e-Revenue Qld Issue 02 - March 2008

Pay-roll tax harmonisation introduced to Parliament

The Pay-roll Tax Amendment (Harmonisation) Bill 2008 was introduced into Parliament on 27 February 2008 and is available on the Parliamentary Counsel website. The new legislation will take effect from 1 July 2008.

The Bill:

  • Aligns Queensland’s grouping provisions, contractor provisions and provisions regarding both employment agents and employee share schemes with those of Victoria and New South Wales. 
  • Reduces pay-roll tax liability for some employers by introducing a number of new exemptions including maternity and adoption leave and wages paid to volunteer firefighters and emergency services workers. 
  • Increases motor vehicle and accommodation allowances to further reduce the pay-roll tax liability for businesses.
    New contractor provisions

Under the new legislation, payments to contractors will be taxable generally where the contractor:

  • provides essentially labour services, and
  • works exclusively or primarily for one principal.

The term ‘contractors’, includes sub-contractors, consultants and outworkers. The provisions apply regardless of whether the contractor provides services via a company, trust, partnership or as a sole trader.

In practical terms, the contractor provisions initially capture all contracts for the performance of work. However, the provisions contain several exemptions and, if any one applies to a particular contract, the payments under that contract are not taxable.

For more information

  • Visit the pay-roll tax harmonisation section of the OSR website
  • Subscribe to pay-roll tax email alerts
  • Email PayrollTax@osr.treasury.qld.gov.au 
  • Contact our Client Contact Centre on 1300 300 734.

To assist taxpayers to prepare for the changes, more detailed information will be published and public seminars will soon be available. Details of these seminars, including dates, will be announced in a future publication of e-Revenue Queensland.

Transfer duty component completes Duties Online

This week, OSR completed the launch of its Duties Online e-lodgment system by introducing the transfer duty component for registered self assessors.

Registered mortgage and insurance self assessors should have recently received a registration pack from OSR containing:

  • A registration notice
  • A client number, username and password to access Duties Online
  • A user’s guide to managing your returns online
  • A new stamp

Training

Interactive training workshops for mortgage and transfer duty are being held during March. For information on training sessions and registration forms, visit the Duties Online section of the OSR website.

Online demonstrations are also available to walk self assessors through the Duties Online lodgment process.

New forms

New interactive approved forms are now available online. D12.3 Return for transfer self assessors replaces the existing schedule, taking effect on 3 March 2008. You do not need to complete this form if you choose to lodge your returns using Duties Online.

New versions of form D2.1 Home / first home transfer concession and form D2.7 Claim for transfer duty concessions first home vacant land are also now available online, having taken effect from 7 January 2008.

Changes to processing duties returns are outlined in the updated SA1 Information sheet for transfer duty and SA2 Information sheet for mortgage duty.

For more information

First Home Owner Grant application tips

A First Home Owner Grant of $7,000 is payable on a complete application submitted within the required timeframe by eligible applicants who enter into an eligible transaction.  The following information will assist applicants in complying with the application requirements.

Application timeframe

Completed applications including supporting documentation must be submitted within 12 months from the date of settlement. Late or incomplete applications can prevent eligible claimants from receiving the grant.  However, the Commissioner may allow exceptions in certain circumstances.

Details of eligibility are available through the First Home Owner Grant section of the OSR website.

Applications where the purchase is from related persons

An applicant purchasing their home from a related person is required to provide the following:

  • an appraisal or valuation of the home being purchased
    evidence of how the purchase was funded
  • information and/or documents outlined in the application
  • requirement and Supporting Documentation Checklist. 

The Commissioner may require applicants to supply additional information in some cases.

Applications where there is a vendor finance arrangement

Where a vendor finance arrangement is entered into, full details of the arrangement and evidence that the conditions of the arrangement are being met must be supplied by the applicant.

Primary identification for non-applicant spouses and additional applicants

Submission of applications involving non-applicant spouses and/or additional applicants can be streamlined by only submitting relevant documentation, for example:

  • A non-applicant spouse and/or additional applicant is only required to provide a certified copy of a primary identification document
  • A non-applicant spouse is not required to provide evidence of their residence status in Australia 
  • An additional applicant is only required to provide evidence of their residence status in Australia if the first applicant is unable to provide evidence of their residency.