South Australia
Payroll Tax (Exemption for Small Business) Amendment Bill 2018
A Bill For
An Act to amend the Payroll Tax Act 2009.

Contents
Part 1—Preliminary
1	Short title
2	Commencement
3	Amendment provisions
Part 2—Amendment of Payroll Tax Act 2009
4	Amendment of section 3—Interpretation
5	Amendment of section 8—Amount of payroll tax
6	Amendment of section 80—Designated group employers
7	Amendment of section 82—Determination of correct amount of payroll tax
8	Amendment of section 86—Registration
9	Amendment of Schedule 1—Calculation of payroll tax liability
10	Insertion of Schedule 1A
Schedule 1A—Calculation of payroll tax liability—2018/19 financial year
Part 1—Preliminary
1	Application
Part 2—Calculation of payroll tax liability—first period of 2018/19 financial year
Division 1—Interpretation
2	Interpretation
Division 2—Employers who are not members of a group
3	Application of Division
4	Interpretation
5	Payroll of employer under threshold
6	Payroll of employer over threshold
Division 3—Groups with a designated employer
7	Application of Division
8	Interpretation
9	Payroll of group under threshold
10	Payroll of group over threshold
Part 3—Calculation of payroll tax liability—second period of 2018/19 financial year
Division 1—Interpretation
11	Interpretation
Division 2—Employers who are not members of a group
12	Application of Division
13	Interpretation
14	Payroll of employer under threshold
15	Payroll of employer over threshold
Division 3—Groups with a designated employer
16	Application of Division
17	Interpretation
18	Payroll of group under threshold
19	Payroll of group over threshold
11	Amendment of Schedule 2—South Australia specific provisions

The Parliament of South Australia enacts as follows:
Part 1—Preliminary
1—Short title
This Act may be cited as the Payroll Tax (Exemption for Small Business) Amendment Act 2018.
2—Commencement
	(1)	Subject to this section, this Act will come into operation on the day on which it is assented to by the Governor.
	(2)	Part 2 (other than section 9) will be taken to have come into operation on 1 July 2018.
	(3)	Section 9 will come into operation on 1 July 2019.
3—Amendment provisions
In this Act, a provision under a heading referring to the amendment of a specified Act amends the Act so specified.

Part 2—Amendment of Payroll Tax Act 2009
4—Amendment of section 3—Interpretation
Section 3—after the definition of FBTA Act insert:
2018/19 financial year means the financial year commencing on 1 July 2018;
5—Amendment of section 8—Amount of payroll tax
Section 8—after its present contents (now to be designated as subsection (1)) insert:
	(2)	Despite subsection (1)—
	(a)	the amount of payroll tax payable by an employer during the 2018/19 financial year is to be ascertained in accordance with Schedule 1A and Schedule 2; and
	(b)	Schedule 1 Parts 1 to 3 (inclusive) do not apply in relation to the 2018/19 financial year; and
	(c)	nothing in this subsection is to be taken to affect the operation of Schedule 1 Part 4 during the 2018/19 financial year.
6—Amendment of section 80—Designated group employers
Section 80(3)—delete subsection (3) and substitute:
	(3)	If none of the members of a group is a qualified member the members may, with the approval of the Commissioner, designate any member of the group to be the designated group employer for the group for the purposes of this Act.
7—Amendment of section 82—Determination of correct amount of payroll tax
Section 82(1)—delete subsection (1) and substitute:
	(1)	For the purposes of this Part—
	(a)	the correct amount of payroll tax payable by an employer in respect of the 2018/19 financial year is the amount determined in accordance with Schedule 1A in respect of that financial year; and
	(b)	the correct amount of payroll tax payable by an employer in respect of any other financial year is the amount determined in accordance with Schedule 1 in respect of that financial year.
8—Amendment of section 86—Registration
	(1)	Section 86(1)(a) and (b)—delete "$11 538" wherever occurring and substitute in each case:
the prescribed amount
	(2)	Section 86—after subsection (5) insert:
	(6)	For the purposes of subsection (1), the prescribed amount is—
	(a)	for the period commencing on 1 July 2018 and ending on 31 December 2018—$11 538; and
	(b)	on and after 1 January 2019—$28 846.
9—Amendment of Schedule 1—Calculation of payroll tax liability
	(1)	Schedule 1, clause 1—before the definition of financial year insert:
EA is $600 000
	(2)	Schedule 1, clause 1, definition of R—delete the definition
	(3)	Schedule 1, clause 1, definition of TA or threshold amount—delete "$600 000" and substitute:
$1 500 000
	(4)	Schedule 1, clause 5, formula—delete the formula and substitute:

