Pay-roll Tax Amendment Regulations 2005

Pay-roll Tax Amendment Regulations 2005

I, the Administrator in and over the State of Tasmania and its Dependencies in the Commonwealth of Australia, acting with the advice of the Executive Council, make the following regulations under the Pay-roll Tax Act 1971 .

22 June 2005

E. C. CRAWFORD

Administrator

By His Excellency's Command,

P. A. LENNON

Treasurer

1.   Short title

These regulations may be cited as the Pay-roll Tax Amendment Regulations 2005 .

2.   Commencement

These regulations take effect on 1 July 2005.

3.   Principal Regulations

In these regulations, the Pay-roll Tax Regulations 1999 are referred to as the Principal Regulations.

4.    Regulation 3A inserted

After regulation 3 of the Principal Regulations , the following regulation is inserted:

3A.   Inclusion of trust distributions as wages

(1)  For the purposes of section 2AAA(7)(c) of the Pay-roll Tax Act 1971 , the minimum wage rate is to be determined using one of the following methods:

(a) the hourly rate method, set out in subregulation (4) ;

(b) the daily rate method, set out in subregulation (5) ;

(c) the weekly rate method, set out in subregulation (6) .

(2)  A person who makes a distribution to another person as a beneficiary under a trust may choose which of the methods referred to in subregulation (1) is to apply in respect of any work done for the trust by the beneficiary in a financial year.

(3)  However, the method chosen under subregulation (2) must be used in respect of all work done for the trust by the beneficiary in the financial year.

(4)  The minimum wage rate using the hourly rate method is to be determined in accordance with the following formula:

where –

MWR is the minimum wage rate;

A is the average weekly wage for the financial year in which the work was done for the trust by the beneficiary;

H is the total number of hours of work done for the trust by the beneficiary during the financial year.

(5)  The minimum wage rate using the daily rate method is to be determined in accordance with the following formula:

where –

MWR is the minimum wage rate;

A is the average weekly wage for the financial year in which the work was done for the trust by the beneficiary;

D is the total number of days of work done for the trust by the beneficiary during the financial year (regardless of the number of hours worked on those days).

(6)  The minimum wage rate using the weekly rate method is to be determined in accordance with the following formula:

where –

MWR is the minimum wage rate;

A is the average weekly wage for the financial year in which the work was done for the trust by the beneficiary;

W is the total number of weeks (or part weeks) of work done for the trust by the beneficiary during the financial year (regardless of the number of hours or days worked in those weeks).

(7)  In this regulation –

average weekly wage, for a financial year, means the full-time adult ordinary time earnings (original) of persons for Tasmania in the February quarter immediately preceding the financial year, as set out in "Average Weekly Earnings, Australia" published by the Australian Bureau of Statistics;

week means a period of 7 days starting on a Monday.

Displayed and numbered in accordance with the Rules Publication Act 1953.

Notified in the Gazette on 29 June 2005

These regulations are administered in the Department of Treasury and Finance.

EXPLANATORY NOTE

(This note is not part of the regulation)

These regulations amend the Pay-roll Tax Regulations 1999 by prescribing the method by which the minimum wage rate applicable for work done for a trust by a beneficiary during a financial year is to be determined.