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State Taxation and Mental Health Acts Amendment Act 2021 No. of 2021 TABLE OF PROVISIONS Clause Page Part 1--Preliminary 1 1 Purposes 1 2 Commencement 3 Part 2--Amendment of Duties Act 2000 4 3 Definitions 4 4 New section 3I inserted 4 5 What is the consideration for the transfer of dutiable property? 5 6 General rate 6 7 Provisions for determining consideration 6 8 New section 55A inserted 7 9 New section 57FC inserted 7 10 New clause 58 of Schedule 2 inserted 10 Part 3--Amendment of First Home Owner Grant Act 2000 11 Division 1--Home buyer schemes 11 11 Title of Act 11 12 Purpose 11 13 New Part 2A inserted 11 14 Authorised investigations 15 15 Search warrant 16 16 Self-incrimination 16 17 Protection of confidential information 16 Division 2--Consequential amendments to other Acts 16 18 Building Act 1993 16 19 Duties Act 2000 17 20 Land Tax Act 2005 17 21 Payroll Tax Act 2007 17 22 Taxation Administration Act 1997 17 23 Unclaimed Money Act 2008 17 24 Victorian Civil and Administrative Tribunal Act 1998 18 Part 4--Amendment of Land Tax Act 2005 19 25 Definitions 19 i Clause Page 26 New section 3F inserted 19 27 New section 18B inserted 20 28 Land tax for discretionary trust with nominated beneficiary 21 29 New section 88E inserted 22 30 Land tax for 2009 to 2021 23 31 New clause 1.5 of Schedule 1 inserted 23 32 Land tax for trusts for 2009 to 2021 24 33 New clause 3.5 of Schedule 1 inserted 24 34 Rate of land tax on land held by absentee owners for 2020 and 2021 25 35 New clause 4.4 of Schedule 1 inserted 26 36 Rate of land tax on land held by owner subject to an absentee trust for 2020 and 2021 26 37 New clause 5.4 of Schedule 1 inserted 27 Part 5--Amendment of Mental Health Act 2014 29 38 New section 365A inserted 29 Part 6--Amendment of Payroll Tax Act 2007 30 Division 1--Bushfire relief regional employers 30 39 Definitions for the purposes of Schedule 1 30 40 Payroll of group over threshold where section 87(2) approval in force--employers covered by joint return are all of the same type 31 41 Payroll of group over threshold where section 87(2) approval in force--employers covered by joint return are not all of the same type 32 42 Monthly payroll tax payable where section 87(2) approval in force--employers covered by joint return are all of the same type 32 43 Monthly payroll tax payable where section 87(2) approval in force--employers covered by joint return are not all of the same type 33 Division 2--Payroll tax threshold amounts 35 44 Registration 35 45 Definition of TA or threshold amount 35 46 Definition of base deductible amount 35 Division 3--Regional rate deduction 36 47 Definition of R 36 48 Definitions of Pbrre and Pre 36 49 Rate of payroll tax 36 50 Payroll of group over threshold where section 87(2) approval in force--employers covered by joint return are all of the same type 37 ii Clause Page 51 Monthly payroll tax payable where section 87(2) approval in force--employers covered by joint return are all of the same type 37 52 Monthly payroll tax payable where section 87(2) approval in force--employers covered by joint return are not all of the same type 37 Division 4--Mental health and wellbeing surcharge 37 53 Definitions 37 54 New clause 1A of Schedule 1 inserted 38 55 Definition of C 39 56 Payroll of employer over threshold 39 57 Definitions 40 58 Payroll of group over threshold where section 87(2) approval in force--employers covered by joint return are all of same type 40 59 Payroll of group over threshold where section 87(2) approval in force--employers covered by joint return are not all of the same type 42 60 Payroll of group over threshold--where no section 87(2) approval in force 44 61 Calculation of payroll tax 46 62 New Division 1AA of Schedule 2 substituted 47 63 Amount of payroll tax to be paid each month 49 64 Deductible amount for employer who pays interstate wages 51 65 Monthly payroll tax payable where section 87(2) approval in force--employers covered by joint return are all of same type 51 66 Monthly payroll tax payable where section 87(2) approval in force--employers covered by joint return are not all of the same type 53 67 Monthly payroll tax payable where no section 87(2) approval in force 57 68 Amount of payroll tax to be paid each month 59 69 New clause 21 of Schedule 3 inserted 60 Part 7--Repeal of this Act 61 70 Repeal of this Act 61 ═════════════ Endnotes 62 1 General information 62 iii State Taxation and Mental Health Acts Amendment Act 2021 No. of 2021 [Assented to ] The Parliament of Victoria enacts: Part 1--Preliminary 1 Purposes The purposes of this Act are-- (a) to amend the Duties Act 2000-- (i) to widen the off-the-plan concession; and (ii) to increase the rate of duty on the transfer of high-value properties; and 1 State Taxation and Mental Health Acts Amendment Act 2021 No. of 2021 Part 1--Preliminary (iii) to provide temporary exemptions and concessions for the transfer of new homes in the City of Melbourne; and (iv) to make other miscellaneous amendments to that Act; and (b) to amend the First Home Owner Grant Act 2000-- (i) to change the title of that Act; and (ii) to authorise the Commissioner of State Revenue to administer certain schemes under which the State contributes to the purchase of homes; and (c) to amend the Land Tax Act 2005-- (i) in relation to partnership property; and (ii) in relation to land tax thresholds; and (iii) in relation to land tax rates; and (iv) to make other miscellaneous amendments to that Act; and (d) to amend the Mental Health Act 2014 to provide for the proceeds of the mental health and wellbeing surcharge to be used for the provision of mental health outputs; and (e) to amend the Payroll Tax Act 2007 in relation to-- (i) the payroll tax thresholds; and (ii) the payroll tax rate for certain groups of employers; and (iii) the introduction of the mental health and wellbeing surcharge; and (f) to make consequential amendments to other Acts. 2 State Taxation and Mental Health Acts Amendment Act 2021 No. of 2021 Part 1--Preliminary 2 Commencement (1) This Act (other than Part 5 and Divisions 1 and 4 of Part 6) comes into operation on 1 July 2021. (2) Division 1 of Part 6 is taken to have come into operation on 1 July 2019. (3) Part 5 and Division 4 of Part 6 come into operation on 1 January 2022. 3 State Taxation and Mental Health Acts Amendment Act 2021 No. of 2021 Part 2--Amendment of Duties Act 2000 Part 2--Amendment of Duties Act 2000 3 Definitions In section 3(1) of the Duties Act 2000 insert the following definitions-- "home has the meaning given by section 4 of the First Home Owner Grant and Home Buyer Schemes Act 2000; home buyer scheme has the meaning given by section 34A of the First Home Owner Grant and Home Buyer Schemes Act 2000; shared equity arrangement means an arrangement, including an arrangement made under a home buyer scheme, under which the State contributes to the purchase of a home, or land on which a home will be affixed, and takes an equitable interest in the land to which the home is or will be affixed;". 4 New section 3I inserted After section 3H of the Duties Act 2000 insert-- "3I Purchasers of dutiable property under a shared equity arrangement For the purpose of assessing duty chargeable under this Chapter, including the application of any exemptions or concessions, on a transfer of land to a person who purchases the land under a shared equity arrangement, no account is to be taken of any beneficial ownership the State has in the land.". 4 State Taxation and Mental Health Acts Amendment Act 2021 No. of 2021 Part 2--Amendment of Duties Act 2000 5 What is the consideration for the transfer of dutiable property? After section 21(2) of the Duties Act 2000 insert-- "(2A) Despite subsection (2) but subject to subsection (2B), the consideration for a transfer of dutiable property is also to be adjusted under subsection (3) or (4) if-- (a) the adjustment would result in the consideration being not more than $1 000 000; and (b) the transfer meets all the requirements to receive a concessional rate of duty under section 57J other than the requirement that the dutiable value of the dutiable property is not more than $550 000; and (c) the contract for purchase of the dutiable property is entered into on or after 1 July 2021 but before 1 July 2023. (2B) Subsection (2A) does not apply if the Commissioner determines that the contract for purchase of the dutiable property replaces a previous contract for the purchase of the same property entered into before 1 July 2021.". 5 State Taxation and Mental Health Acts Amendment Act 2021 No. of 2021 Part 2--Amendment of Duties Act 2000 6 General rate In the table in section 28(1) of the Duties Act 2000, for-- "More than $960 000 5⋅5% of the dutiable value" substitute-- "More than $960 000 but 5⋅5% of the dutiable value not more than $2 000 000 More than $2 000 000 $110 000 plus 6⋅5% of that part of the dutiable value that exceeds $2 000 000". 