Commonwealth Numbered Acts

INCOME TAX (ARRANGEMENTS WITH THE STATES) ACT 1978 No. 87 of 1978 - SECT 15

15. (1) The law of the State shall contain a provision that, where-

   (a)  an employer pays salary or wages to an employee;

   (b)  any one or more of the following provisions is or are applicable:

        (i)    the employer is the State or an authority of the State;

        (ii)   the employer is a company incorporated in the State;

        (iii)  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 the State;

        (iv)   the employer carried on business in the State on that day;

        (v)    the salary or wages was or were paid in the State;

        (vi)   the salary or wages was or were paid for work done wholly or
               partly in the State; and

   (c)  the employee is required by provisions of the law of another State
        referred to in sub-section 10 (3) or provisions of the law of an
        internal Territory corresponding with the provisions referred to in
        that sub-section to pay to the Commissioner the amount (in this
        sub-section referred to as the
''relevant amount'') of the tax instalment deductions that the employer would
have been required by the law of that other State or the law of that Territory
to make from the salary or wages if the employer had been a natural person and
a resident of that other State or of that Territory, as the case may be, on
that day, the employer shall, subject to the provisions contained in the law
of the first-mentioned State in accordance with sub-section (3) of this
section, deduct from the salary or wages an amount equal to the
relevant amount and shall deal with the amount so deducted in the manner
required by Division 2 of Part VI of the Income Tax Assessment Act.

(2) The State income tax law shall contain a provision that, for the purposes
of the application of the provision contained in that law in accordance with
sub-section (1), an employer shall treat an employee to whom the employer pays
salary or wages as being required by provisions of the law of another State
referred to in sub-section 10 (3) or by provisions of the law of an internal
Territory corresponding with the provisions referred to in sub-section 10 (3)
to pay to the Commissioner the amount of the tax instalment deductions that
the employer would have been required to make from the salary or wages by the
law of that other State or the law of that Territory if the employer had been
a natural person and a resident of that other State or of that Territory, as
the case may be, on that day, if the last notice given by the employee to the
employer in pursuance of section 221EB of the Income Tax  Assessment Act
before the day on which the salary or wages was or were paid stated that the
employee was resident in that other State or in that Territory, as the case
may be, and-

   (a)  if the notice stated that the employee was resident in that other
        State-that other State is a participating State in relation to the
        year of income in which the salary or wages was or were paid and the
        law of that other State imposed a tax on the income of residents of
        that State of that year of income; or

   (b)  if the notice stated that the employee was resident in that
        Territory-the law of that Territory imposed a tax on the income of
        residents of that Territory of the year of income in which the
        salary or wages was or were paid.

(3) The law of the State shall contain a provision that an employer is not
required by the provision of that law referred to in sub-section (1) to deduct
an amount from the salary or wages payable to an employee in respect of tax
imposed by the law of another State or of an internal Territory if the
employer-

   (a)  is required by section 78 of this Act or by the law of that other
        State or of that internal Territory to make a deduction from that
        salary or those wages in respect of that tax; or

   (b)  not being required to make a deduction from that salary or those wages
        as mentioned in paragraph (a), makes a deduction from that salary or
        those wages in respect of that tax in purported pursuance of a
        provision of the law of a State or internal Territory other than the
        State or internal Territory by the law of which that tax is imposed.

(4) The law of the State shall contain 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).