Commonwealth Numbered Acts

INCOME TAX (ARRANGEMENTS WITH THE STATES) ACT 1978 No. 87 of 1978 - SECT 10

10. (1) The State income tax law shall provide that, where income tax is
imposed by that law in respect of a year of income-

   (a)  every employer-

        (i)    that is a company incorporated in the State; or

        (ii)   who is a natural person and a resident of the State,

and pays in that year of income salary or wages in respect of a week or a part
of a week to an employee who is a resident of the State on the day when the
salary or wages is or are paid;

   (b)  the State or an authority of the State, when paying in that year of
        income salary or wages in respect of a week or a part of a week to an
        employee who is a resident of the State on the day when the
        salary or wages is or are paid; and

   (c)  every other employer that-

        (i)    carries on business in the State and pays in that
               year of income salary or wages in respect of a week or a part
               of a week to an employee who is a resident of the State on the
               day when the salary or wages is or are paid;

        (ii)   pays in the State in that year of income salary or wages in
               respect of a week or a part of a week to an employee who is a
               resident of the State on the day when the salary or wages is or
               are paid; or

        (iii)  pays in that year of income salary or wages in respect of a
               week or a part of a week for work done wholly or partly in the
               State to an employee who is a resident of the State on the day
               when the salary or wages is or are paid, shall make deductions
               from the salary or wages at the rate prescribed in relation to
               the State in relation to that year of income by regulations for
               the time being in force under the Income Tax Assessment Act and
               shall deal with the amounts deducted in the manner required by
               Division 2 of Part VI of the Income Tax Assessment Act.

(2) The State income tax law shall provide that, where at a particular time an
employee receives from an employer salary or wages-

   (a)  the employee shall be deemed to receive from that employer at that
        time the same amount in salary or wages as he is taken to receive at
        that time from that employer for the purposes of section 221C of the
        Income Tax Assessment  Act ;

   (b)  if the employee receives the salary or wages (including amounts that
        he is deemed to receive) otherwise than in respect of a period of
        time-he shall be deemed to receive the salary or wages from that
        employer in respect of the same period of time as the period of time
        for which he is deemed to be entitled to receive the salary or wages
        from that employer for the purposes of that section; and

   (c)  if the employee receives the salary or wages (including amounts that
        he is deemed to receive) in respect of a period of time in excess of
        one week-he shall be deemed to receive from that employer in respect
        of each week or part of a week in that period the same amount in
        salary or wages as he is deemed to be entitled to receive from that
        employer in respect of that week or part of a week for the purposes of
        that section.

(3) The State income tax law shall, in relation to each year of income in
respect of which income tax is imposed by that law, provide that every
employee who, on a day when he is a resident of the State, is paid by a
prescribed employer salary or wages from which that employer is not required
by that law to make tax instalment deductions shall pay to the Commissioner,
within 28 days after that day, an amount equal to the tax instalment
deductions that that employer would have been required to make from the salary
or wages if that employer had been a natural person and a resident of the
State on the day on which the salary or wages is or are paid.

(4) The State income tax law shall, in relation to each year of income in
respect of which income tax is imposed by that law, provide that where-

   (a)  an employee who is paid an amount of salary or wages would, but for
        the provisions contained in that law in accordance with this
        sub-section, be required to pay an amount to the Commissioner in
        respect of the salary or wages under the provisions of that law
        referred to in sub-section (3); and

   (b)  the employer who paid that amount of salary or wages to the employee
        deducts from that amount of salary or wages the amount of the
        tax instalment deductions that the employer would have been required
        to make from that amount of salary or wages if the employer had been a
        natural person and a resident of the State on the day on which the
        salary or wages is or are paid, the employee is released from his
        liability to make that payment.

(5) The State income tax law shall provide that, for the purposes of the
application of a provision of that law referred to in sub-section (1) to an
employer who makes a payment of salary or wages to an employee-

   (a)  the employee shall be deemed to be a resident of the State on the day
        on which the payment is made if the last notice given by the employee
        to that employer in pursuance of section 221EB of the
        Income Tax Assessment Act before that day stated that the employee was
        resident in the State; and

   (b)  if the employer is a natural person, he shall be deemed to be a
        resident of the State on that day if at the commencement of that day
        his sole or principal place of residence in Australia is in the State.

(6) The State income tax law shall provide that, for the purposes of the
application of a provision of that law referred to in sub-section (3) to an
employee, the employee shall be deemed to be a resident of the State on a
particular day if the last notice given by the employee to the employer in
pursuance of section 221EB of the Income Tax Assessment Act before that day
stated that the employee was resident in the State.

(7) For the purposes of this section, an employer who makes a payment of
salary or wages to an employee is a prescribed employer if-

   (a)  at the time when the payment is made the employer is a State that is a
        participating State or a supporting State in relation to the
        year of income in which the payment is made;

   (b)  the employer is an authority of such a State;

   (c)  the employer is a company incorporated in such a State;

   (d)  the employer is a natural person whose sole or principal place of
        residence in Australia on the day on which the salary or wages was or
        were paid was in such a State;

   (e)  the employer carried on business in such a State on that day;

   (f)  the salary or wages was or were paid in such a State; or

   (g)  the salary or wages was or were paid for work done wholly or partly in
        such a State.

(8) The State income tax law shall contain-

   (a)  a provision assigning to the Commonwealth the right to receive
        payments of, and to recover, any amounts that an employer deducts, or
        is required to deduct, from salary or wages of an employee in
        accordance with the provision of that law referred to in sub-section
        (1); and

   (b)  a provision assigning to the Commonwealth the right to receive
        payments of, and to recover, any amounts that an employee is required
        to pay to the Commissioner in accordance with the provision of that
        law referred to in sub-section (3).