eRevenue Queensland issue 15 May 2009

Research indicates commissioner assessment has decreased since the expansion project was implemented. We will continue monitoring interactions with self assessors. Self assessors will be able to provide feedback regarding the expansion in OSR’s Client Survey 2009 which will be issued in May 2009.

The removal of requirements to stamp and/or submit non-dutiable variations of trusts will be introduced on 4 May 2009. We have updated the website to reflect this change. This new information can help you determine whether or not the variation of the trust is dutiable.

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

When submitting your electronic payment of payroll tax it is important to remember you must use the correct payment reference number.
 
After you have logged into 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 your payment reference number right, we recommend you use the following procedure:
 
Step 1—select the right payment reference number (this will match the relevant return period) by highlighting it and then copy (right click on your mouse then select ‘copy’).
 
Step 2—place your cursor in the 'reference/description' field in your online banking facility and then paste (right click on your mouse then select ‘paste’).
 
Three days after submitting your payment, 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.

2. Working out which state gets what

If you employ in multiple states, you need to make sure you are paying the right amount of payroll tax to each state.

To decide where to declare the taxable wages for payroll tax, the following rules apply:

• If the work of the employee was performed solely in one state or territory, the taxable wages are declared to the jurisdiction where the work was performed.
• If the wages are paid or payable elsewhere, they are taxable in Queensland if the services are performed or rendered wholly in Queensland.
• If the work was performed in two or more states or territories, the taxable wages are declared to the jurisdiction where the wages are paid. This is generally determined by the jurisdiction where the wages are received, for example where the bank account is held. 

3. Lodging a nil return

Nil periodic returns must be lodged by a relevant employer no later than seven days after the last day of a periodic return period for which the periodic liability is calculated as zero. If you are lodging a nil, final or annual return, you may lodge these online.

4. Superannuation payments

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, see the superannuation contributions section of our website. 

5. Apprentice and trainee wages

Wages paid or payable to apprentices or trainees under the Vocational Education, Training and Employment Act 2000 are not liable for payroll tax for the period of the person’s apprenticeship or traineeship.

Some conditions apply:

• Exemptions do not apply to trainees who, immediately before the traineeship, were employed by the employer full time for 3 months or part time or casual for 12 months.
• The traineeship has to be started with the trainee’s current employer.
• The exemption does not apply to wages paid to an apprentice or trainee for services other than as an apprentice or trainee (e.g. casual work).

For more information on apprentice wages, see the payroll tax exempt employees section of our website.

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 our website and view the available demonstrations.

2. Home concessions—what should I do when my client has had a change of circumstances? 
 
If your client claimed a transfer duty home concession on the purchase of a principal place of residence they must: 

• move into the property as their home within one year of the date of settlement
• not sell, transfer, lease or otherwise grant exclusive possession to part, or all of the home to another person(s) prior to moving in or within one year of the date they move in
• move into the completed home within two years of the date of settlement if they have received a first home vacant land concession.

If your client is unable to meet these obligations due to a change in circumstances, they must notify us within 28 days by sending a completed Form D2.4—Notice for reassessment of transfer duty home and vacant land concessions, together with the original stamped contract/documents.

Depending on their circumstances, part or all of the concession will be repayable. UTI and penalties may also be applied.
 
If your client is a first home buyer, it’s important to note there are different occupancy requirements for the transfer duty home concession and the First Home Owner Grant.  These differences are listed in a comparison table.
 
For more information, visit the concessions for homes section of our website or email our Client Contact Centre.

3. Record Keeping requirements for self assessors 

Self assessors are required to keep all records/information used in determining a person's tax law liability for a minimum of five years following the related transaction.

The Taxation Administration Act 2001 (TAA) sets out certain record keeping requirements for self assessors. Refer to section 118 for specific information.

Relevant records/information that must be kept (but are not limited to) include:

• signed and completed concession forms D2.1 and D2.7
• related party valuations
• statutory declarations
• supporting documentation/evidence.

Failing to comply with these provisions is an offence under the TAA. It is also an offence for records to be willfully damaged or destroyed.
For more information, visit our website or email our Client Contact Centre.

4. Commercial transactions subject to GST

When assessing commercial/industrial dutiable transactions subject to GST, self assessors need to consider:

1. If an agreement (i.e. contract) or a transfer contains a condition or states that the value (consideration) is plus GST, transfer duty must be calculated on the consideration plus the GST component.
2. If any of these documents contain a condition that states, the transferee will pay the stated consideration plus an amount for GST payable by the transferor in respect of the transfer, transfer duty must be calculated on the consideration plus the GST component.
3. If an agreement or a transfer states that the purchaser will pay any GST liability but no GST liability is actually incurred, duty is calculated on the consideration only.

Evidence must be produced prior to the assessment of transfer duty verifying that no GST is payable.

For more information, visit our website or email our Client Contact Centre.

5. Trusts and companies not eligible for transfer duty home concessions

Homebuyers may be entitled to a first home/home concession for transfer duty which could result in reduced costs when acquiring a home.

In general, if a person buys a residence and lives in it as their ‘principal place of residence’, they may be entitled to a home concession. If they have never owned a home, they may also be entitled to an additional first home concession. You can view the transfer duty information page on concessions for homes for information regarding conditions and eligibility.

However, a trustee who occupies the home as their principal place of residence is not eligible for the concession unless the transferees are trustees of a trust (other than a discretionary or unit trust), the beneficiaries are individuals, all of whom are under a legal disability, and the residence would be the home of all the beneficiaries if they were the transferees of the land (section 91 of the Duties Act 2001).

Companies are not entitled to claim home concessions.

For more information, view the home concession amounts available on our website or email our Client Contact Centre.