AUSTRALIAN CAPITAL TERRITORY

Payroll Tax Act 1987     No 40
Republication No 6B
As in force on 1 July 2000
Includes all amendments up to Act 2000 No 34

Prepared by the ACT Parliamentary Counsel’s Office
This republication is not an authorised republication for the Legislation (Republication) Act 1996.
As in force on
1 July 2000

AUSTRALIAN CAPITAL TERRITORY

Payroll Tax Act 1987
CONTENTS
	Page 
PART 1—PRELIMINARY
	1	Short title	1
	2	Commencement	1
	2A	Incorporation of the Taxation Administration Act	1
	3	Interpretation	1
	3A	Value of benefits	5
	3B	Application of Act to certain contracts	5
	3C	Contracts that are not service contracts	8
	4	Administration	9
	5	Wages to which this Act applies	9
	5A	Agreement etc to reduce or avoid liability to payroll tax	10
PART 2—LIABILITY TO TAXATION
	6	Payroll tax liability	11
	7	Employment of transitional staff	11
	9	Exemption from tax	11
	10	Amount of tax payable—independent employers	14
	11	Amount of tax payable—group members	15
	12	Interim tax—monthly returns	18
	13	Interim tax—returns in respect of other periods	19
	14	Annual reconciliation	20
PART 3—RETURNS
	16	Returns	22
	17	Returns—variation of time for lodging	22
	18	Monthly returns—exemptions	23
PART 4—MISCELLANEOUS
	19	Review of decisions	25
	20	Notification of decisions	25
	22	Regulations	25
ENDNOTES
	1	About this republication	26
	2	About the republished Act	26
	3	Abbreviation key	26
	4	Table of legislation	28
	5	Table of amendments	29
	6	Table of earlier republications	30

