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.
The net employment increase is the lesser of the baseline employment increase for the relevant year or total number of new Queensland full-time positions for the relevant year.
Example 1
As at 1 July 2019, ABC Pty Ltd had 45 Queensland full-time positions in its business (baseline total).
In November 2019, it created 5 new positions and filled them with new Queensland employees.
Between January 2020 and March 2020, 2 of its longstanding employees retired. ABC decided that the positions those retired employees held were no longer needed.
As at 30 June 2020, ABC had 48 Queensland full-time positions in its business (baseline comparison total).
For the 2019–20 financial year, ABC’s baseline employment increase is 3.
As the baseline employment increase for 2019–20 is less than the total number of new Queensland full-time positions for 2019–20, ABC Pty Ltd’s net employment increase is 3.
Relevant terms
Deemed employee
Monthly payroll tax employee count
Example 2
ABC Pty Ltd conducts business solely in Queensland. As at 31 July 2019, it has 12 full-time employees, 4 part-time employees, 2 casual employees and 1 contractor. Wages paid to all, including the contractor, are liable for payroll tax in Queensland.
ABC Pty Ltd’s monthly payroll tax employee count for July 2019 is 19.
Example 3
ABC Pty Ltd conducts business solely in Queensland and has 25 full-time employees as at 31 July 2019. Three of these employees are apprentices. ABC does not pay payroll tax on the wages paid to its apprentices because they qualify for the exemption for wages paid to apprentices. The wages paid to the remaining 22 full-time employees are liable for payroll tax in Queensland.
ABC Pty Ltd’s monthly payroll tax employee count for July 2019 is 22.
New Queensland employee
Example 4
ABC Pty Ltd operates a retail business. Throughout the 2018–19 financial year, Chris, an IT specialist, provided services to ABC Pty Ltd while it was setting up the online component of its business. ABC decides that it needs more permanent IT services going forward and creates a new full-time IT Manager position in its business from 1 July 2019. Chris is hired to fill the position from 1 August 2019.
Because Chris has worked as a contractor for ABC Pty Ltd in the 12 months preceding 1 August 2019, he is not a new Queensland employee.
New Queensland full-time position
Example 5
In August 2019, ABC Pty Ltd creates a new full-time position in its business. It hires Barry and Lisa, both new Queensland employees, to fill the position from 1 September 2019 under a 60:40 job-share arrangement. The position requires Barry and Lisa to work 40 hours per week between them, with Barry working Monday to Wednesday each week and Lisa working Thursday and Friday each week.
Both Barry and Lisa are still working in the position on 30 June 2020.
For the purpose of determining the net employment increase for the 2019–20 financial year, the position is a new Queensland full-time position.
Example 6
ABC Pty Ltd operates a retail business selling goods both from a physical shopfront and online. It processes and packages online orders every Monday. Due to an increase in online sales, ABC hires 4 new Queensland employees from 1 August 2019 to help with processing these orders. Each employee is required to work 9 hours each Monday.
Although the employees collectively work more than 35 hours per week for ABC, their combined work does not equate to a new Queensland full-time position. The employees are working in separate positions with separate responsibilities. In the ordinary course of business, the combined responsibilities the employees have on a Monday could not be physically undertaken by only one employee.
Example 7
In August 2019, ABC Pty Ltd creates a new full-time position in its business and hires Sam, a new Queensland employee, to fill the position from 31 August 2019. Sam resigns on 29 June 2020. Because the position is not filled as at 30 June 2020, it is not a new Queensland full-time position.
Example 8
In September 2019, ABC Pty Ltd creates a new full-time position in its business. It hires Greg and Peggy, both new Queensland employees, to fill the position from 1 October 2019 under a 50:50 job-share arrangement. The position requires Greg and Peggy to work 40 hours per week between them. Greg works his 20 hours from Monday to Wednesday and Peggy works her 20 hours from Wednesday to Friday.
Greg resigns from the position on 31 May 2020. Peggy continues to work her 20 hours from Wednesday to Friday and is still working those hours on 30 June 2020.
The position is not filled to capacity as at 30 June 2020 and therefore is not a new Queensland full-time position.
Example 9
In September 2019, ABC Pty Ltd creates a new full-time position in its business and hires Jack, a new Queensland employee, to fill the position from 15 September 2019. Jack ceases working for ABC on 31 December 2019. ABC undertakes a recruitment process and employs Jill, a new Queensland employee, who commences in the position on 15 January 2020. Jill is still working in the position on 30 June 2020.
Although multiple new Queensland employees have filled the position, it has been filled to capacity for more than 245 days during the relevant year. Therefore, the minimum employment requirement is satisfied.
Queensland employee
Queensland full-time position
Relevant year
Taxable wages
Particular positions taken to be new Queensland full-time positions for 2020–21
Example 10
In January 2020, ABC Pty Ltd creates a new full-time position in its business and hires Sally, a new Queensland employee, to fill the position from 1 February 2020.
Although Sally was still in the position as at 30 June 2020, the position was not a new Queensland full-time position for the 2019–20 financial year. Sally was only in the position for 5 months (150 days), and therefore the minimum employment requirement was not satisfied.
As at 30 June 2021, Sally was still working for ABC Pty Ltd in the same position.
The position is taken to be a new Queensland full-time position for the 2020–21 financial year.
Mark Jackson
Commissioner of State Revenue
Date of issue: 23 December 2020
Public Ruling | Issued | Dates of effect | |
---|---|---|---|
From | To | ||
PTAQ000.4.2 | 23 December 2020 | 23 December 2020 | Current |
PTAQ000.4.1 | 18 November 2019 | 18 November 2019 | 22 December 2020 |