|
What
is debits tax?
What is a debit transaction?
Who pays debits tax?
How much tax is payable?
Current rates
Are there any exemptions from debits tax?
Exempt organisations
Claiming an exemption
Victorian Taxation Administration Act 1997
Further information
Debits Tax has been abolished from 1 July 2005.
What is debits
tax?
Debits Tax is a tax on debit transactions to accounts with
cheque drawing facilities.
What is a debit
transaction?
Debit transactions include:
- direct debits;
- over the counter withdrawals;
- cheque;
- EFTPOS; and
- automatic teller machine withdrawals.
Who pays debits
tax?
- Financial institutions and account holders
are jointly liable for debits tax.
- The financial institution is entitled
to pass debits tax on to the account holder
How much tax is
payable?
Debits tax is payable on the value of the debit to the account.
Current rates
Value at Debit Rate |
Rate |
| not less than $1 but less than $100 |
$0.30 |
| not less than $100 but less than $500 |
$0.70 |
| not less than $500 but less than $5,000 |
$1.50 |
| not less than $5,000 but less than
$10,000 |
$3.00 |
| $10,000 or more |
$4.00 |
Are there any exemptions
from debits tax?
The following debits are exempt:
- to reverse a previous incorrect credit
entry; and
- to deduct financial institutions duty
or debits tax.
The following organisations
are exempt from debits tax:
- charitable institutions, including public
benevolent and religious institutions;
- support organisations for charitable
institutions;
- public hospitals;
- government schools; and
- Commonwealth or State Government departments
or authorities, or local government bodies, provided that
the body does not carry on activities in the nature of
a business.
To claim an exemption
To claim an exemption from debits tax, you will need to
complete an application
form.
- If you are entitled to an exemption,
the SRO will issue a certificate of exemption.
- Once obtained you should provide this
certificate of exemption to your financial institution.
The Victorian Taxation
Administration Act 1997
The Victorian Taxation Administration
Act 1997 (TAA) covers the collection and administration
of pay-roll tax, duties (formerly called stamp duty) and debits
tax.
Further information
For further information, please contact us.
Top
|