eRevenue Queensland issue 14 April 2009

Our website has been updated with eLearning tools and additional information to assist the process of self assessing. The SA1—Self assessment of transfer duty: Instructions for registered self assessors has also been updated to provide detailed information in relation to self assessment.

The self assessment expansion project will continue throughout the year with the inclusion of additional transactions, exemptions and stamping requirements.

If you have any further enquiries in relation to the self assessor expansion project, please contact us at client.support@osr.treasury.qld.gov.au.

Our eLearning tool features 8 different modules and is designed to teach you various aspects of payroll tax in Queensland.

For example, the ‘shares and options’ module helps to explain when, how and what amount to include for payroll tax if you have an employee share scheme operating in your business.

Other topics include ‘grouping’ and ‘fringe benefits’ just to name a few.

To start learning about payroll tax through interactive modules, visit our new eLearning tool available on our website.

1 Unpaid tax interest (UTI) payments 

In accordance with Part 5 of the Taxation Administration Act 2001, unpaid tax interest (UTI) accrues at the daily prescribed rate on the unpaid primary tax, up until the date the primary tax is paid in full.

If UTI is applicable for a transfer duty transaction, the total accrued UTI must be included with payment for the relevant return. Make sure you have accounted for UTI accrued up until the date we will receive payment for the return.

Duties Online calculates UTI up to the date the individual worksheet item (transaction) is entered into the system. As this may not be the same date we will receive payment for the return, you must account for the additional number of days manually and include this in the total payment amount.

UTI is calculated daily and the total liability (up to the date we receive payment) can be calculated via the UTI calculator available on our website.

Failure to lodge and pay your return by the due date (the Thursday of the following week) will result in the application of UTI and/or penalties.

Remember, you don’t need to wait until the Thursday to lodge and pay for the return. You can lodge your transfer duty return before the Thursday due date once all transactions for the week have been accounted for (e.g. if you know you only have one transfer duty transaction for the week, you can submit the return any time before the due date).

If you require further assistance regarding the calculation of UTI please refer to our website or contact us by email on client.support@treasury.qld.gov.au.

2 Aggregation of dutiable transactions (section 30)

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.

As a self assessor you must apply section 30 if it applies to two or more dutiable transactions contained in the same return.

If the dutiable transactions to be aggregated are not to be included in the same return, you must lodge these transactions separately with us 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 2001 (the Act).
 
If you would like to learn how to assess a section 30 aggregation using Duties Online, please refer to the eLearning section for transfer duty on our website.

A Public Ruling for aggregation under section 30 of the Duties Act is now available on our website.

3 How to avoid lodging and data entry errors

When using Duties Online to eLodge your return or when entering transaction details, please note that using the Internet Explorer ‘back’ or ‘forward’ buttons (green arrows) may cause an error in the active worksheet.

The information entered may be lost, corrupted and/or duplicated. To avoid this potential problem, please use only the buttons associated with Duties Online (i.e. previous step, next step, save, close etc).

We have developed data entry standards to help you enter your information into Duties Online using the correct format. If you don't use the correct format it may trigger a requisition or possible reassessment.

If you require any further assistance, please visit our website or alternatively contact us by email on client.support@osr.treasury.qld.gov.au.                   

4 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.

5 Nil returns, nil duty and exempt transactions

We no longer require self assessors to lodge nil returns for transfer duty. A nil return is defined as having no transactions for the week.

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

For example: A transaction with a consideration of less than $500,000 where a first home concession is being claimed is classed as a nil duty payable transaction.  A transaction where an exemption is being claimed (e.g. change of tenure—S143 of the Duties Act) is also classed as a nil duty payable transaction. These transactions must still be lodged in your weekly return.

