sum of the amounts of pay‑roll tax paid or payable by a non‑group employer under section 11 or 15 for the return periods in an assessment year is less than the amount of pay‑roll tax payable by the employer for the year under section 10 or 13, the employer must pay the difference.
(3)Subject to section 17(4) of the Taxation Administration Act 2003, the Commissioner must make any reassessment necessary to give effect to this section.
Division 3 — Group employers’ liability
17.Annual tax liability — groups
(1)The amount of pay‑roll tax payable by a group for an assessment year is to be worked out in accordance with subsection (2) if at all times during the assessment year there is at least one member of the group who pays or is liable to pay WA taxable wages or interstate taxable wages as a group member, whether or not any member of the group pays or is liable to pay WA taxable wages or interstate taxable wages as a group member throughout the whole assessment year.
(2)The amount of pay‑roll tax payable by the group for the assessment year is the amount calculated by applying the appropriate rate of pay‑roll tax to the amount equal to the difference between —
(a)the total amount of WA taxable wages paid or payable by the group members during the assessment year; and
(b)the allowable deduction for the group for the assessment year calculated in accordance with section 18(1).
(3)The amount of pay‑roll tax payable by a group for an assessment year is to be worked out in accordance with subsection (4) if —
(a)during part only of the assessment year there is at least one member of the group who pays or is liable to pay WA taxable wages or interstate taxable wages as a group member, whether or not that member or any other member of the group pays or is liable to pay WA taxable wages or interstate taxable wages as a group member throughout that part of the assessment year; and
(b)during the remainder of the assessment year there is no member of the group who pays or is liable to pay WA taxable wages or interstate taxable wages as a group member.
(4)The amount of pay‑roll tax payable by the group for the assessment year is the amount calculated by applying the appropriate rate of pay‑roll tax to the amount equal to the difference between —
(a)the total amount of WA taxable wages paid or payable by the group members during that part of the assessment year; and
(b)the allowable deduction for the group for that part of the assessment year calculated in accordance with section 18(2).
18.Allowable deductions — groups
(1)For the purposes of section 17(2)(b), the allowable deduction for the group for the assessment year is A in the formula —
where —
Iis the total amount of interstate taxable wages paid or payable by the group members during the assessment year;
Tis the annual threshold amount for the assessment year;
Wis the total amount of WA taxable wages paid or payable by the group members during the assessment year.
(2)For the purposes of section 17(4)(b), the allowable deduction for the group for that part of the assessment year is A in the formula —
where —
Iis the total amount of interstate taxable wages paid or payable by the group members during that part of the assessment year;
Pis the number of days in that part of the assessment year;
Tis the annual threshold amount for the assessment year;
Wis the total amount of WA taxable wages paid or payable by the group members during that part of the assessment year;
Yis the number of days in the assessment year.
(1)The amount of pay‑roll tax payable for a monthly return period by any member of a group except the DGE is the amount calculated by applying the appropriate rate of pay‑roll tax to the amount equal to the total amount of WA taxable wages paid or payable by the member for the return period.
(2)The amount of pay‑roll tax payable for a monthly return period by the DGE of a group is the amount calculated by applying the appropriate rate of pay‑roll tax to the difference between —
(a)the amount equal to the total amount of WA taxable wages paid or payable by the DGE for the return period; and
(b)the amount of the group’s nominated deduction under subsection (3) or (5).
(3)The DGE may nominate an amount, or ask the Commissioner to nominate an amount, as the group’s nominated deduction for a return period.
(4)The DGE must include with the nomination or request for nomination particulars of the estimates on which the nomination is or is to be made.
(5)The Commissioner may accept the amount nominated by the DGE, or nominate another amount instead, or nominate an amount on his or her initiative, as the group’s nominated deduction.
(6)The nominated amount is to be calculated on the basis of estimates of the WA taxable wages and the interstate taxable wages likely to be paid or payable by the group during the assessment year.
(7)The Commissioner must notify the DGE as soon as practicable of the nomination of an amount or the cancellation of a nomination.
(8)If there is no nominated amount, the nominated deduction is taken to be nil.
(9)The Commissioner may cancel a nomination at any time.
20.Annual reconciliation — groups
(1)If the sum of the amounts of pay‑roll tax paid or payable by the members of a group under section 19 for the return periods in an assessment year is greater than the amount of pay‑roll tax payable by the group for the year under section 17, the group is entitled to a refund or rebate of the difference.