	(5)	Schedule 1, clause 5—after its present contents as amended by this clause (now to be designated as subclause (1)) insert:
	(2)	In this clause—
R is to be determined as follows:
	(a)	if the employer's total annualised relevant wages for the relevant financial year is more than $1 500 000 and not more than $1 700 000, R is calculated in accordance with the following formula:

	(b)	if the employer's total annualised relevant wages for the relevant financial year is more than $1 700 000, R is 4.95%.
	(3)	For the purposes of this clause, an employer's total annualised relevant wages or TARW in respect of a financial year is calculated in accordance with the following formula:

	(6)	Schedule 1, clause 9(2), formula—delete the formula and substitute:

	(7)	Schedule 1, clause 9—after subclause (3) insert:
	(4)	In this clause—
R is to be determined as follows:
	(a)	if the group's total annualised relevant wages for the relevant financial year is more than $1 500 000 and not more than $1 700 000, R is calculated in accordance with the following formula:

	(b)	if the group's total annualised relevant wages for the relevant financial year is more than $1 700 000, R is 4.95%.
	(5)	For the purposes of this clause, a group's total annualised relevant wages or TARW in respect of a financial year is calculated in accordance with the following formula:

10—Insertion of Schedule 1A
After Schedule 1 insert:
Schedule 1A—Calculation of payroll tax liability—2018/19 financial year
Part 1—Preliminary
1—Application
This Schedule applies during the 2018/19 financial year.
Part 2—Calculation of payroll tax liability—first period of 2018/19 financial year
Division 1—Interpretation
2—Interpretation
In this Part—
first period means the period commencing on 1 July 2018 and ending on 31 December 2018;
FY is 365;
R is 4.95%;
TA or threshold amount is $600 000.
Division 2—Employers who are not members of a group
3—Application of Division
This Division applies only to an employer who is not a member of a group.
4—Interpretation
In this Division—
C is the number of days in the 2018/19 financial year in respect of which the employer paid or was liable to pay taxable wages or interstate wages (otherwise than as a member of a group);
IW represents the total interstate wages paid or payable by the employer concerned (otherwise than as a member of a group) during the 2018/19 financial year;
TW represents the total taxable wages paid or payable by the employer concerned (otherwise than as a member of a group) during the 2018/19 financial year;
TWFP represents the total taxable wages paid or payable by the employer concerned (otherwise than as a member of a group) during the first period.
5—Payroll of employer under threshold
An employer is not liable to pay payroll tax for the first period if the total taxable wages and interstate wages paid or payable by the employer (otherwise than as a member of a group) during the 2018/19 financial year is not more than the employer's threshold amount for the purposes of the first period, being the amount calculated in accordance with the following formula:

6—Payroll of employer over threshold
If the total taxable wages and interstate wages paid or payable by an employer (otherwise than as a member of a group) during the 2018/19 financial year is more than the employer's threshold amount for the purposes of the first period, the employer is liable to pay as payroll tax for the first period the amount calculated in accordance with the following formula:

Division 3—Groups with a designated employer
7—Application of Division
This Division applies only to an employer who is a member of a group for which there is a designated group employer.
8—Interpretation
In this Division—
C is the number of days in the 2018/19 financial year in respect of which at least 1 member of the group paid or was liable to pay (as a member of the group) taxable wages or interstate wages;
GIW represents the total interstate wages paid or payable by the group concerned during the 2018/19 financial year;
GTW represents the total taxable wages paid or payable by the group concerned during the 2018/19 financial year;
TW represents the total taxable wages paid or payable by the employer concerned (as a member of the group) during the 2018/19 financial year;
TWFP represents the total taxable wages paid or payable by the employer concerned (as a member of the group) during the first period.
9—Payroll of group under threshold
None of the members of a group is liable to pay payroll tax for the first period if the total taxable wages and interstate wages paid or payable by the group during the 2018/19 financial year is not more than the group threshold amount for the purposes of the first period, being the amount calculated in accordance with the following formula:

