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This is a Bill, not an Act. For current law, see the Acts databases.
South Australia
Payroll Tax (Exemption for Small Business) Amendment
Bill 2018
A BILL FOR
An Act to amend the
Payroll
Tax Act 2009
.
Contents
Part 2—Amendment of Payroll Tax
Act 2009
4Amendment of section
3—Interpretation
5Amendment of section
8—Amount of payroll tax
6Amendment of section 80—Designated group
employers
7Amendment of section
82—Determination of correct amount of payroll tax
8Amendment of section
86—Registration
9Amendment of Schedule
1—Calculation of payroll tax liability
Schedule 1A—Calculation of payroll tax
liability—2018/19 financial year
Part 2—Calculation of payroll tax
liability—first period of 2018/19 financial year
Division 2—Employers who are not
members of a group
5Payroll of employer under
threshold
6Payroll of employer over
threshold
Division 3—Groups with a designated
employer
9Payroll of group
under threshold
10Payroll of group
over threshold
Part 3—Calculation of payroll tax
liability—second period of 2018/19 financial year
Division 2—Employers who are not
members of a group
14Payroll of
employer under threshold
15Payroll of employer over
threshold
Division 3—Groups with a designated
employer
18Payroll of group
under threshold
19Payroll of group
over threshold
11Amendment of Schedule 2—South Australia
specific provisions
The Parliament of South Australia enacts as
follows:
This Act may be cited as the Payroll Tax (Exemption for Small Business)
Amendment Act 2018.
(1) Subject to this section, this Act will come into operation on the day
on which it is assented to by the Governor.
(2) Part 2 (other than
section 9
) will be taken to have come into operation on 1 July 2018.
(3)
Section 9
will come into operation on 1 July 2019.
In this Act, a provision under a heading referring to the amendment of a
specified Act amends the Act so specified.
Part 2—Amendment
of Payroll Tax
Act 2009
4—Amendment
of section 3—Interpretation
Section 3—after the definition of FBTA Act
insert:
2018/19 financial year means the financial year commencing on
1 July 2018;
5—Amendment
of section 8—Amount of payroll tax
Section 8—after its present contents (now to be designated as
subsection (1)) insert:
(2) Despite subsection (1)—
(a) the amount of payroll tax payable by an employer during the 2018/19
financial year is to be ascertained in accordance with Schedule 1A and Schedule
2; and
(b) Schedule 1 Parts 1 to 3 (inclusive) do not apply in relation to the
2018/19 financial year; and
(c) nothing in this subsection is to be taken to affect the operation of
Schedule 1 Part 4 during the 2018/19 financial year.
6—Amendment
of section 80—Designated group employers
Section 80(3)—delete subsection (3) and substitute:
(3) If none of the members of a group is a qualified member the members
may, with the approval of the Commissioner, designate any member of the group to
be the designated group employer for the group for the purposes of this
Act.
7—Amendment
of section 82—Determination of correct amount of payroll
tax
Section 82(1)—delete subsection (1) and substitute:
(1) For the purposes of this Part—
(a) the correct amount of payroll tax payable by an employer
in respect of the 2018/19 financial year is the amount determined in accordance
with Schedule 1A in respect of that financial year; and
(b) the correct amount of payroll tax payable by an employer
in respect of any other financial year is the amount determined in accordance
with Schedule 1 in respect of that financial year.
8—Amendment
of section 86—Registration
(1) Section 86(1)(a) and (b)—delete "$11 538" wherever occurring and
substitute in each case:
the prescribed amount
(2) Section 86—after subsection (5) insert:
(6) For the purposes of subsection (1), the prescribed
amount is—
(a) for the period commencing on 1 July 2018 and ending on
31 December 2018—$11 538; and
(b) on and after 1 January 2019—$28 846.
