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 out rate for total wages bill above $1.3m will reduce from 23 cents per dollar of wages to 14.3 cents. For a business with a wages bill of $6.5m this represents a saving in payroll tax of $26,000. The deductions in payroll tax will then be available for businesses with wages bill up to $10.4m which is increased from the previous threshold of $6.5m.
The changes however, may add further complications to what is already quite a complex payroll tax system in Queensland with different rates, levies and discounts applicable. Rates vary from metropolitan to regional areas and based on the size of the business.
A situation which places even greater importance on seeking professional assistance in regard to your payroll tax obligations. If you would like to discuss your payroll tax situation, please contact me either via email or phone.
Peter Tobin, Tobin Partners Lawyers peter@tobin.net.au 0438 001 809