10—Payroll of group over threshold
	(1)	If the total taxable wages and interstate wages paid or payable by a group during the 2018/19 financial year is more than the group threshold amount for the purposes of the first period, payroll tax for the first period is payable as provided by subclauses (2) and (3).
	(2)	The designated group employer for the group is liable to pay as payroll tax for the first period the amount calculated in accordance with the following formula:

	(3)	Each member of the group (other than that designated group employer) is liable to pay as payroll tax for the first period the amount calculated in accordance with the following formula:

Part 3—Calculation of payroll tax liability—second period of 2018/19 financial year
Division 1—Interpretation
11—Interpretation
In this Part—
EA is $600 000;
FY is 365;
second period means the period commencing 1 January 2019 and ending on 30 June 2019;
TA or threshold amount is $1 500 000.
Division 2—Employers who are not members of a group
12—Application of Division
This Division applies only to an employer who is not a member of a group.
13—Interpretation
In this Division—
C is the number of days in the 2018/19 financial year in respect of which the employer paid or was liable to pay taxable wages or interstate wages (otherwise than as a member of a group);
IW represents the total interstate wages paid or payable by the employer concerned (otherwise than as a member of a group) during the 2018/19 financial year;
TW represents the total taxable wages paid or payable by the employer concerned (otherwise than as a member of a group) during the 2018/19 financial year;
TWSP represents the total taxable wages paid or payable by the employer concerned (otherwise than as a member of a group) during the second period.
14—Payroll of employer under threshold
An employer is not liable to pay payroll tax for the second period if the total taxable wages and interstate wages paid or payable by the employer (otherwise than as a member of a group) during the 2018/19 financial year is not more than the employer's threshold amount for the purposes of the second period, being the amount calculated in accordance with the following formula:

15—Payroll of employer over threshold
	(1)	If the total taxable wages and interstate wages paid or payable by an employer (otherwise than as a member of a group) during the 2018/19 financial year is more than the employer's threshold amount for the purposes of the second period, the employer is liable to pay as payroll tax for the second period the amount calculated in accordance with the following formula:

	(2)	In this clause—
R is to be determined as follows:
	(a)	if the employer's total annualised relevant wages for the 2018/19 financial year is more than $1 500 000 and not more than $1 700 000, R is calculated in accordance with the following formula:

	(b)	if the employer's total annualised relevant wages for the 2018/19 financial year is more than $1 700 000, R is 4.95%.
	(3)	For the purposes of this clause, an employer's total annualised relevant wages or TARW in respect of the 2018/19 financial year is calculated in accordance with the following formula:

Division 3—Groups with a designated employer
16—Application of Division
This Division applies only to an employer who is a member of a group for which there is a designated group employer.
17—Interpretation
In this Division—
C is the number of days in the 2018/19 financial year in respect of which at least 1 member of the group paid or was liable to pay (as a member of the group) taxable wages or interstate wages;
GIW represents the total interstate wages paid or payable by the group concerned during the 2018/19 financial year;
GTW represents the total taxable wages paid or payable by the group concerned during the 2018/19 financial year;
TW represents the total taxable wages paid or payable by the employer concerned (as a member of the group) during the 2018/19 financial year;
TWSP represents the total taxable wages paid or payable by the employer concerned (as a member of the group) during the second period.
18—Payroll of group under threshold
None of the members of a group is liable to pay payroll tax for the second period if the total taxable wages and interstate wages paid or payable by the group during the 2018/19 financial year is not more than the group threshold amount for the purposes of the second period, being the amount calculated in accordance with the following formula:

19—Payroll of group over threshold
	(1)	If the total taxable wages and interstate wages paid or payable by a group during the 2018/19 financial year is more than the group threshold amount for the purposes of the second period, payroll tax for the second period is payable as provided by subclauses (2) and (3).
	(2)	The designated group employer for the group is liable to pay as payroll tax for the second period the amount calculated in accordance with the following formula:

