GST excluded from wages
44 GST excluded from wages
If a person is liable to pay GST on the supply to which wages paid or payable to the person relate, the amount or value of those wages on which payroll tax is payable is the amount or value of the wages paid or payable to the person minus the relevant proportion of the amount of GST payable by the person on the supply to which the wages relate.
Subsection (1) does not apply in respect of the value of wages comprising a fringe benefit.
In this section—
consideration has the same meaning as in the A New Tax System (Goods and Services Tax) Act 1999 of the Commonwealth;
relevant proportion, in relation to GST payable on a supply to which wages relate, means the proportion that the amount or value of the wages bears to the consideration for the supply to which the wages relate.
This Act’s bill:Explanatory memorandumSecond reading speech
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