Pay-roll Tax Assessment Act 2002 (WA)

Western Australia Pay-roll Tax Assessment Act 2002 Western Australia Pay-roll Tax Assessment Act 2002 Contents Part 1 — Preliminary 1. Short title 2 2. Commencement 2 3. Relationship with other Acts 2 4. Terms used 2 5A. Notes in text 3 Part 2 — Liability and assessment Division 1 — Liability to pay‑roll tax 5. Pay‑roll tax on WA taxable wages 4 6A. Wages that are taxable in this jurisdiction 4 6B. Jurisdiction in which person who performs services is based 7 6C. Jurisdiction in which employer is based 8 6D. Place and date of payment of wages 9 6. Time for payment of pay‑roll tax 10 7. Liability to pay‑roll tax 10 7A. Tax thresholds and tapering value: half-years in financial year beginning 1 July 2019 10 8. Tax thresholds and tapering value: financial years beginning on or after 1 July 2020 11 Division 2A — Wages Subdivision 1 — General concept of wages 9AA. Term used: wages 12 Subdivision 2 — Fringe benefits and specified taxable benefits 9BA. Wages include fringe benefits and specified taxable benefits 13 9BB. Actual value of fringe benefit 14 9BC. Basis for including value of fringe benefits in returns 14 9BD. Eligibility to use estimated value method 15 9BE. Returns (other than annual returns) using estimated value method 15 9BF. Annual returns using estimated value method 16 9BG. Final returns using estimated value method 16 9BH. Changing method of valuing fringe benefits 17 9BI. Value of specified taxable benefit 19 Subdivision 3 — Superannuation contributions 9CA. Terms used 19 9CB. Wages include superannuation contributions and other similar amounts 20 9CC. Superannuation contributions 22 9CD. Notional contributions 22 Subdivision 4 — Shares and options 9DA. Wages include shares and options granted to employees 23 9DB. Relevant day: choice of 24 9DC. Relevant day: special cases 25 9DD. Value of shares and options 26 9DE. Effect of rescission, cancellation etc. of share or option 27 9DF. Grant of share under exercise of option 28 9DG. Wages include certain shares and options granted to directors 28 9DH. Place where wages (as shares or options) are payable 29 Subdivision 5 — Termination payments 9EA. Wages include termination payments 30 Subdivision 6 — Allowances 9FA. Motor vehicle allowances 31 9FB. Accommodation allowances 32 Subdivision 7 — Employment agents 9GA. Wages include amounts paid by employment agents 33 Subdivision 8 — Miscellaneous provisions 9HA. Value of wages paid in kind 33 9HB. GST excluded from wages 34 9HC. Wages paid by or to third parties 34 Division 2 — Non‑group employers' liability 10. Annual tax liability: local non‑group employers 35 11A. Apportioned threshold amounts for s. 10: local non‑group employers 38 11. Tax payable with returns: local non‑group employer 38 12. Apportioned threshold amounts for s. 11: local non‑group employers 40 13. Annual tax liability: interstate non‑group employers 41 14. Apportioned threshold amounts for s. 13: interstate non‑group employers 43 15. Tax payable with progressive returns: interstate non‑group employers 44 16. Annual reconciliation: non‑group employers 45 Division 3 — Group employers' liability 17. Annual tax liability: groups 46 18. Apportioned threshold amounts for s. 17: groups 49 19. Tax payable with progressive returns: groups 50 20. Annual reconciliation: groups 51 Division 4 — Assessment generally 21. Tax‑reducing arrangements 52 22. Adjustments for changes in annual threshold amount 52 23. Taxable wages not paid throughout assessment year 53 Division 5 — Special provisions for period from 1 July 2018 to 30 June 2023 23A. Nomination of estimates for determining rates for progressive return periods 54 23B. Application for nomination under s. 23A 55 23C. Determination of reduced rate where Pay‑roll Tax Act 2002 s. 8(6) or 10(7) applied 56 Division 6 — Special provisions for assessment year beginning 1 July 2019 23D. Terms used 57 23E. Application of Division 59 23F. Annual tax liability: whole of assessment year beginning 1 July 2019 59 23G. Annual tax liability for non‑group employers: part‑years in assessment year beginning 1 July 2019 60 23H. Annual tax liability for groups: part‑years in assessment year beginning 1 July 2019 62 23I. Tax payable with progressive returns in assessment year beginning 1 July 2019 64 23J. Tax payable for return period portions: local non‑group employers 65 23K. Modified application of relevant liability