Western Australia: Pay-roll Tax Assessment Act 2002 (WA)

Western Australia Pay-roll Tax Assessment Act 2002 Western Australia Pay-roll Tax Assessment Act 2002 Contents Part 1 — Preliminary 1. Short title 2 2. Commencement 2 3. Relationship with other Acts 2 4. Terms used 2 5A. Notes in text 3 Part 2 — Liability and assessment Division 1 — Liability to pay‑roll tax 5. Pay‑roll tax on WA taxable wages 4 6A. Wages that are taxable in this jurisdiction 4 6B. Jurisdiction in which person who performs services is based 7 6C. Jurisdiction in which employer is based 8 6D. Place and date of payment of wages 9 6. Time for payment of pay‑roll tax 10 7. Liability to pay‑roll tax 10 7A. Tax thresholds and tapering value: half-years in financial year beginning 1 July 2019 10 8. Tax thresholds and tapering value: financial years beginning on or after 1 July 2020 11 Division 2A — Wages Subdivision 1 — General concept of wages 9AA. Term used: wages 12 Subdivision 2 — Fringe benefits and specified taxable benefits 9BA. Wages include fringe benefits and specified taxable benefits 13 9BB. Actual value of fringe benefit 14 9BC. Basis for including value of fringe benefits in returns 14 9BD. Eligibility to use estimated value method 15 9BE. Returns (other than annual returns) using estimated value method 15 9BF. Annual returns using estimated value method 16 9BG. Final returns using estimated value method 16 9BH. Changing method of valuing fringe benefits 17 9BI. Value of specified taxable benefit 19 Subdivision 3 — Superannuation contributions 9CA. Terms used 19 9CB. Wages include superannuation contributions and other similar amounts 20 9CC. Superannuation contributions 22 9CD. Notional contributions 22 Subdivision 4 — Shares and options 9DA. Wages include shares and options granted to employees 23 9DB. Relevant day: choice of 24 9DC. Relevant day: special cases 25 9DD. Value of shares and options 26 9DE. Effect of rescission, cancellation etc. of share or option 27 9DF. Grant of share under exercise of option 28 9DG. Wages include certain shares and options granted to directors 28 9DH. Place where wages (as shares or options) are payable 29 Subdivision 5 — Termination payments 9EA. Wages include termination payments 30 Subdivision 6 — Allowances 9FA. Motor vehicle allowances 31 9FB. Accommodation allowances 32 Subdivision 7 — Employment agents 9GA. Wages include amounts paid by employment agents 33 Subdivision 8 — Miscellaneous provisions 9HA. Value of wages paid in kind 33 9HB. GST excluded from wages 34 9HC. Wages paid by or to third parties 34 Division 2 — Non‑group employers' liability 10. Annual tax liability: local non‑group employers 35 11A. Apportioned threshold amounts for s. 10: local non‑group employers 38 11. Tax payable with returns: local non‑group employer 38 12. Apportioned threshold amounts for s. 11: local non‑group employers 40 13. Annual tax liability: interstate non‑group employers 41 14. Apportioned threshold amounts for s. 13: interstate non‑group employers 43 15. Tax payable with progressive returns: interstate non‑group employers 44 16. Annual reconciliation: non‑group employers 45 Division 3 — Group employers' liability 17. Annual tax liability: groups 46 18. Apportioned threshold amounts for s. 17: groups 49 19. Tax payable with progressive returns: groups 50 20. Annual reconciliation: groups 51 Division 4 — Assessment generally 21. Tax‑reducing arrangements 52 22. Adjustments for changes in annual threshold amount 52 23. Taxable wages not paid throughout assessment year 53 Division 5 — Special provisions for period from 1 July 2018 to 30 June 2023 23A. Nomination of estimates for determining rates for progressive return periods 54 23B. Application for nomination under s. 23A 55 23C. Determination of reduced rate where Pay‑roll Tax Act 2002 s. 8(6) or 10(7) applied 56 Division 6 — Special provisions for assessment year beginning 1 July 2019 23D. Terms used 57 23E. Application of Division 59 23F. Annual tax liability: whole of assessment year beginning 1 July 2019 59 23G. Annual tax liability for non‑group employers: part‑years in assessment year beginning 1 July 2019 60 23H. Annual tax liability for groups: part‑years in assessment year beginning 1 July 2019 62 23I. Tax payable with progressive returns in assessment year beginning 1 July 2019 64 23J. Tax payable for return period portions: local non‑group employers 65 23K. Modified application of relevant liability provisions 67 23L. Adjustment for application of half‑year thresholds 69 23M. Annual reconciliation for assessment year beginning 1 July 2019 70 Part 3 — Registration and returns 24. Applications for registration as employer 71 25. Registration and cancellation of registration 71 26. Monthly returns 72 27. Additional returns for reconciliation purposes 73 28. Further returns 74 28A. Manner of lodging and paying in certain cases 74 29. M, MC Exemptions from lodging monthly returns 75 Part 4 — Constitution of business groups 30. Grouping corporations 79 31. Grouping where employees used in another business 79 32. Grouping commonly controlled businesses 80 33. Controlling interest in business 80 34. Value of beneficial interest in discretionary trusts 82 35A. Groups arising from tracing of interests in corporations 83 35B. Direct interests 85 35C. Indirect interests 85 35D. Aggregate interests 86 36. Smaller groups subsumed into larger groups 87 37. Grouping provisions operate independently 87 38. Exclusion from groups 87 39. Designated group employer 88 Part 5 — Exempt wages 40. Exempt wages 90 41A. Exempt wages: parental and adoption leave 93 41B. Exempt wages: wages paid or payable for or in relation to services performed in other countries 94 41C. Exempt wages: DSC disability support and disability wages subsidy 94 41D. Exempt wages: apprentices under training contracts 96 Part 6 — Miscellaneous 41. Exempting charitable bodies or organisations 98 42A. What is a relevant body 99 42B. Application for a beneficial body determination 100 42C. Beneficial body determination 101 42. Tax payable when employer leaves Australia 103 43. Agents and trustees 103 44. Keeping books and accounts 105 45. Regulations 105 46. Transitional provisions 107 Schedule 1 — Transitional provisions Division 1 — Provisions for the Pay‑roll Tax Assessment Amendment Act 2010 in relation to taxable wages 1. Liability to tax for assessment years commencing on 1 July 2009 and 1 July 2010 108 2. Shares and options granted on or after 1 July 2009 and before Pay‑roll Tax Assessment Amendment Act 2010 received Royal Assent 108 3. Notices under Pay‑roll Tax Assessment Regulations 2003 r. 26(1) or (2) 109 Division 2 — Provisions for the Pay‑roll Tax Assessment Amendment Act 2010 in relation to grouping of employers 4. Exclusion from group in force before 1 July 2012 109 5. Exclusion from group granted on or after 1 July 2012 109 6. Exclusion from group having effect before 1 July 2012 110 Division 3 — Provisions consequent on enactment of Revenue Laws Amendment Act 2012 Part 5 Division 2 7. Assessment and payment of pay‑roll tax in relation to employee shares and options 110 8. Determination of vesting day and value of employee shares and options 110 9. Shares and options granted on or after 1 July 2011 and before Revenue Laws Amendment Act 2012 received Royal Assent 111 Division 4 — Provisions for the Taxation Legislation Amendment Act (No. 2) 2015 10. Terms used 112 11. Exemptions currently held by relevant bodies may be revoked 112 12. Exemptions for periods before the commencement of the Taxation Legislation Amendment Act (No. 2) 2015 Part 4 113 13. A body or organisation given an exemption under clause 12 may apply for a beneficial body determination 114 Division 5 — Provisions for the Taxation Legislation Amendment Act (No. 3) 2015 Part 4 14. Changes relating to tax thresholds do not apply to assessment years commencing before 1 July 2015 115 Division 6 — Provisions for the Pay‑roll Tax Assessment Amendment (Exemption for Trainees) Act 2018 15. Term used: commencement day 115 17. Reassessment 115 Division 7 — Provisions for the Pay‑roll Tax Assessment Amendment Act 2019 18. Terms used 116 19. Application of amendments made by Pay‑roll Tax Assessment Amendment Act 2019 116 20. Exemption for wages paid or payable: training contracts lodged for registration before 1 December 2017 116 21. Exemption for wages paid or payable: training contracts lodged for registration between 1 December 2017 and 30 June 2019 117 Division 8 — Provisions for Pay‑roll Tax Assessment Amendment (Thresholds) Act 2020 22. Amendments apply to financial years beginning on or after 1 July 2019 118 Glossary 1. M, MC Terms used 119 Notes Compilation table 128 Other notes 130 Defined terms Western Australia Pay‑roll Tax Assessment Act 2002 An Act relating to the assessment and collection of tax on wages paid by employers. Part 1 — Preliminary 1. Short title This Act may be cited as the Pay‑roll Tax Assessment Act 2002. 