PAYROLL TAX

The Coronavirus has presented a fast evolving and significant challenge to global health systems and economies. The Government has acted decisively in the national interest to support households and businesses and address the significant economic consequences of the Coronavirus.

 

To support the economic recovery, the Government is extending and further tailoring temporary economic measures to support sectors, regions and communities that will continue to face challenges. Included in the tax waivers and deferrals is a payroll tax incentive, which varies throughout the different States and Territories.

DETAILS

STATE
ELIGIBLIITY
DETAILS
QLD
Businesses with grouped Australian wages of $6.5m or less A refund of payroll tax for 2 months is available in addition to a 3 month payroll tax holiday. Queensland OSR is contacting taxpayers who may be eligible for these concessions. More recently, a two-month waiver of payroll tax for July and August 2020 applies.

Businesses can also apply for a deferral of paying payroll tax for the 2020 calendar year (you must apply for this with QLD OSR. If you have already applied for a deferral, you do not need to reapply – it will be extended) allowing businesses to pay off any deferred liabilities over the course of 2021.

Businesses with grouped Australian wages of more than $6.5m Businesses can apply for a deferral of payroll tax for the 2020 calendar year (if you have already applied for a deferral, you do not need not reapply – it will be extended) allowing businesses to pay off any deferred liabilities over the course of 2021 and a refund of your payroll tax for 2 months.
NSW
Businesses with grouped Australian wages of up to $10m A three month waiver of payroll tax liabilities and a 25 per cent reduction in their annual liability for the 2019-20 year.

An additional three month deferral of payroll tax will also be available.

Businesses with grouped Australian wages of $10m or more A six-month deferral of payroll tax will be available. Further details to come.
All employers The payroll tax threshold will be raised from $900,000 to $1m for the financial year commencing on 1 July 2020.
WA
Businesses with grouped  Australian annual wages between $1m – $4m One-off grant of $17,500 will be provided to businesses paying payroll tax, with a payroll between $1m and $4m.
All employers The increase of the payroll tax threshold to $1m will be fast-tracked to start from 1 July 2020, being six months earlier than the originally planned date.

Businesses impacted by COVID-19 can also apply for an interest-free payment arrangement and for late payment penalties to be waived for payroll tax.

Businesses with grouped Australian annual wages of up to $7.5m Payroll tax will be waived for a four-month period between 1 March 2020 to 30 June 2020.
TAS
Hospitality, tourism, seafood and export sectors Payroll tax for the entire financial year of 2019-20 will be waived for businesses in the hospitality, tourism, seafood and exports sectors.
Businesses with grouped Australian annual wages of up to $5m Affected businesses in other sectors can apply for a waiver of payroll tax for the entire financial year of 2019-20.
Youth employment including apprentices and trainees A youth employment payroll tax rebate scheme will also be introduced from 1 April 2020 to encourage youth employment. One-off grants of $5,000 for businesses that hire an apprentice or trainee will also be introduced.
VIC
Businesses with Victorian annual wages up to $3m Full payroll tax refunds for the 2019-20 financial year.

Deferral of payroll tax for the first three months of the 2020/21 financial year until 1 January 2021 (proposed to be extended to the first six months of the 2020/21 financial year – see below).

Businesses with payrolls up to $10m Deferral of payroll tax for the first six months of the 2020/21 financial year (further details following announcement of 10 July 2020 still to be confirmed).
ACT
Employers in the hospitality, creative arts and entertainment industries Six-month waiver on payroll tax from April to September 2020.
Businesses with grouped Australian annual wages of up to $10m Interest-free deferrals of payroll tax for the 2020-21 year until 1 July 2022.
All business who pay wages for new apprentices or trainees A six-month payroll tax exemption on wages for eligible employee apprentices or trainees recruited between 1 August 2020 to 31 January 2021.
SA
Businesses with Australian grouped annual wages up to $4m Automatic six month payroll tax waiver.
Businesses with Australian grouped annual wages of $4m or more Businesses that are significantly impacted by COVID-19 can apply for a six month deferral of payroll tax.
NT
Businesses with an annual turnover of up to $50 million with total payroll up to $7.5m where turnover has been reduced by at least 30 per cent due to COVID-19 when compared to the same month or quarter in 2019 (must also be registered and included on the Central Hardship Register) A six month payroll tax waiver will apply from 1 April for impacted businesses.
Businesses with an annual turnover of up to $50 million with total payroll above $7.5m where turnover has been reduced by at least 50 per cent due to COVID-19 when compared to the same month or quarter in 2019 (must also be registered and included on the Central Hardship Register) A six month payroll tax deferral will apply from 1 April for impacted businesses up to 21 September 2020.