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.
The key take-outs are:
- For businesses that are experiencing hardships, payroll tax deferrals and waivers are available to cover the 2019/20 and 2020/21 financial years.
- As with other states and territories, JobKeeper payments are exempt from payroll tax.
- Earlier in the year an exemption from payroll tax for the wages associated with hiring resident employees was announced. That has been extended through to 30 June 2021.
The NT Government is also providing wage subsidies in addition to those announced by Federal Treasurer Josh Frydenberg in the Federal Budget.
For small businesses that hire a Territorian who is on JobSeeker, they will receive:-
- $100 per week for new employees in the 30-35 years age bracket
- $200 per week for new employees over 35 years of age
I advise that all businesses refer to the Northern Territory Revenue Office website to check their eligibility and for full details of these new initiatives. To discuss your payroll tax situation, please reach out to me directly.
Peter Tobin, Tobin Partners Lawyers peter@tobin.net.au 0438 001 809