9—Amendment
of Schedule 1—Calculation of payroll tax liability
(1) Schedule 1, clause 1—before the definition of financial
year insert:
EA is $600 000
(2) Schedule 1, clause 1, definition of R—delete the
definition
(3) Schedule 1, clause 1, definition of TA or threshold
amount—delete "$600 000" and substitute:
$1 500 000
(4) Schedule 1, clause 5, formula—delete the formula and
substitute:
(5) Schedule 1, clause 5—after its present contents as amended by
this clause (now to be designated as subclause (1)) insert:
(2) In this clause—
R is to be determined as follows:
(a) if the employer's total annualised relevant wages for the relevant
financial year is more than $1 500 000 and not more than $1 700 000, R is
calculated in accordance with the following formula:
(b) if the employer's total annualised relevant wages for the relevant
financial year is more than $1 700 000, R is 4.95%.
(3) For the
purposes of this clause, an employer's total annualised relevant
wages or TARW in respect of a financial year is calculated
in accordance with the following formula:
(6) Schedule 1, clause 9(2), formula—delete the formula and
substitute:
(7) Schedule 1, clause 9—after subclause (3) insert:
(4) In this clause—
R is to be determined as follows:
(a) if the group's total annualised relevant wages for the relevant
financial year is more than $1 500 000 and not more than $1 700 000, R
is calculated in accordance with the following formula:
(b) if the group's total annualised relevant wages for the relevant
financial year is more than $1 700 000, R is 4.95%.
(5) For the
purposes of this clause, a group's total annualised relevant wages
or TARW in respect of a financial year is calculated in accordance
with the following formula:
After Schedule 1 insert:
Schedule 1A—Calculation of payroll tax
liability—2018/19 financial year
Part 1—Preliminary
1—Application
This Schedule applies during the 2018/19 financial year.
Part 2—Calculation of payroll tax
liability—first period of 2018/19 financial year
Division 1—Interpretation
2—Interpretation
In this Part—
first period means the period commencing on 1 July 2018 and
ending on 31 December 2018;
FY is 365;
R is 4.95%;
TA or threshold amount is $600 000.
Division 2—Employers who are not members of a
group
3—Application of Division
This Division applies only to an employer who is not a member of a
group.
4—Interpretation
In this Division—
C is the number of days in the 2018/19 financial year in
respect of which the employer paid or was liable to pay taxable wages or
interstate wages (otherwise than as a member of a group);
IW represents the total interstate wages paid or payable by
the employer concerned (otherwise than as a member of a group) during the
2018/19 financial year;
TW represents the total taxable wages paid or payable by the
employer concerned (otherwise than as a member of a group) during the 2018/19
financial year;
TWFP represents the total taxable wages paid or payable by
the employer concerned (otherwise than as a member of a group) during the first
period.
5—Payroll of employer under
threshold
An employer is not liable to pay payroll tax for the first period if the
total taxable wages and interstate wages paid or payable by the employer
(otherwise than as a member of a group) during the 2018/19 financial year is not
more than the employer's threshold amount for the purposes of the first
period, being the amount calculated in accordance with the following
formula:
6—Payroll of employer over
threshold
If the total taxable wages and interstate wages paid or payable by an
employer (otherwise than as a member of a group) during the 2018/19 financial
year is more than the employer's threshold amount for the purposes of the first
period, the employer is liable to pay as payroll tax for the first period the
amount calculated in accordance with the following formula:
Division 3—Groups with a designated
employer
7—Application of Division
This Division applies only to an employer who is a member of a group for
which there is a designated group employer.
8—Interpretation
In this Division—
C is the number of days in the 2018/19 financial year in
respect of which at least 1 member of the group paid or was liable to pay (as a
member of the group) taxable wages or interstate wages;
GIW represents the total interstate wages paid or payable by
the group concerned during the 2018/19 financial year;
GTW represents the total taxable wages paid or payable by the
group concerned during the 2018/19 financial year;
TW represents the total taxable wages paid or payable by the
employer concerned (as a member of the group) during the 2018/19 financial
year;
TWFP represents the total taxable wages paid or payable by
the employer concerned (as a member of the group) during the first
period.