2. Commencement This Act comes into operation on the day on which the Taxation Administration Act 2003 comes into operation. 3. Relationship with other Acts The Taxation Administration Act 2003 and the Pay‑roll Tax Act 2002 are to be read with this Act as if they formed a single Act. 4. Terms used The Glossaries at the end of this Act and the Taxation Administration Act 2003 respectively define or affect the meaning of some of the words and expressions used in this Act, and also affect the operation of other provisions. [4A.1M Modification, to insert section 4A, to have effect under the Commonwealth Places (Mirror Taxes Administration) Act 1999 s. 7, see Commonwealth Places (Mirror Taxes Administration) Regulations 2007 r. 28 and endnote 1M.] [4A.1MC Modification, to insert section 4A, to have effect under the Commonwealth Places (Mirror Taxes) Act 1998 (Commonwealth) s. 8, see Commonwealth Places (Mirror Taxes) (Modification of Applied Laws (WA)) Notice 2007 cl. 29 and endnote 1MC.] 5A. Notes in text A note included in this Act is explanatory and is not part of this Act. [Section 5A inserted: No. 15 of 2010 s. 4.] Part 2 — Liability and assessment Division 1 — Liability to pay‑roll tax [5B.1M Modification, to insert section 5B, to have effect under the Commonwealth Places (Mirror Taxes Administration) Act 1999 s. 7, see Commonwealth Places (Mirror Taxes Administration) Regulations 2007 r. 29 and endnote 1M.] [5B.1MC Modification, to insert section 5B, to have effect under the Commonwealth Places (Mirror Taxes) Act 1998 (Commonwealth) s. 8, see Commonwealth Places (Mirror Taxes) (Modification of Applied Laws (WA)) Notice 2007 cl. 30 and endnote 1MC.] 5. Pay‑roll tax on WA taxable wages (1) Pay‑roll tax is payable, in accordance with the pay‑roll tax Acts, on wages that are WA taxable wages. (2) WA taxable wages are wages, other than exempt wages, that are taxable in this jurisdiction. [Section 5 amended: No. 15 of 2010 s. 5.] 6A. Wages that are taxable in this jurisdiction (1) Wages are taxable in this jurisdiction if — (a) the wages are paid or payable by an employer for or in relation to services performed by a person wholly in this jurisdiction; or (b) the wages are paid or payable by an employer for or in relation to services performed by a person in 2 or more Australian jurisdictions, or partly in one or more Australian jurisdictions and partly outside all Australian jurisdictions, and — (i) the person is based in this jurisdiction; or (ii) the employer is based in this jurisdiction — in a case where the person is not based in an Australian jurisdiction; or (iii) the wages are paid or payable in this jurisdiction — in a case where both the person and the employer are not based in an Australian jurisdiction; or (iv) the wages are paid or payable for services performed mainly in this jurisdiction — in a case where both the person and employer are not based in an Australian jurisdiction and the wages are not paid or payable in an Australian jurisdiction; or (c) the wages are paid or payable by an employer for or in relation to services performed by a person wholly outside all Australian jurisdictions and are paid or payable in this jurisdiction. Note: Section 41B provides an exemption for wages paid or payable for services performed wholly in one or more other countries for a continuous period of more than 6 months. (2) The question of whether wages are taxable in this jurisdiction is, subject to this section, to be determined by reference only to the services performed by the person in respect of the employer during the month in which the wages are paid or payable. (3) For that purpose, any wages paid or payable by an employer in respect of a person in a particular month are taken to be paid or payable for or in relation to the services performed by the person in respect of the employer during that month. Note: For example, if wages paid in a month are paid to a person for services performed over several months, the question of whether the wages are taxable in this jurisdiction is to be determined by reference only to services performed by the person in the month in which the wages are paid. The services performed in previous months are disregarded for this purpose. (4) If no services are performed by a person in respect of an employer during a month in which wages are paid or payable to or in relation to the person by the employer — (a) the question of whether the wages are taxable in this jurisdiction is to be determined by reference only to the services performed by the person in respect of the employer during the most recent prior month in which the person performed services in respect of the employer; and (b) the wages are taken to be paid or payable for or in relation to the services performed by the person in respect of the employer during that most recent prior month. (5) If no services are performed by a person in respect of an employer during a month in which wages are paid or payable to or in relation to the person by the employer and no services were performed by the person in respect of the employer during any prior month — (a) the wages are taken to be paid or payable for or in relation to services performed by the person during the month in which the wages are paid or payable; and (b) the services are taken to have been performed at a place or places where it may be reasonably expected that the services of the person in respect of the employer will be performed. (6) All amounts of wages paid or payable in the same month by the same employer in respect of the same person are to be aggregated for the purposes of determining whether they are taxable in this jurisdiction. Note: For example, if one amount of wages is paid by an employer in a particular month for services performed in this jurisdiction, and another amount of wages is paid by the same employer in the same month for services performed by the same person in another Australian jurisdiction, the wages paid are to be aggregated as if they were paid for all the services performed by the person in that month. (7) If wages are paid in a different month from the month in which they are payable, the question of whether the wages are taxable in this jurisdiction is to be determined by reference to the earlier of the relevant months. (8) If an amount that is paid or payable to a company is, under section 9GA or 21, taken to be wages paid or payable to another person, subsection (1)(b) has effect as if references to the jurisdiction in which the person who performs the services is based were references to the jurisdiction in which the company is based and, for that purpose, the jurisdiction in which the company is based is to be worked out under section 6C as if the company were an employer. [Section 6A inserted: No. 15 of 2010 s. 6.] 