provisions 67 23L. Adjustment for application of half‑year thresholds 69 23M. Annual reconciliation for assessment year beginning 1 July 2019 70 Part 3 — Registration and returns 24. Applications for registration as employer 71 25. Registration and cancellation of registration 71 26. Monthly returns 72 27. Additional returns for reconciliation purposes 73 28. Further returns 74 28A. Manner of lodging and paying in certain cases 74 29. M, MC Exemptions from lodging monthly returns 75 Part 4 — Constitution of business groups 30. Grouping corporations 79 31. Grouping where employees used in another business 79 32. Grouping commonly controlled businesses 80 33. Controlling interest in business 80 34. Value of beneficial interest in discretionary trusts 82 35A. Groups arising from tracing of interests in corporations 83 35B. Direct interests 85 35C. Indirect interests 85 35D. Aggregate interests 86 36. Smaller groups subsumed into larger groups 87 37. Grouping provisions operate independently 87 38. Exclusion from groups 87 39. Designated group employer 88 Part 5 — Exempt wages 40. Exempt wages 90 41A. Exempt wages: parental and adoption leave 93 41B. Exempt wages: wages paid or payable for or in relation to services performed in other countries 94 41C. Exempt wages: DSC disability support and disability wages subsidy 94 41D. Exempt wages: apprentices under training contracts 96 Part 6 — Miscellaneous 41. Exempting charitable bodies or organisations 98 42A. What is a relevant body 99 42B. Application for a beneficial body determination 100 42C. Beneficial body determination 101 42. Tax payable when employer leaves Australia 103 43. Agents and trustees 103 44. Keeping books and accounts 105 45. Regulations 105 46. Transitional provisions 107 Schedule 1 — Transitional provisions Division 1 — Provisions for the Pay‑roll Tax Assessment Amendment Act 2010 in relation to taxable wages 1. Liability to tax for assessment years commencing on 1 July 2009 and 1 July 2010 108 2. Shares and options granted on or after 1 July 2009 and before Pay‑roll Tax Assessment Amendment Act 2010 received Royal Assent 108 3. Notices under Pay‑roll Tax Assessment Regulations 2003 r. 26(1) or (2) 109 Division 2 — Provisions for the Pay‑roll Tax Assessment Amendment Act 2010 in relation to grouping of employers 4. Exclusion from group in force before 1 July 2012 109 5. Exclusion from group granted on or after 1 July 2012 109 6. Exclusion from group having effect before 1 July 2012 110 Division 3 — Provisions consequent on enactment of Revenue Laws Amendment Act 2012 Part 5 Division 2 7. Assessment and payment of pay‑roll tax in relation to employee shares and options 110 8. Determination of vesting day and value of employee shares and options 110 9. Shares and options granted on or after 1 July 2011 and before Revenue Laws Amendment Act 2012 received Royal Assent 111 Division 4 — Provisions for the Taxation Legislation Amendment Act (No. 2) 2015 10. Terms used 112 11. Exemptions currently held by relevant bodies may be revoked 112 12. Exemptions for periods before the commencement of the Taxation Legislation Amendment Act (No. 2) 2015 Part 4 113 13. A body or organisation given an exemption under clause 12 may apply for a beneficial body determination 114 Division 5 — Provisions for the Taxation Legislation Amendment Act (No. 3) 2015 Part 4 14. Changes relating to tax thresholds do not apply to assessment years commencing before 1 July 2015 115 Division 6 — Provisions for the Pay‑roll Tax Assessment Amendment (Exemption for Trainees) Act 2018 15. Term used: commencement day 115 17. Reassessment 115 Division 7 — Provisions for the Pay‑roll Tax Assessment Amendment Act 2019 18. Terms used 116 19. Application of amendments made by Pay‑roll Tax Assessment Amendment Act 2019 116 20. Exemption for wages paid or payable: training contracts lodged for registration before 1 December 2017 116 21. Exemption for wages paid or payable: training contracts lodged for registration between 1 December 2017 and 30 June 2019 117 Division 8 — Provisions for Pay‑roll Tax Assessment Amendment (Thresholds) Act 2020 22. Amendments apply to financial years beginning on or after 1 July 2019 118 Glossary 1. M, MC Terms used 119 Notes Compilation table 128 Other notes 130 Defined terms Western Australia Pay‑roll Tax Assessment Act 2002 An Act relating to the assessment and collection of tax on wages paid by employers.