9—Payroll of group under
threshold
None of the members of a group is liable to pay payroll tax for the first
period if the total taxable wages and interstate wages paid or payable by the
group during the 2018/19 financial year is not more than the group
threshold amount for the purposes of the first period, being the amount
calculated in accordance with the following formula:
10—Payroll of group over
threshold
(1) If the total taxable wages and interstate wages paid or payable by a
group during the 2018/19 financial year is more than the group threshold amount
for the purposes of the first period, payroll tax for the first period is
payable as provided by
subclauses (2)
and
(3)
.
(2) The designated
group employer for the group is liable to pay as payroll tax for the first
period the amount calculated in accordance with the following formula:
(3) Each member of
the group (other than that designated group employer) is liable to pay as
payroll tax for the first period the amount calculated in accordance with the
following formula:
Part 3—Calculation of payroll tax
liability—second period of 2018/19 financial year
Division 1—Interpretation
11—Interpretation
In this Part—
EA is $600 000;
FY is 365;
second period means the period commencing 1 January 2019 and
ending on 30 June 2019;
TA or threshold amount is $1 500 000.
Division 2—Employers who are not members of a
group
12—Application of Division
This Division applies only to an employer who is not a member of a
group.
13—Interpretation
In this Division—
C is the number of days in the 2018/19 financial year in
respect of which the employer paid or was liable to pay taxable wages or
interstate wages (otherwise than as a member of a group);
IW represents the total interstate wages paid or payable by
the employer concerned (otherwise than as a member of a group) during the
2018/19 financial year;
TW represents the total taxable wages paid or payable by the
employer concerned (otherwise than as a member of a group) during the 2018/19
financial year;
TWSP represents the total taxable wages paid or payable by
the employer concerned (otherwise than as a member of a group) during the second
period.
14—Payroll of employer under
threshold
An employer is not liable to pay payroll tax for the second period if the
total taxable wages and interstate wages paid or payable by the employer
(otherwise than as a member of a group) during the 2018/19 financial year is not
more than the employer's threshold amount for the purposes of the second
period, being the amount calculated in accordance with the following
formula:
15—Payroll of employer over
threshold
(1) If the total taxable wages and interstate wages paid or payable by an
employer (otherwise than as a member of a group) during the 2018/19 financial
year is more than the employer's threshold amount for the purposes of the second
period, the employer is liable to pay as payroll tax for the second period the
amount calculated in accordance with the following formula:
(2) In this clause—
R is to be determined as follows:
(a) if the employer's total annualised relevant wages for the 2018/19
financial year is more than $1 500 000 and not more than $1 700 000, R is
calculated in accordance with the following formula:
(b) if the employer's total annualised relevant wages for the 2018/19
financial year is more than $1 700 000, R is 4.95%.
(3) For the
purposes of this clause, an employer's total annualised relevant
wages or TARW in respect of the 2018/19 financial year is
calculated in accordance with the following formula:
Division 3—Groups with a designated
employer
16—Application of Division
This Division applies only to an employer who is a member of a group for
which there is a designated group employer.
17—Interpretation
In this Division—
C is the number of days in the 2018/19 financial year in
respect of which at least 1 member of the group paid or was liable to pay (as a
member of the group) taxable wages or interstate wages;
GIW represents the total interstate wages paid or payable by
the group concerned during the 2018/19 financial year;
GTW represents the total taxable wages paid or payable by the
group concerned during the 2018/19 financial year;
TW represents the total taxable wages paid or payable by the
employer concerned (as a member of the group) during the 2018/19 financial
year;
TWSP represents the total taxable wages paid or payable by
the employer concerned (as a member of the group) during the second
period.
18—Payroll of group under
threshold
None of the members of a group is liable to pay payroll tax for the second
period if the total taxable wages and interstate wages paid or payable by the
group during the 2018/19 financial year is not more than the group
threshold amount for the purposes of the second period, being the amount
calculated in accordance with the following formula:
19—Payroll of group over
threshold
(1) If the total taxable wages and interstate wages paid or payable by a
group during the 2018/19 financial year is more than the group threshold amount
for the purposes of the second period, payroll tax for the second period is
payable as provided by
subclauses (2)
and
(3)
.
