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.
Joe normally performs his duties in Queensland. In June 2010, Joe is sent to Victoria for a temporary project and performs all his services in Victoria that month. Wages paid to Joe in June 2010 for those services are liable to payroll tax in Victoria.
Test 1—Employee’s principal place of residence—section 9A
Test 2—Employer’s ABN address or PPB—section 9B
Test 3—Where wages are paid or payable—sections 9(1)(b)(iii) and 9C(5)
Mary is employed by ABC Pty Ltd and Mary does not have a PPR in an Australian jurisdiction and ABC Pty Ltd does not have an ABN address or a PPB in an Australian jurisdiction during October 2010. Mary performs services in more than one jurisdiction and is remunerated for those services in Queensland ($200), Victoria ($300) and South Australia ($1000). The payments are aggregated and tax is payable on the total amount of $1500 in South Australia because that is where the largest proportion of wages is paid.
Test 4—Services performed mainly in Queensland—section 9(1)(b)(iv)
Employees working in another country—assignment for less than six continuous months
Employees working in another country—assignment more than six months
Services performed offshore
Wages paid in a foreign currency
In June 2010, Peter was paid his usual $3000 wages for services performed in that month and also a $2000 bonus for services performed during the financial year ending June 2010. Even though the bonus payment relates to services performed for the whole financial year, it is deemed to be paid in relation to services performed by Peter in June. Therefore only the services performed in June 2010 will be used in determining whether services were provided entirely in a jurisdiction or in more than one jurisdiction.
If Peter performed services entirely in Queensland in June 2010, payroll tax would be payable in Queensland on the $5000 wages paid to Peter in that month even though the bonus may relate to services provided by Peter in other jurisdictions during the financial year. If Peter provided services in more than one jurisdiction in June 2010, the four tiered tests are used to determine in which jurisdiction payroll tax would be payable. In most cases this would be the jurisdiction where Peter had his PPR in June 2010.
Wages are paid to Bill in August 2010 but under his employment contract they should have been paid in May 2010. In May 2010, Bill performed services entirely in Queensland. As May is the earlier month, payroll tax on the wages for Bill’s May services is payable in Queensland even if Bill performed services entirely in Victoria in August. Any additional wages paid in August must be separately analysed.
However, if Bill was paid in August 2010 in advance of his contractual entitlement to payment in September 2010, the wages would be liable in Victoria, where Bill provided services in August (being the earlier month).
Rose receives wages of $1000 on 14 November 2010 for services performed in Queensland. She receives another $2000 on 28 November 2010 from the same employer for services performed in Victoria. The two amounts are to be aggregated together and treated as if paid for all services performed by the employee in that month (i.e. Queensland and Victoria). Therefore the four tiered tests are used to determine in which jurisdiction payroll tax is payable. In most cases this would be the jurisdiction where Rose has her PPR in November 2010.
Jane is paid in the month of December but has not provided services to the employer in that month. The last month Jane provided services to that employer was October and those services were provided entirely in Queensland. As such payroll tax is payable in Queensland for the wages paid to Jane in December. However, if Jane provided services in more than one jurisdiction in October, the payroll tax liability for the wages paid in December will be determined by using the four tiered tests. In most cases this would be the jurisdiction where Jane has her PPR in October.
If Jane accepts an offer of employment in August 2010 to commence work in Queensland in November 2010 and receives a payment of wages in August 2010, Jane would be taken to have performed services in August 2010 in Queensland (being the place it can be reasonably expected that services will be performed) and payroll tax on those wages would therefore be payable in Queensland.
ABN address means the address for service of notices under the A New Tax System (Australian Business Number) Act 1999 (Cwlth) as shown in the Australian Business Register kept under that Act.
Australian jurisdiction means a State or Territory of Australia (the boundaries of each State or Territory include coastal waters as defined in jurisdiction specific references, e.g. Interpretations Act 1987 (NSW), Coastal and Other Waters (Application of State Laws) Act 1982 (Tas.) etc.)
Employee includes other persons to whom taxable wages are paid such as directors and contractors who are deemed employees.
Month means a calendar month such as January, February etc.
Deputy Commissioner of State Revenue
Date of issue: 3 June 2011
|Public Ruling||Issued||Dates of effect|
|PTA039.1||3 June 2011||3 June 2011||Current|