(2)If the sum of the amounts of pay‑roll tax paid or payable by the members of a group under section 19 for the return periods in an assessment year is less than the amount of pay‑roll tax payable by the group for the year under section 17, the group members must pay the difference.
(3)Subject to section 17(4) of the Taxation Administration Act 2003, the Commissioner must make any reassessment necessary to give effect to this section.
Division 4 — Assessment generally
(1)If a person is a party to a tax‑reducing arrangement, the Commissioner may —
(a)disregard the arrangement;
(b)determine that any party to the arrangement is an employer for the purposes of this Act; and
(c)determine that any payment made under the arrangement is wages for the purposes of this Act.
(2)If the Commissioner makes a determination, he or she must —
(a)serve a notice to that effect on the person; and
(b)set out in the notice the grounds on which the Commissioner relies and his or her reasons for making the determination.
22.Adjustments for changes in annual threshold amount
(1)If the Commissioner is satisfied that the total amount of pay‑roll tax paid or payable by a non‑group employer or a group for an assessment year exceeds by more than $10 the total amount of pay‑roll tax that would have been paid or payable for the year if the annual threshold amount had not been amended with respect to that year, the employer or group is eligible for a refund or rebate of the amount by which the first‑mentioned total amount exceeds the second‑mentioned total amount.
(2)The non‑group employer or the group’s DGE may apply to the Commissioner for the rebate or refund.
(3)An application may be made in the approved form before the end of the following financial year.
(4)The Commissioner must reassess the amount of pay‑roll tax payable by the employer or the group for the year on receiving an application, and may do so on his or her initiative.
23.Taxable wages not paid throughout assessment year
(1)This section applies to a non‑group employer if —
(a)the employer pays or is liable to pay WA taxable wages or interstate taxable wages for part only of an assessment year; and
(b)the Commissioner is satisfied that, because of the nature of the employer’s trade or business, the employer’s liability to pay WA taxable wages or interstate taxable wages fluctuates with different periods of the assessment year.
(2)If the employer has conducted the trade or business in Australia during the whole of the assessment year —
(a)the appropriate rate of pay‑roll tax payable by the employer is the rate that would have been payable if the employer had paid or was liable to pay WA taxable wages or interstate taxable wages throughout the assessment year; and
(b)the employer’s liability to pay pay‑roll tax is assessed as if the employer had been an employer throughout the assessment year.
(3)If the employer has conducted the trade or business in Australia during part only of the assessment year —
(a)the appropriate rate of pay‑roll tax payable by the employer is the rate that would have been payable if the employer had paid or was liable to pay WA taxable wages or interstate taxable wages during that part of the assessment year; and
(b)the employer’s liability to pay pay‑roll tax is assessed as if the employer had been an employer only during that part of the assessment year.
Part 3 — Registration and returns
24.Applications for registration as an employer
(1)A non‑group employer who is not registered must apply to the Commissioner for registration if —
(a)the employer pays or is liable to pay any WA taxable wages during a month; and
(b)the total amount of the WA taxable wages and any interstate taxable wages that the employer pays or is liable to pay during the month exceeds the monthly threshold amount.
Penalty: $20 000.
(2)A group member who is not registered must apply for registration if the member pays or is liable to pay any WA taxable wages during a month.
Penalty: $20 000.
(3)A non‑group employer whose registration is cancelled in an assessment year but who in any later month of the year pays or is liable to pay WA taxable wages may apply for registration even if the amount of wages paid or payable by the employer during the month is less than the monthly threshold amount.
(4)An application must be made in the approved form.
(5)An application under subsection (1) or (2) must be made to the Commissioner within 7 days after the end of the month.
(1)On receiving an application under section 24, the Commissioner must register the applicant as an employer for the purposes of this Act if it appears to the Commissioner that the employer is, or is likely to become, liable to pay pay‑roll tax.
(2)The Commissioner may cancel the registration of a person as an employer if —
(a)the person has ceased to be an employer paying wages as mentioned in section 24(1); or
(b)the person —
(i)ceases to be a member of a group; and
(ii)does not pay and is not liable to pay wages as mentioned in section 24(1).
(1)An employer who is registered or required to apply for registration under section 24 must lodge a return for each month specifying the amount of the WA taxable wages paid or payable by the employer during the month, unless the employer is exempted under section 29.
