state revenue office payroll tax harmonisation. state revenue office background consistency...
Post on 19-Dec-2015
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![Page 1: State Revenue Office Payroll Tax Harmonisation. State Revenue Office Background Consistency gradually eroded since 1971 Business faces higher compliance](https://reader030.vdocuments.mx/reader030/viewer/2022032800/56649d3e5503460f94a16658/html5/thumbnails/1.jpg)
State Revenue Office
Payroll Tax Harmonisation
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State Revenue Office
Background
• Consistency gradually eroded since 1971
• Business faces higher compliance costs, in many cases with no benefit in terms of revenue for the community
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State Revenue Office
Harmonisation - background
• All states have been exploring opportunities
• NSW & Victoria harmonised on 1 July 2007
• Tasmania to join NSW/Vic on 1 July 2008
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State Revenue Office
Harmonisation is not …
• Aligned payroll tax rates
• Aligned payroll tax thresholds
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State Revenue Office
Harmonisation is …
Consistency in….
• what is taxable
• exemptions & rebates
• rules for grouping
• anti-avoidance provisions
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State Revenue Office
Harmonisation could be …
• One-stop shop payments
• Single return forms
• Single audits
• Consistent software
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State Revenue Office
Some of the main changes
• Motor vehicle and accommodation allowances
• Employee share acquisition schemes into the payroll tax net
• Exemption of not-for-profit charities
• Exemption of wages paid for maternity and adoption leave
• Grouping provisions
• Introduction of tracing provisions
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State Revenue Office
Allowances
Alignment of vehicle and accommodation allowances with FBT
– Claim the ATO’s large car rate
– Claim the lowest capital city rate for the lowest salary band
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State Revenue Office
Employee Share Acquisition Schemes
• Currently outside payroll tax net in Tasmania
• The grant of a share or option to an employee or director will constitute wages
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State Revenue Office
Exemptions
• Wages paid to employees of not-for-profit organisations having wholly charitable, benevolent, philanthropic or patriotic purposes, engaged exclusively in that kind of work, will be exempt
• Wages paid in respect of maternity or adoption leave will be exempt
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State Revenue Office
Grouping Provisions
• Test for grouping through the inter-use of employees is being expanded
• Expanded test will capture quasi-outsourcing arrangements
• Commissioner’s discretion to de-group will remain
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State Revenue Office
Tracing Provisions• Prevents the avoidance of payroll tax grouping
through the use of corporate structures
• Determines a ‘controlling interest’ by examining direct and indirect interests.
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State Revenue Office
Timetable
Draft new PTX legislation
Govt approval to proceed
Taxpayer education campaign
Parliamentary approval of new legislation
August 07
Sept - Nov 07
Jan - Jun 08
November 07
July 08 Harmonised model applies
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State Revenue Office
Education program
• Web Site updates
• Media Campaign
• Update of relevant SRO Publications
• Client mail outs and communications with peak bodies
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State Revenue Office
Useful links
• NSW legislation:
http://www.legislation.nsw.gov.au
• Victorian legislation:
http://www.legislation.vic.gov.au