CharityPack (current to 19 June 2003)
Chapter 3 Other taxes & obligations
| This document has been archived. It is current only to 19 June 2003. |
In this chapter we outline some other taxes and obligations that affect most charities. They are:
- Australian Business Number (ABN)
- goods and services tax (GST)
- fringe benefits tax (FBT)
- Pay As You Go (PAYG)
- Superannuation Guarantee Charge, and
- State government taxes and duties.
Contact details are provided should you wish to obtain further information.
Australian Business Number (ABN)
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- The Australian Business Number (ABN) is a new single identifier that charities will use for their business dealings with the ATO.
- A charity must have an ABN to be endorsed as an income tax exempt charity (ITEC).
Charities will use an ABN to:
- apply to the ATO for endorsement as an income tax exempt charity (ITEC)
- apply to the ATO for endorsement as a deductible gift recipient
- register for GST and claim input tax credits
- deal with investment bodies
- interact in future with other government departments and agencies, and
- interact with the ATO on other taxes, including:
- Diesel and Alternative Fuels Grant Scheme
- luxury car tax, and
- wine equalisation tax.
Your ABN registration details will become part of the Australian Business Register (ABR) which the ATO will maintain for all Commonwealth purposes. The publicly available information in the ABR will allow people to find out whether the entities they are dealing with have an ABN, are registered for GST or are endorsed as deductible gift recipients.
Who is entitled to register for an ABN?
To be entitled to an ABN you must be:
- a company registered under the Corporations Law
- a government department or agency
- an entity carrying on an enterprise in Australia, or
- a non-profit sub-entity for GST purposes.
An entity for ABN purposes means an individual, a body corporate, a corporation sole, a body politic, a partnership, an unincorporated association or body of persons, a trust or a superannuation fund.
The definition of an enterprise for ABN purposes covers activities in the form of a business and includes the activities done by a charitable institution, a trustee of a charitable fund, a religious institution and a deductible gift recipient.
Charities, and certain other non-profit organisations that are registered for GST, may choose to register a branch as a non-profit sub-entity. A non-profit sub-entity maintains an independent system of accounting, is separately identifiable by its activities or location, and is referred to in the entity's records as a separate entity for GST purposes.
How do you register for an ABN?
You can register:
- electronically through the Business Entry Point (BEP) at www.business.gov.au
- on a paper form by mail phone the ATO on 13 24 78 for an application, or
- through a tax agent.
You can register for an ABN and GST on the same form.
Your charity should register for at least one ABN regardless of the number of enterprises that you undertake. However, if your enterprises are carried on by a number of different entity types, each entity must register in its own right.
If your organisation is a subsidiary of a governing body, it is advisable that you discuss ABN registration with your governing body.
EXAMPLE
Need more information?
Further information about the ABN is available from the sources listed in this guide.
Goods and services tax (GST)
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- GST is a broad-based tax of 10 per cent on the supply of most goods and services consumed in Australia.
- Non-commercial supplies by charities such as charitable activities are GST- free .
- Charities must register for GST if their annual turnover is $100 000 or more and they may choose to register if their annual turnover is lower.
- Registered charities can claim credits for the GST included in the price of goods and services they buy in providing their GST- free supplies.
GST is a broad-based tax of 10 per cent on the supply of most goods, services and anything else consumed in Australia. It is also payable on most goods imported into Australia regardless of whether you are registered or not. It applies from 1 July 2000.
Charities that are suppliers of goods and services and are registered (or required to be registered) for GST will have to include 10 per cent GST on many of their commercial supplies. Many supplies by registered charities will be GST- free . ( See What if a charity is registered for GST? )
Which charities are required to register for GST?
Charitable institutions and funds
A charity must register for GST if its annual turnover is $100 000 or more. If its turnover is less, it can register if it chooses to. Only charities that are registered can claim credits (input tax credits) for the GST included in the price of goods and services they buy.
Charities can register for GST and apply for an Australian Business Number (ABN) on the same form.
GST branches
A GST-registered entity which operates through a branch structure may choose to register a branch or branches separately for GST. By registering a branch of your organisation as a GST branch, it effectively operates as a distinct entity for GST purposes.
To register as a GST branch, the entity must:
- maintain an independent system of accounting
- be separately identifiable because of its activities or location
- carry on (or intend to carry on) an enterprise through the branch, and
- must not be a member of a GST group.