7 Provisions for determining consideration After section 32V(2A) of the Duties Act 2000 insert-- "(2B) Despite subsection (2A) but subject to subsection (2C), the consideration for a transaction under this Part is also to be adjusted under subsection (3) or (4) if-- (a) the adjustment would result in the consideration being not more than $1 000 000; and (b) the transfer meets all the requirements to receive a concessional rate of duty under section 57J other than the requirement that the dutiable value of the dutiable property is not more than $550 000; and (c) the contract for purchase of the dutiable property is entered into on or after 1 July 2021 but before 1 July 2023. (2C) Subsection (2B) does not apply if the Commissioner determines that the contract for purchase of the dutiable property replaces a previous contract for the purchase of the 6 State Taxation and Mental Health Acts Amendment Act 2021 No. of 2021 Part 2--Amendment of Duties Act 2000 same property entered into before 1 July 2021.". 8 New section 55A inserted After section 55 of the Duties Act 2000 insert-- "55A Shared equity arrangements No duty is chargeable under this Chapter in respect of a change in beneficial ownership resulting from an owner of land purchased under a shared equity arrangement paying money to the State under the arrangement.". 9 New section 57FC inserted After section 57FB of the Duties Act 2000 insert-- "57FC Exemption or concession for new homes in City of Melbourne (1) Subject to subsections (3) and (4), no duty is chargeable under this Chapter on a transfer of eligible property if-- (a) the transferee, or each transferee if there are more than one, is a bona fide purchaser of the eligible property for adequate consideration; and (b) an occupancy permit for the new home affixed to the eligible property was issued at least 12 months before the date of the contract for the purchase of the eligible property; and (c) the contract for the purchase of the eligible property was entered into on or after 21 May 2021 but before 1 July 2022. 7 State Taxation and Mental Health Acts Amendment Act 2021 No. of 2021 Part 2--Amendment of Duties Act 2000 (2) Subject to subsections (1), (3) and (4), the duty otherwise chargeable under this Chapter on a transfer of eligible property is to be reduced by 50% if-- (a) the transferee, or each transferee if there are more than one, is a bona fide purchaser of the eligible property for adequate consideration; and (b) the contract for the purchase of the eligible property was entered into on or after 1 July 2021 but before 1 July 2022. (3) Subsection (1) or (2) does not apply if the Commissioner determines that the contract for purchase of the eligible property replaces a previous contract for the purchase of the same eligible property entered into before-- (a) 21 May 2021 in the case of a contract referred to in subsection (1); or (b) 1 July 2021 in the case of a contract referred to in subsection (2). (4) No account is to be taken of this section-- (a) in determining, for the purposes of section 59(6) or 60(3), the amount of duty paid or payable (but for Division 5) on a transfer to which either of those sections applies; or (b) in determining any duty chargeable under section 28A(2) on a transfer to a foreign purchaser of a land-related interest in residential property. 8 State Taxation and Mental Health Acts Amendment Act 2021 No. of 2021 Part 2--Amendment of Duties Act 2000 (5) Despite section 89D or 89E, nothing in this section applies for the purposes of determining any duty payable under Part 2 of Chapter 3. (6) If the transfer is of a partial interest in dutiable property, the dutiable value of the dutiable property for the purpose of determining if it is eligible property is the unencumbered value of the whole of the dutiable property at the time of the transfer. (7) In this section-- City of Melbourne has the meaning given by section 3 of the City of Melbourne Act 2001; eligible property means dutiable property referred to in section 10(1)(a) or (ab) that-- (a) is residential property wholly within the City of Melbourne to which a new home is affixed; and (b) subject to subsection (6), has a dutiable value of no more than $1 000 000; new home has the meaning given by section 3 of the First Home Owner Grant and Home Buyer Schemes Act 2000; occupancy permit has the same meaning as in the Building Act 1993.". 9 State Taxation and Mental Health Acts Amendment Act 2021 No. of 2021 Part 2--Amendment of Duties Act 2000 10 New clause 58 of Schedule 2 inserted After clause 57 of Schedule 2 to the Duties Act 2000 insert-- "58 State Taxation and Mental Health Acts Amendment Act 2021--general rate of duty Section 28(1), as in force immediately before the commencement of section 6 of the State Taxation and Mental Health Acts Amendment Act 2021, continues to apply in respect of a dutiable transaction or an acquisition of an interest in a landholder that occurs on or after that commencement under an agreement or arrangement entered into before that commencement.". 10 State Taxation and Mental Health Acts Amendment Act 2021 No. of 2021 Part 3--Amendment of First Home Owner Grant Act 2000 Part 3--Amendment of First Home Owner Grant Act 2000 Division 1--Home buyer schemes 11 Title of Act In the title to the First Home Owner Grant Act 2000, after "Grant" insert "and Home Buyer Schemes". 12 Purpose In section 1 of the First Home Owner Grant Act 2000, for "by establishing a scheme for the payment of grants to first home owners." substitute-- "by-- (a) establishing a scheme for the payment of grants to first home owners; and (b) authorising the Commissioner of State Revenue to administer schemes under which the State contributes to the purchase of a home or vacant land on which a home is to be constructed.". 13 New Part 2A inserted After Part 2 of the First Home Owner Grant Act 2000 insert-- "Part 2A--Home buyer schemes 34A Definition In this Part-- home buyer scheme means a scheme declared by the Treasurer under section 34B to be a home buyer scheme for the purposes of this Part. 11 State Taxation and Mental Health Acts Amendment Act 2021 No. of 2021 Part 3--Amendment of First Home Owner Grant Act 2000 34B Declaration of home buyer scheme (1) The Treasurer, by notice published in the Government Gazette, may declare a scheme to be a home buyer scheme for the purposes of this Part. (2) A scheme that is declared under subsection (1) to be a home buyer scheme must be a scheme under which-- (a) a person who is acquiring a home or vacant land on which a home is to be constructed may enter into an agreement with the State; and (b) in accordance with the terms of the agreement, the State contributes to the acquisition of the home or land; and (c) the State takes an interest in the home or land or in the sale proceeds of the home or land. (3) A declaration under subsection (1) may specify matters in relation to the scope and administration of the home buyer scheme, including the following-- (a) eligibility requirements for participants in the scheme; (b) matters relating to type of home or vacant land that may be purchased under the scheme; (c) terms of agreements entered into under the scheme; (d) the enforcement of agreements entered into under the scheme; (e) record keeping requirements; (f) evidentiary requirements; 12 State Taxation and Mental Health Acts Amendment Act 2021 No. of 2021 Part 3--Amendment of First Home Owner Grant Act 2000 (g) conditions of agreements entered into with third parties for the purposes of the administration of the scheme; (h) any other relevant matter. 34C Schemes in operation before commencement of Part (1) For the avoidance of doubt, the Treasurer may make a declaration under section 34B in respect of a scheme that is in operation before the date of commencement of this Part. (2) A declaration referred to in subsection (1) may specify matters in relation to any of the following-- (a) the transfer or assignment of any benefits, duties, interests, rights or obligations of a party to a contract, memorandum of understanding, deed or any other agreement or arrangement entered into under the existing scheme; (b) the date on which a transfer or assignment is to take effect. (3) If, under a declaration, the benefits, duties, interests, rights or obligations of a party to an agreement or arrangement (the transferor party) are transferred or assigned to a new party (the transferee party)-- (a) the transferee party becomes, on the transfer date, a party to the agreement or arrangement in place of the transferor party; and (b) on and after the transfer date, the agreement or arrangement has effect as if the transferee party had always been 13 State Taxation and Mental Health Acts Amendment Act 2021 No. of 2021 Part 3--Amendment of First Home Owner Grant Act 2000 a party to the agreement or arrangement. 