e-Revenue Qld Issue 04 - May 2008

Pay-roll tax harmonisation receives Royal Assent

The Pay-roll Tax (Harmonisation) Amendment Act 2008 received Royal Assent on 23 April 2008, following months of hard work by the Office of State Revenue to align Queensland’s pay-roll tax system with those of New South Wales and Victoria. The Act is available on the Parliamentary Counsel website. 

The new Act includes changes to the Employment Agent provisions, and new Termination Payment provisions and Employment Share Acquisition Scheme provisions. 

Changes to the Employment Agent provisions

  • Taxable wages will include the value of any benefit provided to a worker in connection with an employment agency contract that would be a fringe benefit or a superannuation contribution if it had been paid to an employee.
  • The employment agent will be able to claim the benefit of certain pay-roll tax exemptions, if the client can claim those exemptions.
    A specific anti-avoidance provision regarding employment agency contracts has been included.

New Termination Payment provisions

  • Termination payments to non-employee directors, and death benefit payments for employees and non-employee directors will now be taxable.
  • Any payment that is received by a person in consequence of termination of another person’s employment (under a relevant contract or otherwise) or termination of another person’s directorship will be taxable.

New Employment Share Acquisition Scheme (ESAS) provisions

  • Under these provisions, the grant of a share or option to an employee, a director (including for the appointment of a director) or deemed employee, will constitute wages.
  • The new Act will come into effect on 1 July 2008, with the amendments set to cut red tape for businesses operating across Victoria, New South Wales and Queensland.

Harmonisation seminars
Don’t forget, OSR is holding pay-roll tax seminars throughout May and June. You can register through the pay-roll tax harmonisation section of the OSR website.

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.

Personalised training enhances Duties Online experience

After launching the final phase of Duties Online in March 2008, OSR is offering personalised training visits to help clients make the transition to the new online lodgment system

Registered self assessors who are not yet using Duties Online and would like more information, and current users who are experiencing IT difficulties can receive a personalised training visit. Simply email OSR’s Client Engagement Team on client.support@osr.treasury.qld.gov.au and we’ll come to you.

The Duties Online uptake has been encouraging, with the number of online transfer duty lodgments increasing from 64 per cent in early March to 80 per cent by March end.

Lodging hints and tips
Don't forget, even in months where there are no dutiable transactions (i.e. nil returns), a return must still be lodged. To ensure your return is completed correctly, view the online demonstrations, including the nil return demonstrations which will walk you through the online lodgment process.

Please note, even if you lodge electronically you do not have to pay electronically. You still have the option to pay by cheque.

Feedback
OSR welcomes you to provide feedback and suggestions for improving the Duties Online system by emailing your comments through to us on client.support@osr.treasury.qld.gov.au

For more information

Land tax - rising land values

Are you currently paying land tax or nearing the threshold? Changes in your land valuation may affect your land tax liability.

These handy land tax facts will keep you up-to-date on valuations.

  • Land tax is calculated on the value of an owner’s aggregated land holdings as at 30 June each year.
  • The unimproved valuations of land are determined and issued by the Department of Natural Resources and Water. You can find your value on your rates notice.
  • For land tax purposes, this unimproved valuation is subject to an averaging process using the current valuation and valuations for the land for the previous two years.
  • If the land does not have unimproved values for the previous two years, the land tax values may also be subject to the application of a State-wide averaging factor.
  • Where there are significant increases in unimproved values, the increase may also be capped at 50% of the previous value.
  • Remember land tax is calculated on your share of the land.  If the value of your share in all land held exceeds the threshold (currently $599,999 for individuals and $349,999 for companies, trusts and absentees) you may be liable to pay land tax.

For more information

  • Visit the land tax section of the OSR website
  • Subscribe to land tax email alerts
  • Call our Client Contact Centre on 1300 300 734.