Non-profit sub-entities
Most non-profit organisations with small independent branches (units) have the option of treating their units as if they were separate entities for GST purposes and not part of the main organisation. This option is only available if the organisation is registered for GST. A unit will be considered to be independent if it:
- maintains an independent system of accounting
- can be separately identifiable because of its activities or location, and
- is referred to in the entity's records as a separate sub-entity for GST purposes.
For example, units could include a branch, fete, lamington drive or fundraising dinner.
This means that where the unit's turnover is less than $100 000, the unit can choose whether it registers for GST or not.
Where the unit has a turnover of $100 000 or more, it will have to register separately for GST and will have the same rights and obligations as other GST-registered entities. In the case of non-profit sub-entities, the liability for all GST obligations of the unit will be imposed on the people responsible for the management of the unit.
What if a charity is registered for GST?
Many supplies made by charities, branches of charities and non-profit sub-entities that are registered, or required to be registered, are GST- free , including:
- all charitable activities provided for no cost
- most education, childcare and health services
- basic food
- non-commercial supplies
- supplies of donated second-hand goods (not reprocessed), and
- raffles and bingo.
These bodies can claim credits for GST they pay for acquisitions used in making their GST- free and taxable supplies (input tax credits).
They include 10 per cent GST on their taxable supplies. When the input tax credits are greater than the GST included, the charity will receive a refund or have the credit applied to other tax debts, if they have any.
What if a charity is not registered for GST?
Charities that are not registered for GST, and not required to be registered, do not include the 10 per cent GST on their supplies. However, these charities are not able to claim input tax credits for the GST they have paid on their purchases.
In the same way, non-profit sub-entities that are not registered, and not required to be registered, will not include GST and will not be able to claim input tax credits.
Need more information?
Industry-specific booklets have been produced to provide details about how GST will relate to the non-profit sector. Topics covered include:
- Arts and Culture
- Charitable, Religious and Non-profit Organisations
- Child and Aged Care
- The Health Industry
- Higher Education and Training, and
- Schools.
Further information, including these booklets, is available from the sources listed at the end of this guide.
Fringe benefits tax (FBT)
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- Employers (including some charities) who provide fringe benefits to employees are subject to FBT.
- Some fringe benefits are exempt from FBT.
- Most non-government income tax exempt organisations will qualify for a rebate if they have to pay fringe benefits tax.
FBT is a tax payable by employers (including some charities) who provide fringe benefits to their employees or to associates of their employees. It operates to provide comparable tax treatment of fringe benefits and cash benefits.
FBT is a tax separate from income tax. Even if a charity is exempt from income tax, it may still have to pay FBT. The amount of FBT is calculated on the taxable value of the fringe benefits provided.
At the time this publication was prepared, changes had been proposed by the Government in relation to FBT. These proposals are outlined in Proposed changes .
What is a fringe benefit?
A fringe benefit is an employment-related benefit provided to an employee or an associate of the employee (typically a family member). Benefits may be rights, privileges or services. For example, a fringe benefit is provided when an employer:
- allows an employee to use a work car for private purposes
- gives an employee a cheap loan, or
- pays an employee's private health insurance costs.
Some employers, including charities, will need to distinguish between employees and volunteers. A volunteer is a person who is not paid for work in either cash or fringe benefits. Volunteers may be reimbursed for out-of-pocket expenses. Where more than this reimbursement is provided, the recipient is generally regarded as an employee.
What organisations can provide exempt benefits?
Certain benefits provided by the following organisations are exempt from FBT:
- public benevolent institutions
- religious institutions, and
- certain non profit companies
Public benevolent institutions (PBIs)
Benefits provided by PBIs to their employees are exempt benefits.
A PBI is an organisation that has the principal purpose of relieving poverty, sickness, suffering, destitution or helplessness. It carries on its activities without seeking private gain for particular people. More information on PBIs can be found in the ATO's guide GiftPack .
A charitable institution is not necessarily a PBI. The difference between a PBI and a charitable institution is discussed in Taxation Determination TD 93/11 .
Religious institutions
Subject to certain requirements, benefits provided by religious institutions to religious practitioners, live-in and non-live-in domestic employees and live-in carers are exempt from FBT.
Religious practitioners
Benefits that religious institutions provide to religious practitioners are exempt if the benefits are provided principally in respect of the practitioner's pastoral duties or other duties relating to the practice, study, teaching or propagation of religious beliefs. This matter is discussed in more detail in Taxation Ruling TR 92/17 .
