Managing payroll tax compliance in Australia can be a complex task, particularly for businesses with operations spanning across multiple states. Each state and territory has its own thresholds, tax rates, legislation and guidelines, which can pose challenges for compliance. For businesses that have embraced remote working this could add another
Starting a business in Australia means dealing with various tasks, and payroll tax often stands out as one of the most complex. This guide will help you understand payroll tax in Australia, providing you with the information you need to navigate this tricky area. Understanding the Fundamentals of Payroll Tax
Payroll Tax Changes – VIC 2023/24 State Budget As part of the 2023/24 State Budget, Victoria’s Treasurer Tim Pallas announced a number of significant changes to the state’s payroll tax rulings. As part of measures to address he COVID debt, a temporary payroll tax surcharge will apply from 1 July
Originally published July 19, 2017. This post was updated to improve accuracy and comprehensiveness on April 26th, 2023. Avoid Costly Payroll Tax Mistakes: A Comprehensive Guide With payroll tax making headlines, it’s not surprising that many businesses are keen to understand their own payroll tax issues. Payroll tax is a
There has been a recent shift in focus by the State Revenue Offices throughout Australia targeting medical practices which engage doctors as contractors. A shift which may have implications for medical practices in regard to payroll tax obligations. It is not uncommon for medical practices to reach an agreement with
Treasurer Cameron Dick has announced Qld’s State Budget for 2022/23 which includes payroll tax relief for an estimated 12,000 SMEs. Coming into effect from 1 January 2023, payroll tax deductions will be available for businesses with annual taxable Australian wages bills in the range of $1.3m – $10.4m. The phase
On 20 October 2021, NSW Treasurer Matt Kean introduced a Bill to the NSW Parliament to amend the Payroll Tax Act 2007 to allow a 50% waiver of payroll tax for 2021/22 for eligible employers. This is part of the NSW Government COVID-19 business support measures. To be eligible for
The Victorian State Revenue Office has updated information in regard to payroll tax payments as a response to the current COVID-19 outbreak and lockdown. Those employers that did defer 2020/21 liabilities must still pay the first quarterly instalment by 7 September 2021. Some employers including a payroll up to $10m,
In conjunction with a number of business grants and payment programs to support businesses during the extended lockdown, the NSW Government has also included payroll tax relief in its support package. We advise that Revenue NSW has announced an increase in the payroll tax waiver from 25% to 50% for
As the COVID-19 lockdown in Greater Sydney and surrounds is once again extended, the NSW Government has announced a significant support and relief package for businesses. In addition to cash flow support, businesses subject to payroll tax may be eligible for relief by way of waivers, reductions and/or deferrals For
Treasurer Tim Pallas delivered the Victorian State Budget for 2021/22 on 20 May with relief in regard to payroll tax for some businesses but with an additional tax based on payrolls for others. From 1 July 2021, the payroll tax-free threshold is increased from the current level of $650,000 to
Medical and Other Professional Practices and Payroll Tax Because of the decision in Commissioner of State Revenue (Vic) v The Optical Superstore Pty Ltd as trustee for OS Management S Trust & Ors, [2019] VSCA 197 (“the Optical Superstores case”) the Offices of State Revenue throughout Australia are investigating medical
Security and Cleaning Companies Impacted by Employment Agency Provisions Payroll Tax – How The Employment Agency Provisions Impact on Cleaning and Security Service Companies Background The Employment Agency provisions of the Payroll Tax Act were introduced in 2008 as part of the harmonisation of the payroll tax laws of Queensland,
Due to COVID-19 the state and territories have delayed bringing down their annual budgets in line with the decision made in regard to the Federal Budget. So in November rather than May we see the annual NSW budget with a major focus on post-COVID-19 recovery and business support. In bringing
Due to the uncertainty around the economic impacts of COVID-19, the states and territories postponed bringing down their annual budgets by up to 6 months. We’re now seeing these budgets being brought down and getting a better and more comprehensive picture of what relief is available to businesses in regard
As have other states and territories, NT has brought down its annual budget later in the year due to COVID-19. The Chief Minister and Treasurer, Michael Gunner, delivered the 2020/21 Budget on 10 November 2020. The budget not only includes relief for payroll tax but also a wage subsidy program.