34D Commissioner to administer home buyer schemes (1) The Commissioner must administer a home buyer scheme on behalf of the State and may do all things necessary or convenient to be done in connection with the performance of that function. (2) Without limiting subsection (1), the Commissioner may do any of the following on behalf of the State-- . (a) receive applications to participate in a home buyer scheme; . (b) assess eligibility of home buyer scheme applicants; . (c) determine applications to participate in a home buyer scheme; (d) enter into any contract, memorandum of understanding, deed or any other agreement or arrangement for the purposes of administering a home buyer scheme. 34E Administration agreement (1) The Commissioner may enter into an agreement (an administration agreement) with a financial institution or other person for carrying out functions related to the administration of a home buyer scheme. (2) An administration agreement must include-- (a) any conditions specified in a declaration made under section 34B; and 14 State Taxation and Mental Health Acts Amendment Act 2021 No. of 2021 Part 3--Amendment of First Home Owner Grant Act 2000 (b) any conditions prescribed by the regulations. 34F Collection of information (1) The Commissioner may collect information and documents for the purposes of the administration of a home buyer scheme. (2) Without limiting subsection (1), the Commissioner may obtain information from any of the following-- (a) any person who applies to participate, or who is a participant, in a home buyer scheme; (b) financial institutions. 34G Disclosure of information (1) The Commissioner may disclose information and documents obtained under this Part for the purposes of the administration of a home buyer scheme. (2) Without limiting subsection (1), the Commissioner may disclose information to financial institutions. 34H Division 2 of Part 3 does not apply Division 2 of Part 3 does not apply to this Part.". 14 Authorised investigations In section 39 of the First Home Owner Grant Act 2000-- (a) in paragraph (b), after "corresponding law" insert "in relation to a first home owner grant"; (b) in paragraph (e), after "this Act" insert "(other than Part 2A)". 15 State Taxation and Mental Health Acts Amendment Act 2021 No. of 2021 Part 3--Amendment of First Home Owner Grant Act 2000 15 Search warrant In section 43(1) and (2) of the First Home Owner Grant Act 2000, after "this Act" insert "(other than Part 2A)". 16 Self-incrimination In section 46(1) of the First Home Owner Grant Act 2000, after "this Act" insert "(other than Part 2A)". 17 Protection of confidential information In section 50(1) of the First Home Owner Grant Act 2000-- (a) insert the following definition-- "home buyer scheme has the meaning given by section 34A;"; (b) for the definition of protected information substitute-- "protected information means information obtained under or in relation to the administration of this Act about-- (a) an applicant for a first home owner grant or an applicant's partner; or (b) a person in connection with a home buyer scheme.". Division 2--Consequential amendments to other Acts 18 Building Act 1993 In section 3(1) of the Building Act 1993, in the definition of regional Victoria, for "First Home Owner Grant Act 2000" substitute "First Home Owner Grant and Home Buyer Schemes Act 2000". 16 State Taxation and Mental Health Acts Amendment Act 2021 No. of 2021 Part 3--Amendment of First Home Owner Grant Act 2000 19 Duties Act 2000 (1) In sections 57JB(1), 60A(1), (2) and (3) and 63B(1), (2) and (3) of the Duties Act 2000, for "First Home Owner Grant Act 2000" (wherever occurring) substitute "First Home Owner Grant and Home Buyer Schemes Act 2000". (2) In section 64A of the Duties Act 2000, in the definition of regional Victoria, for "First Home Owner Grant Act 2000" substitute "First Home Owner Grant and Home Buyer Schemes Act 2000". 20 Land Tax Act 2005 In section 54(5) of the Land Tax Act 2005, in the definition of regional Victoria, for "First Home Owner Grant Act 2000" substitute "First Home Owner Grant and Home Buyer Schemes Act 2000". 21 Payroll Tax Act 2007 In section 3(1) of the Payroll Tax Act 2007, in the definition of regional Victoria, for "First Home Owner Grant Act 2000" substitute "First Home Owner Grant and Home Buyer Schemes Act 2000". 22 Taxation Administration Act 1997 In section 92(1)(b)(ii) of the Taxation Administration Act 1997, for "First Home Owner Grant Act 2000" substitute "First Home Owner Grant and Home Buyer Schemes Act 2000". 23 Unclaimed Money Act 2008 In section 77(1)(d) of the Unclaimed Money Act 2008, for "First Home Owner Grant Act 2000" substitute "First Home Owner Grant and Home Buyer Schemes Act 2000". 17 State Taxation and Mental Health Acts Amendment Act 2021 No. of 2021 Part 3--Amendment of First Home Owner Grant Act 2000 24 Victorian Civil and Administrative Tribunal Act 1998 In clause 2 of Schedule 1 to the Victorian Civil and Administrative Tribunal Act 1998, in the definition of taxing Act, for "First Home Owner Grant Act 2000" substitute "First Home Owner Grant and Home Buyer Schemes Act 2000". 18 State Taxation and Mental Health Acts Amendment Act 2021 No. of 2021 Part 4--Amendment of Land Tax Act 2005 Part 4--Amendment of Land Tax Act 2005 25 Definitions In section 3(1) of the Land Tax Act 2005, in the definition of discretionary trust, after "excluded trust" insert "or unit trust scheme". 26 New section 3F inserted After section 3E of the Land Tax Act 2005 insert-- "3F Partners taken to have beneficial interest in individual partnership property (1) For the purposes of this Act, a partner in a partnership is taken to have a beneficial interest in each item of partnership property in the same proportion as the partner's partnership interest. (2) Without limiting subsection (1), if the partnership property of a partnership (first partnership) includes an interest in another partnership, whether directly or indirectly through one or more other partnerships, a partner in the first partnership is also taken to have a beneficial interest in each item of the partnership property of each other partnership-- (a) to the extent of the direct or indirect interest in the other partnership; and (b) in the same proportion as the partner's partnership interest in the first partnership. 19 State Taxation and Mental Health Acts Amendment Act 2021 No. of 2021 Part 4--Amendment of Land Tax Act 2005 (3) The value of the partner's beneficial interest in an item of partnership property must be determined without regard to any liabilities of the partnership. Example A partnership consists of 4 partners each of whom has contributed equally to the capital of the partnership and would be entitled to a 25% share of any surplus on dissolution of the partnership in respect of capital. The sole partnership property is land with an unencumbered value of $4 million. The registered proprietor of the land is a person who holds the land as custodian for the benefit of the partnership. The liabilities of the partnership are $3 million. Under this section, each partner is taken to have a 25% beneficial interest in the land without regard to any liabilities of the partnership. (4) In this section-- partnership interest, of a partner, means the proportion of any surplus to which the partner would be entitled in respect of capital if the partnership were to be dissolved; partnership property has the same meaning as in section 24(1) of the Partnership Act 1958.". 27 New section 18B inserted After section 18A of the Land Tax Act 2005 insert-- "18B Owners of land under shared equity arrangements (1) For the purpose of assessing land tax, including the application of any exemptions or concessions, on land purchased under a shared equity arrangement, no account is to be taken of any interest the State has in the land. 20 State Taxation and Mental Health Acts Amendment Act 2021 No. of 2021 Part 4--Amendment of Land Tax Act 2005 (2) In this section-- home has the meaning given by section 4 of the First Home Owner Grant and Home Buyer Schemes Act 2000; home buyer scheme has the meaning given by section 34A of the First Home Owner Grant and Home Buyer Schemes Act 2000; shared equity arrangement means an arrangement, including an arrangement made under a home buyer scheme, under which the State contributes to the purchase of a home, or land on which a home will be affixed, and takes an equitable interest in the land to which the home is or will be affixed.". 