Page 2562 - Week 07 - Monday, 15 August 2022
Taxation—payroll tax waivers
(Question No 849)
Ms Clay asked the Treasurer, upon notice, on 10 June 2022:
(1) Are payroll tax exemptions still provided to EOS (a company operating in the space and weapons industry), given that in 2019 it was stated that EOS was receiving ACT payroll tax exemptions.
(2) What payroll tax exemptions, if any, are being provided to companies across the ACT which operate principally in the space or weapons industry.
(3) What is the nominal value of payroll tax exemptions to companies in the space or weapons industries.
(4) Can the Treasurer provide a list of all companies currently receiving payroll tax exemptions.
(5) What is the nominal value of exemptions to all companies which are currently granted payroll tax exemptions.
(6) What are the reasons for the ACT Government providing payroll tax exemptions to these and other companies.
Mr Barr: The answer to the member’s question is as follows:
(1) Details about the tax affairs of a particular taxpayer are confidential and covered by the secrecy provisions of the Tax Administration Act 1999.
(2) There are certain exemptions that taxpayers may qualify for under Part 4 of the Payroll Tax Act 2011. However, there is no specific exemption for companies that operate in the space or weapons industry.
(3) There are no specific exemptions granted to the space or weapons industry.
(4) Details about the tax affairs of a particular taxpayer are confidential and covered by the secrecy provisions of the Tax Administration Act 1999.
(5) The ACT Tax Expenditure Statement 2019-20 (most recent) provides an estimate of the revenue foregone due to payroll tax exemptions of $210.01 million for 2019-20. This includes the cost of the tax-free threshold, other specific exemptions, and waivers, which are explained in more detail in Table 4 of the Tax Expenditure Statement.
(6) The Government only provides payroll tax exemptions as set out in the Payroll Tax Act 2011. These include exemptions for the charitable sector, non-government schools, and non-government hospitals. Employers (or groups of employers) with an annual total Australia-wide taxable payroll of $2 million or under are not liable for payroll tax in the ACT.
When I provide a waiver of payroll tax to an individual business under the Financial Management Act 1996 (FMA), I consider the following principles:
• The legislation is producing an unforeseen or perverse outcome; or