As in force on
1 July 2000

AUSTRALIAN CAPITAL TERRITORY

Payroll Tax Act 1987
An Act to impose payroll tax
PART 1—PRELIMINARY
1 	Short title
	This Act may be cited as the Payroll Tax Act 1987.
2 	Commencement
	This Act shall come into operation on such date as is fixed by the Minister by notice in the Gazette.
2A	Incorporation of the Taxation Administration Act
	The Taxation Administration Act 1999 is incorporated and shall be read as one with this Act.
3 	Interpretation
(1)		In this Act, unless the contrary intention appears:
apprentice means—
	(a)	an apprentice within the meaning of the Apprenticeship Act 1936; or
	(b)	a person who is an applicant for apprenticeship within the meaning of that Act and is employed on probation; or
	(c)	a person whose employment is of a kind that, under the regulations, is to be treated as apprenticeship for the purposes of this Act, being employment principally for either of the following purposes:
	(i)	training the person in a trade or other occupation;
	(ii)	assessing the person’s suitability for training in a trade or other occupation.
charitable organisation means an organisation, society, institution or body carried on for a religious, educational, benevolent or charitable purpose, other than one carried on for the purpose of securing pecuniary benefit to its members.
commencement day means the date fixed under section 2.
company includes an unincorporated association and a partnership.
corresponding law means a law of a State or another Territory relating to the imposition on employers of a tax on wages paid or payable by them and the assessment and collection of that tax.
determined rate means the rate determined under section 139 of the Taxation Administration Act 1999 for the purposes of the provision in which the expression appears.
employer means a person who pays or is liable to pay wages and includes— 
	(a)	the Territory or a Territory authority; and
	(b)	a body, whether incorporated or not, established under a law of a State or another Territory, being a body that is resident, or carries on business, in the Territory; and
	(c)	a person who is an employment agent.
employment agent means a person who by arrangement procures the services of another person for a client of the firstmentioned person as a result of which engagement the employment agent receives directly or indirectly payment, whether by way of a lump sum or ongoing fee, during or in respect of the period when the services are provided by that person to the client.
exemption certificate means a certificate granted under section 18.
group period, in relation to a group, means a period of less than a financial year (being a period that falls wholly within a financial year) during which there was at all times at least 1 member of the group (not necessarily the same member) who was an employer in Australia.
group year, in relation to a group, means a financial year during which there was at all times at least 1 member of the group (not necessarily the same member) who was an employer in Australia.
independent employer means an employer who is not a member of a group.
interim tax means tax payable under section 12 or 13 in respect of a return.
pay, in relation to wages or remuneration, includes provide, confer and assign.
return means a return lodged or required to be lodged under this Act.
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 a wholly or partly unfunded fund or scheme.
tax means tax payable under this Act.
taxable wages means—
	(a)	in relation to the Territory—wages to which this Act applies by virtue of section 5; or
	(b)	in relation to a State or another Territory—wages to which a corresponding law of that State or Territory applies.
wages means an amount paid or payable to a person in relation to his or her capacity as an employee or former employee, and includes:
	(a)	a payment by way of remuneration, salary, commission, bonus, allowance or other benefit; and
	(ab)	a superannuation benefit; and
	(b)	a payment made under a prescribed class of contracts, to the extent to which the payment is attributable to labour; and
	(c)	a payment by a company by way of remuneration to a director or a member of the governing body of the company; and
	(ca)	wages, remuneration, salary, commission, bonuses, allowances or other benefits paid or payable whether in cash or in kind in relation to an employee by any person acting for or in concert or under an arrangement or understanding (whether formal or informal and whether expressed or implied) with the employer; and
	(cb)	any amount deemed to be wages under paragraph 3B (2) (c); and
	(d)	the value of any payments made in kind; and
	(e)	any amount paid or payable by way of remuneration to a person who was engaged by an employment agent to provide services for a client of the employment agent, being services in respect of which the remuneration was paid or is payable.
(1A)		A reference in the definition of superannuation benefit in subsection (1) to an employee includes a reference to any person to whom an amount is paid or payable as wages otherwise than as a superannuation benefit.
(1B)		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.
(2)		For the purposes of this Act—
	(a)	any wages paid or payable to an employee, in respect of the employee’s services as an employee of an employer, by a person other than the employer; and
	(b)	any wages paid or payable by an employer, in respect of an employee’s services as an employee of the employer, to a person other than the employee;
shall be taken to be wages paid or payable by the employer to the employee.
(3)		A reference in this Act to a benefit—
	(a)	is, subject to paragraph (b), to be taken to include a reference to a fringe benefit within the meaning of the Fringe Benefits Tax Assessment Act 1986 of the Commonwealth; and
	(b)	is to be taken not to include a superannuation benefit.
3A 	Value of benefits
	For the purposes of this Act, the value of any benefits provided by an employer during a financial year or a group year is the amount, in relation to that year, that would be the aggregate fringe benefits amount for the purposes of the Fringe Benefits Tax Assessment Act 1986 of the Commonwealth.
3B 	Application of Act to certain contracts
(1)		A reference in this section to a service contract is to be taken to be a reference to a contract under which a person (in this subsection called the designated person), in the course of a business carried on by the person—
	(a)	supplies services to another person in relation to the performance of work; or
	(b)	is supplied with the services of another person in relation to the performance of work; or
	(c)	gives out goods to natural persons for work to be performed by those persons in respect of the goods and for resupply of the goods to the designated person or, where the designated person is a member of a group, to another member of that group;
but is not to be taken to include a reference to a contract of service or a contract under which a designated person in the course of a business carried on by the designated person—
	(d)	is supplied with services in relation to the performance of work that are ancillary to the supply of goods under the contract by the person by whom the services are supplied or to the use of the goods which are the property of that person; or