	(3)	Each member of the group (other than that designated group employer) is liable to pay as payroll tax for the second period the amount calculated in accordance with the following formula:

	(4)	In this clause—
R is to be determined as follows:
	(a)	if the group's total annualised relevant wages for the 2018/19 financial year is more than $1 500 000 and not more than $1 700 000, R is calculated in accordance with the following formula:

	(b)	if the group's total annualised relevant wages for the 2018/19 financial year is more than $1 700 000, R is 4.95%.
	(5)	For the purposes of this clause, a group's total annualised relevant wages or TARW in respect of the 2018/19 financial year is calculated in accordance with the following formula:

11—Amendment of Schedule 2—South Australia specific provisions
	(1)	Schedule 2, Part 2, Division 1—delete the Division
	(2)	Schedule 2, clause 5(1), definition of R—delete the definition and substitute:
R—see subclause (1a)
	(3)	Schedule 2, clause 5—after subclause (1) insert:
	(1a)	In this clause—
R is to be determined as follows:
	(a)	for the period commencing on 1 July 2018 and ending on 31 December 2018, R is 4.95%;
	(b)	on and after 1 January 2019, R is to be determined as follows:
	(i)	if the employer's total annualised relevant wages for the financial year in which the month occurs is more than $1 500 000 and not more than $1 700 000—R is calculated in accordance with the following formula:

	(ii)	if the employer's total annualised relevant wages for the financial year in which the month occurs is more than $1 700 000—R is 4.95%.
	(1b)	For the purposes of this clause, an employer's total annualised relevant wages or TARW in respect of a financial year is calculated in accordance with the following formula:

Where—
C is the number of days in the relevant financial year in respect of which the employer paid or was liable to pay taxable wages or interstate wages (otherwise than as a member of a group)
FY is the number of days in the relevant financial year
IW represents the estimated interstate wages in the relevant financial year
TW represents the estimated taxable wages in the relevant financial year.
	(4)	Schedule 2, clause 6(3), formula—delete the formula and substitute:

	(5)	Schedule 2, clause 6(3)—after the definition of D insert:
EA is $600 000
	(6)	Schedule 2, clause 6(3), definition of TA or threshold amount—delete the definition
	(7)	Schedule 2, clause 8(1)(a), definition of R—delete the definition and substitute:
R—see subclause (2a)
	(8)	Schedule 2, clause 8(1)(b), definition of R—delete the definition and substitute:
R—see subclause (2a)
	(9)	Schedule 2, clause 8(2)(a), definition of R—delete the definition and substitute:
R—see subclause (2a)
	(10)	Schedule 2, clause 8(2)(b), definition of R—delete the definition and substitute:
R—see subclause (2a)
	(11)	Schedule 2, clause 8—after subclause (2) insert:
	(2a)	In this clause—
R is to be determined as follows:
	(a)	for the period commencing on 1 July 2018 and ending on 31 December 2018, R is 4.95%;
	(b)	on and after 1 January 2019, R is to be determined as follows:
	(i)	if the group's total annualised relevant wages for the financial year in which the month occurs is more than $1 500 000 and not more than $1 700 000—R is calculated in accordance with the following formula:

	(ii)	if the group's total annualised relevant wages for the financial year in which the month occurs is more than $1 700 000—R is 4.95%.
	(2b)	For the purposes of this clause, a group's total annualised relevant wages or TARW in respect of a financial year is calculated in accordance with the following formula:

Where—
C is the number of days in the relevant financial year in respect of which any member of the group paid or was liable to pay taxable wages or interstate wages
FY is the number of days in the relevant financial year
IW represents the estimated interstate wages in the relevant financial year
TW represents the estimated taxable wages in the relevant financial year.
	(12)	Schedule 2, clause 9(3), formula—delete the formula and substitute:

	(13)	Schedule 2, clause 9(3)—after the definition of D insert:
EA is $600 000
	(14)	Schedule 2, clause 9(3), definition of TA or threshold amount—delete the definition