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Payroll Tax Harmonisation PowerPoint Presentation
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Payroll Tax Harmonisation

Payroll Tax Harmonisation

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Payroll Tax Harmonisation

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Presentation Transcript

  1. Payroll Tax Harmonisation

  2. Background • Consistency gradually eroded since 1971 • Business faces higher compliance costs, in many cases with no benefit in terms of revenue for the community

  3. Harmonisation - background • All states have been exploring opportunities • NSW & Victoria harmonised on 1 July 2007 • Tasmania to join NSW/Vic on 1 July 2008

  4. Harmonisation is not … • Aligned payroll tax rates • Aligned payroll tax thresholds

  5. Harmonisation is … Consistency in…. • what is taxable • exemptions & rebates • rules for grouping • anti-avoidance provisions

  6. Harmonisation could be … • One-stop shop payments • Single return forms • Single audits • Consistent software

  7. Some of the main changes • Motor vehicle and accommodation allowances • Employee share acquisition schemes into the payroll tax net • Exemption of not-for-profit charities • Exemption of wages paid for maternity and adoption leave • Grouping provisions • Introduction of tracing provisions

  8. Allowances Alignment of vehicle and accommodation allowances with FBT • Claim the ATO’s large car rate • Claim the lowest capital city rate for the lowest salary band

  9. Employee Share Acquisition Schemes • Currently outside payroll tax net in Tasmania • The grant of a share or option to an employee or director will constitute wages

  10. Exemptions • Wages paid to employees of not-for-profit organisations having wholly charitable, benevolent, philanthropic or patriotic purposes, engaged exclusively in that kind of work, will be exempt • Wages paid in respect of maternity or adoption leave will be exempt

  11. Grouping Provisions • Test for grouping through the inter-use of employees is being expanded • Expanded test will capture quasi-outsourcing arrangements • Commissioner’s discretion to de-group will remain

  12. Tracing Provisions • Prevents the avoidance of payroll tax grouping through the use of corporate structures • Determines a ‘controlling interest’ by examining direct and indirect interests.

  13. August 07 Sept - Nov 07 November 07 Jan - Jun 08 July 08 Timetable Govt approval to proceed Draft new PTX legislation Parliamentary approval of new legislation Taxpayer education campaign Harmonised model applies

  14. Education program • Web Site updates • Media Campaign • Update of relevant SRO Publications • Client mail outs and communications with peak bodies

  15. Useful links • NSW legislation: http://www.legislation.nsw.gov.au • Victorian legislation: http://www.legislation.vic.gov.au