Revenue Legislation (Miscellaneous Amendments) Act 1997
An Act to amend the Pay-roll Tax Act 1971 , Stamp Duties Act 1931 , Land and Income Taxation Act 1910 and Constitution Act 1934
[Royal Assent 13 November 1997]
Be it enacted by His Excellency the Governor of Tasmania, by and with the advice and consent of the Legislative Council and House of Assembly, in Parliament assembled, as follows:
PART 1 - Preliminary
This Act may be cited as the Revenue Legislation (Miscellaneous Amendments) Act 1997 .
(1) Part 1 commences on the day on which this Act receives the Royal Assent.(2) Parts 2, 4 and 5 are taken to have commenced on 1 July 1997.(3) Part 3 is taken to have commenced on 14 August 1997.
PART 2 - Pay-roll Tax Act 1971 Amended
In this Part, the Pay-roll Tax Act 1971 is referred to as the Principal Act.
4. Section 2 amended (Interpretation)
Section 2 of the Principal Act is amended as follows:(a) by inserting in subsection (1) after the definition of "Australian wages" the following definition:average new entrant contribution rate means the rate determined from time to time by the Commissioner, based on actuarial advice, as the employer contribution rate applicable to a new entrant to the superannuation scheme established under Part 4 of the Retirement Benefits Regulations 1994 ;(b) by inserting in subsection (1) after the definition of "services" the following definition:superannuation benefit means money paid or payable by an employer in respect of an employee –(a) to or as a superannuation fund within the meaning of the Superannuation Industry (Supervision) Act 1993 of the Commonwealth; or(b) as a superannuation guarantee charge within the meaning of the Superannuation Guarantee (Administration) Act 1992 of the Commonwealth; or(c) to or as any other form of superannuation, provident or retirement fund or scheme including –(i) a Superannuation Holding Accounts Reserve within the meaning of the Small Superannuation Accounts Act 1995 of the Commonwealth; and(ii) a retirement savings account within the meaning of the Retirement Savings Accounts Act 1997 of the Commonwealth; and(iii) a wholly or partly unfunded fund or scheme;(c) by inserting after subsection (1) the following subsections:(1A) A reference in the definition of "superannuation benefit" in subsection (1) to an employee includes a reference to any person to whom, by virtue of a paragraph of the definition of "wages" in subsection (1) , an amount paid or payable in the circumstances referred to in that paragraph constitutes wages.(1B) For the purposes of this Act, a superannuation benefit, in relation to the Retirement Benefits Fund scheme established under the Retirement Benefits Act 1993 , is to be calculated on a monthly basis –(a) in the case of an employee to whom Part 4 of the Retirement Benefits Regulations 1994 applies and who is employed by a person, organisation or authority specified in paragraph (b), (c) or (d) of the definition of "Agency" in regulation 3(1) of those regulations, by multiplying the wages of the employee by the average new entrant contribution rate; and(b) in the case of an employee to whom Part 4 of the Retirement Benefits Regulations 1994 applies and who is employed by a Government department or organisation referred to in paragraph (a) of the definition of "Agency" in regulation 3(1) of those regulations, by multiplying the wages of the employee by 11% or such other rate as is determined by the Treasurer from time to time; and(c) in the case of an employee to whom Part 5 of the Retirement Benefits Regulations 1994 applies, by multiplying the wages of the employee by the minimum employer contribution rate specified in the Superannuation Guarantee (Administration) Act 1992 of the Commonwealth.(d) by inserting after subsection (4) the following subsections:(5) A reference to wages in all provisions of this Act except subsection (1B) includes a reference to superannuation benefits other than those paid or payable in respect of services performed or rendered by an employee before 1 July 1997.(6) If an employer has paid money on or after 30 April 1997 but before 1 July 1997 as a superannuation benefit in respect of services to be performed or rendered by an employee on or after 1 July 1997, that money is to be regarded, for the purposes of this Act, as a superannuation benefit paid on 1 July 1997 in respect of services performed or rendered by the employee on that day.(7) For the purposes of this Act, a superannuation, provident or retirement fund or scheme is unfunded to the extent that money paid or payable by an employer in respect of an employee covered by the fund or scheme is not paid or payable during the employee's period of service with the employer.
5. Sections 2A and 2B inserted
After section 2 of the Principal Act, the following sections are inserted:2A. Superannuation benefits relating to services performed before 1 July 1997
(1) Money paid or payable by an employer on or after 1 July 1997 as a superannuation benefit that is alleged by the employer to be paid or payable in respect of services performed or rendered by an employee before that day is to be evidenced to the satisfaction of the Commissioner in the employer's records for pay-roll tax purposes.(2) In particular, the employer's records are to show the manner of calculation of the superannuation benefit and any actuarial basis for it.(3) For the purposes of subsection (2) and of any assessment of pay-roll tax to which that subsection is material, the certificate of a fellow or accredited member of the Institute of Actuaries of Australia to the effect that the actuarial basis on which an amount is calculated is justified is evidence and, in the absence of evidence to the contrary, proof of that fact.(4) If records are not kept as required by this section, the Commissioner is entitled to assume, for the purposes of an assessment of pay-roll tax, that a payment of money by an employer as a superannuation benefit on or after 1 July 1997 is an amount payable in respect of services performed or rendered by an employee on or after that day.2B. Superannuation benefits not readily related to particular employees or their periods of service
For the purposes of an assessment of pay-roll tax, the Commissioner may determine –(a) whether, and the extent to which, any money paid or payable by an employer to a superannuation, provident or retirement fund or scheme that is not identified by the employer as paid or payable in respect of a particular employee (and whether or not purporting to be so paid or payable on any actuarial basis) is to be regarded as a superannuation benefit paid or payable in respect of a particular employee; and(b) subject to section 2A , the portion of any money paid on or after 1 July 1997 by an employer as a superannuation benefit to a wholly or partly unfunded fund or scheme, being money paid in respect of an employee (or that is to be regarded under paragraph (a) to have been so paid) who performed or rendered services to the employer on or after, as well as before, 1 July 1997, that is to be regarded as having been paid in respect of services performed or rendered before that date.