(2)A monthly return must —
(a)be in the approved form; and
(b)be lodged within 7 days after the end of the month, or within any other period that the Commissioner directs in a particular case.
Penalty: $5 000.
27.Additional returns for reconciliation purposes
(2)The additional return must —
(a)be in the approved form;
(b)contain any information required by the Commissioner; and
(c)be lodged within 2 months after the end of the assessment year or within any further time allowed by the Commissioner.
Penalty: $5 000.
(1)The Commissioner may, by notice to a person (whether as principal or as an agent or trustee and whether or not the person is an employer) require the person to lodge a return or a further or fuller return.
(2)The person must lodge the return in accordance with any requirements set out in the notice and within the time specified in the notice.
Penalty: $5 000.
(1)An employer may apply to the Commissioner for exemption from the requirement to lodge monthly returns for an assessment year.
(2)The Commissioner may exempt an employer from the requirement to lodge monthly returns if —
(a)the Commissioner is satisfied that the requirement is unduly onerous in the circumstances; or
(b)the Commissioner is of the opinion that pay‑roll tax will not be payable by the employer, or, if paid, would be refunded.
(3)The Commissioner may give an exemption on receiving an application or on his or her initiative.
(4)An exemption is subject to the prescribed conditions (if any) and to the conditions specified in the notice (if any).
(5)An exemption continues in force until it is revoked.
(6)The Commissioner may revoke an exemption at any time by giving the employer notice of the revocation.
(7)Granting an exemption does not exempt the employer from any liability to pay‑roll tax, even if it has the effect of postponing the time for payment of the pay‑roll tax.
(8)A person who is exempted from lodging monthly returns for an assessment year must —
(a)lodge an annual return within 21 days after the end of the assessment year, unless the notice of exemption otherwise provides; or
(b)if the notice otherwise provides — lodge returns as required by the notice.
Penalty: $5 000.
(9)An annual return must —
(a)be in the approved form; and
(b)specify the WA taxable wages and the interstate taxable wages that the employer paid or became liable to pay during the assessment year.
Penalty: $5 000.
Part
For the purposes of a pay‑roll tax Act, 2 corporations constitute a group if they are related to each other within the meaning of section 50 of the Corporations Act.
31.Grouping where employees used in another business
(1)An employer and another person or other persons constitute a group if one or more of the employer’s employees carries out duties solely or mainly for or in connection with a business carried on by the employer and the other person or persons, or carried on by the other person or persons.
(2)An employer and another person or other persons constitute a group if —
(a)the employer has an agreement, arrangement or undertaking with that person or those persons in relation to a business carried on by the person or persons, whether alone or together with another person or other persons; and
(b)the agreement, arrangement or undertaking relates to the employment of, or the performance of duties by, one or more of the employer’s employees.
(3)Subsection (2) applies in relation to an agreement, arrangement or undertaking whether it is formal or informal, whether it is express or implied and whether or not it includes provisions in respect of the supply of goods or services or goods and services.
32.Grouping commonly controlled businesses
(1)A reference in this section to 2 businesses does not include a reference to 2 businesses that are owned by the same person (otherwise than as a trustee) or by the trustee or trustees of a trust.
(a)the group member’s business is carried on substantially independently of the business carried on by any other member of the group; and
(b)it is just and reasonable to exclude the group member from the group.
(4)The matters to be taken into account are —
(a)the nature and degree of ownership and control of the businesses;
(b)the nature of the businesses; and
(c)any other matter that the Commissioner considers relevant.
(1)A person has, or persons have together, a controlling interest in a business carried on by a corporation if the directors of the corporation, or a majority of them, or one or more of them —
(a)are or is entitled to exercise a majority in voting power at meetings of the directors; and
(b)are or is accustomed or under an obligation, whether formal or informal, to act in accordance with the directions, instructions or wishes of the person, or of those persons acting together.
(2)A person has, or persons have together, a controlling interest in a business carried on by a corporation that has a share capital if the person, or those persons acting together, may (whether directly or indirectly) exercise, control the exercise of or substantially influence the exercise of, more than 50% of the voting power attached to voting shares issued by the corporation.
(3)A person has, or persons have together, a controlling interest in a business carried on by a partnership, if the person or persons —
(a)owns, or own together (whether beneficially or not) more than 50% of the capital of the partnership; or
(b)is, or are together, entitled (whether beneficially or not) to more than 50% of any profits of the partnership.