6B. Jurisdiction in which person who performs services is based (1) The jurisdiction in which a person who performs services is based is the jurisdiction in which the person's principal place of residence is located. (2) The jurisdiction in which the person is based is to be determined by reference to the state of affairs existing during the month in which the relevant wages are paid or payable. (3) If more than one jurisdiction would qualify as the jurisdiction in which the person is based during a month, the jurisdiction in which the person is based is to be determined by reference to the state of affairs existing on the last day of that month. (4) If the person does not have a principal place of residence, the person is taken to be a person who is not based in an Australian jurisdiction. [Section 6B inserted: No. 15 of 2010 s. 6.] 6C. Jurisdiction in which employer is based (1) The jurisdiction in which an employer is based is — (a) the jurisdiction in which the employer's registered business address is located — if the employer has an ABN; or (b) the jurisdiction in which the employer's principal place of business is located — in any other case. (2) If wages are paid or payable in connection with a business carried on by an employer under a trust, the employer's registered business address is the registered business address of the trust or, if the trust does not have an ABN, the registered business address of the trustee of the trust. (3) If an employer has registered business addresses located in different jurisdictions at the same point in time, the jurisdiction in which the employer is based at that point in time is the jurisdiction in which the employer's principal place of business is located. (4) The jurisdiction in which an employer is based is to be determined by reference to the state of affairs existing during the month in which the relevant wages are paid or payable. (5) If more than one jurisdiction would qualify as the jurisdiction in which an employer is based during a month, the jurisdiction in which the employer is based is to be determined by reference to the state of affairs existing on the last day of that month. (6) An employer who has neither a registered business address nor a principal place of business is taken to be an employer who is not based in an Australian jurisdiction. [Section 6C inserted: No. 15 of 2010 s. 6.] 6D. Place and date of payment of wages (1) In this section — instrument includes a cheque, bill of exchange, promissory note, money order or a postal order issued by a post office. (2) Wages are taken to have been paid at a place if, for the purpose of the payment of those wages — (a) an instrument is sent or given or an amount is transferred by an employer to a person or a person's agent at that place; or (b) an instruction is given by an employer for the crediting of an amount to the account of a person or a person's agent at that place. (3) The wages are taken to have been paid on the date that the instrument was sent or given, the amount was transferred or the account credited in accordance with the instruction (whichever is relevant). (4) Subject to this section, wages are taken to be payable at the place at which they are paid. (5) Wages that are not paid by the end of the month in which they are payable are taken to be payable at — (a) the place where wages were last paid by the employer for or in relation to services performed by the person; or (b) if wages have not previously been paid by the employer for or in relation to services performed by the person — the place where the person last performed services in respect of the employer before the wages became payable. (6) If wages paid or payable in the same month by the same employer in respect of the same person are paid or payable in more than one Australian jurisdiction, the wages paid or payable in that month are taken to be paid or payable in the Australian jurisdiction in which the highest proportion of the wages are paid or payable. [Section 6D inserted: No. 15 of 2010 s. 6.] 6. Time for payment of pay‑roll tax Pay‑roll tax is due for payment on the last day for lodging the return of the wages on which the pay‑roll tax is payable. 7. Liability to pay‑roll tax (1) An employer who pays or is liable to pay WA taxable wages is liable to pay any pay‑roll tax payable on the wages. (2) Pay‑roll tax payable on wages by a member or members of a group is a debt due jointly and severally by each person who is a member of the group during the period in which the wages become payable. (3) A liability arising under subsection (2) does not affect the liability of an employer under subsection (1). (4) A person who is liable to pay pay‑roll tax is also liable to pay any penalties, interest or other amounts payable under a pay‑roll tax Act in connection with the pay‑roll tax. 7A. Tax thresholds and tapering value: half-years in financial year beginning 1 July 2019 (1) The threshold amount for a half-year in the financial year beginning on 1 July 2019 is as follows — (a) for the half-year beginning on 1 July 2019 — $425 000; (b) for the half-year beginning on 1 January 2020 — $475 000. (2) The monthly threshold amount for a half-year in the financial year beginning on 1 July 2019 is as follows — (a) for the half-year beginning on 1 July 2019 — $70 833; (b) for the half-year beginning on 1 January 2020 — $79 167. (3) The upper threshold amount for a half-year in the financial year beginning on 1 July 2019 is $3 750 000. (4) The tapering value for a half-year in the financial year beginning on 1 July 2019 is to be calculated as follows — where — HT is the threshold amount for the half‑year; UT is the upper threshold amount for the half‑year. Note for this section: Division 6 sets out special provisions for determining liability for pay‑roll tax using the tax thresholds and tapering values that apply to half‑years in the financial year beginning on 1 July 2019. [Section 7A inserted: No. 6 of 2020 s. 4.] 8. Tax thresholds and tapering value: financial years beginning on or after 1 July 2020 (1) The annual threshold amount for a financial year beginning on or after 1 July 2020 is $1 000 000. (2) The monthly threshold amount for a financial year beginning on or after 1 July 2020 is $83 333. (3) The upper threshold amount for a financial year beginning on or after 1 July 2020 is $7 500 000. (4) The tapering value for a financial year beginning on or after 1 July 2020 is to be calculated as follows — where — AT is the annual threshold amount for the year; UT is the upper threshold amount for the year. [Section 8 inserted: No. 6 of 2020 s. 4.] [9. Deleted: No. 40 of 2003 s. 13.] Division 2A — Wages [Heading inserted: No. 15 of 2010 s. 7.] Subdivision 1 — General concept of wages [Heading inserted: No. 15 of 2010 s. 7.] 9AA. Term used: wages (1) In this Act — wages means — (a) wages, remuneration, salary, commission, bonuses or allowances paid or payable to or in relation to an employee; and (b) an amount paid or payable by way of remuneration to a person holding an office under, or in the service of, the Crown in right of the State of Western Australia; and (c) an amount paid or payable under a contract in a class of contract prescribed under section 45(2)(g), to the extent to which that payment is attributable to labour; and (d) an amount paid or payable by a company by way of remuneration to or in relation to a director of that company; and (e) an amount paid or payable by way of commission to an insurance or time‑payment canvasser or collector; and (f) an amount that is taken to be wages paid or payable by an employer to a person by another provision of this Division; and (g) a motor vehicle allowance paid or payable to an employee for a financial year, to the extent to which it exceeds the exempt component determined under section 9FA; and (h) an accommodation allowance paid or payable to an employee in a financial year in respect of a night's absence from the person's usual place of residence, to the extent to which it exceeds the exempt rate determined under section 9FB. (2) Wages, remuneration, salary, commission, bonuses, allowances or other amounts referred to in subsection (1) are wages — (a) whether paid or payable at piece work rates or otherwise; and (b) whether paid or payable in cash or in kind. [Section 9AA inserted: No. 15 of 2010 s. 7.] Subdivision 2 — Fringe benefits and specified taxable benefits [Heading inserted: No. 15 of 2010 s. 7.] 