Domestic employees
Benefits that religious institutions provide to live-in and non-live-in domestic workers are exempt in certain circumstances.
For live-in employees, the employee's duties must principally involve domestic or personal services for religious practitioners and the practitioners' relatives residing with them. The benefits that may be exempt include the employee's live-in accommodation and food.
For non-live-in employees, the employee's duties must principally involve domestic services for religious practitioners and the practitioners' relatives residing with them. The exempt benefits are limited to food and drink consumed by the employee whilst carrying out their duties of employment.
Live-in carers
Where the activities of religious institutions include caring for elderly or disadvantaged people, certain benefits provided to their employees will be exempt.
The exemption relates to live-in carers where the carer resides with the elderly or disadvantaged person in residential accommodation provided by the employer. The benefits that may be exempt include the employee's live-in accommodation and food.
Non-profit companies
Non-profit companies whose activities include caring for elderly or disadvantaged people can provide exempt benefits to live-in carers. The conditions for exemption are the same as for religious institutions, outlined above.
A non-profit company means a company that is not carried on for the purposes of profit or gain to its individual members and its constituent document prohibits it from making any distribution to its members. Some charitable institutions may qualify as non-profit companies but charitable funds, being trusts, will not.
Copies of Taxation Determination TD 93/11 and Taxation Ruling TR 92/17 are available by phoning the FBT inquiry service on 13 33 28 .
What organisations are eligible for a rebate?
Most non-government organisations that are income tax exempt will qualify for an FBT rebate. Qualifying employers are entitled to have their FBT liability reduced by a rebate equal to 48 per cent of the gross FBT payable.
What are the fringe benefits tax reporting requirements?
From 1 April 1999, employers will need to keep records that show the taxable value of certain fringe benefits provided to individual employees.
If the total taxable value of reportable fringe benefits provided to an employee in an FBT year exceeds $1000, the employer must record the grossed-up taxable value of those benefits on the employee's group certificate or payment summary for the corresponding year.
Some benefits that are exempt from FBT may still need to be reported on group certificates. These are benefits that are exempt only because they are provided to:
- live-in carers of elderly or disadvantaged people employed by religious institutions, non-profit companies and government bodies, and
- employees of PBIs, including government employees who work in a public hospital.
These benefits are treated as quasi-fringe benefits . The grossed-up taxable value is added to other reportable fringe benefits and the total is reported on the employee's group certificate or payment summary.
The requirement to report exempt benefits does not create an FBT liability for the organisation that is providing the exempt benefit. The requirement to report ensures that fringe benefits are taken into account when determining an employee's liability to a superannuation contributions surcharge, terminations payment surcharge, Medicare levy surcharges, entitlement to income-tested government benefits, child support obligations and Higher Education Contribution Scheme repayments.
What does 'grossed up' mean?
Grossing-up reflects the gross salary that would have to be earned at the highest marginal tax rate, including Medicare levy, to purchase the benefit from after-tax dollars.
The grossed-up taxable value is calculated by multiplying the total taxable value of the fringe benefits by 1/(1- the rate of FBT).
EXAMPLE
Proposed changes
Changes have been proposed by the Government in relation to FBT. The proposals had not become law at the time GiftPack was prepared. The proposed changes include:
- the concessional FBT treatment (exemption and rebate) currently available to PBIs and certain non-profit organisations will be capped. The cap will apply on a per employee basis. Amounts of fringe benefits above this cap will be subject to normal FBT treatment. However, the cap does not place a limit on the use of other FBT-exempt benefits such as superannuation, minor benefits less than $100, a laptop computer, work-related mobile phones and other miscellaneous benefits, and
- the grossing-up formula will be adjusted to take GST into account.
Interested persons should contact the ATO's FBT enquiry service for the status of these proposals.
Need more information?
If you have any questions or need more information on FBT, please phone the ATO's FBT inquiry service on 13 33 28 .
Our staff will be able to answer your specific queries and provide you with our current FBT publications.
Further information is also available from the sources listed in this guide.
Pay As You Go (PAYG)
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- PAYG replaces most tax instalment and withholding systems from 1 July 2000. The start date for paying PAYG instalments will be different for organisations with an earlier or later accounting period.
- PAYG instalments enable an organisation to provide for its final taxation liability by paying tax in instalments throughout the year.
