Australian Capital Territory Repealed Acts

This legislation has been repealed.

PAYROLL TAX ACT 1987 (REPEALED) - SECT 3C

    (1)     For this Act, "wages", for a financial year, does not include the exempt component of a motor vehicle allowance paid or payable for the year.

    (2)     If the total motor vehicle allowance paid or payable to an employee for a financial year does not exceed the exempt component, the motor vehicle allowance is not wages for this Act.

    (3)     If the total motor vehicle allowance paid or payable to an employee for a financial year exceeds the exempt component (if any), only the amount that exceeds the exempt component of the motor vehicle allowance is included as wages for this Act.

    (4)     The exempt component of a motor vehicle allowance paid or payable for a financial year is calculated as follows:

    (5)     In this section:

"E" means the exempt component.

"K" means the number of business kilometres travelled during the financial year.

R is the exempt rate.

    (6)     K is calculated using the continuous recording method, or the averaging method, selected and used by the employer in accordance with schedule 2 (Motor vehicle allowances).

    (7)     The commissioner may, in writing, approve the use by an employer of another method of determining K (including the use of an estimate).

Note     Power to make a statutory instrument includes power to make different provision for different categories (see Legislation Act, s 48).

    (8)     If the commissioner approves the use of a method under subsection (7) for an employer for a financial year, the employer must use the method to calculate K.

    (9)     The Minister may determine the exempt rate for a financial year.

    (10)     If the Minister does not determine the exempt rate for a financial year, the exempt rate for the financial year is the rate prescribed by regulation under the Income Tax Assessment Act 1997 (Cwlth), section 28-25 for calculating a deduction for car expenses for a large car using the ‘cents per kilometre method' in the financial year immediately before the financial year in which the allowance is paid or payable.

    (11)     A determination under this section is a notifiable instrument.

Note     A notifiable instrument must be notified under the Legislation Act.