6. Section 3E inserted
After section 3D of the Principal Act , the following section is inserted in Part I:3E. Deeming of certain payments to be superannuation benefits
For the purposes of this Act, an amount paid or payable for or in relation to the performance of work under a relevant contract is deemed to include any payment made by a designated person within the meaning of section 3A under a relevant contract that would be a superannuation benefit if made in relation to a person in the capacity of an employee.
7. Section 6 amended (Wages in respect of which liability to pay-roll tax is imposed)
Section 6 of the Principal Act is amended as follows:(a) by inserting in subsection (1) " subsection (1A) and" after "Subject to";(b) by inserting after subsection (1) the following subsections:(1A) Wages that are superannuation benefits that are not paid in respect of services performed or rendered by an employee in a particular month are liable to pay-roll tax under this Act as if they were paid or payable in respect of services performed or rendered during the month in which they were paid or became payable.(1B) Nothing in subsection (1A) applies to render wages that are superannuation benefits paid or payable in respect of services performed or rendered by an employee before 1 July 1997 liable to pay-roll tax.
8. Section 7 amended (Imposition of pay-roll tax)
Section 7 of the Principal Act is amended as follows:(a) by omitting from the formula contained in subsection (1B) "47083" and substituting "50000";(b) by inserting in subsection (2) ", but before 1 July 1997," after "1992";(c) by inserting after subsection (2) the following subsection:(2A) If the Australian wages paid or payable by an employer for a month after June 1997 are more than $50 000 for that month, the rate of pay-roll tax payable for that month in respect of taxable wages included in those Australian wages is 6.6%.
9. Section 11A amended (Annual adjustments)
Section 11A of the Principal Act is amended as follows:(a) by omitting from subsection (3B)(a) "$565000" and substituting "$600000";(b) by omitting from subsection (3B)(b) "$565000" and substituting "$600000";(c) by omitting from subsection (3B)(b)"7%" and substituting "6.6%";(d) by omitting from the formula in subsection (3B)(b) "565000" and substituting "600000";
10. Section 12 amended (Registration)
Section 12(1) of the Principal Act is amended by omitting "$47 083" and substituting "$50 000".
PART 3 - Stamp Duties Act 1931 Amended
In this Part, the Stamp Duties Act 1931 is referred to as the Principal Act.
12. Schedule 3 amended (Instruments exempted from duty)
Schedule 3 to the Principal Act is amended by omitting from item 18 in Part I "Any instrument made before 31 December 1997 for any additional advance secured by or under a loan security, for the balance outstanding under an earlier loan security, if each loan security applies to the same, or substantially the same, land and that land is used for primary production." and substituting the following:
Any instrument executed on or after 15 August 1997, which secures advances made under a previous instrument, where the first-mentioned instrument secures the balance outstanding under the previous instrument and –
(a) the original security is fully discharged; and
(b) the security remains the same, or substantially the same, as under the previous instrument; and
(c) the borrower remains the same; and
(d) the loan –
(i) is used for primary production purposes; or
(ii) is used for any commercial business undertaking; or
(iii) is secured by a charge over residential property.
PART 4 - Constitution Act 1934 Amended
In this Part, the Constitution Act 1934 is referred to as the Principal Act.
14. Section 41 substituted
Section 41 of the Principal Act is repealed and the following section is substituted:41. Limitation of matters to be dealt with in Income Tax Rating Acts and Land Tax Rating Acts
(1) An Income Tax Rating Act and a Land Tax Rating Act are to deal only with the fixing or declaration of the rate or rates of tax to be paid –(a) in the case of an Income Tax Rating Act, in respect of incomes; and(b) in the case of a Land Tax Rating Act, in respect of the taxable value of land.(2) An Income Tax Rating Act is to fix or declare the rate or rates of tax for one year only otherwise it is of no effect.
PART 5 - Land and Income Taxation Act 1910 Amended
In this Part, the Land and Income Taxation Act 1910 is referred to as the Principal Act.
16. Section 10 amended (Land tax)
Section 10(1) of the Principal Act is amended by omitting "annually" and substituting "from time to time".
[Second reading presentation speech made in:
House of Assembly on 21 OCTOBER 1997
Legislative Council on 30 OCTOBER 1997]