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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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6 | eNews FEBRUARY 2016 Office of State Revenue

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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)

7 | eNews FEBRUARY 2016 Office of State Revenue

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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

9 | eNews FEBRUARY 2016 Office of State Revenue

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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.

11 | eNews FEBRUARY 2016 Office of State Revenue

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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?