9BA. Wages include fringe benefits and specified taxable benefits (1) The value of a fringe benefit or a specified taxable benefit that is provided by an employer to or in relation to an employee is taken to be wages paid by the employer to the employee unless the benefit is a fringe benefit constituted by the grant of a share or an option that constitutes wages under Subdivision 4. (2) Subsection (1) does not apply to benefits that are exempt benefits for the purposes of the FBTA Act. [Section 9BA inserted: No. 15 of 2010 s. 7; amended: No. 29 of 2012 s. 17.] 9BB. Actual value of fringe benefit (1) The value of a fringe benefit (V) is to be calculated in accordance with the formula — where — FBT rate is the rate of fringe benefits tax, imposed for the purposes of the FBTA Act, that applies when the liability to pay‑roll tax under this Act arises; TV is the taxable value of the benefit as a fringe benefit for the purposes of the FBTA Act. (2) The value of a fringe benefit calculated in accordance with subsection (1) is the actual value of the fringe benefit. [Section 9BB inserted: No. 15 of 2010 s. 7.] 9BC. Basis for including value of fringe benefits in returns (1) If an employer is required to specify in a return WA taxable wages that include the value of fringe benefits provided by the employer, the employer may, instead of including the actual value of the fringe benefits, include a value of the fringe benefits calculated using the estimated value method, if the employer is eligible to do so. (2) An employer must use the same basis upon which to include the value of fringe benefits in returns for all returns for an assessment year unless the Commissioner allows a change during that year under section 9BH(4). [Section 9BC inserted: No. 15 of 2010 s. 7.] 9BD. Eligibility to use estimated value method An employer is eligible to use the estimated value method to calculate the value of fringe benefits provided by the employer in an assessment year if the employer — (a) has provided WA fringe benefits for at least the 15 months ending immediately before the beginning of the assessment year; and (b) lodges monthly returns for the assessment year. [Section 9BD inserted: No. 15 of 2010 s. 7.] 9BE. Returns (other than annual returns) using estimated value method (1) If an employer, other than one who lodges an annual return, uses the estimated value method for an assessment year, the value of the fringe benefits (V) to be included in each return for the year except the last return is to be calculated in accordance with the formula — where — AV is the actual value of the fringe benefits provided by the employer in relation to the FBT year ending on 31 March in the financial year immediately before the assessment year; N is the number of returns in the assessment year. (2) The value of the fringe benefits to be included in the employer's last return for the assessment year is the amount equal to the difference between — (a) the actual value of the WA fringe benefits provided by the employer during the FBT year that ended on 31 March in the assessment year; and (b) the sum of the amounts included in each of the previous returns for the assessment year under subsection (1). [Section 9BE inserted: No. 15 of 2010 s. 7.] 9BF. Annual returns using estimated value method If an employer who lodges an annual return for an assessment year uses the estimated value method for the assessment year, the value of the fringe benefits to be included in the return is the amount equal to the actual value of the WA fringe benefits provided by the employer for the FBT year that ended on 31 March in the assessment year. [Section 9BF inserted: No. 15 of 2010 s. 7.] 9BG. Final returns using estimated value method If an employer who uses the estimated value method lodges a final return for an assessment year, the value of the fringe benefits to be included in the return is the amount equal to the difference between — (a) the sum of — (i) the WA fringe benefits provided by the employer for the FBT year that ended on 31 March in the assessment year; and (ii) the WA fringe benefits provided by the employer for April, May and June in the assessment year (if any); and (b) the sum of — (i) one quarter of the WA fringe benefits provided by the employer for the FBT year that ended in the first financial year for which the employer last chose to make returns using the estimated value method; and (ii) the total of the amounts of WA fringe benefits included in the returns for the assessment year. [Section 9BG inserted: No. 15 of 2010 s. 7.] 9BH. Changing method of valuing fringe benefits (1) An employer may commence using the estimated value method for an assessment year if the employer — (a) is eligible to use the estimated value method; and (b) gives the Commissioner notice of the intention to do so before the day on which the first or only return for the assessment year is required to be lodged by the employer. (2) An employer may cease using the estimated value method for an assessment year if the employer gives the Commissioner notice of the intention to do so before the day on which the first or only return for the assessment year is required to be lodged by the employer. (3) A notice under subsection (1) or (2) must be in a form approved by the Commissioner. (4) On the written application of an employer, the Commissioner may allow the employer to change the basis upon which to include the value of fringe benefits in returns during an assessment year if the Commissioner is satisfied that — (a) there is a compelling reason for making the change; and (b) where relevant — if the change were not made, the amount of pay‑roll tax paid by the employer during the assessment year would be substantially greater than the amount payable for the assessment year on the actual value of the fringe benefits provided by the employer for the assessment year. (5) If an employer ceases using the estimated value method during an assessment year, the value of the fringe benefits to be included in the last return lodged by the employer for the assessment year is the amount equal to the difference between — (a) the sum of — (i) the actual value of the WA fringe benefits provided by the employer for the FBT year ending on 31 March in the assessment year; and (ii) the actual value of the WA fringe benefits provided by the employer in April, May and June of the assessment year (if any); and (b) the sum of — (i) one quarter of the actual value of the WA fringe benefits provided by the employer for the FBT year that ended in the first financial year in which the employer last chose to make returns using the estimated value method; and (ii) the total of the amounts of the WA fringe benefits included in the employer's returns for the assessment year. (6) If an employer commences using the estimated value method during an assessment year, the value of the fringe benefits to be included in the last return lodged by the employer for the assessment year is the amount equal to the difference between — (a) the actual value of the WA fringe benefits provided by the employer for the FBT year ending on 31 March in the assessment year; and (b) the total of the amounts of the WA fringe benefits included in the employer's returns for the assessment year. [Section 9BH inserted: No. 15 of 2010 s. 7.] 9BI. Value of specified taxable benefit The value of a specified taxable benefit is the prescribed value, or the value calculated in the prescribed manner (whichever is relevant). [Section 9BI inserted: No. 15 of 2010 s. 7.] Subdivision 3 — Superannuation contributions [Heading inserted: No. 15 of 2010 s. 7.] 9CA. Terms used For the purposes of this Subdivision — employee includes — (a) any person to whom, because of paragraph (a), (b), (c), (d) or (e) of the definition of wages in section 9AA(1), an amount paid or payable in the circumstances referred to in that paragraph constitutes wages; and (b) a director of a company to whom paragraph (a) does not apply; employer, of a director referred to in the definition of employee paragraph (b), means the company; notional contribution has the meaning given in section 9CD; superannuation contribution has the meaning given in section 9CC. [Section 9CA inserted: No. 15 of 2010 s. 7.] 