28 Land tax for discretionary trust with nominated beneficiary (1) In section 46G(2) of the Land Tax Act 2005, for "to be the owner of the pre-2006 land subject to the trust (but not to the exclusion of the trustee)" substitute "to be the owner (but not to the exclusion of the trustee) of the pre-2006 land subject to the trust, other than land for which a nomination under section 46H is in force,". (2) In section 46G(3)(a) and (b) of the Land Tax Act 2005, for "land" substitute "land, other than land for which a nomination under section 46H is in force". (3) In the formula in section 46G(4) of the Land Tax Act 2005, for-- "T is the total taxable value of all taxable land subject to the trust; A is the total taxable value of the pre-2006 land subject to the trust; 21 State Taxation and Mental Health Acts Amendment Act 2021 No. of 2021 Part 4--Amendment of Land Tax Act 2005 B is the total taxable value of the post-2006 land subject to the trust." substitute-- "T is the total taxable value of all taxable land subject to the trust, other than land for which a nomination under section 46H is in force; A is the total taxable value of the pre-2006 land subject to the trust, other than land for which a nomination under section 46H is in force; B is the total taxable value of the post-2006 land subject to the trust, other than land for which a nomination under section 46H is in force.". 29 New section 88E inserted After section 88D of the Land Tax Act 2005 insert-- "88E Land becomes residential land during first year of 2 years preceding tax year and has not been used or occupied or changed ownership Land is exempt from vacant residential land tax for a tax year if-- (a) at the commencement of the second year preceding the tax year the land was not residential land within the meaning of section 34B(1); and (b) during the second year preceding the tax year the land becomes residential land within the meaning of section 34B(1); and (c) for the period from which the land becomes residential land within the meaning of section 34B(1) up to the tax year-- 22 State Taxation and Mental Health Acts Amendment Act 2021 No. of 2021 Part 4--Amendment of Land Tax Act 2005 (i) the land has not been used or occupied; and (ii) the land has not changed in ownership.". 30 Land tax for 2009 to 2021 (1) In the heading to clause 1.4 of Schedule 1 to the Land Tax Act 2005, for "2009 and subsequent years" substitute "2009 to 2021". (2) In clause 1.4 of Schedule 1 to the Land Tax Act 2005, for "2009 and each subsequent year" substitute "each of the years from 2009 to 2021". 31 New clause 1.5 of Schedule 1 inserted In Schedule 1 to the Land Tax Act 2005, after clause 1.4 insert-- "1.5 Land tax for 2022 and subsequent years The rate of land tax for 2022 and each subsequent year is set out in Table 1.5. Table 1.5 Column 1 Column 2 Taxable Taxable value not value less Column 3 Item less than than Rate of land tax $ $ 1 0 300 000 Nil 2 300 000 600 000 $375 and 0⋅2% of the taxable value that exceeds $300 000 3 600 000 1 000 000 $975 and 0⋅5% of the taxable value that exceeds $600 000 4 1 000 000 1 800 000 $2975 and 0⋅8% of the taxable value that exceeds $1 000 000 23 State Taxation and Mental Health Acts Amendment Act 2021 No. of 2021 Part 4--Amendment of Land Tax Act 2005 Column 1 Column 2 Taxable Taxable value not value less Column 3 Item less than than Rate of land tax $ $ 5 1 800 000 3 000 000 $9375 and 1⋅55% of the taxable value that exceeds $1 800 000 6 3 000 000 $27 975 and 2⋅55% of the taxable value that exceeds $3 000 000 ". 32 Land tax for trusts for 2009 to 2021 (1) In the heading to clause 3.4 of Schedule 1 to the Land Tax Act 2005, for "2009 and subsequent years" substitute "2009 to 2021". (2) In clause 3.4 of Schedule 1 to the Land Tax Act 2005, for "2009 and each subsequent year" substitute "each of the years from 2009 to 2021". 33 New clause 3.5 of Schedule 1 inserted In Schedule 1 to the Land Tax Act 2005, after clause 3.4 insert-- "3.5 Land tax for trusts for 2022 and subsequent years The rate of land tax for 2022 and each subsequent year for land held by an owner subject to a trust is set out in Table 3.5. Table 3.5 Column 1 Column 2 Taxable Taxable value not value less Column 3 Item less than than Rate of land tax $ $ 1 0 25 000 Nil 24 State Taxation and Mental Health Acts Amendment Act 2021 No. of 2021 Part 4--Amendment of Land Tax Act 2005 Column 1 Column 2 Taxable Taxable value not value less Column 3 Item less than than Rate of land tax $ $ 2 25 000 250 000 $82 and 0⋅375% of the taxable value that exceeds $25 000 3 250 000 600 000 $926 and 0⋅575% of the taxable value that exceeds $250 000 4 600 000 1 000 000 $2938 and 0⋅875% of the taxable value that exceeds $600 000 5 1 000 000 1 800 000 $6438 and 1⋅175% of the taxable value that exceeds $1 000 000 6 1 800 000 3 000 000 $15 838 and 1⋅0114% of the taxable value that exceeds $1 800 000 7 3 000 000 $27 975 and 2⋅55% of the taxable value that exceeds $3 000 000 ". 34 Rate of land tax on land held by absentee owners for 2020 and 2021 (1) In the heading to clause 4.3 of Schedule 1 to the Land Tax Act 2005, for "2020 and subsequent years" substitute "2020 and 2021". (2) In clause 4.3 of Schedule 1 to the Land Tax Act 2005, for "2020 and each subsequent year" substitute "2020 and 2021". 25 State Taxation and Mental Health Acts Amendment Act 2021 No. of 2021 Part 4--Amendment of Land Tax Act 2005 35 New clause 4.4 of Schedule 1 inserted In Schedule 1 to the Land Tax Act 2005, after clause 4.3 insert-- "4.4 Rate of land tax on land held by absentee owners for 2022 and subsequent years The rate of land tax on land held by an absentee owner for 2022 and each subsequent year is set out in Table 4.4. Table 4.4 Column 1 Column 2 Column 3 Taxable Taxable value not value less Item less than than Rate of land tax $ $ 1 0 300 000 Nil 2 300 000 600 000 $6375 and 2⋅2% of the taxable value that exceeds $300 000 3 600 000 1 000 000 $12 975 and 2⋅5% of the taxable value that exceeds $600 000 4 1 000 000 1 800 000 $22 975 and 2⋅8% of the taxable value that exceeds $1 000 000 5 1 800 000 3 000 000 $45 375 and 3⋅55% of the taxable value that exceeds $1 800 000 6 3 000 000 $87 975 and 4⋅55% of the taxable value that exceeds $3 000 000 ". 36 Rate of land tax on land held by owner subject to an absentee trust for 2020 and 2021 (1) In the heading to clause 5.3 of Schedule 1 to the Land Tax Act 2005, for "2020 and subsequent years" substitute "2020 and 2021". 26 State Taxation and Mental Health Acts Amendment Act 2021 No. of 2021 Part 4--Amendment of Land Tax Act 2005 (2) In clause 5.3 of Schedule 1 to the Land Tax Act 2005, for "2020 and each subsequent year" substitute "2020 and 2021". 37 New clause 5.4 of Schedule 1 inserted In Schedule 1 to the Land Tax Act 2005, after clause 5.3 insert-- "5.4 Rate of land tax on land held by owner subject to an absentee trust for 2022 and subsequent years The rate of land tax for land held by an owner subject to an absentee trust for 2022 and each subsequent year is set out in Table 5.4. Table 5.4 Column 1 Column 2 Column 3 Taxable Taxable value not value less Item less than than Rate of land tax $ $ 1 0 25 000 Nil 2 25 000 250 000 $582 and 2⋅375% of the taxable value that exceeds $25 000 3 250 000 600 000 $5926 and 2⋅575% of the taxable value that exceeds $250 000 4 600 000 1 000 000 $14 938 and 2⋅875% of the taxable value that exceeds $600 000 5 1 000 000 1 800 000 $26 438 and 3⋅175% of the taxable value that exceeds $1 000 000 6 1 800 000 3 000 000 $51 838 and 3⋅0114% of the taxable value 27 State Taxation and Mental Health Acts Amendment Act 2021 No. of 2021 Part 4--Amendment of Land Tax Act 2005 Column 1 Column 2 Column 3 Taxable Taxable value not value less Item less than than Rate of land tax $ $ that exceeds $1 800 000 7 3 000 000 $87 975 and 4⋅55% of the taxable value that exceeds $3 000 000 ". 28 State Taxation and Mental Health Acts Amendment Act 2021 No. of 2021 Part 5--Amendment of Mental Health Act 2014 Part 5--Amendment of Mental Health Act 2014 38 New section 365A inserted After section 365 of the Mental Health Act 2014 insert-- "365A Mental health and wellbeing surcharge-- appropriation of Consolidated Fund (1) The Consolidated Fund is appropriated to the extent necessary to enable amounts equal to the amounts credited to the Consolidated Fund as the mental health and wellbeing surcharge to be spent on the provision of outputs that are consistent with and promote the objectives of this Act and the mental health principles. (2) In this section-- mental health and wellbeing surcharge has the meaning given by clause 1 of Schedule 1 to the Payroll Tax Act 2007; outputs has the meaning given by section 3 of the Financial Management Act 1994.". 