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Inside this issue: Previous relationships and the first home owner grant
1
Current relationships and their effect on the first home owner grant
3
Proof of identity documentation
4
Upcoming free seminars
5
Break-up of a marriage or de facto relationship and dutiable transactions
6
Transfer of dutiable property under agency relationships
8
Changes to your details and your land tax assessment
9
Parental leave exemption from payroll tax
10
Payroll tax and the paid parental leave scheme
11
Directors’ fees and superannuation
11
Top 20 FHOG suburbs
12
Previous relationships and the first home owner grant
If a person is purchasing their first residential property, and is
applying for the first home owner grant (FHOG) and/or the first
home owner rate of duty, their previous relationships will have
an effect on their FHOG application.
In the event that they have separated from their spouse, they
may remain eligible for the FHOG despite their previous
relationship otherwise rendering them ineligible.
If they are separated, they will need to provide enough
evidence to satisfy the Commissioner that they are living
separate from their spouse and have no intention of living
together again as a couple.
(continued page 2)
Providing the latest information available from the Office of State Revenue February 2016
2 | eNews FEBRUARY 2016 Office of State Revenue
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Applications to disregard a marriage or de
facto relationship must be made at the time of
making an application for the FHOG. The
application must be in the form of a statutory
declaration, made by the applicant,
addressing the matters referred to below:
the full name of the spouse
the spouse’s date of birth
the date they were married or entered into
the relationship
the date they separated or ended the
relationship
the spouse’s current address (if known)
a statement to the effect that they do not
live together as a couple and have no
intention of resuming living together as a
couple.
Applications should be accompanied by any
documentation that would assist in
ascertaining that:
the marriage or de facto relationship has
broken down irretrievably
the person is living apart from their spouse
or de facto partner
they have no intention of again living
together as a couple.
For more information, refer to CP FHOG 5
‘Separated Spouses’ .
Previous relationships and the first home owner grant (cont’d)
3 | eNews FEBRUARY 2016 Office of State Revenue
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Current relationships and their effect on the first home owner grant If a person is purchasing their first residential
property and applies for the first home owner
grant (FHOG) or first home owner rate of
duty (FHOR), their current relationship may
affect their application.
When an applicant is married at the time of
signing the contract to purchase their first
home, their spouse must be declared on the
FHOG application. Alternatively, if that person
has been in a de facto relationship and has
shared a home for a continuous period of two
years or longer prior to signing the contract
then that de facto partner must be declared
on the application.
In all cases they must also satisfy all of the
eligibility criteria. If the spouse or de facto is
ineligible to receive the grant then the
applicant is also ineligible.
Where an undeclared spouse/de facto is
identified an applicant may be required to
repay the FHOG and/or have the transaction
reassessed at the appropriate rate of duty
with penalties of up to 100% of the amount
they received.
Be aware that knowingly providing false or
misleading information can result in hefty
penalties.
If your clients have any queries about how
their relationship could potentially affect their
eligibility for the FHOG or FHOR, they can
contact State Revenue directly for
clarification. Submit a web enquiry at
www.osr.wa.gov.au/FhogEnquiry or contact
the FHOG/FHOR helpline on 08 9262 1299.
For further information please refer to the
Guide to Completing the Application Form or
the FHOG fact sheet.
For more information about spouses and
de facto partners please refer to the:
FHOG fact sheet
FHOG general spouse FAQ
FHOG spouse and relevant interest
FAQ.
Spouses and de factos must be declared
on the FHOG application irrespective of
whether they will have an ownership
interest in the home being purchased.
4 | eNews FEBRUARY 2016 Office of State Revenue
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Proof of identity documentation When applying for the first home owner grant (FHOG) and/or first home owner rate of duty
(FHOR), copies of the following identification documents are required. This is to substantiate
eligibility and provide proof of identity. For details of eligibility please go to the FHOG fact sheet.
Applicants (and their spouse) must provide legible copies of one document from each of the four
categories outlined below. A single document cannot be used for more than one category.
Category 1 - Primary identity document and evidence of citizenship or permanent
residency
Australian Citizen - Australian birth certificate issued by Registry of Births, Deaths and
Marriages
- Australian passport
- Australian Citizenship certificate
New Zealand citizen - current passport
Citizen of another - current passport
country - Evidence of Australian permanent residency or a permanent
residency visa
*Category 2 - Linkage between Identity and Person
current Australian Driver’s Licence
current Passport
current Firearms Licence
Proof of age issued by Consumer Affairs (photo ID card)
*Category 3 - Evidence that applicant
resides in Australia
Medicare card
Motor Vehicle Registration
Centrelink or Department of Veteran’s
Affairs card
Debit/credit card of a financial institution
*Category 4 - Evidence of applicant’s
residential address
Utility document of residential address
(e.g. bills for electricity, gas, water etc.)
Insurance policy with current residential
address
Statement of account of a financial institution
If any of the above documents cannot be provided, additional evidence that can prove
identification can be found in the Alternative Proof of Identity Fact Sheet.
