2012

LEGISLATIVE ASSEMBLY OF THE
NORTHERN TERRITORY

TREASURER

REVENUE LEGISLATION AMENDMENT BILL 2012
SERIAL NO. 211

EXPLANATORY STATEMENT

GENERAL OUTLINE

This Bill amends the Payroll Tax Act and the Gaming Control Act. The changes made by the Bill form part of the 2012-13 Budget and take effect from 1 July 2012 unless otherwise indicated.

The Payroll Tax Act is amended to clarify that the payroll tax exemptions relating to maternity, adoption and paternity leave for part-time employees who take leave at a reduced rate of pay may be pro-rated in the same manner as for full-time employees.

The Gaming Control Act is amended to:

·	expressly provide that the Northern Territory can impose taxes and fees on lottery operators who enter into a lottery agreement with the Territory; and 

·	clarify that administration practices and obligations set out in the Taxation Administration Act apply to taxes and levies imposed under the Gaming Control Act. 

NOTES ON CLAUSES

PART 1 – PRELIMINARY MATTERS

Clause 1.	Short title

This is a formal clause which provides for the citation of the Act. When passed, the Act may be referred to as the Revenue Legislation Amendment Act 2012.

Clause 2.	Commencement

This clause provides for the Bill to commence from 1 July 2012. 

PART 2 – AMENDMENT OF PAYROLL TAX ACT

Clause 3.	Act amended

This clause provides that this Part of the Bill amends the Payroll Tax Act. 

Clause 4.	Section 53 amended

Clause 4 amends section 53(4) of the Payroll Tax Act to clarify the operation of the maternity and adoption leave payroll tax exemptions.

This amendment ensures that the maternity and adoption leave exemptions consistently apply to both part-time and full-time employees for leave taken up to a maximum 14 weeks or an equivalent time when leave is taken at reduced pay, for example, 28 weeks leave at half pay.

When determining what would normally be paid as maternity leave or adoption leave, regard will be had to employment agreements and awards including entitlements as to leave loading. 

Clause 5.	Schedule 2 amended

This clause amends Schedule 2, clause 20(4) of the Payroll Tax Act to clarify the operation of the paternity leave payroll tax exemptions.

Identical to the maternity and adoption leave amendments, this amendment ensures that the paternity leave exemption consistently applies to both part-time and full-time employees for leave taken up to a maximum 14 weeks or an equivalent time when leave is taken at reduced pay, for example 28 weeks leave at half pay.  

When determining what would normally be paid as paternity leave, regard will be had to employment agreements and awards including entitlements as to leave loading. 

PART 3 – AMENDMENT OF GAMING CONTROL ACT 

Clause 6.	Act amended

This clause provides that the Act being amended by this Part of the Bill is the Gaming Control Act.

Clause 7.	Section 20 amended

This clause makes a minor consequential amendment to section 20(2)(c) of the Gaming Control Act to ensure that failure to pay a levy will also allow the Minister to cancel, suspend or vary a casino licence.

Clause 8.	Sections 24 and 25 replaced

This clause repeals sections 24 and 25 of the Gaming Control Act and replaces the repealed sections with a new section 24 in order to clarify the operation of the fee, tax and levy provisions. The new provision is consistent with the other amendments to the fee, tax and levy provisions in the Gaming Control Act. 

New section 24 applies to any person that has entered into an agreement and holds an associated licence for the operation of a casino in the Territory. New section 24 provides that taxes, fees and levies payable under such an agreement are payable to the Territory and modernises the language used in these provisions.  

Clause 9.	Section 38B inserted

This clause inserts a new section 38B into the Gaming Control Act. New section 38B applies to any person that has entered into an agreement for the operation of a lottery in or from the Territory.

New section 38B provides that fees, taxes and levies identified in agreements created under section 38(1)(b) or 38A(1) of the Gaming Control Act are payable to the Territory in accordance with the terms of that agreement. 

Clause 10.	Section 46F amended

This clause makes a minor consequential amendment to section 46F(2)(c) of the Gaming Control Act to ensure that failure to pay a levy will also allow the Minister to cancel, suspend or vary a mail order lottery licence.