	(e)	is supplied with services in relation to the performance of work where—
	(i)	those services are of a kind not ordinarily required by the designated person and are rendered by a person who ordinarily renders services of that kind to the public generally; or
	(ii)	the commissioner is satisfied that those services are rendered by a person who ordinarily renders services of that kind to the public generally;
unless the commissioner determines that the contract under which the services are so supplied was entered into with an intention either directly or indirectly of avoiding or evading the payment of tax by any person.
(2)		For the purposes of this section—
	(a)	a person—
	(i)	to whom, under a service contract, the services of persons are supplied in relation to the performance of work; or
	(ii)	who, under a service contract, gives out goods to other persons;
shall be deemed to be an employer; and
	(b)	a person who—
	(i)	performs work in relation to which services are supplied to another person under a service contract; or	
	(ii)	being a natural person, under a service contract, resupplies goods to an employer;
shall be deemed to be an employee; and
	(c)	amounts paid or payable by an employer in relation to—
	(i)	the performance of work relating to a service contract; or
	(ii)	the resupply of goods by an employee under a service contract;
		less any amount of GST payable for the performance or resupply, are taken to be wages; and
	(d)	where an amount referred to in paragraph (c) is included in a larger amount paid or payable by an employer under a service contract, that part of the larger amount which is not attributable to the performance of work relating to the service contract or the resupply of goods by an employee under the service contract may be determined by the commissioner.
(3)		Where, in respect of a payment in relation to the performance of work that is to be deemed to be wages under subsection (2), payroll tax is paid by a person who is to be deemed under that subsection to be an employer—
	(a)	no other person shall be liable to payroll tax in respect of that payment; and
	(b)	where another person is liable to make a payment in relation to that work, that person shall not be liable to payroll tax in respect of that payment unless it or the payment by the person who is to be deemed to be the employer is made with an intention either directly or indirectly of avoiding or evading the payment of tax whether by that deemed employer or another person.
(4)		In this section—
	(a)	a reference to a contract is to be taken to include a reference to an agreement, arrangement or undertaking, whether formal or informal and whether express or implied; and
	(b)	a reference to supply is to be taken to include a reference to supply by way of sale, exchange, lease, hire, credit contract or regulated contract and, in relation to services, includes a reference to the providing, granting or conferring of services; and
	(c)	a reference (however expressed) to the resupply of goods acquired from a person is to be taken to include a reference to—
	(i)	a supply to the person of goods in an altered form or condition; and
	(ii)	a supply to the person of goods in which the firstmentioned goods have been incorporated; and
	(iii)	a supply to the person of an article manufactured or produced from any such goods; and
	(d)	a reference to services is to be taken to include a reference to results (whether goods or services) of work performed.
(5)		In this section—
credit contract has the same meaning as in the Consumer Credit (Australian Capital Territory) Code.
GST—see the A New Tax System (Goods and Services Tax) Act 1999 (Cwlth), dictionary.
regulated contract has the same meaning as in the Credit Act 1985.
3C 	Contracts that are not service contracts
	A reference in section 3B to a service contract is not to be taken to be a reference to a contract under which a person is supplied with services ancillary to the conveyance of goods by means of a vehicle provided by the person conveying them, unless the commissioner determines that the contract was entered into with an intention either directly or indirectly of avoiding or evading the payment of tax by any person.
4 	Administration
	The commissioner has the general administration of this Act.
5 	Wages to which this Act applies
(1)		The following wages are wages to which this Act applies:
	(a)	wages that are paid or payable in the Territory, not being wages so paid or payable in respect of services performed or rendered wholly in a State or wholly in another Territory;
	(b)	wages that are paid or payable elsewhere than in the Territory in respect of services performed or rendered wholly in the Territory.
(2)		Wages that are payable to a person by his or her employer but have not been paid, other than wages that, under the terms of the person’s employment, are payable in another Territory or in a State, shall be deemed—
	(a)	where the wages are payable in respect of services performed or rendered wholly in the Territory—to be wages payable to the employee in the Territory; or
	(b)	where—
	(i)	the wages are not payable in respect of services performed or rendered wholly in the Territory, wholly in another Territory or wholly in a State; and
	(ii)	the wages last paid or payable to the person by that employer were included, or required to be included in a return under this Act;
to be wages payable to the person in the Territory; or
	(c)	where the wages are not deemed, by paragraph (a) or (b) or a provision of a corresponding law, to be wages payable to the person in the Territory, in a State or in another Territory—to be wages payable to the person by that employer at the place where that person last performed or rendered any services for that employer before those wages became payable.
(3)		Where a bill of exchange, promissory note, money order, postal order or other instrument has been given or sent by an employer to a person or the person’s agent in payment of the person’s wages, the wages shall be deemed to have been paid—
	(a)	at the place  where the instrument is given or to which it is sent, as the case may be; and
	(b)	when the instrument was so given or sent.
5A 	Agreement etc to reduce or avoid liability to payroll tax
(1)		Where any person enters into any agreement, transaction or arrangement, whether in writing or otherwise, under which a natural person performs or renders, for or on behalf of another person, services in respect of which any payment is made to some other person related or connected to the natural person performing or rendering the services and the effect of the agreement, transaction or arrangement is to reduce or avoid the liability of any person  to the assessment, imposition  or payment of payroll tax, the commissioner may—
	(a)	disregard the agreement, transaction or arrangement; and
	(b)	determine that any party to the agreement, transaction or arrangement shall be deemed to be an employer for the purposes of this Act; and
	(c)	determine that any payment made in respect of the agreement, transaction or arrangement shall be deemed to be wages for the purposes of this Act;
and a determination under paragraph (b) or (c) has effect accordingly.
(2)		This section has effect in relation to agreements, transactions and arrangements made before, on or after the commencement of this section.