If you have been married, divorced, widowed, had a name change or been separated, additional
supporting documentation is needed. Details can be found on the Office of State Revenue
website.
* Not required if application is lodged through a FHOG Approved Agent.
5 | eNews FEBRUARY 2016 Office of State Revenue
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Customer education sessions
The Office of State Revenue (OSR) regularly delivers free customer education seminars to assist
customers to better understand their legislative obligations.
We offer webinars which are conducted via the internet and registrants participate using their own
computer. These are ideal if you have a hectic schedule or are located regionally or interstate.
Our face-to-face sessions are held at our premises located at QBE House, 200 St Georges
Terrace Perth.
We offer a broad range of topics across these sessions including:
Payroll tax overview (introduces taxable and exempt wages, the diminishing threshold, common
errors, grouping and exclusions, administration and how to prepare for an audit)
Payroll tax wages (what is taxable and what is exempt)
Payroll tax contractors (how to distinguish between employees and contractors)
Transfer duty for settlement agents (what dutiable transactions and property are, lodgment and
payment requirements, aggregation and how to avoid being charged double duty)
Transfer duty for real estate agents (what dutiable transactions and dutiable property are, when
transactions will be aggregated and how to avoid being charged double duty)
If you pay wages in multiple jurisdictions, you can also register for the harmonised payroll tax
webinars . These are run in conjunction with the other State and Territory Revenue Offices and
cover the harmonised aspects of payroll tax across Australia.
For details or to register for training visit the Customer Education section of our website.
Upcoming free seminars
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Break-up of a marriage or de facto relationship and dutiable transactions
When there is a break up of a marriage or de
facto relationship, often dutiable transactions
occur to distribute property to the parties of
the relationship. Nominal duty may be
charged rather than the general or
concessional rate if the following information
is provided:
(1) a copy of the relevant matrimonial
instrument being:
(a) a maintenance agreement registered
under section 86 of the Family Law Act
1975 or approved under section 87 of
that Act
(b) a financial agreement made under
sections 90B, 90C or 90D of the Family
Law Act 1975
(c) a splitting agreement
or
(d) an order of a court under the Family Law
Act 1975
or
(2) a copy of the relevant de facto relationship
instrument, being:
(a) a financial agreement or former financial
agreement within the meaning of those
terms in section 205T of the Family Court
Act 1997
or
(b) an order of a court under:
– part 5A of the Family Court Act 1997
or
– a law of the Commonwealth or another
state or territory that substantially
corresponds to the abovementioned
Part.
(continued page 7)
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Break-up of a marriage or de facto relationship cont’d (3) Evidence of the break-up of the marriage
or de facto relationship, being:
(a) a copy of the divorce certificate
or
(b) a declaration by a party to the marriage to
the effect that (as applicable):
– the parties to the marriage are separated
from each other and there is no
reasonable likelihood of cohabitation
being resumed
– the parties intend to apply for dissolution
or annulment of the marriage
or
– the marriage has irretrievably broken
down
or
(c) a declaration by a party to the de facto
relationship to the effect that the
relationship has ended
(4) where matrimonial or de facto relationship
property is to be transferred to a child of
either of the parties to the marriage or de
facto relationship, provide an extract of
the birth certificate of that child
(5) where matrimonial or de facto relationship
property is to be transferred to a trustee of
a child referred to above, provide a copy
of the document that evidences the
trustee relationship
(6) where matrimonial property is to be
transferred to a trustee of a
superannuation fund, provide a copy of
the relevant trust deed
(7) any other relevant information that may
assist in the assessment of duty.
Did you know substituted transferee
transactions can be processed in
Revenue Online?
Simply modify the original transaction by
adding the names, tenancy type, share
fractions and the relationship of the
substituted transferees to the original
purchaser.
For more information refer to the video
titled How to assess a transaction
involving substituted transferees in
Revenue Online (Online Duties), on the
Department of Finance YouTube channel.
Revenue Online tip
8 | eNews FEBRUARY 2016 Office of State Revenue
It is important that agents be clearly identified
for the transfer of dutiable property.
Duty is not chargeable on a transfer of
dutiable property under an agreement for
transfer where the person named as the
purchaser in the agreement was acting as the
agent of the subsequent transferee of the
property (i.e. the principal) when the
agreement was made and was clearly
identified as such.
Where the purchaser named in an agreement
to transfer was acting as the agent of the
person named in the subsequent transfer as
the transferee, that transfer shall not be
chargeable with transfer duty.
An agent is a person appointed to act as the
representative of another person (the
principal). Agency arrangements must be
certain. The Office of State Revenue (OSR)
no longer recognises the term ‘nominee’.
Where agency disclosed and the principal
is identified
Where the agreement clearly indicates that at
the time it was entered into, the person who
executed the agreement as the purchaser
was acting as agent for another named
person (the principal), the OSR will accept
that an agency relationship existed.
Where agency disclosed and the principal
is not identified
Where the agreement clearly indicates that at
the time it was entered into the person named
in the agreement as the purchaser was acting
as agent for another unidentified person a
transfer to another person will be charged
with duty unless sufficient evidence that the
transferee was the person for whom the
named purchaser was acting at the time the
agreement was entered into.
