State Income Tax
liability of employees of commonwealth shipping board for state income tax on salaries: collection of tax by instalments
Prevention and Relief of Unemployment Act 1930 (NSW) Part IV, s 23: Commonwealth Shipping Act 1923 s 20
The Secretary, Prime Minister’s Department has forwarded the following memorandum from the Commonwealth Shipping Board to me for advice:
We desire to advise, for your information, that the Unemployed Relief Tax levied by the State of New South Wales under their Act No. 29 of 1930 is being collected from all persons employed at this Dockyard who are liable for payment.
This action has been taken after consultation with the Crown Law authorities who, whilst stating that ‘Commonwealth employees are not liable to payment of Unemployment Relief Tax by fortnightly or other periodical deductions from their salaries, but are liable to the tax on assessments made after the close of the year’, expressed the further opinion that this Establishment is more comparable with privately-owned concerns having regard to section 20 of the Commonwealth Shipping Act 1923 which states that our operations ‘shall be subject to the like rates, taxes and charges that would be payable under the laws of the Commonwealth or a State if the Board were carrying on business as a trading corporation formed by private individuals.’
As to the application of the Prevention and Relief of Unemployment Act 1930 to Commonwealth employees generally I would refer you to the Solicitor-General’s Opinion of 25 June 1930.(1)
Section 20 of the Commonwealth Shipping Act 1923 provides, inter alia, that the income property and operations of the Board shall be subject to the like taxes that would be payable under the laws of a State if the Board were carrying on business as a trading corporation formed by private individuals.
It would therefore appear that the Board is, for the purposes of Part IV of the State Act, an employer and section 23 of the Act applies to the collections of Unemployment Relief Tax from its employees.
I do not think that there is any legal objection to the collection of Unemployed Relief Tax from all persons at the Dockyard in accordance with the advice given by the Deputy Crown Solicitor, Sydney.
[Vol. 24, p. 666]
(1) Opinion No. 1466.