PART 2—LIABILITY TO TAXATION
6 	Payroll tax liability
(1)		Tax is payable by an employer in respect of wages to which this Act applies by virtue of section 5 that are paid or payable by the employer on or after the commencement date.
(2)		Where, in respect of wages paid in relation to the performance of work, payroll tax is paid by an employment agent, no other person shall be liable to payroll tax in respect of that payment.
7 	Employment of transitional staff
	For the purposes of this Act—
	(a)	the Territory or the appropriate Territory authority, as the case requires, shall be taken to be the employer of a member of the transitional staff within the meaning of the A.C.T. Self-Government (Consequential Provisions) Act 1988 of the Commonwealth; and
	(b)	the wages of that member shall be taken to be payable by the Territory or that authority, as the case requires.
9 	Exemption from tax
(1)		Section 6 does not apply to wages paid or payable—
	(a)	by the Governor-General; or
	(b)	by a charitable organisation (other than a charitable organisation carried on for an educational purpose); or
	(ba)	by a charitable organisation that is a school or college (other than a technical school or college) carried on by a body corporate, society or association and providing education at or below, but not above, the secondary level of education; or
	(c)	by a hospital that is a recognised hospital under the Health Insurance Act 1973  of the Commonwealth; or
	(d)	to members of his or her official staff by a representative (other than a diplomatic or consular representative) in Australia of the government of another country; or
	(e)	to a person who is a member of the Defence Force, being wages paid or payable by the employer from whose employment the person is on leave by reason of the person’s being such a member; or
	(f)	to a person employed as an apprentice, where the wages are in respect of the period of 12 months commencing on the first day of the person’s employment as an apprentice; or
	(g)	to a trainee employed under a training agreement as part of the scheme known as the Australian Traineeship Scheme; or
	(h)	to a person employed under a scheme for the employment of apprentices that has been approved as a group apprenticeship scheme by the Department of State of the Commonwealth of Employment, Education and Training; or
	(ha)	to a prescribed person, where the wages are in respect of the period of 2 years commencing on the first day of the person’s employment by the employer by whom those wages were paid or are payable; or
	(i)	from a bank account maintained under Part 5 of the Financial Management Act 1996 (not being such an account that is specified by the Minister by writing for the purposes of this paragraph); or
	(j)	by a Territory authority that is funded solely by money appropriated from the public money of the Territory by an Act.
(2)		An instrument made for the purpose of paragraph (1) (i) is a disallowable instrument for the purposes of section 10 of the Subordinate Laws Act 1989.
(3)	Section 6 does not apply to wages paid or payable by an employment agent to a person (the subcontractor) under a contract between the agent and the subcontractor for work performed by the subcontractor for a client of the agent in any of the following cases:
	(a)	the subcontractor also supplies goods to the client under the contract and the wages amount to less than 50% of the value of the consideration paid or payable by the agent to the subcontractor for services and goods supplied to that client;
	(b)	the services provided by the subcontractor to the client are of a kind not ordinarily required by the employment agent and the subcontractor ordinarily renders services of that kind to the public generally;
	(c)	the subcontractor is a body corporate and individuals of both the following kinds perform the work for which the wages are paid or payable:
	(i)	a director or shareholder of the body; 
	(ii)	an employee of the body who is not a director or shareholder;
	(d)	the subcontractor is a partnership and individuals of both the following kinds perform the work for which the wages are paid or payable:
	(i)	a partner;
	(ii)	an employee of the partnership;
	(e)	the subcontractor is a sole trader and individuals of both of the following kinds perform the work for which the wages are paid or payable:
	(i)	the subcontractor;
	(ii)	an employee of the subcontractor;
	(f)	the individuals who perform the work for which the wages are paid or payable together work for not more than 8 days in any month under a contract with the agent;
 	 (g)	the subcontractor is a genuine employer of the individuals who perform the work for which the wages are paid.
(4)		In subsection (3)—
	(a)	a reference to a contract shall be taken to include a reference to an agreement, arrangement or undertaking, whether formal or informal and whether express or implied; and
	(b)	a reference to supply shall be taken to include a reference to supply by way of sale, exchange, lease or hire; and 
	(c)	a reference to services shall be taken to include a reference to results (whether goods or services) of work performed.
(5)		In paragraph (1) (ha)—
prescribed person, in relation to an employer, means a person who was during a period longer than 12 months immediately prior to commencing employment with the employer—
	(a)	registered as unemployed with the Commonwealth Employment Service; and
	(b)	receiving an allowance in respect of that unemployment under the Social Security Act 1991 of the Commonwealth; 
disregarding any period not exceeding, or periods in the aggregate not exceeding, 4 weeks during which the person was not so registered or was not receiving such an allowance. 
10 	Amount of tax payable—independent employers
(1)		Where an employer is an independent employer in Australia during the whole of a financial year (whether or not he or she was an employer in the Territory during the whole of that year), the amount of tax payable in respect of wages paid or payable in the Territory by the employer during that year is the amount calculated in accordance with the formula
, where:
	A	is the amount calculated by applying the determined rate to the sum of all taxable wages paid or payable in Australia by the employer during that year;
	ACTW	is the sum of all taxable wages paid or payable in the Territory by the employer during that year; and
	AW	is the sum of all taxable wages paid or payable in Australia by the employer during that year.
(2)		Where an employer is an independent employer in Australia during a period of less than a whole financial year, being a period falling wholly within a financial year, (whether or not he or she was an employer in the Territory during the whole of that period), the amount of tax payable in respect of wages paid or payable in the Territory by the employer during that period is the amount calculated in accordance with the formula 
, where:
	ACTWP	is the sum of all taxable wages paid or payable in the Territory by the employer during that period;
	DP	is the number of days in that period;
	DFY	is the number of days in the financial year in which that period falls;
	AWP	is the sum of all taxable wages paid or payable in Australia by the employer during that period; and
	EAT	is the estimated Australian tax calculated by applying the determined rate to the amount calculated in accordance with the formula 
, where:
AWP	is the sum of all taxable wages paid or payable in Australia during that period;
DFY	is the number of days in the financial year in which that period falls; and
DP	is the number of days in that period.
11 	Amount of tax payable—group members
(1)		Where an employer—
	(a)	is a member of a group during part or all of a group year; and
	(b)	if the employer is a member of the group during part only of that year—he or she is not an independent employer at any time during that year;
