With COVID-19 still impacting Australian businesses and with the next round of JobKeeper payments rolling out, most state governments have made (some recent) announcements on additional payroll tax exemptions and/or updates.
We’ve highlighted just a few of the updates for you in this blog. To review all the updates and relief initiatives that are available, make sure you visit the applicable state government websites (see the bottom of this blog for some helpful links).
In an effort to help boost Western Australia’s economy, WA businesses will continue to be exempt from payroll tax on JobKeeper wage subsidies from 28 September 2020 to 28 March 2021.
The NSW government has increased the tax-free threshold from $900,000 to $1.2 million for this financial year (FY 2020/21) and has reduced the payroll tax liability by 25% for payrolls up to $10 million for FY2019/20.
Furthermore, the payroll tax rate has been reduced to 4.85% for FY2020/21 and FY2021/22.
For Victorian businesses, the Victorian Government has a number of measures to aid in recovery;
- New Jobs Tax Credit for businesses that increase their taxable wages*:
- An increase in the annual reporting threshold, from $40,000 to $100,000, expected start date 1 July 2021*;
- Waiving of FY2019/2020 payroll tax for employers with annual Victorian wages up to $3 million;
- Additional payments to employees under the JobKeeper scheme are exempt from payroll tax (i.e. any amount unearned to bring the employee’s wages up to the JobKeeper amount);
- Deferral of FY2020/21 payroll tax liabilities for employers with Victorian payrolls up to $10 million.
*These updates have only been announced in the recent Victorian Budget 2020-21 announcement; so please be aware they have not yet been passed by parliament. Make sure you keep an eye out for updates.
For more information on payroll tax updates and/or relief initiatives available, visit the applicable state government websites;
- ACT – https://www.revenue.act.gov.au/covid-19-assistance
- NSW – https://www.revenue.nsw.gov.au/news-media-releases/covid-19-tax-relief-measures/covid-19-coronavirus-and-payroll-tax
- NT – https://treasury.nt.gov.au/dtf/territory-revenue-office/payroll-tax/payroll-tax-relief
- QLD – https://www.business.qld.gov.au/running-business/employing/payroll-tax/lodging/coronavirus-tax-relief
- SA – https://www.revenuesa.sa.gov.au/taxes-and-duties/payroll-tax/covid-19-relief/jobkeeper
- VIC – https://www.sro.vic.gov.au/coronavirus-payroll-tax-relief
- WA – https://www.mediastatements.wa.gov.au/Pages/McGowan/2020/09/Payroll-tax-exemption-extended-for-JobKeeper-payments.aspx
Information provided in this article is general information, not legal advice and should not be relied upon as such. Definitiv does not accept liability for any loss or damage arising from reliance on the content of this article.
Please be aware, information within this article is correct as of 10 December 2020.