29 State Taxation and Mental Health Acts Amendment Act 2021 No. of 2021 Part 6--Amendment of Payroll Tax Act 2007 Part 6--Amendment of Payroll Tax Act 2007 Division 1--Bushfire relief regional employers 39 Definitions for the purposes of Schedule 1 In clause 7 of Schedule 1 to the Payroll Tax Act 2007-- (a) insert the following definitions-- "Pbrre is-- (a) for a financial year commencing on 1 July 2019, 1 July 2020 or 1 July 2021--that part of JTW that is attributable to all bushfire relief regional employers; or (b) for any other financial year-- zero; Rbrre is the percentage specified in the definition of R that relates to a bushfire relief regional employer;"; (b) for the definition of Pre substitute-- "Pre is-- (a) for a financial year commencing on 1 July 2019, 1 July 2020 or 1 July 2021--that part of JTW that is attributable to all regional employers, other than bushfire relief regional employers; or (b) for any other financial year--that part of JTW that is attributable to all regional employers;"; 30 State Taxation and Mental Health Acts Amendment Act 2021 No. of 2021 Part 6--Amendment of Payroll Tax Act 2007 (c) for the definition of Re substitute-- "Re is the percentage specified in the definition of R that applies to an employer who is not a regional employer;"; (d) for the definition of Rre substitute-- "Rre is the percentage specified in the definition of R that applies to a regional employer;". 40 Payroll of group over threshold where section 87(2) approval in force--employers covered by joint return are all of the same type (1) In the heading to clause 9 of Schedule 1 to the Payroll Tax Act 2007, for "either all regional employers or not" substitute "all of the same type". (2) For clause 9(1) of Schedule 1 to the Payroll Tax Act 2007 substitute-- "(1) This clause applies if an approval is in force under section 87(2) for a designated group employer to lodge a joint return and the members of the group covered by the return are-- (a) for a financial year commencing on 1 July 2019, 1 July 2020 or 1 July 2021-- (i) all regional employers other than bushfire relief regional employers; or (ii) all employers who are not regional employers; or (iii) all bushfire relief regional employers; or 31 State Taxation and Mental Health Acts Amendment Act 2021 No. of 2021 Part 6--Amendment of Payroll Tax Act 2007 (b) for any other financial year-- (i) all regional employers; or (ii) all employers who are not regional employers.". 41 Payroll of group over threshold where section 87(2) approval in force--employers covered by joint return are not all of the same type (1) In the heading to clause 9A of Schedule 1 to the Payroll Tax Act 2007, for "at least one but not all are regional employers" substitute "employers covered by joint return are not all of the same type". (2) For clause 9A(1)(b) of Schedule 1 to the Payroll Tax Act 2007 substitute-- "(b) the members of the group covered by the return are not all of the same type of employer.". (3) For the formula in clause 9A(3) of Schedule 1 to the Payroll Tax Act 2007 substitute-- [JTW-D] "�[Pe×Re ]+[Pre×Rre ]+[Pbrre×Rbrre]�× JTW ". 42 Monthly payroll tax payable where section 87(2) approval in force--employers covered by joint return are all of the same type (1) For the heading to clause 8 of Schedule 2 to the Payroll Tax Act 2007, for "either all regional employers or not" substitute "all of the same type". (2) For clause 8(1) of Schedule 2 to the Payroll Tax Act 2007 substitute-- "(1) This clause applies if an approval is in force under section 87(2) for a designated group employer to lodge a joint return and the 32 State Taxation and Mental Health Acts Amendment Act 2021 No. of 2021 Part 6--Amendment of Payroll Tax Act 2007 members of the group covered by the return are-- (a) for wages paid or payable on or after 1 July 2019 and before 1 July 2022-- (i) all regional employers other than bushfire relief regional employers; or (ii) all employers who are not regional employers; or (iii) all bushfire relief regional employers; or (b) for wages paid or payable in any other financial year-- (i) all regional employers; or (ii) all employers who are not regional employers.". 43 Monthly payroll tax payable where section 87(2) approval in force--employers covered by joint return are not all of the same type (1) In the heading to clause 8A of Schedule 2 to the Payroll Tax Act 2007, for "where at least one but not all are regional employers" substitute "are not all of the same type". (2) For clause 8A(1)(b) of Schedule 2 to the Payroll Tax Act 2007 substitute-- "(b) the members of the group covered by the return are not all of the same type of employer.". 33 State Taxation and Mental Health Acts Amendment Act 2021 No. of 2021 Part 6--Amendment of Payroll Tax Act 2007 (3) For clause 8A(2) of Schedule 2 to the Payroll Tax Act 2007 substitute-- "(2) The designated group employer must pay an amount (in dollars) of payroll tax, calculated in accordance with the following formula, on taxable wages paid or payable in a month by the employers covered by the return-- [JTW − D] �[Pe × R e ] + [Pre × R re ] + [Pbrre × R brre ]� × JTW where-- D is the deductible amount referred to in clause 9 or 10 (as the case requires); JTW represents the total taxable wages paid or payable during the month by the employers covered by the return (as members of the group); Pbrre is-- (a) for wages paid or payable on or after 1 July 2019 and before 1 July 2022--that part of JTW that is attributable to all bushfire relief regional employers; or (b) for wages paid or payable in any other financial year--zero; Pe is that part of JTW that is attributable to all employers who are not regional employers; Pre is-- (a) for wages paid or payable on or after 1 July 2019 and before 1 July 2022--that part of JTW that is attributable to all regional employers, other than bushfire relief regional employers; or 34 State Taxation and Mental Health Acts Amendment Act 2021 No. of 2021 Part 6--Amendment of Payroll Tax Act 2007 (b) for wages paid or payable in any other financial year--that part of JTW that is attributable to all regional employers; Rbrre is the rate of tax referred to in clause 2 that applies to an employer who is a bushfire relief regional employer; Re is the rate of tax referred to in clause 2 that applies to an employer who is not a regional employer; Rre is the rate of tax referred to in clause 2 that applies to a regional employer.". Division 2--Payroll tax threshold amounts 44 Registration For section 86(6)(d) and (e) of the Payroll Tax Act 2007 substitute-- "(d) for the financial year commencing on 1 July 2021 and each subsequent financial year--$13 461 per week.". 45 Definition of TA or threshold amount In clause 1 of Schedule 1 to the Payroll Tax Act 2007, for paragraphs (e) and (f) of the definition of TA or threshold amount substitute-- "(e) for the financial year commencing on 1 July 2021 and each subsequent financial year--$700 000.". 46 Definition of base deductible amount In clause 1A of Schedule 2 to the Payroll Tax Act 2007, for paragraphs (d) and (e) of the definition of base deductible amount substitute-- 35 State Taxation and Mental Health Acts Amendment Act 2021 No. of 2021 Part 6--Amendment of Payroll Tax Act 2007 "(e) for a month in the financial year commencing on 1 July 2021 and each subsequent financial year--$58 333.". Division 3--Regional rate deduction 47 Definition of R In clause 1 of Schedule 1 to the Payroll Tax Act 2007, for paragraphs (h) and (i) of the definition of R substitute-- "(h) for the financial year commencing on 1 July 2021-- (i) 1⋅2125% in the case of a regional employer; and (ii) 4⋅85% in any other case.". 48 Definitions of Pbrre and Pre In clause 7 of Schedule 1 to the Payroll Tax Act 2007-- (a) in paragraph (a) of the definition of Pbrre, for "1 July 2019, 1 July 2020 or 1 July 2021" substitute "1 July 2019 or 1 July 2020"; (b) in paragraph (a) of the definition of Pre, for "1 July 2019, 1 July 2020 or 1 July 2021" substitute "1 July 2019 or 1 July 2020". 49 Rate of payroll tax For paragraphs (h) and (i) of clause 2 of Schedule 2 to the Payroll Tax Act 2007 substitute-- "(h) for wages paid or payable on or after 1 July 2021-- (i) 1⋅2125% in the case of a regional employer; and (ii) 4⋅85% in any other case.". 36 State Taxation and Mental Health Acts Amendment Act 2021 No. of 2021 Part 6--Amendment of Payroll Tax Act 2007 50 Payroll of group over threshold where section 87(2) approval in force--employers covered by joint return are all of the same type In clause 9(1)(a) of Schedule 1 to the Payroll Tax Act 2007, for "1 July 2019, 1 July 2020 or 1 July 2021" substitute "1 July 2019 or 1 July 2020". 51 Monthly payroll tax payable where section 87(2) approval in force--employers covered by joint return are all of the same type In clause 8(1)(a) of Schedule 2 to the Payroll Tax Act 2007, for "1 July 2022" substitute "1 July 2021". 