the amount of tax payable in respect of wages paid or payable in the Territory by the employer during that year is the amount calculated in accordance with the formula 
, where:
A	is the amount calculated by applying the determined rate to the sum of all taxable wages paid or payable in Australia by the group during that year;
ACTW	is the sum of all taxable wages paid or payable in the Territory by the employer during that year; and
AGW	is the sum of all taxable wages paid or payable in Australia by the group during that year.
(2)		Where—
	(a)	an employer is a member of a group during part or all of a group period; and
	(b)	if the employer is a member of the group during part only of the group period—he or she is not an independent employer at any time during the remainder of the group period;
the tax payable in respect of wages paid or payable in the Territory by the employer during the group period is the amount calculated in accordance with the formula 
, where:
ACTWP	is the sum of all taxable wages paid or payable in the Territory by the employer during the group period;
DGP	is the number of days in the group period;
DFY	is the number of days in the financial year within which the group period falls;
AGWP	is the sum of all taxable wages paid or payable in Australia by the group during the group period; and
EAT	is the estimated Australian tax calculated by applying the determined rate to the amount calculated in accordance with the formula 
, where:
AGWP	is the sum of all taxable wages paid or payable in Australia by the group during the group period;
DFY	is the number of days in the financial year in which the group period falls; and
DGP	is the number of days in the group period.
(3)		Where an employer—
	(a)	is a member of a group during part of a group period or group year; and
	(b)	is an independent employer during part or all of the remainder of the group period or group year;
the amount of tax payable in respect of wages paid or payable in the Territory by the employer during the group tax period is the amount calculated in accordance with the formula 
, where:
ACTW	is the sum of all taxable wages paid or payable in the Territory by the employer during the group tax period;
DGTP	is the number of days in the group tax period;
DFY	is the number of days in the financial year in which the group period falls, or in the group year, as the case requires;
AGW	is the sum of all taxable wages paid or payable in Australia by the group during the group tax period; and
EAT	is the estimated Australian tax calculated by applying the determined rate to the amount calculated in accordance with the formula 
, where:
AGW	is the sum of all taxable wages paid or payable in Australia by the group during the group tax period;
DFY	is the number of day in the financial year in which the group period falls, or in the group year, as the case requires; and
DGTP	is the number of days in the group tax period.
(4)		In subsection (3)—
group tax period means that part of the group period or group year, as the case requires, during which the employer was not an independent employer.
12 	Interim tax—monthly returns
(1)		The amount of tax payable in respect of a monthly return by an employer who was an independent employer during the whole month to which the return relates is the amount calculated in accordance with the formula
 , where:
ACTWM	is the sum of all taxable wages paid or payable in the Territory by the employer during that month;
AWM	is the sum of all taxable wages paid or payable in Australia by the employer during that month; and
EAT	is the estimated Australian tax calculated by applying the determined rate to the amount equal to 12 times the sum of all taxable wages paid or payable by the employer in Australia during that month.
(2)		The amount of tax payable in respect of a monthly return by an employer who was a member of a group during the whole month to which the return relates is the amount calcuated in accordance with the formula 
, where:
ACTWM	is the sum of all taxable wages paid or payable in the Territory by the employer during that month;
AGWM	is the sum of all taxable wages paid or payable in Australia by the group during that month; and
EAT	is the estimated Australian tax calculated by applying the determined rate to the amount equal to 12 times the sum of all taxable wages paid or payable in Australia by the group during that month.
13 	Interim tax—returns in respect of other periods
(1)		The amount of tax payable in respect of a return in relation to a period other than a financial year or a month (being a period that falls wholly within a financial year) by an employer who was an independent employer during the whole of that period is the amount calculated in accordance with the formula
 , where:
ACTWP	is the sum of all taxable wages paid or payable in the Territory by the employer during that period;
AWP	is the sum of all taxable wages paid or payable in Australia by the employer during that period;
DP	is the number of days in the period;
DFY	is the number of days in the financial year within which the period falls; and
EAT	is the estimated Australian tax calculated by applying the determined rate to the amount calculated in accordance with the formula
 , where:
AWP	is the sum of all taxable wages paid or payable in Australia by the employer during that period;
DFY	is the number of days in the financial year within which that period falls; and
DP	is the number of days in that period.
(2)		The amount of tax payable in respect of a return in relation to a period other than a financial year or a month (being a period that falls wholly within a financial year) by an employer who was a member of a group during the whole of that period is the amount calculated in accordance with the formula
 , where:
ACTWP	is the sum of all taxable wages paid or payable in the Territory by the employer during that period;
AGWP	is the sum of all taxable wages paid or payable in Australia by the group during that period;
DP	is the number of days in the period;
DFY	is the number of days in the financial year within which that period falls; and
EAT	is the estimated Australian tax calculated by applying the determined rate to the amount calculated in accordance with the formula
 , where:
AGWP	is the sum of all taxable wages paid or payable in Australia by the group during that period;
DFY	is the number of days in the financial year within which that period falls; and
DP	is the number of days in that period.
14	Annual reconciliation
(1)	For the purposes of the Taxation Administration Act 1999—
	(a)	if the total amount of any interim tax paid by an employer in relation to wages paid or payable by the employer during any financial year exceeds the amount of tax payable by the employer under section 10 or 11 in respect of those wages, the employer has overpaid an amount of tax equal to the difference between the amount of interim tax paid and the amount of tax payable; and
	(b)	if the total amount of any interim tax paid by an employer in relation to wages paid or payable by the employer during any financial year is less than the amount of tax payable by the employer under section 10 or 11 in respect of those wages, the employer has underpaid an amount of tax equal to the difference between the amount of interim tax paid and the amount of tax payable. 
(2)		Where, on assessing the amount of tax payable in respect of wages paid or payable by an employer in any financial year, it appears to the commissioner that the employer has underpaid an amount of tax by virtue of paragraph (1) (b)—
	(a)	the commissioner shall serve on the employer notice in writing specifying—
	(i)	the amount of tax payable; and
	(ii)	the amount of interim tax paid; and
	(iii)	the date on which the underpaid amount becomes due and payable, being a date not less than 30 days after the date of the notice; and
	(b)	interest is not payable on the underpaid amount on or before the date on which the amount becomes due and payable.

