Payroll Tax Definitions

Some of the terms used on this site are described below. These apply to the harmonised areas within Australian states and territories (unless indicated). They are provided for general information only. To view a description, select the letter your term begins with and then scroll through the listed definitions. For a more definitive definition, please refer to the indicated legislation or the Payroll Tax legilsation applicable in the state or territory you are interested in.

If a term is not listed please advise us using the Feedback facility at the top of the page.

Term Definition
controlling interest

An interest of more than 50%.

corporation

... has the same meaning as in Section 9 of the Corporations Act 2001 of the Commonwealth; (Corporations Act 2001 (Cwlth) section 9 indicates - has the same meaning given by section 57A).

corresponding law

A law in force in another State or Territory relating to the imposition upon employers of a tax on wages paid or payable by them and the assessment and collection of that tax. 

designated group employer (DGE)

A member designated for a group in accordance with the Payroll Tax Act (Pay-roll Tax Assessment Act in WA).

direct interest

An entity has a direct interest in a corporation if: 

 (a) in the case of an entity that is a person - the person can, directly or indirectly, exercise, control the exercise of, or substantially influence the exercise of, the voting power attached to any voting shares issued by the corporation, or 

 (b) in the case of an entity that is 2 or more persons who are associated persons - each of the associated persons can, directly or indirectly, exercise, control the exercise of, or substantially influence the exercise of, the voting power attached to any voting shares issued by the corporation.

director of a company

- member of the governing body of the company (all states and territories except Queensland);

Definition in the Queensland Act includes -

(a) a person who, under a contract or other arrangement, is to be appointed as a director of the company; and

(b) a former director of the company.

domestic partner

...of a partner means a person to whom the person is not married but with whom the person is living as a couple on a genuine domestic basis (irrespective of gender).

employee

An employee performs work and receives a wage in return for that work.

Persons are also taken to be employees under section 13D (relevant contract employee) and section 131 (workers under employment agency contracts) of the Payroll Tax Act (Qld). In WA relevant contract provisions do not apply.

employer

- a person who pays or is liable to pay wages and includes– 

  (a) the Crown in any of its capacities; and

  (b) a person taken to be an employer by or under this Act; and

  (c) a public, local or municipal body or authority constituted under the law of the Commonwealth or of a State or Territory unless–

      being an authority constituted under the law of the Commonwealth, it is immune from the operation of this Act

(Payroll Tax Act Section 3)

- a person who pays or is liable to pay wages and includes– 

  (a) the Crown in any of its capacities; and

  (b) a person taken to be an employer by or under this Act;

(Queensland Payroll Tax Act 1971 Schedule section 2 - Dictionary)

For this Act, the employment agent under an employment agency contract is taken to be an employer.

(Queensland Payroll Tax Act 1971 section 13H)

- means any person who pays or is liable to pay any wages, and includes the Crown in right of the State of Western Australia and an employment agent

(Western Australia Pay-roll Tax Assessment Act 2002 section 4 - Glossary)

employment agency contract

For the purpose of Payroll Tax legislation, an employment agency contract is a contract, whether formal or informal and whether express or implied, under which a person (an ‘employment agent’) procures the services of another person (a ‘service provider’) for a client of the employment agent. 

However, a contract is not an employment agency contract for the purposes of this legislation if it is, or results in the creation of, a contract of employment between the service provider and the client. 

In this definition contract includes agreement, arrangement and undertaking.

Pages