Frequently Asked Questions
You need to check the relevant legislation in your State and Territory, as the rules are different in each jurisdiction.
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What is a ‘group’ for the purposes of payroll tax?
- A group exists if:
- the corporations are ‘related’ under the Corporations Act 2001 (Cth). Corporations are related if one company is:
- a holding company of another body corporate; or
- a subsidiary of another body corporate; or
- a subsidiary of a holding company of another body corporate;
- some of the employees are used in both of the businesses;
- a person (or people) have a controlling interest in at least two businesses; or
- an entity has a direct, indirect or aggregate controlling interest in a corporation under tracing provisions.
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What can I do if I disagree with a decision made by the state revenue office in regards to my payroll tax liability?
- If you disagree with a decision of the state revenue office you can lodge an objection to the decision.
- Your objection must be in writing.
- Please check your state or territory revenue office website for the relevant objection form.
- The objection must be lodged within 60 days of the decision.
- The decision will be reviewed by the revenue office in your state or territory.
- The revenue office will take a fresh look at the decision and will decide whether it should be changed or kept.
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What will the tribunal or court look at if I have my payroll tax issues further examined after an unsuccessful objection to the commissioner of state revenue?
- The tribunal or court will look at the facts of your case and the law that relates to the commissioner’s decision. The tribunal or court will decide whether to change the decision.
- You must prove your case. You should provide evidence including your own evidence, evidence from others and from documents. You can only argue the same issues that you set out in your original objection. You can't bring any new matters forward.
- If you want to make new arguments you will need to get the permission of the tribunal or court to do so.
- Our Phone a Lawyer service may be able to put you in touch with a lawyer for a preliminary consultation if you think you may need legal advice.
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How do I take a payroll tax matter to a tribunal or court?
- To take your payroll tax matter further you must request a referral to the tribunal or appeal to a court.
- The request must be lodged with the commissioner of state revenue within 60 days of when you received the decision.
- You must pay the relevant fee for the tribunal or court or you can ask for the fee to be waived due to financial hardship if applicable.
- You can use our free and anonymous Ask a Lawyer service if you have a particular issue you want to know more about.
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Should I take my matter to the tribunal or the court?
- The choice is entirely yours. Generally taking a matter to the tribunal is not as financially risky.
- Taking a matter to court is more expensive, time consuming and formal than taking a matter to a tribunal.
- If you lose at the tribunal level you can still take the matter to court.
- If you choose to take the matter to a tribunal each party will bear their own costs. This means that you pay your legal fees and the commissioner of state revenue will pay their legal fees regardless of who wins the case.
- The tribunal has the power to reduce, increase or confirm the commissioner’s decision as to your payroll tax liability.
- You may have the option of taking the matter to court if you lose the case at the tribunal. The commissioner of state revenue will also have the same option if he or she is unhappy with the tribunal’s decision.
- If you decide to take the matter to court you will be required to follow strict court rules which include strict timelines and rules about what evidence you can use and how you can present it.
- The rules can be very complex and you will probably need the assistance of a lawyer to navigate the court process. You are however allowed to appear on behalf of yourself (self-represent).
- The court has the power to confirm, reduce, increase or vary the decision about your payroll tax liability.
- The court can also ‘set aside’ the decision and send it back to the commissioner of state revenue or tribunal if you appealed the tribunal’s decision. This means that the commissioner of state revenue or tribunal must make a new decision under the directions of the court.
- Parties can have costs awarded against them. This means that if you lose at court you may have to pay the commissioner’s legal costs.
- On the other hand if you win then the commissioner of state revenue may have to pay your legal costs.
- In this sense going to court can be more financially risky than going to the tribunal.
- You can use our Fixed Fee Quote service to call for tenders from experienced lawyers who may be able to assist you with your objection.
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How does an objection to the decision of the commissioner of state revenue affect interest payable on my tax?
- If your objection is successful your tax refund will be accompanied by interest for the period starting on the date the tax was paid to the date it is refunded.
- If your objection is unsuccessful and you have to pay extra tax and in some cases penalties you will have to pay any interest that has accrued in relation to these liabilities.
- Interest will be calculated on a daily basis and must be paid for the period starting on the last day payment was originally due and ending on the day you make the payment.
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What information do I need to lodge my annual reconciliation?
- To lodge your annual reconciliation you will need the following information:
- details of your business including:
- customer number;
- Australia Business Number (ABN); and
- employer type;
- details of the reconciliation periods in your state or territory and other states and territories if applicable;
- a break up of your state or territory wages into taxable components for the last financial year;
- the amount of any interstate wages paid;
- the amount of any local state or territory wages and tax paid;
- the amount of local state or territory primary tax paid for the financial year;
- your fringe benefits tax return if you pay fringe benefits using the estimate method; and
- the amount of local state or territory and other state or territory wages you expect to pay in the following financial year.
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Do I have to pay payroll tax on superannuation contributions?
- Superannuation contributions are considered to be wages and can be taxed.
- Superannuation contributions are taxable if paid or payable to:
- employees (excluding exempt employees);
- deemed employees (workers employed through an employment agency contract); and
- company directors.
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Do I have to pay tax on wages paid to apprentices or trainees?
- Yes. All wages paid to apprentices and trainees must be included in your payroll tax calculation including:
- superannuation;
- allowances; and
- fringe benefits tax.
- Your state or territory may have an offset available that provides you with a rebate amount to use in your monthly payments and annual reconciliation calculation to cancel out a certain amount of your tax liability.
- Check the website of your state or territory revenue office for details.
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What is PTX Express?
- PTX Express or ‘payroll tax express’ is an internet-based application provided by the State Revenue Office Victoria for employers to easily and effectively manage and fulfil their payroll tax obligations.
- Other states and territories have similar applications available to employers.
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