Clause 11.	Sections 46M and 46N replaced 

This clause repeals sections 46M and 46N of the Gaming Control Act and replaces these sections with a new section 46M in order to clarify the operation of the fee and tax provisions. The new provision is consistent with the other amendments to the fee, tax and levy provisions in the Gaming Control Act. 

New section 46M applies to any person that has entered into an agreement and holds an associated licence for the operation of a mail order lottery in or from the Territory. New section 46M provides that taxes, fees and levies payable under such an agreement are payable to the Territory and modernises the language used in these provisions.

Clause 12.	Section 47F amended

This clause makes a minor consequential amendment to section 47F(2)(c) of the Gaming Control Act to ensure that failure to pay a levy will also allow the Minister to cancel, suspend or vary an internet gaming licence.

Clause 13.	Sections 47M and 47N replaced

This clause repeals sections 47M and 47N of the Gaming Control Act and replaces these sections with a new section 47M in order to clarify the operation of the fee, tax and levy provisions. The new provision is consistent with the other amendments to the fee, tax and levy provisions in the Gaming Control Act. 

New section 47M applies to any person that has entered into an agreement and holds an associated licence for the operation of an internet gaming business in or from the Territory. New section 47M provides that taxes, fees and levies payable under such an agreement are payable to the Territory and modernises the language used in these provisions. 

Clause 14.	Section 68D inserted

This clause inserts a new section 68D into the Gaming Control Act.  

New section 68D(1) provides for the integration of the Taxation Administration Act with the Gaming Control Act. The Taxation Administration Act will apply to taxes or levies specified under an agreement entered into under a taxation provision of the Gaming Control Act. 

New section 68D(2) defines the terms ‘excluded provisions’ and ‘taxation provision of this Act’. The ‘excluded provisions’ are those provisions of the Taxation Administration Act that do not apply to the Gaming Control Act. The excluded provisions primarily relate to negotiated assessments, tax returns and disclosures of information. 

The ‘taxation provision of this Act’ means sections 24(3), 38B(3), 46M(3) or 47M(3) of the Gaming Control Act, which provide for the payment of taxes or levies under the relevant agreements.

Clause 15.	Part 7 heading and Part 7, Division 1 heading inserted

This clause inserts a new Part 7 into the Gaming Control Act to contain the repeal and transitional provisions of that Act. 

Division 1 will contain the repeals and transitional matters for the Gaming Control Act 1993 currently contained in Part 6 of the Gaming Control Act. 

Clause 16.	Part 7, Division 2 inserted

Clause 16 inserts a Division 2 into new Part 7 of the Gaming Control Act to provide for transitional matters relating to the Revenue Legislation Amendment Act 2012. 

This clause inserts a new section 83 which clarifies the application of the amendments in the Revenue Legislation Amendment Act 2012. 

New section 83(1) provides that the integrated provisions of the Taxation Administration Act will apply only to taxes or levies payable on or after 1 July 2012 and pursuant to an agreement entered into on or after 1 May 2012. The Taxation Administration Act applies to the Gaming Control Act by virtue of new section 68D, as inserted by clause 14 of the Bill.

New section 83(2) provides that the remaining amendments made to the Gaming Control Act by the Revenue Legislation Amendment Act 2012 are to apply to fees, taxes or levies payable on or after 1 July 2012, regardless of when the relevant agreement was entered into.

Clause 16 also inserts a new section 84 to ensure that the payment and recovery of tax provisions contained in Part 7 of the Taxation Administration Act continue to apply to taxes and levies payable pursuant to an existing agreement and under a ‘taxation provision of this Act’. This is regardless of whether the tax or levy is payable before or after 1 July 2012. 

New section 84(3) defines the terms ‘existing agreement’ and ‘taxation provision of this Act’. The term ‘existing agreement’ is an agreement made before 1 May 2012 relating to the conduct of a casino, a mail order lottery or an internet gaming business.

The term ‘taxation provision of this Act’ means section 24(3), 46M(3) or 47M(3) of the Gaming Control Act, which provide for the payment of taxes or levies under the relevant agreements. 

PART 4	EXPIRY OF ACT

Clause 17.	Expiry 

This clause provides that the Revenue Legislation Amendment Act 2012 will expire on the day after it commences.