Please note the following exemptions must be self assessed and included with your weekly return:

• transfers and deeds under section 117 of the Act effecting the retirement of a trustee or the appointment of a new or additional trustee
• transfers exempt under section 124 of the Act—deceased person’s estate
• transfers exempt under section 143 of the Act—effecting a change from joint tenants to tenants in common, or vice versa
• transfers exempt under section 151 of the Act for particular residences relating to subsisting marriages or de facto relationships
• transactions that fall under section 422(a) and (c) of the Act—de facto relationship instrument (exempt under section 424)
• transactions exempt under section 90 of the Family Law Act 1975 (Cwlth)
• transactions exempt under section 90L of the Family Law Act 1975.

For more information on the type of transactions that must be self assessed, refer to the SA1 – Self assessment of transfer duty: Instructions for registered self assessors.

1 How do I lodge my periodic return?

Lodgement of a periodic return occurs if payment of the return is made by an electronic transfer of funds.

If you make a payment using your specific payment reference number by EFT or BPAY by the due date, this is considered to be your lodgement of your periodic return. 

If you pay by cash or cheque, you are required to submit your periodic payment slip with your payment. Please note that if you are paying by cash or cheque, you will need to request a payment booklet from us at the beginning of each financial year.

You must lodge monthly periodic returns unless we approve a different period. If you are under the threshold for a particular month, you must lodge a nil return.

If you wish to submit a nil, final or annual return or a notice of fixed periodic deduction, you may lodge these electronically through the online lodgement section of our website.

For more information, please see the payroll tax online—overview section of our website.

2 How can I find my payment reference numbers?

Log onto the assessment information screen using your user name (your client/BP number) and password to obtain this month’s payment reference code.

Each period has its own payment reference number. To ensure the payment reference number is correct when paying by internet banking, copy the payment reference number from the payroll tax assessment information screen and paste it into your banking payment reference/description field.

When making payments, be sure to use the correct payment reference number for the period you are lodging.

You may also use this feature to view your periodic liability history for the current financial year.

The assessment information screen provides a list of your periodic liability history (normally 12 months) and payment reference numbers. Each period has its own payment reference number.

If you have lost or forgotten your password, contact us on 1300 300 734.

3 Remittance advices, who needs them?

We do not require you to submit a remittance advice. You can verify your payment online by logging into your assessment information screen 3 days after making payment.

If your payment does not show on this page or has been allocated to an incorrect period, you are required to contact us immediately by email or phone to ensure correct allocation of your payment.

Email:     payrolltax@osr.treasury.qld.gov.au
Phone:    1300 300 734

4 What’s taxable?

All amounts you pay your employees in return for their services are liable for payroll tax. In general, payments are liable for payroll tax if they are:

i. a reward for services rendered by an employee and/or director
ii. payments to which the recipient has an enforceable right
iii. taxable termination payments
iv. superannuation payments.

This includes cash salary which an employee elects to forego in return for other benefits.

For more information, see our checklist of taxable wages.

5 Contractor 180- and 90-day exemptions

Any payments you make to contractors working after 1 July 2008 under a ‘relevant contract’ are taxable. 

While most contracts for the provision of services come within the meaning of ‘relevant contract’ under s.13B of the Pay-roll Tax Act 1971, certain types of contracts are specifically excluded from the definition of ‘relevant contract’.

One exclusion is a contract for services of a kind ordinarily required by the designated person (the principal) for less than 180 days in a financial year.

Another exclusion is a contract for the provision of services by a person providing the same or similar services to a principal under the contract for no more than 90 days in a financial year.

180-day exemption  

If your business normally requires a type of service for less than 180 days in a financial year, the contracts are exempt. This exemption focuses on the type of service that is required by your business.

Further information on the 180-day exemption 

90-day exemption  

Contracts are exempt if a person provides you with the same or similar services for a total of not more than 90 days in a financial year. This exemption focuses on the individual providing the service to your business. On the 91st day, the entire period becomes liable for payroll tax.

A day is 1 calendar day, from midnight to midnight. Any length of time worked in a day will count as a whole day.

Further information on the 90-day exemption