9CB. Wages include superannuation contributions and other similar amounts (1) The amount of each of the following is taken to be wages paid by the employer to the employee in the return period — (a) a superannuation contribution made by an employer in respect of an employee in a return period of the employer; (b) a notional contribution taken to have been made by an employer in respect of an employee in a return period of the employer; (c) an individual superannuation guarantee shortfall that an employer has for an employee for a return period of the employer. (2) If a notional contribution is taken to have been made by an employer, in respect of an employee, to a superannuation fund in a return period, no contribution made to the fund by the employer, in respect of the employee, in the return period to make provision for the cost referred to in section 9CD(3) is taken to be wages under subsection (1). (3) If — (a) a superannuation contribution that was payable, but not paid, or was required to be credited as a contribution, but was not, by an employer in respect of an employee is taken to be wages paid by the employer to the employee in a return period under subsection (1); and (b) an individual superannuation guarantee shortfall results wholly or in part from the employer's failure to pay or credit the contribution, the amount of the individual superannuation guarantee shortfall is reduced (but not to below zero) by the amount of the superannuation contribution referred to in paragraph (a). (4) Section 6D(5) applies to — (a) a superannuation contribution that is payable but not paid or is or is required to be credited as a contribution; and (b) a notional contribution; and (c) an individual superannuation guarantee shortfall, as if — (d) it referred to contributions rather than wages; and (e) an amount that is or is required to be credited as a contribution, a notional contribution and an individual superannuation guarantee shortfall were contributions payable. (5) For the purposes of subsection (1)(c) — (a) the individual superannuation guarantee shortfall referred to is reduced by any amount of the shortfall arising under the Superannuation Guarantee Act section 19 because of contributions not made in compliance with the choice of fund requirements; and (b) if an employer has an individual superannuation guarantee shortfall for an employee for a quarter (within the meaning given in the Superannuation Guarantee Act section 6), the shortfall is taken to be for the last month of the quarter. [Section 9CB inserted: No. 15 of 2010 s. 7.] 9CC. Superannuation contributions (1) A superannuation contribution is made by an employer in respect of an employee if — (a) a contribution is paid or payable by an employer to or as a superannuation fund in respect of the employee; or (b) an amount, although not paid or payable, is or is required to be credited under a superannuation fund as an employer's contribution in respect of an employee. (2) Subsection (1)(b) applies only in respect of an Australian superannuation fund that does not provide for any defined superannuation benefits in respect of any person. (3) Setting aside any money or anything that is worth money as, or as part of, a superannuation fund is taken to be paying a contribution. (4) Making a contribution of anything that is worth money is taken to be paying a contribution of the amount equal to its value, and its value is to be worked out in accordance with section 9HA as if that section referred to the contribution instead of to wages. [Section 9CC inserted: No. 15 of 2010 s. 7.] 9CD. Notional contributions (1) Notional contributions are taken to have been made by an employer in respect of an employee if — (a) the employee is a member of an Australian superannuation fund; and (b) the fund is a defined benefit fund. (2) For each return period of the employer in which the employee accrues an entitlement to a defined superannuation benefit from the fund, a notional contribution is taken to have been made to the fund in the return period by the employer in respect of the employee. (3) The amount of the notional contribution is the amount that an actuary determines would be sufficient to meet the expected long‑term cost to the employer of that benefit. (4) The regulations may include provisions about how an actuary is to determine an amount under subsection (3). [Section 9CD inserted: No. 15 of 2010 s. 7.] Subdivision 4 — Shares and options [Heading inserted: No. 15 of 2010 s. 7.] 9DA. Wages include shares and options granted to employees (1) For the purposes of this Act — wages include the grant of a share or an option to an employee by an employer in respect of services performed by the employee if the share or option — (a) is an ESS interest within the meaning of the Income Tax Assessment Act 1997 (Commonwealth) section 83A‑10; and (b) is granted to the employee under an employee share scheme within the meaning of that section. Note: A grant of a share or an option to an employee by an employer that is not an ESS interest will be taxable as a fringe benefit under Subdivision 2. (2) A share or an option is granted to a person if — (a) another person transfers the share or option to that person (other than, in the case of a share, by issuing the share to that person); or (b) in the case of a share — another person allots the share to that person; or (c) in the case of an option — another person confers the option on, or otherwise creates the option in, that person; or (d) the person otherwise acquires a legal interest in the share or option from another person; or (e) the person acquires a beneficial interest in the share or option from another person. (3A) To avoid doubt, if an employee acquires a right to be granted a share or an option, or some other material benefit, at the employer's election, the share or option is not granted until the employer elects to grant the share or option. (3) Wages constituted by the value of a share or an option are taken to be paid on the relevant day. (4) The relevant day is the day that the employer elects, in accordance with this Subdivision, to treat as the day on which the wages are paid. (5) To avoid doubt, a share or an option is valuable consideration for the purposes of section 9HC. [Section 9DA inserted: No. 15 of 2010 s. 7; amended: No. 29 of 2012 s. 18.] 9DB. Relevant day: choice of (1) The employer may elect to treat as the relevant day either the day on which the share or option is granted to the employee or the vesting day. (2) The vesting day in respect of a share is the earlier of the following days — (a) the day on which the share vests in the employee (that is, when any conditions applying to the grant of the share have been met and the employee's legal or beneficial interest in the share cannot be rescinded); (b) the day at the end of the period of 7 years from the day on which the share is granted to the employee. (3) The vesting day in respect of an option is the earlier of the following days — (a) the day on which the share to which the option relates is granted to the employee; (b) the day on which the employee exercises a right under the option to have the share the subject of the option transferred to, allotted to or vested in the employee; (c) the day at the end of the period of 7 years from the day on which the option is granted to the employee. [Section 9DB inserted: No. 15 of 2010 s. 7; amended: No. 29 of 2012 s. 19.] 