52 Monthly payroll tax payable where section 87(2) approval in force--employers covered by joint return are not all of the same type In the formula in clause 8A(2) of Schedule 2 to the Payroll Tax Act 2007-- (a) in paragraph (a) of the variable Pbrre, for "1 July 2022" substitute "1 July 2021"; (b) in paragraph (a) of the variable Pre, for "1 July 2022" substitute "1 July 2021". Division 4--Mental health and wellbeing surcharge 53 Definitions In clause 1 of Schedule 1 to the Payroll Tax Act 2007 insert the following definitions-- "C is the number of days in the relevant financial year in respect of which-- (a) in the case of an employer, the employer paid or was liable to pay taxable wages or interstate wages (otherwise than as a member of a group); or 37 State Taxation and Mental Health Acts Amendment Act 2021 No. of 2021 Part 6--Amendment of Payroll Tax Act 2007 (b) in the case of a group of employers, at least one 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 relevant financial year; GTW represents the total taxable wages paid or payable by the group concerned during the relevant financial year; mental health and wellbeing surcharge means an additional amount of payroll tax calculated in accordance with this Schedule, being the amount represented in a formula by the variable S;". 54 New clause 1A of Schedule 1 inserted After clause 1 of Schedule 1 to the Payroll Tax Act 2007 insert-- "1A Determination of surcharge threshold amount for employer or group of employers (1) For the purposes of this Schedule, the first surcharge threshold amount or STA1 for an employer or a group of employers is the amount calculated in accordance with the following formula-- C $10 million × FY 38 State Taxation and Mental Health Acts Amendment Act 2021 No. of 2021 Part 6--Amendment of Payroll Tax Act 2007 (2) For the purposes of this Schedule, the second surcharge threshold amount or STA2 for an employer or a group of employers is the amount calculated in accordance with the following formula-- C $100 million × FY ". 55 Definition of C In clause 3 of Schedule 1 to the Payroll Tax Act 2007 omit the definition of C. 56 Payroll of employer over threshold For the formula in clause 5 of Schedule 1 to the Payroll Tax Act 2007 substitute-- TW C "��TW- � ×TA× �� ×R� +S TW+IW FY where S is-- (a) if the total taxable wages and interstate wages paid or payable by the employer (otherwise than as a member of a group) during the relevant financial year is not more than the first surcharge threshold amount--zero; or (b) if the total taxable wages and interstate wages paid or payable by the employer (otherwise than as a member of a group) during the relevant financial year is more than the first surcharge threshold amount but not more than the second surcharge threshold amount, the amount calculated in accordance with the following formula-- TW×STA1 ��TW- � �� ×0⋅005�; or TW+IW 39 State Taxation and Mental Health Acts Amendment Act 2021 No. of 2021 Part 6--Amendment of Payroll Tax Act 2007 (c) if the total taxable wages and interstate wages paid or payable by the employer (otherwise than as a member of a group) during the relevant financial year is more than the second surcharge threshold amount, the amount calculated in accordance with the following formula-- [TW×STA1 ]+[TW×STA2 ] [TW×0.01]- �� � ×0⋅005� TW+IW ". 57 Definitions In clause 7 of Schedule 1 to the Payroll Tax Act 2007 omit the definitions of C, GIW and GTW. 58 Payroll of group over threshold where section 87(2) approval in force--employers covered by joint return are all of same type (1) For the formula in clause 9(3) of Schedule 1 to the Payroll Tax Act 2007 substitute-- "�[JTW-D]×R�+S where S is-- (a) if the total taxable wages and interstate wages paid or payable by the group during the relevant financial year is not more than the first surcharge threshold amount--zero; or (b) if the total taxable wages and interstate wages paid or payable by the group during the relevant financial year is more than the first surcharge threshold amount but not more than the second surcharge threshold amount, the 40 State Taxation and Mental Health Acts Amendment Act 2021 No. of 2021 Part 6--Amendment of Payroll Tax Act 2007 amount calculated in accordance with the following formula-- GTW×STA �JTW- � GTW+GIW1 �� ×0⋅005; or (c) if the total taxable wages and interstate wages paid or payable by the group during the relevant financial year is more than the second surcharge threshold amount, the amount calculated in accordance with the following formula-- [GTW×STA1 ]+[GTW×STA2 ] [JTW×0.01]- �� � ×0⋅005� GTW+GIW ". (2) For the formula in clause 9(4) of Schedule 1 to the Payroll Tax Act 2007 substitute-- "[TW×R]+S where S is-- (a) if the total taxable wages and interstate wages paid or payable by the group during the relevant financial year is not more than the first surcharge threshold amount--zero; or (b) if the total taxable wages and interstate wages paid or payable by the group during the relevant financial year is more than the first surcharge threshold amount but not more than the second surcharge threshold amount, the amount calculated in accordance with the following formula-- TW×0⋅005; or 41 State Taxation and Mental Health Acts Amendment Act 2021 No. of 2021 Part 6--Amendment of Payroll Tax Act 2007 (c) if the total taxable wages and interstate wages paid or payable by the group during the relevant financial year is more than the second surcharge threshold amount, the amount calculated in accordance with the following formula-- TW×0⋅01". 59 Payroll of group over threshold where section 87(2) approval in force--employers covered by joint return are not all of the same type (1) For the formula in clause 9A(3) of Schedule 1 to the Payroll Tax Act 2007 substitute-- [JTW-D] "��[Pe×Re ]+[Pre×Rre ]+[Rbrre×Rbrre]�× JTW � +S where S is-- (a) if the total taxable wages and interstate wages paid or payable by the group during the relevant financial year is not more than the first surcharge threshold amount--zero; or (b) if the total taxable wages and interstate wages paid or payable by the group during the relevant financial year is more than the first surcharge threshold amount but not more than the second surcharge threshold amount, the amount calculated in accordance with the following formula-- GTW×STA �JTW- � GTW+GIW1 �� ×0⋅005; or 42 State Taxation and Mental Health Acts Amendment Act 2021 No. of 2021 Part 6--Amendment of Payroll Tax Act 2007 (c) if the total taxable wages and interstate wages paid or payable by the group during the relevant financial year is more than the second surcharge threshold amount, the amount calculated in accordance with the following formula-- [GTW×STA1 ]+[GTW×STA2 ] [JTW×0.01]- �� � ×0⋅005� GTW+GIW ". (2) For the formula in clause 9A(4) of Schedule 1 to the Payroll Tax Act 2007 substitute-- "[TW×R]+S where S is-- (a) if the total taxable wages and interstate wages paid or payable by the group during the relevant financial year is not more than the first surcharge threshold amount--zero; or (b) if the total taxable wages and interstate wages paid or payable by the group during the relevant financial year is more than the first surcharge threshold amount but not more than the second surcharge threshold amount, the amount calculated in accordance with the following formula-- TW×0⋅005; or 43 State Taxation and Mental Health Acts Amendment Act 2021 No. of 2021 Part 6--Amendment of Payroll Tax Act 2007 (c) if the total taxable wages and interstate wages paid or payable by the group during the relevant financial year is more than the second surcharge threshold amount, the amount calculated in accordance with the following formula-- TW×0⋅01". 60 Payroll of group over threshold--where no section 87(2) approval in force (1) For the formula in clause 9B(3) of Schedule 1 to the Payroll Tax Act 2007 substitute-- "�[TW-D]×R�+S where S is-- (a) if the total taxable wages and interstate wages paid or payable by the group during the relevant financial year is not more than the first surcharge threshold amount--zero; or (b) if the total taxable wages and interstate wages paid or payable by the group during the relevant financial year is more than the first surcharge threshold amount but not more than the second surcharge threshold amount, the amount calculated in accordance with the following formula-- GTW×STA �TW- � GTW+GIW1 �� ×0⋅005; or 44 State Taxation and Mental Health Acts Amendment Act 2021 No. of 2021 Part 6--Amendment of Payroll Tax Act 2007 (c) if the total taxable wages and interstate wages paid or payable by the group during the relevant financial year is more than the second surcharge threshold amount, the amount calculated in accordance with the following formula-- [GTW×STA1 ]+[GTW×STA2 ] [TW×0.01]- �� � ×0⋅005� GTW+GIW ". (2) For the formula in clause 9B(4) of Schedule 1 to the Payroll Tax Act 2007 substitute-- "[TW×R]+S where S is-- (a) if the total taxable wages and interstate wages paid or payable by the group during the relevant financial year is not more than the first surcharge threshold amount for that member--zero; or (b) if the total taxable wages and interstate wages paid or payable by the group during the relevant financial year is more than the first surcharge threshold amount but not more than the second surcharge threshold amount, the amount calculated in accordance with the following formula-- TW×0⋅005; or 45 State Taxation and Mental Health Acts Amendment Act 2021 No. of 2021 Part 6--Amendment of Payroll Tax Act 2007 (c) if the total taxable wages and interstate wages paid or payable by the group during the relevant financial year is more than the second surcharge threshold amount, the amount calculated in accordance with the following formula-- TW×0⋅01". 