Where agency is not disclosed
Where the agreement to transfer dutiable
property does not explicitly indicate that the
person named in the agreement as purchaser
was acting as an agent, and the subsequent
transfer is to another person, the
Commissioner will not accept that an agency
relationship existed unless sufficient evidence
is produced that the named purchaser was
acting as agent for the transferee when they
entered into the agreement to transfer the
property.
For further information and examples of
agency relationships, please refer to Revenue
Ruling DA 7, ‘Transfer under agency
relationship where the transferee on the
transfer differs from the purchaser named in
the agreement to transfer’.
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Transfer of dutiable property under agency relationships
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Changes to your details and your land tax assessment
PAYMENT OPTIONS
OPTION 1 - One payment. If you pay your land tax in full by the first instalment, you receive a
three per cent discount.
OPTION 2 - Instalment plan. You may pay your land tax in two instalments. You will not receive
the discount and there is no additional charge for paying in two instalments.
OPTION 3 - Instalment plan. You may pay your land tax in three instalments. You will not receive
the discount and there is an additional two per cent charge for paying in three instalments.
10 | eNews FEBRUARY 2016 Office of State Revenue
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Did you know?
Wages paid or payable to an employee for
parental leave, maternity leave, or adoption
leave are exempt from payroll tax. This applies
to all wages including superannuation and
allowances but not fringe benefits.
Employer-funded parental leave
All Australian employees are entitled to unpaid
parental leave when a new child is born or
adopted. Many employers also provide paid
parental leave to their employees as prescribed
in an industrial agreement. The amount of leave
and pay entitlements will depend on the
workplace.
For any one pregnancy or adoption, the
exemption is limited to wages up to a
maximum of 14 weeks, or the equivalent
amount if taken over a longer period. For
example, the exemption may apply to wages
paid or payable for a 28 week period of
maternity leave if the wages are paid at half
the rate at which the wages would normally
be paid or payable to the employee.
Parental leave can be taken before or after
the birth of the child or adoption. However,
sick leave, recreation leave, annual leave or
other similar leave taken in connection with a
pregnancy or the birth/adoption of a child is
not considered as parental leave for payroll
tax purposes, and therefore will be taxable.
Parental leave exemption from payroll tax
Parental leave: Leave given to an employee in
connection with the pregnancy of a female
carrying the employee’s unborn child or the
birth of the employee’s child.
Maternity leave: Leave given to a female
employee in connection with her pregnancy or
the birth of her child.
Adoption leave: Leave given to an employee
in connection with the adoption of a child by
the employee.
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The Commonwealth Paid Parental Leave
(PPL) Scheme provides eligible working
parents of children born or adopted on or after
1 January 2011 with a maximum of 18 weeks
of government-funded paid parental leave at
the national minimum wage.
PPL payments are paid by the employer with
funds received from the Commonwealth
Government. Even though PPL payments are
paid by employers, the Office of State
Revenue is of the view that they do not
constitute wages under the Payroll Tax
Assessment Act and are therefore not liable
for payroll tax. Rather, PPL payments are
Commonwealth Government payments that
employers are asked to pay on behalf of the
Commonwealth Government.
For more information on the payroll tax
treatment of parental, maternity and adoption
leave payments, see Harmonised Revenue
Rulings PTA 012 Exemption for maternity,
parental and adoption leave pay and PTA 037
Paid parental leave.
With effect from 1 July 2009, the Payroll Tax
Assessment Act 2002 was amended to clarify
that directors are to be treated as employees
for payroll tax purposes. As such, all amounts
paid or payable by a company (the employer)
as remuneration for the appointment or
services of a director constitute wages.
Therefore, remuneration paid or payable to a
director, whether as a working or non-working
director, is liable to payroll tax.
Superannuation payments paid or payable on
behalf of all non-working directors are
included in the assessment of payroll tax.
The grant of shares or options to a director
constitute wages for payroll tax purposes, as
if the director were an employee and the
company were the employer.
Payroll tax is imposed on amounts paid by a
company as a consequence of the termination
of the services or office of a director, including
non-working directors.
The definition of a ‘director’ of a company
under the payroll tax legislation includes a
member of the governing body of the
company.
Payroll tax and the Paid Parental Leave scheme
Directors’ fees and superannuation
12 | eNews FEBRUARY 2016 Office of State Revenue
Office of State Revenue
www.osr.wa.gov.au
Online Payroll Tax 08 9262 1300
Online Duties 08 9262 1113
First Home Owner Grant 08 9262 1299
Anonymous Information 08 9262 1380
Top 20 FHOG suburbs
1 July 2015 — 31 January 2016
Duties 08 9262 1100
Land Tax 08 9262 1200
Country Callers 1300 368 364
In Person: Plaza Level
200 St Georges Terrace
Perth WA 6000
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Did you know that since July 2010, Baldivis has been the top FHOG suburb?
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