(4)A beneficiary under a trust has, or beneficiaries under a trust together have, (whether or not as the trustee or trustees of another trust) a controlling interest in a business carried on by the trust if the beneficiary has, or the beneficiaries together have, a beneficial interest in respect of more than 50% of the value of the interests in the trust.
(5)A person has a controlling interest in a business if the person is the sole owner of the business, whether as trustee or otherwise.
(6)Two or more persons together have a controlling interest in a business if the persons own the business as trustees.
(7)If a corporation has a controlling interest in a business, the corporation also has a controlling interest in any other business in which a related corporation has a controlling interest.
(8)Where —
(a)a person has, or persons have together, a controlling interest in a business; and
(b)the person or persons who carries or carry on the business has or have a controlling interest in another business,
then the person or persons referred to in paragraph (a) has or have a controlling interest in the other business referred to in paragraph (b).
(9)A beneficiary under a trust has, or beneficiaries under a trust have, a controlling interest in a business if —
(a)the trustee or trustees of the trust has or have a controlling interest in the business; and
(b)the beneficiary has, or the beneficiaries together, have a beneficial interest in more than 50% of the value of the interests in the trust.
(1)For the purposes of this Part, a person who may benefit under a discretionary trust as a result of the exercise of a power or discretion by the trustee or by another person, or by the trustee and another person, is taken to be a beneficiary of the trust who has a beneficial interest in respect of more than 50% of the value of the interests in the trust.
(2)For the purposes of this Part, 2 or more persons who may benefit under a discretionary trust as a result of the exercise of a power or discretion by the trustee or by another person, or by the trustee and another person, are taken to be beneficiaries of the trust who together have a beneficial interest in respect of more than 50% of the value of the interests in the trust.
35.Grouping head and branch businesses
(1)Two businesses together constitute a group if —
(a)one of the businesses is the head or parent business;
(b)the second business is a branch, agency or subsidiary of the head or parent business; and
(c)the head or parent business exercises managerial control, whether administrative, financial, or procedural, over the branch, agency or subsidiary.
(1)Where a person is a member of 2 or more groups (each of which is called a “smaller group” for the purposes of subsection (3)), the members of those groups together constitute one group for the purposes of this Act.
(2)Where the members of a group (called a “smaller group” for the purposes of subsection (3)) have together a controlling interest in a business, the members of the group and the person or persons who carry on the business together constitute one group for the purposes of this Act.
(3)When the members of a smaller group are members of a group constituted under subsection (1) or (2), the smaller group is no longer treated as a group for the purposes of this Act except for the purpose of —
(a)determining whether a group is constituted under subsection (1) or (2); or
(b)excluding a member from a group under section 31(4)
37.Grouping provisions operate independently
The fact that a person is not a member of a group constituted under a provision of this Part does not prevent that person from being a member of a group constituted under another provision of this Part.
(1)The Commissioner may exclude a person from a group under section 31(4), 32(3) or 35(2) on receiving an application from the person or on his or her initiative.
(2)However, a corporation cannot be excluded from a group if it is related, within the meaning of section 50 of the Corporations Act, to another corporation which is a member of the group.
(3)An application for exclusion must —
(a)set out the grounds on which it is made; and
(b)include a statement of the circumstances giving rise to those grounds.
(4)An exclusion takes effect on the date specified in the notice of exclusion and continues in force until it is revoked.
(5)The date specified as the date on which the exclusion takes effect may be the date of the notice or an earlier date.
(6)The Commissioner may revoke an exclusion at any time by giving notice of the revocation to the person or persons excluded from a group.
(7)A person who is excluded from a group must notify the Commissioner immediately if there is a material change in the circumstances set out in the statement under subsection (3)(b).
(1)The members of a group may designate one of the members as the designated group employer (DGE) for the group for the purposes of the pay‑roll tax Acts.
(2)A designation must —
(a)be in the approved form;
(b)be accompanied by any information required by the Commissioner;
(c)be executed by or for each member of the group; and
(d)be served on the Commissioner.
(3)If the members of a group do not designate a DGE for the group, the Commissioner may on his or her initiative designate one of the members to be the DGE for the group for the purposes of a pay‑roll tax Act.
(4)A designation by the Commissioner is to be made by notice served on the member designated as the DGE.
