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South Aust Budget Delivers Further Payroll Tax Relief

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 to their payroll tax obligations.

South Australian Treasurer Rob Lucas has announced the state’s 2020/21 Budget which includes significant payroll tax support for many businesses.

These measures, combined with some previously announced, present the following scenario for South Australian businesses:-

  • As with other states, SA is exempting JobKeeper payments from payroll tax.
  • For businesses and for business groups that have an annual grouped wages under $4m, payroll tax is waived from April 2020 through to June 2021. This is an extension of time on previous announcements.
  • For business eligible to receive the extended JobKeeper payment, from 4 January 2021, a 6 month payroll tax waiver comes into effect for the period January through June 2021.
  • For businesses with annual wage bill over $4m that have been adversely affected by coronavirus impacts, a deferral period covers the payroll tax due April – December 2020. Repayment arrangements are available to make these deferred payments.
  • In addition, the SA Government is introducing a 12 month payroll tax exemption on the wages paid for eligible new trainees and apprentices. This covers those that commenced a contract of training with the employer between 10 November 2020 and 30 June 2021.

To check your eligibility for any of these measures, I recommend you refer to specifics on the SA Treasury website. If you would like to discuss your payroll tax scenario, please reach out to me directly.

Peter Tobin, Tobin Partners Lawyers peter@tobin.net.au 0438 001 809

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