9DC. Relevant day: special cases (1) If — (a) an employer grants a share or an option to an employee; and (b) the value of the share or option is not specified as WA taxable wages in a return in the financial year in which the share or option was granted, the employer is taken to have elected to treat the wages constituted by the value of that share or option as being paid on the vesting day. (2) If — (a) an employer grants a share or an option to an employee; and (b) either — (i) the value of the share or option is nil; or (ii) if the employer were to elect to treat the day on which the share or option was granted as the relevant day — the wages constituted by the value of the share or option would not be liable to pay‑roll tax, the employer is taken to have elected to treat the wages constituted by the value of the share or option as being paid or payable on the day on which the share or option was granted. [Section 9DC inserted: No. 15 of 2010 s. 7; amended: No. 29 of 2012 s. 20.] 9DD. Value of shares and options (1) In this section — Commonwealth income tax provisions means the Income Tax Assessment Act 1997 (Commonwealth) section 83A‑315 and the regulations made for the purposes of that section. Note: See the Income Tax Assessment Regulations 1997 (Commonwealth) Division 83A for the relevant regulations. (2) The value of a share or an option is the value of the share or option (expressed in Australian currency) on the relevant day, less the consideration (if any) paid or given by the employee in respect of the share or option (other than consideration in the form of services performed). (3) The value of a share or an option is — (a) the market value; or (b) the amount determined as provided for by the Commonwealth income tax provisions. (4) The employer may elect the method by which the value of a share or an option is determined in any return lodged under this Act. (5) However, the Commissioner may determine the method by which the value of a share or an option is determined if the grant of the share or option is not included as wages in a return lodged by an employer as required by this Act. (6) In determining the market value of a share or an option, anything that would prevent or restrict conversion of the share or option to money is to be disregarded. (7) The Commonwealth income tax provisions apply with the following modifications, and any other necessary modifications — (a) the value of an option is to be determined as if it were a right to acquire a beneficial interest in a share; (b) a reference to the acquisition of a beneficial interest in a share or right is to be read as a reference to the grant of a share or an option. [Section 9DD inserted: No. 15 of 2010 s. 7; amended: No. 29 of 2012 s. 21.] 9DE. Effect of rescission, cancellation etc. of share or option (1) If an employer grants a share or an option to an employee and the grant of the share or option is withdrawn, cancelled or exchanged before the vesting day for any valuable consideration (other than the grant of other shares or options) — (a) the day of withdrawal, cancellation or exchange is taken to be the relevant day in relation to the share or option; and (b) the market value of the share or option, on the relevant day, is taken to be the amount of the valuable consideration. (2) If — (a) an employer grants a share or an option to an employee; and (b) the value of the share or option is specified as WA taxable wages in a return; and (c) the grant is rescinded because the conditions attaching to the grant were not met, the WA taxable wages of the employer, in the return period in which the grant is rescinded, are to be reduced by the value of the share or option as specified in the earlier return. (3) Subsection (2) does not apply just because an employee fails to exercise an option or to otherwise exercise his or her rights in respect of a share or an option. [Section 9DE inserted: No. 15 of 2010 s. 7; amended: No. 29 of 2012 s. 22.] 9DF. Grant of share under exercise of option The grant of a share by an employer does not constitute wages for the purposes of this Act if — (a) the employer is required to grant the share as a consequence of the exercise of an option by a person; and (b) the grant of the option to the person constitutes wages for the purposes of this Act. [Section 9DF inserted: No. 29 of 2012 s. 23.] 9DG. Wages include certain shares and options granted to directors (1) For the purposes of this Act — wages include the grant of a share or an option by a company to a director of the company who is not an employee of the company by way of remuneration for the appointment or services of the director. (2) For that purpose, the other provisions of this Subdivision apply in respect of any such grant as if a reference to the employer were a reference to the company and a reference to the employee were a reference to the director of the company. (3) In this section, a reference to a director of the company includes a reference to the following — (a) a person who, under a contract or other arrangement, is to be appointed as a director of the company; (b) a former director of the company. (4) However, if wages referred to in this section are fringe benefits, the value of the wages is to be determined in accordance with Subdivision 2 and not this Subdivision. [Section 9DG inserted: No. 15 of 2010 s. 7; amended: No. 29 of 2012 s. 24.] 9DH. Place where wages (as shares or options) are payable (1) In this section — local company means — (a) a company incorporated or taken to be incorporated under the Corporations Act that is taken to be registered in Western Australia for the purposes of that Act; or (b) any other body corporate that is incorporated under a written law. (2) Wages constituted by the value of a share or an option are taken to be paid in Western Australia if the share is a share in a local company or, in the case of an option, an option to acquire shares in a local company. (3) In any other case, wages constituted by the value of a share or an option are taken to be paid outside Western Australia. [Section 9DH inserted: No. 15 of 2010 s. 7.] Subdivision 5 — Termination payments [Heading inserted: No. 15 of 2010 s. 7.] 9EA. Wages include termination payments (1) The amount of a termination payment is taken to be wages paid or payable by the employer to the employee, or by the company (as an employer) to the director. (2) For the purposes of subsection (1) — employment termination payment means — (a) an employment termination payment within the meaning of section 82‑130 of the ITA Act; or (b) a payment that would be an employment termination payment within the meaning of section 82‑130 of the ITA Act but for the fact that it was received later than 12 months after the termination of a person's employment; or (c) a transitional termination payment within the meaning of section 82‑10 of the Income Tax (Transitional Provisions) Act 1997 (Commonwealth); termination payment means — (a) a payment made in consequence of the retirement from, or termination of, any office or employment of an employee, being — (i) an unused annual leave payment; or (ii) an unused long service leave payment; or (iii) so much of an employment termination payment paid or payable by an employer, whether or not paid to the employee or to any other person or body, that would be included in the assessable income of an employee under Part 2‑40 of the ITA Act if the whole of the employment termination payment had been paid to the employee; or (b) an amount paid or payable by a company as a consequence of the termination of the services or office of a director of the company, whether or not paid to the director or to any other person or body, that would be an employment termination payment if that amount had been paid or payable as a consequence of termination of employment; unused annual leave payment has the meaning given in section 83‑10 of the ITA Act; unused long service leave payment has the meaning given in section 83‑75 of the ITA Act. [Section 9EA inserted: No. 15 of 2010 s. 7.] Subdivision 6 — Allowances [Heading inserted: No. 15 of 2010 s. 7.] 