(5)An employer who is the DGE for a group stops or is taken to have stopped being the group’s DGE on the first day of a return period of the employer during which either of the following happens —
(a)the employer leaves the group; or
(b)the designation is revoked.
(6)The members of a group may revoke the designation by giving the Commissioner notice in the approved form.
(7)The members of a group are not entitled to revoke a designation unless —
(a)the members designate another member to be the DGE; or
(b)the Commissioner consents to the revocation.
(8)If the Commissioner designated a member of a group as the DGE, the Commissioner may revoke the designation by giving notice of the revocation to the member.
(1)The following wages are exempt from pay‑roll tax —
(a)wages of a kind listed in subsection (2);
(b)wages that are exempt under subsection (3);
(c)wages prescribed under subsection (4);
(d)specified exempt allowances;
(e)benefits that are exempt benefits under any provision of the FBTA Act except section 58W and that are not specified taxable benefits.
(2)For the purposes of subsection (1)(a), wages paid or payable during an assessment year are exempt from pay‑roll tax if the wages are paid or payable —
(a)by the Governor of a State;
(b)by a religious institution for doing the religious work of the institution;
(c)by a public benevolent institution for doing work of a public benevolent nature;
(d)by a public hospital for doing work of a kind ordinarily performed in connection with the conduct of public hospitals;
(e)by a hospital carried on by a non‑profit organisation for doing work of a kind ordinarily performed in connection with the conduct of hospitals;
(f)by a school or college (except a college under the Vocational Education and Training Act 1996) that is carried on by a non‑profit organisation that provides education at or below, but not above, the secondary level of education, for doing work of a kind ordinarily performed in connection with the conduct of such schools or colleges;
(g)by a local government, a regional local government or one of the associations constituted under section 9.58 of the Local Government Act 1995;
(h)by a consular or other representative (except a diplomatic representative) in Australia of the government of another country to members of his or her official staff;
(i)by a Trade Commissioner representing in Australia the government of a country of the British Commonwealth of Nations, to members of his or her official staff;
(j)by the Commonwealth War Graves Commission;
(k)by the Australian‑American Educational Foundation;
(l)to a person who is a member of the Defence Force of the Commonwealth or of the armed force of a country that is a member of the British Commonwealth of Nations, being wages paid or payable by the employer from whose employment the person is on leave because of his or her being a member of the force;
(m)by an employer to or in relation to a person who is a probationer, or an apprentice, within the meaning of the Industrial Training Act 1975;
(n)by a charitable body or organisation exempted under section 41
(o)by an employer to or in relation to a trainee employed under a training agreement as part of the Australian Traineeship System established by the Governments of the Commonwealth and the State;
(p)by an employer to or in relation to a person employed as a trainee by agreement under a traineeship or training scheme that —
(i)is established or recognised as a traineeship or training scheme by the Minister to whom the administration of the Industrial Training Act 1975 is for the time being committed by the Governor; and
(ii)is not a prescribed traineeship or training scheme or a traineeship or training scheme of a prescribed class or description;
(q)out of moneys expended for the purpose of a division or portion of a division referred to in the annual estimates of expenditure from the Consolidated Fund prepared by the Treasurer in respect of the assessment year, being a division or portion in respect of a department or other organisation prescribed for the purposes of this paragraph or the division in respect of special Acts to the extent that the estimates of expenditure in that division relate to the department or other organisation; or
(r)as wages of a prescribed kind to a person for services carried out by the person at a remote location.
(3)If wages are paid or payable in Western Australia for services carried out wholly in another country for a continuous period of more than 6 months, the wages paid or payable more than 6 months after the wages were first paid, or first became payable, are exempt from pay‑roll tax.
(4)Regulations may prescribe, as exempt wages, the whole or part of wages paid or payable by an employer where the employer is entitled to recover an amount in respect of those wages from a fund, contributions to which are specified taxable benefits.
(5)If the Minister referred to in subsection (2)(p) notifies the Commissioner that an agreement under a traineeship or training scheme referred to in the subsection has been terminated because the trainee or the trainee’s employer contravened the terms of the agreement during a period specified in the notice, then the Commissioner may determine that the exemption under that subsection does not apply to the wages paid or payable by the employer of the trainee to the trainee during that period.
41.Exempting charitable bodies or organisations
(1)A charitable body or organisation may apply to the Commissioner for exemption from liability to pay‑roll tax.
