A public ruling, when issued, is the published view of the Commissioner of State Revenue (the Commissioner) on the particular topic to which it relates. It therefore replaces and overrides any existing private rulings, memoranda, manuals and advice provided by the Commissioner in respect of the issue(s) it addresses.
Where a change in legislation or case law (the law) affects the content of a public ruling, the change in the law overrides the public ruling—that is, the Commissioner will determine the tax liability or eligibility for a concession, grant or exemption, as the case may be, in accordance with the law.
1 ÷ (1 – FBT rate)
ABC Pty Ltd made the election to adopt the alternative method of declaring fringe benefits for payroll tax purposes. In the FBT year ended 31 March 2020, the total taxable value of the fringe benefits grossed up by the Type 2 factor is $100,000. If ABC lodges periodic returns monthly, ABC Pty Ltd would declare $8,333 of fringe benefits in each periodic return for July 2020 to May 2021 (i.e. 1 ÷ 12 × $100,000 = $8,333).
In its FBT return for the year ended 31 March 2021, the total taxable value of the fringe benefits grossed up by the Type 2 factor is $105,000, which is the amount that would be declared as the fringe benefits amount in the 2020–21 payroll tax annual return.
The value of fringe benefits of XYZ Pty Ltd in its 31 March 2020 FBT return after grossing up by the Type 2 factor is $1,200,000. XYZ Pty Ltd paid a total of $6,000,000 (excluding fringe benefits) in taxable wages for the 2019–20 financial year, of which $3,000,000 (excluding fringe benefits) were Queensland wages.
XYZ lodges periodic returns monthly.
($3,000,000 ÷ $6,000,000) × $1,200,000 = $600,000 estimated Queensland fringe benefits
Therefore, $600,000 ÷ 12 = $50,000 of fringe benefits is to be declared in each periodic Queensland payroll tax return for July 2020 to May 2021.
The value of fringe benefits of XYZ Pty Ltd in its 31 March 2021 FBT return after grossing up by the Type 2 factor is $1,800,000. The total Australian taxable wages for the 2020–21 financial year were $8,000,000 (excluding fringe benefits), of which $6,000,000 (excluding fringe benefits) were Queensland taxable wages.
($6,000,000 ÷ $8,000,000) × $1,800,000 = $1,350,000
The Queensland component of fringe benefits to be declared in the 2020–21 annual return is $1,350,000.
Acting Commissioner of State Revenue
Date of issue: 2 September 2019
|Public Ruling||Issued||Dates of effect|
|PTA003.5||2 September 2019||2 September 2019||Current|
|PTA003.4||1 July 2016||1 July 2016||1 September 2019|
|PTA003.3||21 June 2013||21 June 2013||30 June 2016|
|PTA003.2||3 July 2009||3 July 2009||20 June 2013|
|PTA003.1||24 February 2009||1 July 2008||2 July 2009|