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INCOME TAX ASSESSMENT ACT 1936 (ARCHIVE)

PART VI - COLLECTION AND RECOVERY OF TAX  

Division 2 - Collection by instalments of tax on persons other than companies  

SECTION 221F  GROUP EMPLOYERS, GROUP CERTIFICATES ETC.  

221F(1)  [Employer with one or more employees]  


An employer of one or more employees who, at the start of the 28th day after the day on which Schedule 2 to the Taxation Laws Amendment Act (No. 3) 1995 commences, is not already registered as a group employer must, within a further 14 days after that 28th day, apply to the Commissioner, in a form authorised by the Commissioner, for registration as a group employer.

[ CCH Note: Sch 2 to Taxation Laws Amendment Act (No 3) 1995 commenced on 16 December 1995.]

221F(2)  [Registration by employer commencing business]  


An employer who is not already registered as a group employer and who commences to carry on a business or becomes an employer and who, in consequence thereof, has in his or her employment one or more employees shall, within 7 days after commencing to carry on the business or after becoming an employer, as the case may be, apply to the Commissioner, in a form authorized by the Commissioner, for registration as a group employer.

221F(2A)  [Person making one or more eligible termination payments]  


A person who, during any period of 12 months, has made one or more eligible termination payments shall, unless he or she is already registered as a group employer, apply to the Commissioner, not later than 14 days after the expiration of that period, in a form authorized by the Commissioner, for registration as a group employer.

221F(3)  [Employers not required to register]  


The Commissioner may register as a group employer any employer, or any person acting on behalf of 2 or more employers, whether or not he or she is required by this section to apply for registration as a group employer, and may at any time cancel the registration of a group employer, and shall notify the group employer in writing that he or she has been so registered, or that his or her registration has been cancelled, as the case may be.

221F(4)  [Change in number of employees]  


An employer registered as a group employer shall, notwithstanding any change in the number of his or her employees, remain registered as a group employer until notified by the Commissioner that his or her registration has been cancelled.

221F(5)  

(Repealed by No 47 of 1998)

221F(5A)  [Annual group certificates]  


Subject to subsection (5E), an employer must, not later than 14 July in each year, complete a group certificate form in respect of each employee and give the employee 2 copies of the completed form.

221F(5B)  [Salary or wages during 12 month period in group certificate]  


In completing the form, the employer must set out (in addition to any other matter required by the form):


(a) if the employee has, for the purposes of Part VA , quoted his or her tax file number in an employment declaration given to the employer - the tax file number; and


(b) the total salary or wages paid by the employer to the employee during the period of 12 months that ended on 30 June in the same year (other than amounts set out in a previous group certificate); and


(c) if deductions from the salary or wages of the employee have been made by the employer during that period - the total of the deductions (other than amounts set out in a previous group certificate); and


(d) the reportable fringe benefits amount (if any) for the year of income ending on 30 June in the same year in respect of the employment of the employee by the employer, reduced by so much of the amount (if any) as was set out in a previous group certificate.

221F(5C)  [Certificate supplied where employee leaves employment]  


Subject to subsections (5E) and (5H), if, during a particular period of 12 months ending on 30 June, an employee ceases to be employed by an employer, the employer must complete a group certificate form in respect of the employee and give the employee 2 copies of the completed form no later than the day specified in whichever of subsection (5CA) or (5CB) is applicable.

Note:

Under subsection (5GA), the employer must also complete another group certificate form if the employee:

· ceased to be employed on or after 1 April in the period of the 12 months; and
· has a reportable fringe benefits amount from the employer for the year ofincome starting immediately after the end of the period of 12 months.

221F(5CA)  [Written request for certificate]  


If an employee requests his or her employer in writing to provide a group certificate after the employee:


(a) ceases to be employed; or


(b) has been notified that his or her employment will cease; or


(c) notifies his or her employer that he or she will be ceasing to be employed by the employer;

the day is the later of:


(d) the 14th day after the day on which the employee ceases to be an employee; and


(e) the 14th day after the day on which the employer receives the request.