9FA. Motor vehicle allowances (1) For the purposes of section 9AA(1)(g), the exempt component (E) of a motor vehicle allowance paid or payable in respect of a financial year is calculated in accordance with the formula — where — K is the number of business kilometres travelled during the financial year under subsection (2); R is the exempt rate under subsection (3). (2) The number of business kilometres travelled during the financial year is to be determined — (a) if paragraph (b) does not apply to the employer — in accordance with the applicable recording method in the regulations; or (b) if the Commissioner has, by order in writing, approved the use, by an employer or class of employer, of another method (including the use of an estimate) of determining the number of business kilometres travelled during the financial year — in accordance with the method approved by the Commissioner. (3) The exempt rate for the financial year concerned is — (a) the rate determined by the Commissioner of Taxation of the Commonwealth under the ITA Act section 28‑25(4) as the rate of cents per kilometre for cars for the income year corresponding to the financial year immediately preceding the financial year in which the allowance is paid or payable; or (b) if no determination referred to in paragraph (a) is in force — the rate prescribed in the regulations. [Section 9FA inserted: No. 15 of 2010 s. 7; amended: No. 12 of 2019 s. 145.] 9FB. Accommodation allowances For the purposes of section 9AA(1)(h), the exempt rate for the financial year concerned is — (a) the total reasonable amount for daily travel allowance expenses using the lowest capital city for the lowest salary band for the financial year determined by the Commissioner of Taxation of the Commonwealth; or (b) if no determination referred to in paragraph (a) is in force — the rate prescribed in the regulations. [Section 9FB inserted: No. 15 of 2010 s. 7.] Subdivision 7 — Employment agents [Heading inserted: No. 15 of 2010 s. 7.] 9GA. Wages include amounts paid by employment agents An amount in respect of services that is paid or payable by an employment agent (directly or indirectly) to a person who was engaged to perform the services for a client of the employment agent, or to some other person, as a result of which engagement the employment agent receives payment (directly or indirectly, whether by way of a lump sum or an ongoing fee) in relation to the period during which the services are performed for the client by the person engaged to perform them is taken to be wages paid or payable by the agent (as an employer) to the person for or in relation to the services performed by the person. [Section 9GA inserted: No. 15 of 2010 s. 7.] Subdivision 8 — Miscellaneous provisions [Heading inserted: No. 15 of 2010 s. 7.] 9HA. Value of wages paid in kind The value of wages (except fringe benefits or specified taxable benefits) that are paid or payable in kind is the greater of — (a) the value agreed or the value attributed to the wages in, or the value ascertainable for the wages from, arrangements between the employer and the employee, whichever is the greater of the 3 amounts; and (b) if the regulations prescribe how the value of wages of that type is to be determined — the value determined in accordance with the regulations. [Section 9HA inserted: No. 15 of 2010 s. 7.] 9HB. GST excluded from wages (1) If wages paid or payable to a person relate to a supply on which the person is liable to pay GST, the amount or value of the wages is reduced by the amount of GST payable by the person in respect of the services to which the wages relate. (2) Subsection (1) does not apply in respect of the value of wages comprising a fringe benefit. [Section 9HB inserted: No. 15 of 2010 s. 7.] 9HC. Wages paid by or to third parties (1) If any of the following amounts of money or other valuable consideration would, if paid or given directly by an employer to an employee, be or be taken to be wages paid or payable by the employer to the employee for the purposes of this Act, they are taken to be wages paid or payable by the employer to the employee — (a) any money or other valuable consideration paid or given, or to be paid or given, to an employee, for the employee's services as an employee of an employer, by a person other than the employer; (b) any money or other valuable consideration paid or given, or to be paid or given, by an employer, for an employee's services as the employee of the employer, to a person other than the employee; (c) any money or other valuable consideration paid or given, or to be paid or given, by a person other than an employer, for an employee's services as an employee of the employer, to a person other than the employee. (2) If any of the following amounts of money or other valuable consideration would, if paid or given directly by a company to a director of the company, be or be taken to be wages paid or payable by the company to the director for the purposes of this Act, they are taken to be wages paid or payable by the company to the director — (a) any money or other valuable consideration paid or given, or to be paid or given, to a director of a company, by way of remuneration for the appointment or services of the director to the company, by a person other than the company; (b) any money or other valuable consideration paid or given, or to be paid or given, by a company, by way of remuneration for the appointment or services of the director to the company, to a person other than the director; (c) any money or other valuable consideration paid or given, or to be paid or given, by any person, by way of remuneration for the appointment or services of a director to the company, to a person other than the director. (3) In this section, a reference to a director of a company includes a reference to — (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. [Section 9HC inserted: No. 15 of 2010 s. 7.] Division 2 — Non‑group employers' liability 10. Annual tax liability: local non‑group employers (1) If an employer is a local non‑group employer for the whole of an assessment year, the amount of pay‑roll tax payable by the employer for the year is — (a) if the total amount of WA taxable wages paid or payable by the employer during the year is less than or equal to the annual threshold amount for the year — nil; (b) if the total amount of WA taxable wages paid or payable by the employer during the year is equal to or greater than the upper threshold amount for the year — the amount calculated by applying the pay‑roll tax rate to the total amount of WA taxable wages paid or payable by the employer during the year; (c) otherwise — the amount calculated by applying the pay‑roll tax rate to the amount equal to the difference between — (i) the total amount of WA taxable wages paid or payable by the employer during the year; and (ii) the deductable amount for the employer for the year calculated in accordance with subsection (2). (2) For the purposes of subsection (1)(c)(ii), the deductable amount for the employer for the year is to be calculated as follows — where — AT is the annual threshold amount for the year; TV is the tapering value for the year; W is the total amount of WA taxable wages paid or payable by the employer during the year. (3) If an employer is a local non‑group employer for only part of an assessment year (the part‑year), the amount of pay‑roll tax payable by the employer for the part‑year is — (a) if the total amount of WA taxable wages paid or payable by the employer during the part‑year is less than or equal to the apportioned annual threshold amount for the part‑year — nil; (b) if the total amount of WA taxable wages paid or payable by the employer during the part‑year is equal to or greater than the apportioned upper threshold amount for the part‑year — the amount calculated by applying the pay‑roll tax rate to the total amount of WA taxable wages paid or payable by the employer during the part‑year; (c) otherwise — the amount calculated by applying the pay‑roll tax rate to the amount equal to the difference between — (i) the total amount of WA taxable wages paid or payable by the employer during the part‑year; and (ii) the deductable amount for the employer for the part‑year calculated in accordance with subsection (4). (4) For the purposes of subsection (3)(c)(ii), the deductable amount for the employer for the part‑year is to be calculated as follows — where — AAT is the apportioned annual threshold amount for the part‑year; TV is the tapering value for the year; W is the total amount of WA taxable wages paid or payable by the employer during the part‑year. (5) The apportioned annual threshold amount for part of an assessment year is calculated in accordance with section 11A(1). (6) The apportioned upper threshold amount for part of an assessment year is calculated in accordance with section 11A(2). [Section 10 inserted: No. 15 of 2015 s. 14; amended: No. 6 of 2020 s. 9.] 