(2) The designated
group employer for the group is liable to pay as payroll tax for the second
period the amount calculated in accordance with the following formula:
(3) Each member of
the group (other than that designated group employer) is liable to pay as
payroll tax for the second period the amount calculated in accordance with the
following formula:
(4) In this clause—
R is to be determined as follows:
(a) if the group's total annualised relevant wages for the 2018/19
financial year is more than $1 500 000 and not more than $1 700 000, R is
calculated in accordance with the following formula:
(b) if the group's total annualised relevant wages for the 2018/19
financial year is more than $1 700 000, R is 4.95%.
(5) For the
purposes of this clause, a group's total annualised relevant wages
or TARW in respect of the 2018/19 financial year is calculated in
accordance with the following formula:
11—Amendment
of Schedule 2—South Australia specific provisions
(1) Schedule 2, Part 2, Division 1—delete the Division
(2) Schedule 2, clause 5(1), definition of R—delete
the definition and substitute:
R—see subclause (1a)
(3) Schedule 2, clause 5—after subclause (1) insert:
(1a) In this clause—
R is to be determined as follows:
(a) for the period commencing on 1 July 2018 and ending on
31 December 2018, R is 4.95%;
(b) on and after 1 January 2019, R is to be determined as
follows:
(i) if the employer's total annualised relevant wages for the financial
year in which the month occurs is more than $1 500 000 and not more
than $1 700 000—R is calculated in accordance with the following
formula:
(ii) if the employer's total annualised relevant wages for the financial
year in which the month occurs is more than $1 700 000—R is
4.95%.
(1b) For the purposes of this clause, an employer's total annualised
relevant wages or TARW in respect of a financial year is
calculated in accordance with the following formula:
Where—
C is the number of days in the relevant financial year in
respect of which the employer paid or was liable to pay taxable wages or
interstate wages (otherwise than as a member of a group)
FY is the number of days in the relevant financial
year
IW represents the estimated interstate wages in the relevant
financial year
TW represents the estimated taxable wages in the relevant
financial year.
(4) Schedule 2, clause 6(3), formula—delete the formula and
substitute:
(5) Schedule 2, clause 6(3)—after the definition of D
insert:
EA is $600 000
(6) Schedule 2, clause 6(3), definition of TA or threshold
amount—delete the definition
(7) Schedule 2, clause 8(1)(a), definition of R—delete
the definition and substitute:
R—see subclause (2a)
(8) Schedule 2, clause 8(1)(b), definition of R—delete
the definition and substitute:
R—see subclause (2a)
(9) Schedule 2, clause 8(2)(a), definition of R—delete
the definition and substitute:
R—see subclause (2a)
(10) Schedule 2, clause 8(2)(b), definition of
R—delete the definition and substitute:
R—see subclause (2a)
(11) Schedule 2, clause 8—after subclause (2) insert:
(2a) In this clause—
R is to be determined as follows:
(a) for the period commencing on 1 July 2018 and ending on
31 December 2018, R is 4.95%;
(b) on and after 1 January 2019, R is to be determined as
follows:
(i) if the group's total annualised relevant wages for the financial year
in which the month occurs is more than $1 500 000 and not more than
$1 700 000—R is calculated in accordance with the following
formula:
(ii) if the group's total annualised relevant wages for the financial year
in which the month occurs is more than $1 700 000—R is
4.95%.
(2b) For the purposes of this clause, a group's total annualised
relevant wages or TARW in respect of a financial year is
calculated in accordance with the following formula:
Where—
C is the number of days in the relevant financial year in
respect of which any member of the group paid or was liable to pay taxable wages
or interstate wages
FY is the number of days in the relevant financial
year
IW represents the estimated interstate wages in the relevant
financial year
TW represents the estimated taxable wages in the relevant
financial year.
(12) Schedule 2, clause 9(3), formula—delete the formula and
substitute:
(13) Schedule 2, clause 9(3)—after the definition of D
insert:
EA is $600 000
(14) Schedule 2, clause 9(3), definition of TA or threshold
amount—delete the definition