221F(5CAA)  [Exception]  


Subsection (5CA) does not apply if a reportable fringe benefits amount must be set out in the form for the group certificate under paragraph (5D)(d). This subsection does not limit the circumstances in which subsection (5CA) does not apply.

221F(5CB)  [No request from employee]  


If subsection (5CA) does not apply, the day is the first 14 July to occur after the period of 12 months referred to in subsection (5C).

221F(5D)  [Total salary or wages in group certificate]  


In completing the form, the employer must set out (in addition to any other matter required by the form):


(a) if the employee has, for the purposes of Part VA , quoted his or her tax file number in an employment declaration given to the employer - the tax file number; and


(b) the total salary or wages paid by the employer to the employee (other than amounts set out in a previous group certificate); and


(c) if deductions from the salary or wages of the employee have been made by the employer - the total of the deductions (other than amounts set out in a previous group certificate and amounts deducted from eligible termination payments); and


(d) the reportable fringe benefits amount (if any) for the year of income ending on the 30 June mentioned in subsection (5C) in respect of the employment of the employee by the employer, reduced by so much of the amount (if any) as was set out in a previous group certificate.

221F(5E)  [Group certificate not required]  


Subsection (5A) or (5C) does not apply if all of the following conditions are met:


(a) all of the salary or wages that the employee received, or was entitled to receive, for the period were atypical (see subsection (5F));


(b) the salary or wages that the employee received, or was entitled to receive, in respect of any week or part of a week within the period of 12 months did not exceed the minimum amount of atypical salary or wages in respect of which the employer was required to make deductions;


(c) at no time in the period of 12 months was the employee a prescribed non-resident;


(d) the employee does not have a reportable fringe benefits amount in respect of the employee's employment by the employer for the year of income ending on the 30 June on which the period of 12 months ended.

221F(5F)  [Atypical salary or wages]  


For the purposes of subsection (5E), the salary or wages are atypical if they do not relate to employment in, or in connection with, a trade, business, profession or undertaking carried on by the employer.

221F(5G)  [Where tax file number deemed quoted]  


If:


(a) an employer is required to state an employee's tax file number when completing a group certificate form; and


(b) the employee has not quoted his or her tax file number in an employment declaration given to the employer; and


(c) because of the application of subsection 202CB(2) or (4) , the employee is to be taken, for the purposes of Part VA , to have quoted his or her tax file number;

the employer is taken to have stated the number in the group certificate form if, in the space provided on the form for the inclusion of the number, the employer includes, as the case requires:


(d) the notation approved by the Commissioner as being appropriate in cases to which subsection 202CB(2) applies; or


(e) the notation approved by the Commissioner as being appropriate in cases to which subsection 202CB(4) applies.

221F(5GA)  [Where employment ceases after 31 March]  


Subject to subsection (5H), an employer must complete a group certificate form in respect of an employee of the employer, if the employee:


(a) ceased to be employed by the employer at any time after the start of 1 April and before the end of 30 June in a single year of income; and


(b) has a reportable fringe benefits amount for the next year of income in respect of the employee's employment by the employer.

221F(5GB)  [Matters included on form]  


In completing the form, the employer must set out (in addition to any other matter required by the form):


(a) if the employee has, for the purposes of Part VA , quoted his or her tax file number in an employment declaration given to the employer - the tax file number; and


(b) the reportable fringe benefits amount mentioned in paragraph (5GA)(b), reduced by so much of the amount (if any) as was set out in a previous group certificate.

221F(5GC)  [Giving copies of form to employee]  


The employer must give the employee 2 copies of the form completed under subsection (5GA) no later than 14 July in the calendar year after the calendar year in which the employee ceased to be employed by the employer.

Note:

For employees described in subsection (5GA), the maximum time between the employee ceasing to be employed by the employer and the employer giving the employee copies of the group certificate will be no longer than 15 months and 2 weeks.

221F(5GD)  [Additional requirement]  


To avoid doubt, the requirement in subsection (5GA) for the employer to complete the form in respect of the employee is in addition to any requirement under subsection (5C) for the employer to complete a group certificate form in respect of the employee.

221F(5H)  [Group certificate after eligible termination payment]  


An employer must, within 14 days after making an eligible termination payment to an employee, complete a group certificate form in respect of the employee and give 2 copies of the completed form to the employee.

