State taxes Payroll tax Land tax

Alienation of income and taxable wages

Source: The Tax Specialist Journal Article

Published Date: 1 Aug 2018


Payroll tax is a state or territory tax. However, notwithstanding harmonisation, each jurisdiction does not operate from a common Act. States and territories typically tax wages, as defined in each jurisdiction. The definition of wages is defined broadly, including wages, remuneration, salary, commission, bonuses or allowances paid to an employee. This article examines common arrangements that are used for income tax purposes and questions if they are effective for payroll tax purposes. The article also looks at the ordinary meaning of wages for payroll tax purposes; what deeming provisions may apply to tax wages that may not otherwise be captured under the ordinary meaning of wages; and the treatment that may be afforded to payments in relation to directors, payments for image rights and distributions of profits in trusts, partnerships and incorporated entities.

Author Profile
Paul Hockridge CTA

Author Profile
Alec Pettigrew

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State taxes Payroll tax Land tax Income tax 2018

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