In handing down the State’s 2018/19 Budget, Tasmanian Treasurer, Mr Peter Gutwein, announced relief in the way of payroll tax changes and incentives for interstate businesses to move to the Apple Isle.
As part of their 2018 State Election commitments, the Tasmanian Government has introduced changes to Payroll Tax to stimulate business and attract new businesses to regional areas of the state.
For Tasmanian business, the measures include reducing the rate of payroll tax to 4% for wages between $1.25 million and $2 million.
For interstate businesses, the Government has announced a 3 year payroll tax exemption for the wages of regional-based employees for businesses which relocate to Tasmania and establish operations in a regional area.
“With payroll tax a significant obligation to business in several mainland states, this may be a very attractive reason for some businesses to consider relocating to regional Tasmania,” Peter Tobin of payroll tax specialists, Tobin Partners, Lawyers said.
With offices in Brisbane and Sydney, Peter Tobin said his practice handles payroll tax matters for companies across Australia and he knows, first-hand, how this tax is a significant cost to businesses in some states.
“While several state governments have addressed the burden of payroll tax and offered a level of relief in 2018/19 budgets, this Tasmanian measure maybe worth considering as an overall restructure plan for business,” Peter said.
Rebate Scheme Extended
In addition, the Tasmanian Government is extending the payroll tax rebate scheme for apprentices and trainees to 30 June 2021, in key areas where a distinct skills shortage exists.
Peter advises that before jumping in to self-assess this measure, businesses should study the detail and preferably engage a payroll tax specialist to provide a professional assessment.
“The rebate applies only to wages to employees in areas defined as having a skills shortage and as such, not generally to all apprentices and trainees,” Peter said.
Housing Affordability Measures
The Tasmanian Government is also addressing the state’s housing crisis, with changes to land tax. These include a 3 year exemption on new-build housing for long-term rental and a 1 year land tax exemption for short-stay properties within Greater Hobart, which ware made available for long-term rental to ease the current accommodation shortage.
Review Your Situation
Whether you’re a Tasmanian-based business or considering a move, we welcome your call to discuss your individual situation with our payroll tax specialists, in the light of these measures.
To discuss how the Tasmanian State Government changes to Payroll Tax and other tax measures effect your business, speak with us at Tobin Partners, Lawyers by email or call Peter Tobin 0438 001 809 for a confidential discussion on how to calculate payroll tax for your business.