61 Calculation of payroll tax For the formula in clause 12 of Schedule 1 to the Payroll Tax Act 2007 substitute-- "[TW×R]+S where S is-- (a) if the total taxable wages and interstate wages paid or payable by the group during the relevant financial year is not more than the first surcharge threshold amount--zero; or (b) if the total taxable wages and interstate wages paid or payable by the group during the relevant financial year is more than the first surcharge threshold amount but not more than the second surcharge threshold amount, the amount calculated in accordance with the following formula-- TW×0⋅005; or (c) if the total taxable wages and interstate wages paid or payable by the group during the relevant financial year is more than the second surcharge threshold amount, the amount calculated in accordance with the following formula-- TW×0⋅01". 46 State Taxation and Mental Health Acts Amendment Act 2021 No. of 2021 Part 6--Amendment of Payroll Tax Act 2007 62 New Division 1AA of Schedule 2 substituted For Division 1AA of Schedule 2 to the Payroll Tax Act 2007 substitute-- "Division 1AA--Definitions 1A Definitions In this Part-- base deductible amount or BDA means-- (a) for a month in the financial year commencing on 1 July 2016-- $47 916; (b) for a month in the financial year commencing on 1 July 2017-- $52 083; (c) for a month in the financial year commencing on 1 July 2018, 2019 or 2020--$54 166; (d) for a month in the financial year commencing on 1 July 2021 and each subsequent financial year-- $58 333; D is-- (a) in the case of an employer who is not a member of a group, the deductible amount referred to in clause 5 or 6 (as the case requires); or (b) in the case of an employer who is a member of a group, the deductible amount referred to in clause 9 or 10 (as the case requires); 47 State Taxation and Mental Health Acts Amendment Act 2021 No. of 2021 Part 6--Amendment of Payroll Tax Act 2007 EIW is-- (a) in the case of an employer who is not a member of a group, the estimated interstate wages payable by the employer in the financial year in which D will be applied; or (b) in the case of an employer who is a member of a group, the estimated interstate wages payable by a group in the financial year in which D will be applied; ETW is-- (a) in the case of an employer who is not a member of a group, the estimated taxable wages payable by the employer in the financial year in which D will be applied; or (b) in the case of an employer who is a member of a group for which there is a designated group employer, the estimated taxable wages payable by the group in the financial year in which D will be applied; mental health and wellbeing surcharge has the same meaning as in clause 1 of Schedule 1; R is the applicable rate of tax referred to in clause 2.". 48 State Taxation and Mental Health Acts Amendment Act 2021 No. of 2021 Part 6--Amendment of Payroll Tax Act 2007 63 Amount of payroll tax to be paid each month (1) For clause 4(1) of Schedule 2 to the Payroll Tax Act 2007 substitute-- "(1) The amount of payroll tax payable by an employer on taxable wages paid or payable by the employer in a month is the amount of dollars calculated in accordance with the following formula-- �[TW-D]×R�+S where-- S is the amount specified in subclause (3) or (4), as the case requires; TW represents the total taxable wages paid or payable by the employer (otherwise than as a member of a group) during the month". (2) After clause 4(2) of Schedule 2 to the Payroll Tax Act 2007 insert-- "(3) For the purposes of subclause (1), if an employer pays or is liable to pay taxable wages in a month but does not pay and is not liable to pay interstate wages in that month, S is-- (a) if the total taxable wages paid or payable by the employer (otherwise than as a member of a group) during that month are not more than $833 333--zero; or (b) if the total taxable wages paid or payable by the employer (otherwise than as a member of a group) during that month are more than $833 333 but not more than $8 333 333, the amount 49 State Taxation and Mental Health Acts Amendment Act 2021 No. of 2021 Part 6--Amendment of Payroll Tax Act 2007 calculated in accordance with the following formula-- [TW-833 333]×0⋅005; or (c) if the total taxable wages paid or payable by the employer (otherwise than as a member of a group) during that month are more than $8 333 333, the amount calculated in accordance with the following formula-- [TW×0⋅01]-45 833 (4) For the purposes of subclause (1), if an employer pays or is liable to pay taxable wages and interstate wages in a month, S is-- (a) if the total T and IW for the employer in the financial year in which D will be applied is not more than $10 million-- zero; or (b) if the total T and IW for the employer in the financial year in which D will be applied is more than $10 million but not more than $100 million, the amount calculated in accordance with the following formula-- ETW ×833 333 �TW- � �� ×0⋅005; or ETW+EIW (c) if the total T and IW for the employer in the financial year in which D will be applied is more than $100 million, the amount calculated in accordance with the following formula-- [ETW×833 333]+[ETW×8 333 333] [TW×0.01]- �� � ×0⋅005� ETW+EIW ". 50 State Taxation and Mental Health Acts Amendment Act 2021 No. of 2021 Part 6--Amendment of Payroll Tax Act 2007 64 Deductible amount for employer who pays interstate wages For clause 6(3) of Schedule 2 to the Payroll Tax Act 2007 substitute-- "(3) The amount is to be calculated in accordance with the following formula-- BDA × ETW D= [ETW+EIW] ". 65 Monthly payroll tax payable where section 87(2) approval in force--employers covered by joint return are all of same type (1) For clause 8(2) of Schedule 2 to the Payroll Tax Act 2007 substitute-- "(2) The designated group employer must pay an amount (in dollars) of payroll tax, calculated in accordance with the following formula, on taxable wages paid or payable in a month by the employers covered by the return-- �[JTW-D]×R�+S where-- JTW represents the total taxable wages paid or payable during the month by the employers covered by the return (as members of a group); S is-- (a) if the total ETW and EIW for the group in the financial year in which D will be applied is not more than $10 million--zero; or 51 State Taxation and Mental Health Acts Amendment Act 2021 No. of 2021 Part 6--Amendment of Payroll Tax Act 2007 (b) if the total ETW and EIW for the group in the financial year in which D will be applied is more than $10 million but not more than $100 million, the amount calculated in accordance with the following formula-- ETW × 833 333 �JTW- � �� ×0⋅005; or ETW+EIW (c) if the total T and IW for the group in the financial year in which D will be applied is more than $100 million, the amount calculated in accordance with the following formula-- [ETW×833 333]+[ETW×8 333 333] [JTW×0.01]- �� � ×0⋅005� ETW+EIW ". (2) For clause 8(3) of Schedule 2 to the Payroll Tax Act 2007 substitute-- "(3) In addition, each employer who is a member of the group but is not covered by the return must pay an amount (in dollars) of payroll tax, calculated in accordance with the following formula, on taxable wages paid or payable by the employer in a month-- [TW×R]+S where-- S is-- (a) if the total ETW and EIW for the group in the financial year in which D will be applied is not more than $10 million--zero; or 52 State Taxation and Mental Health Acts Amendment Act 2021 No. of 2021 Part 6--Amendment of Payroll Tax Act 2007 (b) if the total ETW and EIW for the group in the financial year in which D will be applied is more than $10 million but not more than $100 million, the amount calculated in accordance with the following formula-- TW×0⋅005; or (c) if the total ETW and EIW for the group in the financial year in which D will be applied is more than $100 million, the amount calculated in accordance with the following formula-- TW×0⋅01; TW represents the total taxable wages paid or payable by the employer concerned (as a member of the group) during the relevant month.". 