- PAYG withholding is the system through which an organisation withholds tax from payments it makes. It encompasses the original Pay As You Earn (PAYE) and tax file number (TFN) withholding obligations and has three new withholding categories of importance to charities voluntary agreements with contractors, no-ABN withholding and labour hire arrangements.
- Charities are not exempt from PAYG withholding.
What is Pay As You Go (PAYG)?
PAYG starts from 1 July 2000 for most organisations. PAYG is a single, integrated reporting system which replaces more than ten existing instalment and reporting systems. These include provisional tax, company and superannuation fund instalments, pay as you earn (PAYE), the prescribed payments system (PPS), the reportable payments system (RPS), and dividend, interest and royalty withholding for non- residents. PAYG also simplifies how you pay tax by aligning the dates for payment.
PAYG consists of two arms: PAYG instalments and PAYG withholding.
PAYG instalments applies from the start of the 2000-01 income year, which for most taxpayers is 1 July 2000.
The start date for PAYG instalments will be earlier or later for companies that do not balance on 30 June.
PAYG withholding is applicable to payments made on or after 1 July 2000.
What is PAYG instalments?
PAYG instalments replaces provisional tax and company and superannuation fund instalments.
Under PAYG instalments, taxpayers who are notified by the ATO of an instalment rate will be required to pay their own tax by instalments.
PAYG allows the timing of instalments by businesses and investors to reflect their current trading and income flows.
What is PAYG withholding?
Under PAYG withholding, if you make certain listed payments you will be required to withhold an amount from the payment and pay this to the ATO.
Your organisation has PAYG withholding obligations as a payer if it makes one of the following types of payments:
- salary, wages, commission, bonuses or allowances to an employee
- remuneration to a director or member of committee of management
- salary etc to an office holder (such as a member of the defence forces, a police officer or person holding office under the Constitution including members of parliament)
- return to work payments
- retirement payments (that is, unused leave), eligible termination payments, pensions and annuities
- social security and compensation payments
- payments for work or services under labour hire arrangements or prescribed by regulations
- payments for work or services where your organisation and an individual have a voluntary agreement to withhold
- payments for a supply (services or goods) to another business which does not quote an ABN, and
- certain dividend, interest and royalty payments.
The obligation to withhold amounts from payments of salary or wages to employees (former PAYE), and from other payments such as dividends, interest or royalties paid to non-residents, carries over into the new system. The PPS and RPS systems cease to operate after 30 June 2000.
How does PAYG work for my employees?
PAYG withholding will replace and modernise the PAYE system. Under PAYE, salary or wage earners paid their income tax and Medicare levy by instalments deducted from their pay. Under PAYG this has not changed. However, it is proposed that Student Financial Supplement Scheme debits will also be collected under the new PAYG arrangements.
As an employer you deduct the correct amount of tax from your employee's salary or wage and pay it to the ATO. Tax tables will be provided to tell you how much tax to take out. These are available from the ATO and can also be obtained directly from our web site
At the end of the financial year, you give each employee a payment summary which shows how much they were paid during the year and how much tax was deducted. The payment summary is then included in their tax returns.
This operates in a similar way to group certificates under the old PAYE system.
What are my obligations for other PAYG withholding payments?
The most common circumstances that could arise where a charity may have PAYG withholding obligations other than for employees would be:
- payments for work or services under voluntary withholding agreements, and
- payments for a supply (services or goods) to another business which does not quote an ABN.
The rates of withholding depend upon the type of payment. For example, the 'no ABN quoted' withholding rate is the highest marginal rate plus Medicare levy (currently 48.5 per cent), while the rate to be used for a voluntary withholding agreement is in the tax tables.
You should contact the ATO to find out the rates that apply to other payments.
A payment summary is also issued to individuals and entities (who are not employees) where PAYG withholding is made for the other types of payments subject to PAYG withholding.
Are there exceptions to withholding when an ABN is not quoted?
Yes. An amount need not be withheld where:
- the whole of the payment is exempt income of the supplier (for example an ITEC)
- the payer is an individual paying for a supply of a private or domestic nature
- the payment does not exceed $50
- the supply is made by a member of a local governing body under a State or Territory law, or
- the payee has made a written, signed statement that the supply is private or domestic in nature, or relates to a hobby.
Are charities exempt from PAYG withholding?
No. Charities are not exempt from PAYG withholding obligations. Every payer has to withhold from payments subject to PAYG withholding.
