Northern Territory Numbered Acts Northern Territory Numbered ActsSchedule 2 Territory specific provisions
sections 8 and 100
Part 1 Introduction to Schedule
This Schedule sets out provisions that apply only in this jurisdiction.
2 Definitions
In this Schedule:
"financial year" means the financial year commencing on 1 July 2009 or on 1 July in any subsequent financial year.
"group threshold amount", see clause 8 of Schedule 1.
Part 2 Calculation of monthly payroll tax
Division 1 Rate of payroll tax
3 Rate of payroll tax
The rate of payroll tax in this jurisdiction is 5 ·9%.
Division 2 Employers who are not members of a group
4 Application of Division
This Division applies only to an employer who is not a member of a group.
5 Amount of payroll tax to be paid each month
(1) The amount of payroll tax payable by an employer on taxable wages paid or payable by the employer in a month is the amount of dollars calculated in accordance with the following formula:
where:
TW is the total taxable wages paid or payable by the employer (otherwise than as a member of a group) during the month.
D is the deductible amount mentioned in clause 6 or 7 (as the case requires).
R is the rate of payroll tax mentioned in clause 3.
(2) If D is equal to or more than TW in respect of a month, the employer is not required to pay payroll tax in respect of that month.
6 Deductible amount for employer who does not pay interstate wages
(1) For an employer who pays or is liable to pay taxable wages in a month but does not pay and is not liable to pay interstate wages in that month, the deductible amount in respect of that month is $104 166.66.
(2) Subclause (1) applies whether the employer pays or is liable to pay wages for the whole of the month or only part of the month.
7 Deductible amount for employer who pays interstate wages
(1) The deductible amount for an employer who pays or is liable to pay taxable wages and interstate wages in a month is an amount determined in a manner approved by the Commissioner.
(2) The deductible amount claimed cannot be more than the amount mentioned in clause 6(1).
Division 3 Groups with designated group employer
8 Application of Division
This Division applies only to an employer who is a member of a group of which there is a designated group employer.
9 Amount of payroll tax to be paid each month
(1) If an approval is in force under section 87(2) for the designated group employer to lodge a joint return:
(a) the amount of payroll tax payable by the designated group employer on taxable wages paid or payable in a month by the employers covered by the return is the amount of dollars calculated in accordance with the following formula:
where:
JTW is the total taxable wages paid or payable during the month by the employers covered by the return (as members of a group).
D is the deductible amount mentioned in clause 10 or 11 (as the case requires).
R is the rate of tax mentioned in clause 3; and
(b) the amount of payroll tax payable by each employer who is a member of the group but is not covered by the return on taxable wages paid or payable by the employer in a month is the amount of dollars calculated in accordance with the following formula:
where:
TW is the total taxable wages paid or payable by the employer concerned (as a member of the group) during the relevant month.
R is the rate of tax mentioned in clause 3.
(2) If an approval under section 87(2) is not in force for the designated group employer:
(a) the amount of payroll tax payable by the designated group employer on taxable wages paid or payable by the designated group employer in a month is the amount of dollars calculated in accordance with the following formula:
where:
TW is the total taxable wages paid or payable by the designated group employer (as a member of a group) during the month.
D is the deductible amount mentioned in clause 10 or 11 (as the case requires).
R is the rate of tax mentioned in clause 3; and
(b) the amount of payroll tax payable by each employer who is a member of the group on taxable wages paid or payable by the employer in a month is the amount of dollars calculated in accordance with the following formula:
where:
TW is the total taxable wages paid or payable by the employer concerned (as a member of the group) during the relevant month.
R is the rate of tax mentioned in clause 3.
(3) For subclauses (1)(a) and (2)(a), if D is equal to or more than JTW or TW in respect of a month (as the case requires), the designated group employer is not required to pay payroll tax in respect of that month.
10 Deductible amount for groups that do not pay interstate wages
(1) For a group in which 1 or more members pay or are liable to pay taxable wages in a month but no members pay or are liable to pay interstate wages in that month, the deductible amount in respect of that month is $104 166.66.
(2) Subclause (1) applies whether group members pay or are liable to pay wages for the whole of the month or only part of the month.
11 Deductible amount for groups that pay interstate wages
(1) The deductible amount for a group in which 1 or more members pay or are liable to pay taxable wages or interstate wages in a month is an amount determined in a manner approved by the Commissioner.
(2) The deductible amount claimed cannot be more than the amount mentioned in clause 10(1).
Division 4 Groups with no designated group employer
12 Application of Division
This Division applies only to an employer who is a member of a group of which there is no designated group employer.
13 Amount of payroll tax to be paid each month
The amount of payroll tax payable by each member of the group on taxable wages paid or payable by the member in a month is the amount of dollars calculated in accordance with the following formula:
where:
TW is the total taxable wages paid or payable by the employer concerned (as a member of the group) during the relevant month.
R is the rate of tax mentioned in clause 3.
Part 3 Payroll tax for financial year
14 Payroll tax for financial year for group that has designated group employer
(1) This clause applies to a group if:
(a) there is a designated group employer of the group; and
(b) the total taxable wages and interstate wages paid or payable by the group during the financial year is more than the group threshold amount; and
(c) clause 9 of Schedule 1 does not apply to the group.