11A. Apportioned threshold amounts for s. 10: local non‑group employers (1) For the purposes of section 10, the apportioned annual threshold amount for part of an assessment year is to be calculated as follows — where — AT is the annual threshold amount for the year; P is the number of days in that part of the year; Y is the number of days in the year. (2) For the purposes of section 10(3), the apportioned upper threshold amount for part of an assessment year is to be calculated as follows — where — UT is the upper threshold amount for the year; P is the number of days in that part of the year; Y is the number of days in the year. [Section 11A inserted: No. 15 of 2015 s. 14; amended: No. 6 of 2020 s. 9.] 11. Tax payable with returns: local non‑group employer (1) The amount of pay‑roll tax payable by a local non‑group employer for a progressive return period or for part of a progressive return period in an assessment year (the period or part‑period) is — (a) if the total amount of WA taxable wages paid or payable by the employer during the period or part‑period is less than or equal to the apportioned threshold amount for the period or part‑period — nil; (b) if the total amount of WA taxable wages paid or payable by the employer during the period or part‑period is equal to or greater than the apportioned upper threshold amount for the period or part‑period — the amount calculated by applying the pay‑roll tax rate to the total amount of WA taxable wages paid or payable by the employer during the period or part‑period; (c) otherwise — the amount calculated by applying the pay‑roll tax rate to the amount equal to the difference between — (i) the total amount of WA taxable wages paid or payable by the employer during the period or part‑period; and (ii) the deductable amount for the employer for the period or part‑period calculated in accordance with subsection (2). (2) For the purposes of subsection (1)(c)(ii), the deductable amount for the employer for the period or part‑period is to be calculated as follows — where — AT is the apportioned threshold amount for the period or part‑period; TV is the tapering value for the year; W is the total amount of WA taxable wages paid or payable by the employer during the period or part‑period. (3) The apportioned threshold amount for a progressive return period or part of a progressive return period is calculated in accordance with section 12(1). (4) The apportioned upper threshold amount for a progressive return period or part of a progressive return period is calculated in accordance with section 12(2). [Section 11 inserted: No. 15 of 2015 s. 14.] 12. Apportioned threshold amounts for s. 11: local non‑group employers (1) For the purposes of section 11, the apportioned threshold amount for a progressive return period or part of a progressive return period is to be calculated as follows — where — N is the number of months in the progressive return period; MT is the monthly threshold amount for the year; D is the number of days in the progressive return period, or part of the progressive return period, during which WA taxable wages were paid or payable by the employer; P is the number of days in the progressive return period. (2) For the purposes of section 11, the apportioned upper threshold amount for a progressive return period or part of a progressive return period is to be calculated as follows — where — N is the number of months in the progressive return period; UT is the upper threshold amount for the year; D is the number of days in the progressive return period, or part of the progressive return period, during which WA taxable wages were paid or payable by the employer; P is the number of days in the progressive return period. [Section 12 inserted: No. 15 of 2015 s. 14; amended: No. 6 of 2020 s. 9.] 13. Annual tax liability: interstate non‑group employers [(1) deleted] (2) If an employer is an interstate non‑group employer for the whole of an assessment year, the amount of pay‑roll tax payable by the employer for the year is — (a) if the total amount of Australian taxable wages paid or payable by the employer during the year is less than or equal to the annual threshold amount for the year — nil; (b) if the total amount of Australian taxable wages paid or payable by the employer during the year is equal to or greater than the upper threshold amount for the year — the amount calculated by applying the pay‑roll tax rate to the total amount of WA taxable wages paid or payable by the employer during the year; (c) otherwise — the amount calculated by applying the pay‑roll tax rate to the amount equal to the difference between — (i) the total amount of WA taxable wages paid or payable by the employer during the year; and (ii) the deductable amount for the employer for the year calculated in accordance with subsection (3). (3) For the purposes of subsection (2)(c)(ii), the deductable amount for the employer for the year is to be calculated as follows — where — AT is the annual threshold amount for the year; TW is the total amount of Australian taxable wages paid or payable by the employer during the year; TV is the tapering value for the year; W is the total amount of WA taxable wages paid or payable by the employer during the year. (4) If an employer is an interstate non‑group employer for only part of an assessment year (the part‑year), the amount of pay‑roll tax payable by the employer for the part‑year is — (a) if the total amount of Australian taxable wages paid or payable by the employer during the part‑year is less than or equal to the apportioned annual threshold amount for the part‑year — nil; (b) if the total amount of Australian taxable wages paid or payable by the employer during the part‑year is equal to or greater than the apportioned upper threshold amount for the part‑year — the amount calculated by applying the pay‑roll tax rate to the total amount of WA taxable wages paid or payable by the employer during the part‑year; (c) otherwise — the amount calculated by applying the pay‑roll tax rate to the amount equal to the difference between — (i) the total amount of WA taxable wages paid or payable by the employer during the part‑year; and (ii) the deductable amount for the employer for the part‑year calculated in accordance with subsection (5). (5) For the purposes of subsection (4)(c)(ii), the deductable amount for the employer for the part‑year is to be calculated as follows — where — AAT is the apportioned annual threshold amount for the part‑year; TW is the total amount of Australian taxable wages paid or payable by the employer during the part‑year; TV is the tapering value for the year; W is the total amount of WA taxable wages paid or payable by the employer during the part‑year. (6) The apportioned annual threshold amount for part of an assessment year is calculated in accordance with section 14(1). (7) The apportioned upper threshold amount for part of an assessment year is calculated in accordance with section 14(2). [Section 13 inserted: No. 15 of 2015 s. 14; amended: No. 20 of 2017 s. 4; No. 6 of 2020 s. 9.] 14. Apportioned threshold amounts for s. 13: interstate non‑group employers (1) For the purposes of section 13, the apportioned annual threshold amount for part of an assessment year is to be calculated as follows — where — AT is the annual threshold amount for the year; P is the number of days in that part of the year; Y is the number of days in the year. (2) For the purposes of section 13, the apportioned upper threshold amount for part of an assessment year is to be calculated as follows — where — UT is the upper threshold