The following ACT Bills were introduced into the ACT Legislative Assembly on 5 June 2014:
- Payroll Tax Amendment Bill 2014 – proposes to amend the Payroll Tax Act 2011 (ACT) to remove the exemption provided to employment agents on wages paid to subcontractors simply due to being a “genuine employer”. By removing the exemption found at Sch 2, Pt 2.3, s 2.14(1)(g) of the Act, the ACT Government said a payroll tax exemption will no longer be available where a contractor employs themself or joins with other unrelated contractors to create a payroll company. Date of effect: will be effective from 1 July 2014.
- Land Tax Amendment Bill 2014 – proposes to amend the Land Tax Act 2004 (ACT) to introduce a fixed charge in the calculation of land tax. According to the ACT Government, there is an inequity in the current land tax system with units/townhouses as a larger group contributing less land tax than standard residential properties. The ACT Government said the changes would rebalance the land tax system to equalise the payment of land tax between standard residential properties and multi-unit dwellings. Date of effect: will be effective from 1 October 2014.
[LTN 110, 11/6/14]
ACT payroll tax: employment agent exemption changes – start date delayed
The ACT Treasurer announced in the ACT Budget 2014-15 (handed down 3 June 2014) that from 1 July 2014, the payroll tax threshold would increase to id=”mce_marker”.85m (up from id=”mce_marker”.75m) and the “genuine employer” exemption for employment agents would be repealed. The ACT Revenue Office says the amendments to remove the “genuine employer” exemption are contained in Payroll Tax Amendment Bill 2014 (ACT), which is currently before the ACT Legislative Assembly, and is expected to be debated in August 2014. As currently drafted, the Bill would commence retrospectively from 1 July 2014, to ensure the new regime is operational for the full 2014-15 financial year. However, the ACT Revenue Office advises that the ACT Treasurer has since confirmed the new effective date for the removal of the “genuine employer” exemption to be 1 October 2014 to allow adequate time for the sector to adjust to the changes. According to the ACT Revenue Office, the ACT Government is expected to move an amendment to the Bill to extend the commencement date to 1 October 2014.
[LTN 121, 26/6/14]