Stamp Duty – Hire of Goods

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					                          Stamp Duty – Hire of Goods

Effective from 1 July 2004, the stamp duty on Rental Business was replaced with a broader-based stamp
duty on Hire of Goods. Duty is imposed on the hiring charges paid by the hirer to the commercial hire

EXCLUDED HIRING CHARGES – Section 112IE(3) of the Western Australian Stamp Act 1921
The following items are excluded from hiring charges and do not need to be declared on monthly or annual
returns to the Office of State Revenue:
(a)   Payments for delivery, repositioning, erection, installation, maintenance or cleaning of the hire goods;
(b)   Refundable deposits or bonds relating to the hire of the goods (unless retained as hiring charges);
(c)   In the case of hire purchase agreements – deposits or other consideration paid or given to the person
      who hires out the goods at or before the time the agreement is made;
(d)   Insurance premiums payable by the person hiring the goods;
(e)   An amount equivalent to the duty paid or payable under the Western Australian Stamp Act, or of a
      similar nature paid in another State or Territory for the hire of goods;
(f)   Payments for the sale of goods (such as fuel, replacement parts or theft replacement);
(g)   An amount equivalent to the GST payable on the supply to which the hire relates; and
(h)   A payment by the hirer under hire of goods arrangement if title passes to the hirer as a consequence
      of the payment.

If an invoice amount includes any of the above charges, those charges must be separately identified on the
invoice to ensure that duty is not payable on those charges. It is not acceptable to merely indicate that the
hiring charges contain a number of other charges (e.g. delivery, maintenance, insurance etc.).
If the excluded hiring charges are not separately identified on the invoice, stamp duty will be payable on the
total hiring charges paid by, or on behalf of, the hirer.

On the back of this page is a sample of a monthly Hire of Goods return with an explanation of each item and
instructions on how to complete the return. Please ensure that you read the instructions to assist you to
complete your monthly return.

Telephone:     (08) 9262 1112                                     E-mail:
               1300 368 364 (WA country callers)

Facsimile:     (08) 9226 0841                                     Website:

Issued: September 2004
                                                      HOW TO COMPLETE A MONTHLY HIRE OF GOODS RETURN

 a hire purchase agreement executed on or                                                             DECLARE IN ‘A’ any hiring charges
   after 1 July 2004; or                                                                               collected under Equipment Finance
 any other agreement for a period of nine (9)                                                         Arrangements during the month excluding
   months or more and under which the final                                                            GST, stamp duty and other payments
   payment is payable at least eight (8) months                                                        referred to on the front of this page (if
   after the agreement is entered into.(eg, an                                                         shown on invoice separately).
   agreement to hire a truck for 12 months).                                                           Transfer this amount to A in PART B.
A hire purchase agreement does not include an
agreement by which the property in the goods
included in the agreement passes when the                                                              DECLARE IN ‘C’ any hiring charges
agreement is made, or on the delivery of the                                                           collected    under    Ordinary     Hiring
goods, or at any time before the delivery of the                                                       Arrangements during the month excluding
goods.                                                                                                 GST, stamp duty and other payments
                                                                                                       referred to on the front of this page (if
                                                                                                       shown on invoice separately).
ORDINARY HIRING ARRANGEMENT is an                                                                      Transfer this amount to ‘C’ in PART B.
arrangement other than an Equipment Financing
Arrangement; (eg. car hire for six (6) months,                                                         Deduct monthly threshold of $4,167 from
video hire for two (2) days, truck hire for one (1)                                                    the Ordinary Hiring charges, if the charges
month).                                                                                                are more than the threshold.
                                                                                                       If the Ordinary Hiring charges are less than
                                                                                                       $4,167, declare the Duty Payable amount
USE ONLY if your business has entered into an
                                                                                                       as ‘Nil’ in ‘F’.
agreement prior to 1 July 2004 to hire or rent any
goods, and receives any income after 1 July
2004. This income will be treated as ‘Rental                                                           USE ONLY if any Rental Income is
Income’ until the agreement expires.                                                                   received    during   the    month   from
The stamp duty rate is 1.8%. Use the RENTAL                                                            pre-1 July 2004 contracts including GST
WORKSHEET to calculate the duty (this is                                                               and stamp duty collected.
attached to your actual return).                                                                       WA Rental Income and Interstate Rental
                                                                                                       Income (if any) should be declared in ‘G’.

After completion of Part A & PART B, only PART
B should be returned with any payment to the
Office of State Revenue WA, unless paying in                                                           Transfer the amounts in ‘A’, ‘C’, ‘G’ & ‘J’
person.                                                                                                of PART A to ‘A’, ‘C’, ‘G’ & ‘J’ in PART B.
Part A and the Rental Worksheet (if applicable)
should be retained for record-keeping purposes.