What to do if you have PAYG withholding obligations
If you make payments that are subject to PAYG withholding, you will need to register. You should contact the ATO's Small Business Helpline on 13 28 66 or the business Tax Reform Infoline on 13 24 78 .
Where a payment you make is subject to PAYG withholding, you will be required to withhold the required amount from the payment and pay the amount deducted to the ATO by the due date.
If you are a small or medium withholder, the amount withheld will be reported on your business activity statement along with any GST, PAYG instalments or FBT amounts. Any credits you are entitled to (such as input tax credits for GST) will be offset against any amount of PAYG withholding and other taxation liabilities you are required to report on your Business Activity Statement. You will be required to remit these amounts monthly or quarterly, depending on your withholder status.
If you are a large withholder you are required to pay withheld amounts more frequently.
At the end of the year you will be required to submit to the ATO an annual report which reconciles all withholding payments you have made to the ATO during the financial year.
Is a charity subject to PAYG withholding on payments it receives?
Yes. A charity may have an amount withheld from a payment it is due to receive if it does not quote its ABN or tax file number (TFN) to the payer.
For charities that are not ITECs, the following payments are subject to PAYG withholding:
- a supply made by the charity where it has not quoted its ABN on an invoice, or
- dividends and interest where the charity has not quoted its TFN or ABN to a financial institution.
What happens if a charity does not quote its ABN on an invoice?
Where an ABN has not been quoted, a payer must withhold the highest marginal rate plus Medicare levy (currently 48.5%) from a payment for a supply, unless one of the exceptions ( see exceptions ) applies to the payment.
What happens if a charity does not quote its TFN on its investments?
Under the tax law, the investment body (such as a bank, building society, unit trust or public company) must withhold an amount from the interest or dividends payable on the investments if a charity has not quoted its TFN. The amount withheld can be claimed as a credit when the charity lodges its tax return.
The exceptions to this rule are:
- where the charity has quoted its ABN to the investment body and the investment is held in the course or furtherance of an enterprise of the charity, or
- where the charity is not required to lodge an income tax return, which includes ITECs.
Can a charity obtain a refund of any PAYG withholding amount withheld in error from a payment it receives ?
Yes. Depending on the circumstances, the charity has the following options:
- if the charity lodges income tax returns, it may choose to claim the amount as a credit when it lodges a return at the end of the financial year
- the payer may refund to the charity where the payer becomes aware of the error or the charity applies to the payer for a refund, before the end of the 21 July following the financial year in which the amount was withheld, or
- if the above situation does not apply and the withheld amount has already been paid to the ATO, the charity may apply direct to the ATO for a refund.
Need more information?
Further information about current and new tax instalment and withholding systems is available from the sources listed in this guide.
Superannuation Guarantee Charge
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- All charities who are employers are subject to the Superannuation Guarantee legislation.
- A Superannuation Guarantee Charge must be paid if an insufficient level of superannuation support is provided for the charity's employees.
Your organisation may be affected by the Superannuation Guarantee (SG) legislation if it has employees.
Under the SG legislation an employer is required to provide a prescribed minimum level of superannuation support for most of its employees. Employers who do not provide enough superannuation support will have to pay a Superannuation Guarantee Charge (SGC).
The SGC is not a deductible expense.
What charities are exempt from the SGC?
All charities that are employers are subject to the SG legislation. Even charities that are exempt from income tax have obligations under the SG legislation.
Does your organisation need to make superannuation contributions for its employees?
Your organisation will need to make superannuation contributions for its employees to avoid paying the SGC.
Most employees, whether full-time, part-time or casual, are covered by the SG legislation.
Exceptions include employees who are:
- paid less than $450 in any calendar month; superannuation does not have to be provided in respect of that month
- aged 70 or over (65 for 1996-1997 and earlier income years)
- non-resident employees who are paid solely for work undertaken outside Australia
- under 18 years old and employed part-time (that is, for no more than 30 hours a week), or
- employed for no more than 30 hours per week to do work that is primarily of a private or domestic nature.
Need more information?
If you have any questions or need more information on Superannuation Guarantee, please contact the Superannuation Hotline on 13 10 20 for the cost of a local call. This number is linked to the Translation and Interpreting Service for non-English speakers.
For the cost of a local call you can now have information sheets faxed to you have your fax machine ready and call 13 28 60.
Alternatively, our internet web site address is www.ato.gov.au/super .
