Payroll Tax Repeal Act 1973

Payroll Tax Repeal Act 1973

Public Act1973 No 21
Date of assent17 September 1973
Commencementsee section 1(2)

An Act to abolish Payroll Tax

BE IT ENACTED by the General Assembly of New Zealand in Parliament assembled, and by the authority of the same, as follows:

1 Short Title and commencement
  • (1) This Act may be cited as the Payroll Tax Repeal Act 1973.

    (2) Except where this Act otherwise provides, this Act shall come into force on 1 October 1973.

2 Abolition of payroll tax
  • (1) The Payroll Tax Act 1970 is hereby repealed.

    (2) The following enactments are hereby consequentially repealed:

    • (a) subsection (2) of section 21 of the Testing Laboratory Registration Act 1972:

    • (b) subsection (4) of section 42 of the Accident Compensation Act 1972:

    • (c) subsection (3) of section 31 of the Pacific Islands Polynesian Education Foundation Act 1972.

    (3) [Repealed]

    (4) The Accident Compensation Act 1972 is hereby consequentially amended by omitting from subsection (8) of section 83, as from the commencement of that section, the words shall apply for the purposes of this Act as if, and substituting the words shall, notwithstanding the repeal thereof, apply for the purposes of this Act as if the said Part and said section had not been repealed, and as if.

    (5) The Payroll Tax (Export Incentive) Order 1971 and the Payroll Tax (Export Incentive) Order 1971, Amendment No 1, are hereby revoked.

    Section 2(3): repealed, on 1 April 1995, by section YB 3(1) of the Income Tax Act 1994 (1994 No 164).

3 Savings
  • (1) For all purposes whatsoever in respect of any payroll tax which at the commencement of this Act has been already assessed or paid or is still assessable or payable in accordance with the provisions of any enactment hereby repealed, that enactment and all the provisions thereof, including its penal provisions, and all Orders in Council, warrants, and other acts of authority originating thereunder, shall, notwithstanding the repeal thereof, be deemed to remain in full force and effect; and all proceedings under any such enactment, including proceedings for the recovery of any fine or penalty in respect of any offence committed, whether before or after the commencement of this Act, may be instituted or continued accordingly as if the enactment concerned had not been repealed.

    (2) All proceedings in respect of offences committed or alleged to be committed, whether before or after the commencement of this Act, against any enactment hereby repealed may be instituted or continued as if this Act had not been passed.

4 Transitional provisions
  • (1) For the purposes of this section, unless the context otherwise requires,—

    • (a) the expression terminating date means 30 September 1973:

    • (b) the expression terminating period means the period commencing on 1 April 1973 and ending with the terminating date:

    • (c) expressions defined in the Payroll Tax Act 1970 have the meanings so defined.

    (2) Notwithstanding anything in the Payroll Tax Act 1970 or in the foregoing provisions of this Act, the following transitional provisions shall apply, namely:

    • (a) subject to this subsection, the Payroll Tax Act 1970 shall not apply to wages which are paid and payable after the terminating date:

    • (b) any wages paid on or before the terminating date shall, to the extent to which they are paid in respect of a period after the terminating date, be deemed to have been paid and payable after that date:

    • (c) any wages (not being wages of any of the kinds which are exempt from payroll tax under section 7 of the Payroll Tax Act 1970) paid after the terminating date shall, to the extent to which they are paid in respect of a period on or before the terminating date, be deemed to have been paid and payable on that date:

      provided that, subject to paragraph (d), nothing in this paragraph shall apply to any wages paid after 31 March 1974:

    • (d) the proviso to paragraph (c) shall not apply to any wages—

      • (i) which are paid after 31 March 1974 and which, pursuant to a regular pattern or practice in relation to similar payments of wages in previous years, are, for the purposes of income tax, deemed to relate to a period ending with or before that date; or

      • (ii) which are paid after 31 March 1974 for the purpose, or for purposes including the purpose, of enabling the employer to meet the requirements of the said proviso:

    • (e) instead of the deduction provided for in subsection (1) of section 6 of the Payroll Tax Act 1970 there shall be deducted from the total amount of chargeable wages paid or payable, or deemed to be paid and payable, by an employer in the terminating period—

      • (i) in the case of a person who was an employer during the whole of the terminating period, the amount of $3,900; or

      • (ii) in the case of a person who was an employer during part only of the terminating period, an amount which bears to $3,900 the same proportion as the number of months in that part of the terminating period (being months during which he was an employer or is deemed to be, or treated as, an employer by virtue of paragraph (f)) bears to 6:

    • (f) subsections (2) and (4) of section 6 of the Payroll Tax Act 1970 shall apply, with any necessary modifications, with respect to any deduction allowed under paragraph (e) of this subsection:

    • (g) the definition of the term export goods in subsection (1) of section 8 of the Payroll Tax Act 1970 shall be deemed to apply only to goods falling within that definition, being goods—

      • (i) which were exported from New Zealand on or before the terminating date by a person; and

      • (ii) which were sold or disposed of on or before that date by that person; and

      • (iii) of which that person was the owner at the time of the sale or disposal:

    • (h) sections 9, 10, and 11 of the Payroll Tax Act 1970 shall apply as if every reference in those sections to a year (not being a reference to the year immediately preceding the specified year) or to a specified year were a reference to the terminating period:

    • (i) an employer shall not be required to include in any return furnished under section 12 or section 13 of the Payroll Tax Act 1970 any wages to which, pursuant to paragraph (a) of this subsection, that Act does not apply:

    • (j) where—

      • (i) on or before the terminating date the Commissioner, under subsection (2) of section 12 of the Payroll Tax Act 1970, varies the periods in respect of which an employer is required to furnish returns pursuant to subsection (1) of that section; and

      • (ii) under the variation, a period commences on or before, but ends after, the terminating date,—

      that part of the period that occurs after the terminating date shall, subject to paragraph (c), be disregarded:

    • (k) section 24 of the Payroll Tax Act 1970 shall apply as if the terminating period were a year.


This Act is administered by the Inland Revenue Department.