PART 3—RETURNS
16 	Returns
(1)		If the sum of all taxable wages paid or payable in Australia by an employer in any month exceeds the amount determined for the purposes of this subsection under section 139 of the Taxation Administration Act 1999 the employer shall—
	(a)	lodge a return in relation to that month; and
	(b)	lodge a return in relation to each subsequent month in the financial year in which the firstmentioned month falls; and
	(c)	pay any interim tax that is payable in respect of each return by virtue of subsection 12 (1) or (2), as the case requires.
(2)		A return shall—
	(a)	be in writing, in a form approved by the commissioner; and
	(b)	be lodged within 7 days after the end of the month; and
	(c)	specify the taxable wages that were paid or payable by the employer during that month.
17 	Returns—variation of time for lodging
(1)		An employer may apply to the commissioner for variation of the periods in relation to which, or the time within which, the employer is to lodge returns.
(2)		An application shall—
	(a)	be in writing, addressed to the commissioner; and
	(b)	specify—
	(i)	the name and address of the applicant; and
	(ii)	the grounds on which the variation is sought.
(3)		Where the commissioner is satisfied that it would be unduly onerous for the employer—
	(a)	to lodge a return in relation to each month; or
	(b)	to lodge a return within 7 days after the end of each month;
the commissioner may, by notice in writing addressed to the employer vary the periods in relation to which, or the time within which, the employer is to lodge returns.
(4)		While a notice is in force in relation to an employer, the employer shall—
	(a)	lodge returns in accordance with the notice; and
	(b)	pay any interim tax payable in respect of each return by virtue of subsection 13 (1) or (2), as the case requires.
(5)		Where—
	(a)	a notice is in force in relation to an employer; and
	(b)	the commissioner is no longer satisfied that it would be unduly onerous for the employer to lodge returns in relation to each month, or within 7 days after the end of each month;
the commissioner may, by notice in writing addressed to the employer, revoke the firstmentioned notice.
18 	Monthly returns—exemptions
(1)		An employer who is of the opinion that—
	(a)	the employer is not liable to pay tax; or
	(b)	tax the employer pays will be refunded;
may apply to the commissioner for an exemption from lodging returns under section 16.
(2)		An application shall—
	(a)	be in writing, addressed to the commissioner; and
	(b)	specify—
	(i)	the amount of wages payable by the employer; and
	(ii)	the amount of tax, if any, that, in the employer’s opinion, the employer is liable to pay.
(3)		Where the commissioner is satisfied that—
	(a)	tax will not be payable by the employer; or
	(b)	tax paid by the employer will be refunded;
the commissioner may grant a certificate to the employer exempting the employer from lodging returns under section 16.
(4)		An exemption certificate may be granted subject to such conditions as the commissioner determines.
(5)		While an exemption certificate is in force in respect of an employer—
	(a)	the employer need not lodge returns under section 16; and
	(b)	the employer shall lodge a return relating to each financial year or other period specified in the certificate within 21 days after the end of the financial year or within such other period as is specified in the certificate.
(6)		Where—
	(a)	an exemption certificate is in force in respect of an employer; and
	(b)	the commissioner is no longer satisfied that tax will not be payable by the employer or, if tax is payable, that it will be refunded;
the commissioner may, by notice in writing addressed to the employer, cancel the exemption certificate.
(7)		The commissioner may, if he or she considers it appropriate to do so, vary a condition subject to which an exemption certificate is issued.