(2) The designated group employer of the group is liable to pay as payroll tax for the financial year the amount of dollars calculated in accordance with the following formula:
where:
GTW is the total taxable wages paid or payable by the members of the group during the relevant financial year.
GIW is the total interstate wages paid or payable by the members of the group during the relevant financial year.
TA is $1 250 000.
C is the number of days in the relevant 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.
FY is the number of days in the financial year.
R is 5.9%.
Note
For the calculation of the payroll tax payable for a financial year by an employer who is a member of a group of which there is no designated group employer, see clause 12 of Schedule 1.
15 Adjustment of payroll tax for group
(1) If an amount of payroll tax paid for a financial year in respect of a group is greater than the correct amount of payroll tax payable in respect of the financial year for the group, the Commissioner (on application by a member of the group) is to refund the amount equal to the difference to the designated group employer of the group or, if the Commissioner considers it appropriate, another member of the group.
(2) If an amount of payroll tax paid for a financial year in respect of a group is less than the correct amount of payroll tax payable in respect of the financial year for the group, the designated group employer of the group or, if the Commissioner considers it appropriate, another member of the group, must pay the Commissioner as payroll tax an amount equal to the difference.
Division 1 Education and training
Wages are exempt wages if they are paid or payable by a school or college (other than a technical school or a technical college) that:
(a) provides education at or below, but not above, the secondary level of education; and
(b) is carried on by a body corporate, society or association otherwise than for the purpose of profit or gain to the individual members of the body corporate, society or association and is not carried on by or on behalf of the Territory.
Wages are exempt wages if:
(a) they are wages paid or payable to persons as apprentices employed in approved apprenticeships within the meaning of the Northern Territory Employment and Training Act ; or
(b) they are wages paid or payable to persons as graduates of tertiary educational institutions employed under approved trainee arrangements in relation to which all of the following apply:
(i) the institutions and arrangements are approved under clause 18;
(ii) the exemption applies for a maximum period of 6 months of employment of the employee under the trainee arrangement;
(iii) the employee was not employed by the employer before graduating, whether or not under a trainee arrangement.
18 Approval of tertiary education institutions and trainee arrangements
(1) An employee is not covered by clause 17(b) unless the Commissioner, on the application of, and by written notice given to, the employer, approves:
(a) the tertiary educational institution of which the employee is a graduate; and
(b) the training arrangements under which the employee is employed by the employer.
(2) The application must be made in the form and in the way approved by the Commissioner.
(3) The approval takes effect on the date specified in the notice that is not earlier than 3 years before the date of the application for the approval.
(4) The Commissioner may, by notice in writing given to the employer, revoke the approval.
(5) The revocation takes effect on the date specified in the notice, being a date that is not earlier than the date on which the approval to which it relates took effect.
Division 2 Health care service providers
19 What is a health care service provider
For Part 4, Division 3 of this Act, a health care service provider is:
(a) a public hospital; or
(b) a hospital that is carried on by a society or association otherwise than for the profit or gain to the individual members of the society or association.
20 Paternity leave
(1) Wages are exempt wages if they are paid or payable to an employee in respect of leave ( paternity leave ):
(a) given to a male employee in connection with:
(i) the pregnancy of a female carrying his unborn child; or
(ii) the birth of his child; and
(b) that is not sick leave, recreation leave, annual leave or any similar leave.
(2) For subclause (1), it is immaterial whether the leave is taken during or after the pregnancy.
(3) The exemption is limited to wages paid or payable in respect of a maximum of 14 weeks paternity leave given to an employee in respect of any one pregnancy.
(4) To avoid doubt, a reference in subclause (3) to a period of 14 weeks leave is a reference to:
(a) a period that is the equivalent of 14 weeks leave on full pay for a full-time employee who takes leave on less than full pay; or
(b) a period of 14 weeks leave at part-time rates of pay for a part-time employee.
(5) The exemption does not apply to any part of wages paid or payable in respect of paternity leave that comprises fringe benefits.
(6) An employer wishing to claim an exemption in respect of paternity leave given to an employee must obtain and keep a statutory declaration by the employee stating that:
(a) a female is or was pregnant with the employee's unborn child; or
(b) the employee's child has been born and the date of the birth.
Note for subclause (6)
Section 79 of the Taxation Administration Act requires these records to be kept for at least 5 years unless the Commissioner authorises earlier destruction.
Part 5 Government bodies – special provisions
21 Application of Act to Government Business Divisions and statutory corporations
(1) A Government Business Division is taken to be an employer for this Act.
(2) A Government Business Division or statutory corporation (rather than the Commissioner for Public Employment) will be regarded for this Act as the employer of all employees assigned to work in it.
(3) If a Government Business Division is not a corporation, this Act applies to it as if it were a corporation.
(4) In this clause:
"Government Business Division" means an Agency or a part of an Agency that:
(a) is a Government Business Division as defined in section 3(1) of the Financial Management Act ; and
(b) is not excluded by regulation from the operation of this clause.