| 1. |
Revenue Ruling PUB-PT-2005-5 advises employers how to determine that part of a trust distribution to a beneficiary which is liable for payroll tax. The relevant provision is contained under Section 2AAA of the Pay-roll Tax Act 1971.
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| 2. |
Where there is no applicable industrial instrument rate, the market rate that applies is the average weekly earnings figure “Full-time adult ordinary time earnings – original” for Tasmania, for the February quarter prior to the beginning of the financial year, as published in the Australian Bureau of Statistics (ABS) publication 6302.0 - Average Weekly Earnings Australia.
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| 3. |
When the average weekly earnings is the applicable “market rate wage”, an employer may choose one of three methods to determine the “market rate wage”, but the same method must be used for all work done by that person for the whole of a particular financial year. The three alternative methods are:
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- The weekly rate applied for each week or part of a week during which the beneficiary provided services, regardless of the number of days or hours of service provided during that week; or
- The daily rate applied for each day on which the beneficiary provided services during the relevant period, regardless of the number of hours of service provided during each day; or
- The hourly rate.
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| 4 |
The purpose of this ruling is to advise the average weekly wage rate published by the ABS in February 2005, which will apply for the 2005-06 payroll tax year where there is no applicable industrial instrument rate.
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| RULING |
| 5 |
The rate published by the Australian Bureau of Statistics in February 2005 and applicable for 2005-06 payroll tax purposes is a weekly rate of $835.70, which is equivalent to $167.14 per day or $20.89 per hour.
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