PART 4—MISCELLANEOUS
19 	Review of decisions
	Applications may be made to the Administrative Appeals Tribunal for a review of a decision of the commissioner—
	(a)	under subsection 3B (1) or section 3C, that a service contract was entered into with an intention either directly or indirectly of avoiding or evading the payment of tax; or
	(ab)	under paragraph 3B (2) (d); or
	(ac)	under section 5A, disregarding an agreement, transaction or arrangement; or
	(b)	refusing to give, or revoking, a notice under section 17; or
	(c)	under section 18 refusing to grant, or cancelling, an exemption certificate; or
	(d)	under section 18 imposing or varying conditions in relation to an exemption certificate.
20 	Notification of decisions
(1)		Where the commissioner makes a decision of the kind referred to in section 19, he or she shall cause notice in writing of the decision to be given to the employer concerned.
(2)	A notice under subsection (1) shall be in accordance with the requirements of the code of practice in force under subsection 25B (1) of the Administrative Appeals Tribunal Act 1989.
22 	Regulations
	The Executive may make regulations, not inconsistent with this Act, prescribing all matters required or permitted by this Act to be prescribed, or necessary or convenient to be prescribed for carrying out or giving effect  to this Act.

ENDNOTES
1	About this republication
This is a republication of the Payroll Tax Act 1987 as in force on 1 July 2000.  It includes all amendments made to the Act up to Act 2000 No 34.
Amending laws are annotated in the table of legislation and table of amendments.
The Parliamentary Counsel’s Office currently prepares 2 kinds of republications of ACT laws:  authorised printed republications to which the Legislation (Republication) Act 1996 applies and unauthorised electronic republications.  The status of a republication appears on its cover and is indicated by its republication number.
A republication number without a letter (eg 1, 2, 3 etc) indicates that the republication is an authorised printed republication.  A number with a letter (eg 1A, 1B, 1C etc) indicates that the republication is an unauthorised electronic republication.
Section 13 of the Legislation (Republication) Act 1996 authorises the Parliamentary Counsel, in preparing a law for republication, to make textual amendments of a formal nature which the Parliamentary Counsel considers desirable in accordance with current legislative drafting practice.  The amendments do not effect a substantive change in the law.
In preparing this republication, amendments have not been made under section 13.
Not all amendments made under section 13 are annotated in the table of amendments.  Full details of any amendments can be obtained from the Parliamentary Counsel’s Office.
2	About the republished Act
The Payroll Tax Act 1987 was originally the Payroll Tax Ordinance 1987.  It became an ACT Act on self-government (11 May 1989).
3	Abbreviation key
Key to abbreviations in tables