221F(5I)  [Amount of eligible termination payment in group certificate]  


In completing the form, the employer must set out (in addition to any other matter required by the form):


(a) if the employee has, in accordance with the regulations, quoted his or her tax file number in an employment declaration given to the employer in relation to that eligible termination payment - the tax file number; and


(b) the amount of the eligible termination payment paid by the employer to the employee; and


(c) if a deduction from the eligible termination payment has been made by the employer as a group employer - the amount of the deduction.

221F(5J)  [Completed forms to be sent to Commissioner]  


An employer must, not later than 14 August in each year, send to the Commissioner:


(a) each group certificate completed by the employer in respect of salary or wages paid by the employer to any employee during the period of 12 months that ended on 30 June in that year; and


(aa) each group certificate completed by the employer and setting out all or part of a reportable fringe benefits amount for the year of income ending on 30 June in that year in respect of the employment of an employee by the employer; and


(b) a statement in a form authorised by the Commissioner, signed by the employer, reconciling the total deductions shown in each of the group certificates with the total amounts paid to the Commissioner in respect of those deductions.

221F(6)  [Liability to late reconciliation statement penalty]  


An employer who fails to give the Commissioner a statement under paragraph (5J)(b), on or before the day on which it must be given to the Commissioner, is liable to pay the late reconciliation statement penalty.

Note 1:

The late reconciliation statement penalty is worked out under Division 3 of Part IIA of the Taxation Administration Act 1953 .

Note 2:

Subsection (15) provides an alternative liability for failing to give the statement to the Commissioner.

221F(7)  [Variation of requirements]  


The Commissioner may, by notice in writing served on a group employer, vary, in relation to that group employer, in such instances and to such extent as he or she thinks fit, any of the requirements of subsections (5A) to (5D), (5GA) to (5GC) and (5H) to (5J).

221F(8)  

(Omitted by No 170 of 1995)

221F(9)  

(Omitted by No 170 of 1995)

221F(10)  

(Omitted by No 170 of 1995)

221F(10A)  

(Omitted by No 123 of 1984)

221F(11)  

(Omitted by No 170 of 1995)

221F(12)  

(Repealed by No 47 of 1998)

221F(12A)  

(Repealed by No 47 of 1998)

221F(12B)  

(Repealed by No 47 of 1998)

221F(13)  [Offence - subsec (1), (2), (2A)]  


A person who contravenes subsection (1), (2) or (2A) is, in respect of each day on which the person contravenes the subsection (including the day of a conviction of an offence against this subsection or any subsequent day), guilty of an offence punishable on conviction by a fine not exceeding 1 penalty unit.

221F(14)  

(Repealed by No 47 of 1998)

221F(15)  [Offence - subsec (5A)-(5D), (5GA)-(5GC) and (5H)-(5J)]  


A person shall not contravene any of subsections (5A) to (5D), (5GA) to (5GC) and (5H) to (5J) (including any of those subsections as varied by subsection (7)).

Penalty: $2,000.

Note:

Subsection (6) provides an alternative liability for contravening paragraph (5J)(b).

221F(16)  [Application to employee]  


This section applies in relation to a person who is an employee within the meaning of the Fringe Benefits Tax Assessment Act 1986 as if the person were an employee for the purposes of this Division.

Note:

Current, former and future employees are all employees within the meaning of the Fringe Benefits Tax Assessment Act 1986 . A person is an employee under that Act if benefits are provided in respect of the person's employment (even if the person does not actually receive salary or wages): see section 137 of that Act.

221F(17)  [Application to employer entity]  


This section applies in relation to an entity that is an employer for the purposes of the Fringe Benefits Tax Assessment Act 1986 (as it applies of its own force or because of the Fringe Benefits Tax (Application to the Commonwealth) Act 1986 ) as if the entity were an employer for the purposes of this Division.

Note:

Current, former and future employers are all employers within the meaning of the Fringe Benefits Tax Assessment Act 1986 . A person is an employer under that Act if benefits are provided in respect of the person's employment of someone else (even if the person pays no salary or wages): see section 137 of that Act.


 



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