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 2023 for 10 years until 2033.
- For businesses with taxable wages in Victoria exceeding $10m the surcharge will be 0.5%.
- Businesses with a national payroll over $100m will be subject to an additional 0.5%.
- To alleviate the payroll tax burden on small businesses, from 1 July 2024, the payroll tax threshold will rise from $700,000 to $900,000 and from 1 July 2025 to $1m.
- The Government estimates in the vicinity of 6,000 businesses will benefit once the $1m threshold comes into effect.
- High-fee non-government schools will have their payroll tax exemption removed from 1 July 2024.
- The Mental Health and Wellbeing Levy which came into effect on 1 January 2022 remains.
If your business is impacted by these changes and you would like to discuss your specific situation with a specialist in payroll tax law, please contact us.
Peter Tobin, Tobin Partners Lawyers, peter@tobin.net.au 0438 001 809