am = amended
amdt = amendment
ch = chapter
cl = clause
def = definition
dict = dictionary
div = division
exp = expires/expired
Gaz = Gazette
hdg = heading
ins = inserted/added
LR = Legislation (Republication) Act 1996
mod = modified
No = number
notfd = notified
o = order
om = omitted/repealed
orig = original
p = page
par = paragraph
pres = present
prev = previous
(prev...) = previously
prov = provision
pt = part
r = rule/subrule
reg = regulation/subregulation
renum = renumbered
reloc = relocated
R[X] = Republication No
s = section/subsection
sch = schedule
sdiv = subdivision
sub = substituted
SL  = Subordinate Law
sp = spent
*  = SL unless otherwise stated
† = Act or Ordinance unless otherwise stated

4	Table of legislation
Part 1—Legislation before self-government
Ordinance†	Year and number†	Gazette
notification	Commencement	Transitional provisions	

Payroll Tax Ordinance 1987	1987 No 40	31 July 1987	1 Aug 1987
(see Gaz
1987 No S193)		
Payroll Tax  (Amendment) Ordinance 1988	1988 No 32	30 June 1988	1 July 1988	—	
Payroll Tax (Amendment) Ordinance 1989	1989 No 15	22 Mar 1989	22 Mar 1989	—	
Self-Government (Consequential Amendments) Ordinance 1989	1989 No 38	10 May 1989	ss 1 and 2: 10 May 1989
remainder: 11 May 1989 (see s 2 (2) and Gaz 1989 No S164)
	—	

Part 2—Legislation after self-government
Act†	Year and number†	Gazette
notification	Commencement	Transitional provisions	

Payroll Tax (Amendment) Act 1989	1989 No 17	31 Oct 1989	1 Nov 1989	—	
Payroll Tax (Amendment) Act 1993	1993 No 6	1 Mar 1993	1 Mar 1993	s 6 (2)	
Payroll Tax (Amendment) Act 1994	1994 No 16	20 May 1994	1 Apr 1994	—	
Administrative Appeals (Consequential Amendments) Act 1994	1994 No 60	11 Oct 1994	ss 1 and 2:  11 Oct 1994
remainder:   14 Nov 1994 (see s 2 (2) and Gaz 1994 No S250)	—	
Payroll Tax (Amendment) Act 1995	1995 No 10	30 June 1995	ss 1-3:  30 June 1995
remainder:  1 July 1995 (see Gaz 1995 No S158)	s 5	
Consumer Credit (Consequential Provisions) Act 1995	1995 No 19	5 Sept 1995	ss 1 and 2:  5 Sept 1995
remainder:  1 Nov 1996 (see s 2 (2) and Gaz 1996 No S273)	—	
Financial Management and Audit (Consequential and Transitional Provisions) Act 1996	1996 No 26	1 July 1996	1 July 1996	—	
Payroll Tax (Amendment) Act 1997	1997 No 101	24 Dec 1997	s 4: 1 July 1996
remainder:  24 Dec 1997	s 5	
Taxation Administration (Consequential and Transitional Provisions) Act 1999	1999 No 5	1 Mar 1999	1 Mar 1999	—	
Payroll Tax (Amendment) Act 1999	1999 No 26	6 May 1999	6 May 1999	—	
Payroll Tax (Amendment) Act (No. 2) 1999	1999 No 42	12 July 1999	6 May 1999 		
Financial Relations Agreement Consequential Amendments Act 2000	2000 No 34	6 July 2000	ss 1 and 2:  6 July 2000
ss 3, 18, 24, 25 and pt 4 (ss 32-33):  
1 July 2000 (see s 2 (1))
remainder:  1 July 2001 (see s 2 (2))
	—	

5	Table of amendments

Provision	How affected†

s 2A	ins 1988 No 32
	sub 1999 No 5
s 3	am 1988 No 32; 1989 No 38; 1989 No 17; 1993 No 6; 1994 No 60; 1997 No 101; 1999 No 5
s 3A	ins 1989 No 17
	sub 1994 No 16
s 3B	ins 1989 No 17
	am 1995 No 19; 2000 No 34 s 33
s 3C	ins 1989 No 17
s 5A	ins 1989 No 17
s 6	sub 1988 No 32
	am 1989 No 17
s 7	om 1988 No 32
	ins 1993 No 6
s 8	om 1988 No 32
s 9	am 1988 No 32; 1989 No 15; 1993 No 6; 1995 No 10; 1996 No 26; 1999 No 26; 1999 No 42 s 4
ss 10-13	sub 1988 No 32
s 14	sub 1988 No 32
	am 1999 No 5
s 15	om 1988 No 32
s 16	am 1988 No 32; 1999 No 5
ss 17, 18	am 1988 No 32
s 19	am 1988 No 32; 1989 No 38; 1989 No 17; 1994 No 60
s 20	am 1989 No 38; 1994 No 60
s 21	om 1999 No 26
s 22	am 1989 No 38

6	Table of earlier republications
Republication No	Amendments to	Republication date	
(1)	Act 1989 No 17	31 March 1991	
(2)	Act 1993 No 6	30 April 1993	
(3)	Act 1994 No 60	28 February 1995	
(4)	Act 1996 No 26	30 November 1996	
(5)	Act 1997 No 101	31 January 1998	
6	Act 1999 No 42	31 July 1999	
6A	Act 1999 No 42	31 July 1999	

©  Australian Capital Territory 1999

The Copyright Act 1968 of the Commonwealth permits certain reproduction and publication of this legislation.  For reproduction or publication beyond that permitted by the Act, written permission must be sought from the Government Printer, c/o Information Management and Libraries, Department of Urban Services, ACT Government, GPO Box 158, Canberra City ACT 2601.