(2)The Commissioner may, by giving notice to the charitable body or organisation, exempt it from liability to pay‑roll tax.
(3)The exemption is subject to any conditions specified in the notice.
(4)The exemption comes into operation on the day specified in the notice, which may be the day on which the notice is given, or an earlier or later day.
(5)The Commissioner’s decision as to the day on which the exemption comes into operation is non‑reviewable.
(6)The exemption continues in force until it is revoked.
(7)The Commissioner may amend or revoke the exemption and any condition to which it is subject, by giving further notice to the charitable body or organisation.
(1)If the Commissioner has reason to believe that an employer may leave Australia before any taxes become due and payable by the employer —
(a)the Commissioner may, by notice to the employer, fix an earlier date for payment of the taxes; and
(b)the taxes are due and payable on the date specified in the notice.
(2)In subsection (1) —
“taxes” means pay‑roll tax, or any penalties, interest or other amount payable under a pay‑roll tax Act in connection with pay‑roll tax.
(1)An agent or trustee is answerable as an employer for the doing of everything required to be done by a pay‑roll tax Act in relation to the payment of any WA taxable wages by the principal or the trust.
(2)Without limiting subsection (1), an agent or trustee is to lodge the returns for WA taxable wages as required, and is chargeable with any taxes payable on the wages, but in his or her representative capacity only, and each return is separate and distinct from any other, except as otherwise provided by a pay‑roll tax Act.
(3)If the agent or trustee is an executor or administrator, the returns are to be the same as far as practicable as the deceased person, if living, would have been liable to make.
(4)An agent or trustee who disburses an amount by way of taxes for the principal or beneficiary is authorised to recover the amount from the person for whom it was paid, or to deduct it from any money belonging to that person that is in the hands of the agent or trustee.
(5)An agent or trustee is required to retain from time to time out of any money which comes to the agent or trustee in his or her representative capacity so much as is sufficient to pay the taxes.
(6)An agent or trustee is personally liable for the taxes payable if, after the Commissioner has required him or her to make a return, or while the taxes remain unpaid, the agent or trustee, except with the permission of the Commissioner, disposes of or parts with any fund or money which comes to the agent or trustee from which the taxes could legally be paid, but is not otherwise personally liable for the taxes.
(7)An agent or trustee is indemnified for all payments which he or she makes in accordance with a pay‑roll tax Act or a requirement of the Commissioner.
(8)For the purpose of ensuring the payment of taxes the Commissioner has the same remedies against attachable property of any kind vested in or under the control or management or in the possession of any agent or trustee, as he or she would have against the property of any other person in respect of taxes, and in as full and ample a manner.
(9)The Commissioner may, by giving notice to a person, declare the person to be an agent, or the sole agent, of any other person for the purposes of this Act.
(10)Nothing in this section affects the operation of Part 2
(11)In this section —
“taxes” means pay‑roll tax, or any penalties, interest or other amount payable under a pay‑roll tax Act in connection with pay‑roll tax.
(1)An employer who is registered or required to apply for registration must keep —
(a)the records that are prescribed in the regulations for the purposes of this section (if any); and
(b)any other records necessary to enable the Commissioner to determine the employer’s liability to pay pay‑roll tax.
Penalty: $20 000.
(2)Despite section 87 of the Taxation Administration Act 2003, the employer must retain the records for at least 5 years, or for any greater period that is prescribed, after the completion of the transactions to which they relate.
Penalty: $20 000.
(1)The Governor may make regulations prescribing all matters that are required or permitted by this Act to be prescribed or are necessary or convenient to be prescribed for giving effect to this Act.
(2)Regulations may be made about any or all of the following matters —
(a)the evidence that the Commissioner may require for the purpose of determining whether or not an employer was an employer for part only of an assessment year, whether or not a person was or was not a member of a group or whether or not an exemption under section 29 should be given;
(d)the records and other evidence required to be kept in respect of —
(i)specified exempt allowances; and
(ii)anything affecting the extent to which those allowances are excluded from being wages;
(e)the value of a fringe benefit paid or payable by an employer that is to be included in a return;
(f)any other matter for the application of this Act to a fringe benefit, a specified taxable benefit or a specified exempt allowance;
(g)classes of contracts for the purposes of clause 2(1)
(3)Regulations may create offences and provide, in respect of an offence so created, for the imposition of a fine not exceeding $5 000.