In a statement issued on 5 November, the NSW Premier, Gladys Berejiklian, announced a Jobs Plus Program which would provide payroll tax relief and other support for businesses that create at least 30 new net jobs in the state. Part of the state’s 2020/21 Budget, the $250 million program is
The NSW Government through Revenue NSW has announced a payment arrangement process for businesses to pay their deferred and recent liabilities over a 24 month period. But you’ll need to be quick if you would like to take advantage of these arrangements because the sign-up period is limited to a
On 28 September 2020, South Australian Treasurer Rob Lucas announced further payroll tax relief which is expected to assist up to 2,400 businesses. The announcement provides an extra 3 month payroll tax waiver for eligible businesses that is – those affected by COVID-19. Eligible businesses include those with annual grouped
In addition to payroll tax support announced earlier in the year, the Northern Territory Government has further extended relief as part of their Jobs Rescue and Recovery Plan Business Hardship Package. The initial support was available for 6 months from April 2020. That relief has now been extended to eligible
In a statement released on 17 September 2020, Revenue NSW announced details in regard to payroll tax deferrals, increase in threshold and reduction in payroll tax liability for some businesses. These measures are part of the NSW Government’s economic support package. Some of these measures were introduced earlier in the
To further support businesses progress through the ‘Roadmap to COVID Normal’ on 13 September, Victorian Premier Daniel Andrews announced additional payroll tax relief for some businesses. Several measures in regard to payroll tax relief have previously been announced with the Premier stating that around 20,000 businesses had received refunds of
In response to the ongoing risks to business from the coronavirus pandemic, the Queensland Government has further eased the tax burden on struggling businesses with additional payroll tax relief announced by Treasurer Cameron Dick. The payroll tax measures announced by the Treasurer on 7 September 2020 include:- Two Month Payroll
In response to the second outbreak of coronavirus, Victorian Treasurer Tim Pallas has announced an expansion of payroll tax relief for some Victorian businesses. As we advised earlier in the COVID-19 crisis, the Victorian Government had deferred payroll tax for the first quarter of 2020/21 financial year for businesses that
I have chosen my words carefully for this heading because most people who come to me for advice after they’ve been caught out by the grouping provisions can’t believe the grouping provisions’ far-reaching and alarming effects. Where two or more companies are grouped only one of them is entitled to
What is payroll tax? Payroll tax is a State or Territory Government tax on wages paid by employers. Each State or Territory has its own threshold and rate for payroll tax. If your wages are below the threshold then you don’t pay payroll tax. Details of each State and Territory
The Northern Territory Government is providing payroll tax support for businesses that can demonstrate substantial hardship due to the COVID-19 crisis. Support includes: For SMEs, payroll tax will be abolished for 6 months For large business, payroll tax will be deferred for 6 months We note that ‘substantial hardship’ is
On 31 March 2020, the WA Government updated its support for SMEs in respect to payroll tax obligations. Previously it was announced that 2019/20 payroll tax would be deferred to 21 July 2020. In this new update, payroll tax for the period 1 March to 30 June 2020 will now
On 26 March, the South Australian Premier, Steven Marshall announced a second package of economic stimulus measures in response to the coronavirus crisis. The package includes payroll tax relief:- Businesses with annual grouped payroll up to $4m: Payroll tax waived for 6 months: April to September 2020 Businesses with grouped
As we posted earlier, as part of the Qld government’s first stimulus package, the Premier announced that payroll tax payments would be deferred for 6 months. On Tuesday 24 March, this was updated and expanded to now include waivers and refunds for many businesses, which have been impacted by COVID-19
Our law firm is adept in dealing with payroll tax and everything that it encompasses. We thoroughly understand our clients’ needs and can provide you with advice and solutions that are specific to your needs. With more than 30 years of experience in the legal industry, our principal will give you the best outcome for your business tax goals. Contact us today to discuss your employment tax obligations.
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