State government taxes and duties
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- State and Territory taxes include stamp duty, pay-roll tax, land tax, financial institutions duty and debits tax.
- Each State has its own law for these taxes, administered by its revenue office. While the laws between States are comparable, there are some variations.
- Some State taxes will be abolished as a result of GST.
- Contact details for State and Territory revenue offices are provided at the end of this section inquiries about State taxes should not be directed to the ATO.
This section provides an overview of the following State taxes: stamp duty, payroll tax, land tax, financial institutions duty, and debits tax.
Each State has its own laws for these taxes, administered by its revenue office from which further information is available. Contact details are provided at the end of this section.
Inquiries about State and Territory taxes should not be directed to the Australian Taxation Office.
Stamp duty
Stamp duty is a tax on written documents ('instruments') and certain transactions including motor vehicle registrations and transfers, insurance policies, leases, mortgages, hire purchase agreements and transfers of property (such as businesses, real estate or shares).
The rate of stamp duty varies according to the type and value of the transaction involved. Depending on the nature of the transaction, certain concessions and exemptions may be available.
Stamp duty on publicly listed marketable securities will be abolished from 1 July 2001.
Payroll tax
Payroll tax is a tax on the wages paid by employers. Employers are liable for payroll tax when their total Australian wages exceed a certain level called the 'exemption threshold'. Exemption thresholds vary between States.
Payroll tax should not be confused with PAYG withholding tax, collected by the ATO. Payroll tax is payable to the State by an employer, based on the total wages paid to all employees. PAYG is the tax deducted from an individual's income and forwarded to the ATO. PAYG is explained further.
Certain organisations may be exempt from payroll tax provided specific qualifying conditions are satisfied. These organisations may include religious institutions, public benevolent institutions, public or non-profit hospitals, non-profit non-government schools or colleges providing education at secondary level or below, municipal councils and charitable organisations.
As requirements vary between States, employers should seek clarification from their local State or Territory revenue office.
Land tax
Land tax is imposed in all States and the ACT, but not in the NT. It is a tax levied on landowners except in the ACT where it is levied on lessees under a Crown lease.
Landowners are generally liable for land tax when the unimproved value of taxable land exceeds certain thresholds. In some States there are deductions and rebates available, depending on the use of the land. Principal places of residence are usually exempt from land tax although this is subject to certain qualifying criteria which vary between jurisdictions.
Land owned and used by certain organisations may be exempt from land tax. These organisations generally include non-profit societies, clubs and associations, religious institutions, public benevolent institutions and charitable institutions.
As requirements vary between States, organisations should seek clarification from their local State or Territory revenue office.
Financial institutions duty (FID)
FID is a tax on the receipt of money by a financial institution and currently applies in all States and Territories, except Queensland. FID will be abolished from 1 July 2001.
The receipt may involve the physical receipt of money (for example, a deposit by a customer into a bank account) or the crediting of an account (for example, the credit of interest earned or the transfer of money from another bank account).
While liability for the payment of FID rests with the financial institutions, legislation allows for the charge to be recouped from customers.
There are limited exemptions from FID and eligibility for exemption varies across jurisdictions. Bodies which may be eligible to conduct an account exempt from FID include registered financial institutions, charitable or public benevolent institutions, public hospitals, public schools and certain government departments.
As requirements vary between States, organisations should seek clarification from their local State or Territory revenue office.
Debits tax
Debits tax is charged on debit transactions (for example withdrawals, account keeping fees etc) to accounts with cheque drawing or payment order facilities. Debits tax is not charged on reversals of credit transactions or deductions for debits tax. This tax is scheduled to be abolished by 1 July 2005, subject to review by the Commonwealth, States and Territories.
Debits tax was previously known as Bank Account Debits Tax or BAD Tax.
Financial institutions and account holders are jointly liable for debits tax, however it is usually paid by the financial institution and recouped from the account holder.
There are limited exemptions from debits tax and eligibility differs between jurisdictions. Debits made to accounts held by bodies, such as public benevolent institutions, religious institutions, public hospitals and government schools are generally not taxable.
As requirements vary between States, organisations should seek clarification from their local State or Territory revenue office.
State and Territory contact details
NSW Office of State Revenue
| Revenue SA
|
Queensland Office of State Revenue
| Territory Revenue Management
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ACT Revenue Office
| State Revenue Office Tasmania
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State Revenue Office of Victoria
| State Revenue Department of Western Australia
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ATO references:
NO NAT 3131