Does the dividend payment constitute salary or wages within the meaning of the SGAA?
The definition of salary or wages for the purposes of the SGAA is contained in section 11. A payment that falls within the ordinary meaning of salary or wages will constitute ‘salary or wages’ under section 11. If the payment does not fall within the ordinary meaning of the term, it will constitute ‘salary or wages’ for the purposes of the SGAA if the payment falls within the extended definition of ‘salary or wages’ in paragraphs 11(1)(a) to (e) of the SGAA. In Deputy Commissioner of Taxation v. Applied Design Development Pty Ltd (In Liq) [2002] FCA 205; (2002) 2002 ATC 4193; (2002) 49 ATR 196 ( Applied Design ), the Federal Court held that a priority payment, made under paragraph 556(1)(e) of the Corporations Act 2001 (Corporations Act) to a former employee who had proved a debt for wages, retained its character as salary or wages within the ordinary meaning of that term and was therefore salary or wages for the purposes of section 12-35 of Schedule 1 to the Taxation Administration Ac