66 Monthly payroll tax payable where section 87(2) approval in force--employers covered by joint return are not all of the same type (1) For clause 8A(2) of Schedule 2 to the Payroll Tax Act 2007 substitute-- "(2) The designated group employer must pay an amount (in dollars) of payroll tax, calculated in accordance with the following formula, on taxable wages paid or payable in a month by the employers covered by the return-- [JTW-D] ��[Pe×Re ]+[Pre×Rre ]+[Rbrre×Rbrre]�× � +S JTW 53 State Taxation and Mental Health Acts Amendment Act 2021 No. of 2021 Part 6--Amendment of Payroll Tax Act 2007 where-- JTW represents the total taxable wages paid or payable during the month by the employers covered by the return (as members of the group); Pbrre is-- (a) for wages paid or payable on or after 1 July 2019 and before 1 July 2022--that part of JTW that is attributable to all bushfire relief regional employers; or (b) for wages paid or payable in any other financial year--zero; Pe is that part of JTW that is attributable to all employers who are not regional employers; Pre is-- (a) for wages paid or payable on or after 1 July 2019 and before 1 July 2022--that part of JTW that is attributable to all regional employers, other than bushfire relief regional employers; or (b) for wages paid or payable in any other financial year--that part of JTW that is attributable to all regional employers; Rbrre is the rate of tax referred to in clause 2 that applies to an employer who is a bushfire relief regional employer; Re is the rate of tax referred to in clause 2 that applies to an employer who is not a regional employer; 54 State Taxation and Mental Health Acts Amendment Act 2021 No. of 2021 Part 6--Amendment of Payroll Tax Act 2007 Rre is the rate of tax referred to in clause 2 that applies to a regional employer; S is-- (a) if the total ETW and EIW for the group in the financial year in which D will be applied is not more than $10 million--zero; or (b) if the total ETW and EIW for the group in the financial year in which D will be applied is more than $10 million but not more than $100 million, the amount calculated in accordance with the following formula-- ETW × 833 333 ��JTW- � �� ×0⋅005�; or ETW+EIW (c) if the total ETW and EIW for the group in the financial year in which D will be applied is more than $100 million, the amount calculated in accordance with the following formula-- [ETW×833 333]+[ETW×8 333 333] [JTW×0.01]- �� � ×0⋅005� ETW+EIW ". 55 State Taxation and Mental Health Acts Amendment Act 2021 No. of 2021 Part 6--Amendment of Payroll Tax Act 2007 (2) For clause 8A(3) of Schedule 2 to the Payroll Tax Act 2007 substitute-- "(3) In addition, each employer who is a member of the group but is not covered by the return must pay an amount (in dollars) of payroll tax, calculated in accordance with the following formula, on taxable wages paid or payable by the employer in a month-- [TW×R]+S where-- S is-- (a) if the total ETW and EIW for the group in the financial year in which D will be applied is not more than $10 million--zero; or (b) if the total ETW and EIW for the employer in the financial year in which D will be applied is more than $10 million but not more than $100 million, the amount calculated in accordance with the following formula-- TW×0⋅005; or (c) if the total ETW and EIW for the employer in the financial year in which D will be applied is more than $100 million, the amount calculated in accordance with the following formula-- TW×0⋅01; TW represents the total taxable wages paid or payable by the employer concerned (as a member of the group) during the relevant month.". 56 State Taxation and Mental Health Acts Amendment Act 2021 No. of 2021 Part 6--Amendment of Payroll Tax Act 2007 67 Monthly payroll tax payable where no section 87(2) approval in force (1) For clause 8B(2) of Schedule 2 to the Payroll Tax Act 2007 substitute-- "(2) The designated group employer must pay an amount (in dollars) of payroll tax, calculated in accordance with the following formula, on taxable wages paid or payable in a month-- �[TW-D]×R�+S where S is-- (a) if the total ETW and EIW for the group in the financial year in which D will be applied is not more than $10 million-- zero; or (b) if the total ETW and EIW for the group in the financial year in which D will be applied is more than $10 million but not more than $100 million, the amount calculated in accordance with the following formula-- ETW × 833 333 �TW- � �� ×0⋅005; or ETW+EIW (c) if the total ETW and EIW for the group in the financial year in which D will be applied is more than $100 million, the amount calculated in accordance with the following formula-- [ETW×833 333]+[ETW×8 333 333] [TW×0.01]- �� � ×0⋅005� ETW+EIW ". 57 State Taxation and Mental Health Acts Amendment Act 2021 No. of 2021 Part 6--Amendment of Payroll Tax Act 2007 (2) For clause 8B(3) of Schedule 2 to the Payroll Tax Act 2007 substitute-- "(3) In addition, each employer who is a member of the group must pay an amount (in dollars) of payroll tax, calculated in accordance with the following formula, on taxable wages paid or payable by the employer in a month-- [TW×R]+S where-- S is-- (a) if the total ETW and EIW for the group in the financial year in which D will be applied is not more than $10 million--zero; or (b) if the total ETW and EIW for the group in the financial year in which D will be applied is more than $10 million but not more than $100 million, the amount calculated in accordance with the following formula-- TW×0⋅005; or (c) if the total ETW and EIW for the group in the financial year in which D will be applied is more than $100 million, the amount calculated in accordance with the following formula-- TW×0⋅01; TW represents the total taxable wages paid or payable by the employer concerned (as a member of the group) during the relevant month.". 58 State Taxation and Mental Health Acts Amendment Act 2021 No. of 2021 Part 6--Amendment of Payroll Tax Act 2007 68 Amount of payroll tax to be paid each month For clause 12 of Schedule 2 to the Payroll Tax Act 2007 substitute-- "12 Amount of payroll tax to be paid each month The amount of payroll tax payable by each member of the group on taxable wages paid or payable by the member in a month is the amount of dollars calculated in accordance with the following formula-- [TW×R]+S where-- S is-- (a) if the total ETW and EIW for the group in the financial year in which D will be applied is not more than $10 million--zero; or (b) if the total ETW and EIW for the group in the financial year in which D will be applied is more than $10 million but not more than $100 million, the amount calculated in accordance with the following formula-- TW×0⋅005; or (c) if the total ETW and EIW for the group in the financial year in which D will be applied is more than $100 million, the amount calculated in accordance with the following formula-- TW×0⋅01; 59 State Taxation and Mental Health Acts Amendment Act 2021 No. of 2021 Part 6--Amendment of Payroll Tax Act 2007 TW represents the total taxable wages paid or payable by the employer concerned (as a member of the group) during the relevant month.". 69 New clause 21 of Schedule 3 inserted After clause 20 of Schedule 3 to the Payroll Tax Act 2007 insert-- "21 State Taxation and Mental Health Acts Amendment Act 2021--determination of mental health and wellbeing surcharge between 1 January 2022 and 30 June 2022 (1) For the purposes of calculating the mental health and wellbeing surcharge in relation to the 6-month period beginning on 1 January 2022 and ending on 30 June 2022, Schedules 1 and 2 apply as if-- (a) a reference to a financial year were a reference to that 6-month period; and (b) a reference to $10 million were a reference to $5 million; and (c) a reference to $100 million were a reference to $50 million. (2) In this clause-- mental health and wellbeing surcharge has the meaning given by clause 1 of Schedule 1.". 60 State Taxation and Mental Health Acts Amendment Act 2021 No. of 2021 Part 7--Repeal of this Act Part 7--Repeal of this Act 70 Repeal of this Act This Act is repealed on 1 January 2023. Note The repeal of this Act does not affect the continuing operation of the amendments made by it (see section 15(1) of the Interpretation of Legislation Act 1984). ═════════════ 61 State Taxation and Mental Health Acts Amendment Act 2021 No. of 2021 Endnotes Endnotes 1 General information See www.legislation.vic.gov.au for Victorian Bills, Acts and current authorised versions of legislation and up-to-date legislative information. Minister's second reading speech-- Legislative Assembly: Legislative Council: The long title for the Bill for this Act was "A Bill for an Act to amend the Duties Act 2000, the First Home Owner Grant Act 2000, the Land Tax Act 2005, the Mental Health Act 2014 and the Payroll Tax Act 2007 and to make consequential amendments to other Acts and for other purposes." By Authority. Government Printer for the State of Victoria. 62
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