eRevenue Queensland issue 12 February 2009

These changes will give self assessors the opportunity to self assess a number of transactions which currently are not allowed or not required to be self assessed.

More information will be provided on our website soon and clients will be formally notified by the end of February.

 The new website will help the public understand their obligations, and will provide solicitors and business owners with the information they need. Content has been expanded, updated and rewritten in an easy-to-read format. An innovative new navigation will provide quick access to the most commonly needed information for every type of client—whether they visit our site once or everyday.

Once the site is launched, there will be ongoing improvements to ensure that the content is kept up to date. The website will be OSR’s primary communication channel, with content expanding as OSR’s business changes—this will include online training to support the expansion of self assessing from early next month.

Another major change included in the new website is the new single ruling system—Public Rulings. This new system will replace the current Revenue Rulings and Practice Directions. At the time of launch, there will be approximately 90 Public Rulings. The remaining Practice Directions and Revenue Rulings will be reviewed, converted and published throughout the year.

OSR would like to thank all those who through their consultation and effort have helped create a new website that meets the needs of all Queenslanders.

1. Check your period end date is correct before submitting your return

Selecting the correct period end date is essential to ensuring returns are allocated to the correct return period. Submitting a return under the incorrect period end date can cause problems with weekly returns and could possibly result in unpaid tax interest (UTI) being applied.

While Duties Online automatically generates a period end date, the system does not necessarily default to the current week ending. Therefore, when submitting your return, you need to ensure the correct period end date is selected.

For more information on how to lodge your return using Duties Online, please refer to the eLearning section of the OSR website and view the available demonstrations.

2. Nil return or NIL duty return—what’s the difference?

The Office of State Revenue (OSR) no longer requires self assessors to lodge nil returns for transfer duty. A nil return is when you have no transactions for the week.

In contrast, returns including transactions where NIL duty is payable must still be lodged with OSR (e.g. NIL duty or exempt transactions).

For example, a first principal place of residence with a consideration of less than $350,000 is classed as a NIL duty payable transaction.  A transaction where an exemption is being claimed (e.g. change of tenure section 143 of the Duties Act 2001(Duties Act)) is also classed as a NIL duty payable transaction. These transactions must still be lodged in your weekly return to OSR.

For a transaction where a home/first home concession is being claimed, regardless if duty is payable, a Form D2.1 or Form D2.7 (concession first home vacant land) must be completed by each person claiming the concession.  For a transaction where an exemption is being claimed, a Form D2.2 must be completed by the relevant parties. Original approved forms and supporting documentation must be retained on file by the self assessor for audit purposes.  

3. Aggregation of dutiable transactions (section 30)

Self assessors must apply section 30 of the Duties Act if it applies to two or more dutiable transactions contained in the same return.

Section 30 applies to dutiable transactions that together, form, or give effect to one arrangement. Duty is assessed on the total value of the transactions and apportioned between the transactions.

If the dutiable transactions to be aggregated are not to be included in the same return, you must lodge these transactions separately with OSR for assessment. Failing to do so will trigger a requisition and possible penalties for not complying with the self assessor’s registration as outlined under chapter 12, part 2, 3 and 4 of the Duties Act.

If you would like to learn how to assess a section 30 aggregation using Duties Online, please refer to the eLearning section of the OSR website (under the Worksheet transactions).

4. Agreements vs transfers

When self assessors enter a transfer of residential land in Duties Online, the transfer duty worksheet in the general information screen requires a selection under the 'type of dutiable transaction' drop down box.

When entering information from a written agreement, the selection must be 'agreement to transfer dutiable property'.  This selection must be made at the beginning of the transaction to allow a document and an unconditional date to be entered.

If there is no written agreement and a Department of Natural Resources and Water (NRW) Form 1 Transfer has been completed (i.e. a transfer between related parties), then the selection will be 'transfer of dutiable property'.  This will allow data entry into the transaction date field.  The unconditional date entered is the same date as the transaction date and is the date that the transfer is signed by all parties to the transaction.

5. Keeping contact details up to date 

Manage your duty returns with ease using Duties Online. It’s simple to use and you can lodge and pay returns online, view duty return history and update your contact/registration. For example, you can change:

• registered name(s) or business name(s)
• registered office address and/or principal place of business
• ownership of the business operated by self assessor.

To view a demonstration, please refer to the eLearning section of the OSR website.

Remember, if you cease to be a self assessor you must notify OSR within 14 days by completing an approved Form D12.4 - Notice for cancellation of self assessor registration.

For further information:

Visit our website 
View the Duties Online section of our website
View the online demonstrations on our website
Email clientcontactcentre@osr.treasury.qld.gov.au 
View information sheet SA1. 

1. Employees and contractors – working out who’s who.

Content to be updated.

2. Paying pay-roll tax on Director's fees

When calculating taxable wages always remember to include any payments made as Director’s fees. The GST component of the payment can be removed as this part is not taxable.

If you make a payment to a non-working director for expenses incurred, for example travel expenses to attend an annual board meeting, then this amount is not taxable.

3. Superannuation and pay-roll tax

All superannuation contributions paid by employers, companies, relevant contract employers and employment agents on behalf of employees, non-employee directors and deemed employees are taxable.

For more information on superannuation contributions, view the superannuation contributions part of our pay-roll tax information kit on our website.

4.  Pay-roll tax allowances

All allowances paid to an employee are taxable except for:

• accommodation allowances up to $218.30 per night
• motor vehicle allowances up to 70 cents per kilometre for business kilometres travelled.

Accommodation allowances:

• must be paid where the employee is necessarily absent overnight from the employee's usual place of residence
• also includes expenses for meals and incidental items if they are incurred as well as the cost of overnight accommodation
• allowances paid for meals and incidental expenses incurred in other circumstances for example, where the employee has been provided with accommodation and has not incurred the expense of
• accommodation, are taxed on the full amount of the allowance.

Motor vehicle allowances:

• are to compensate employees for any business use of their own private vehicle
• the exempt amount is calculated using either the:
  • continuous recording method
  • averaging method
  • another method approved by the Commissioner.

For more information on accommodation and motor vehicle allowances, view the checklist of taxable wages in the pay-roll tax information kit on our website.

5. It’s all about the ‘payment reference number’

When submitting your electronic payment of payroll tax you must use the correct payment reference number.

When you enter the assessment information screen you are provided with a list of your 12 (or agreed number of periods) different payment reference numbers for the financial year.

To make sure you've got the right payment reference number, OSR recommends you use the following procedure:

1. Highlight the appropriate payment reference number and copy it (right click on your mouse then select copy).
2. Place your curser in the 'reference/description' field in your online banking facility and then paste (right click on your mouse and select paste).

Three days after submitting your payment you can log on again and check your liability payment has been recorded.

Using the right payment reference number is vital to ensure your payment is recorded.