Stamp Duty – Hire of Goods INTRODUCTION 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 business. 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. EXCLUDED HIRING CHARGES MUST BE IDENTIFIED 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. HOW TO COMPLETE A MONTHLY HIRE OF GOODS RETURN 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. NEED MORE INFORMATION? Telephone: (08) 9262 1112 E-mail: firstname.lastname@example.org 1300 368 364 (WA country callers) Facsimile: (08) 9226 0841 Website: www.osr.wa.gov.au Issued: September 2004 HOW TO COMPLETE A MONTHLY HIRE OF GOODS RETURN EQUIPMENT FINANCING ARRANGEMENT is 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.