Covid 19 Payroll Tax Relief

Small / Medium Businesses

Large / All Businesses

ACT Businesses with Australian wages of up to $10 million can defer their FY2021 payroll tax liability. Interest will only be applied if there is an outstanding deferred amount unpaid as at 1 July 2022. All businesses with operations directly affected by the ‘Prohibited Activities List’ will receive a six-month waiver of payroll tax for liabilities due between April and September 2020 (monthly return periods of March to August 2020).
NSW Businesses with grouped Australian wages equal to or less than $10 million will have their annual payroll tax liability automatically reduced by 25% when lodging their annual return.  No payment is required for the months of March, April and May. A further deferral of up to 3 months will also be available with details to be provided shortly. Businesses with grouped Australian wages over $10 million can defer their payroll tax payments for up to 6 months for liabilities due between April and September 2020 (return periods of March to August 2020).
 
The payroll tax threshold will increase from $900,000 to $1,000,000 from 1 July 2020.
NT Businesses with grouped Australian wages equal to or less than $7.5 million and have lost at least 30% turnover will have their payroll tax liability abolished for the March to August 2020 return periods.
 
An extension of time for the ‘hiring resident employee’ exemption.
Businesses with grouped Australian wages greater than $7.5 million and turnover below $50 million, whom have lost at least 50% turnover may be able to defer payroll tax payments between March and August 2020 until 21 September 2020.
 
An extension of time for the ‘hiring resident employee’ exemption.
QLD Businesses with grouped Australian wages equal to or less than $6.5 million can apply for a refund of the payroll tax paid for November & December 2019 and will be exempt from payroll tax for the monthly return periods of January to March 2020.  These businesses can also apply for a deferral of payroll tax for the remainder of the 2020 calendar year. Businesses with grouped Australian wages over $6.5 million who have been negatively affected by Covid-19, can apply for a refund of any payroll tax paid for January & February 2020.  These businesses can also apply for a deferral of payroll tax for the remainder of the 2020 calendar year (i.e. there are 2 applications to complete).
 
A business is directly or indirectly affected if their current turnover, profit, customers, bookings, retail sales, supply contracts or other factors are negatively affected compared with normal operating conditions.
SA Businesses with grouped Australian wages equal to or less than $4 million will automatically receive a six-month payroll tax waiver for liabilities due between April and September 2020 (monthly return periods of March to August 2020). Businesses with grouped Australian wages over $4 million that have been significantly impacted by Covid-19 can apply to defer the payroll tax payable for liabilities due between April and September 2020 (return periods of March to August 2020).  The deferred amount will be due in October 2020.
TAS Businesses with grouped Australian wages equal to or less than $5 million affected by Covid-19 will receive a full payroll tax waiver for FY2020.  No payments are required for March to May 2020. Hospitality, tourism & seafood businesses will receive a full payroll tax waiver for FY2020.  No payments are required for March to May 2020.
 
An exemption for hiring employees aged 24 years and under between 1 April and 31 December 2020 is available to all businesses.
VIC Businesses with annual Victorian wages equal to or less than $3 million will automatically receive a full payroll tax waiver for FY2020. No payments are required for March to May 2020.  These businesses can also apply for a deferral of payroll tax for the first quarter of FY2021.
WA Businesses with grouped Australian wages equal to or less than $5 million as at 29 February 2020 will receive an automatic waiver of pay-roll tax for the monthly return periods of March to June 2020 (i.e. 4 months).
 
Businesses with grouped Australian wages more than $5 million as at 29 February 2020 but expected to be equal to or less than $7.5 million for FY2020 can apply for a deferral of pay-roll tax for the return periods of March to June 2020.  If the taxable wages for FY2020 are equal to or less than $7.5 million as at 30 June 2020, a full waiver of pay-roll tax will be applied to the deferred liability.
 
A one-off grant of $17,500 will be given to employers with grouped Australian wages between $1 million and $4 million (based on FY2019 taxable wages).
The payroll tax threshold will increase from $950,000 to $1,000,000 from 1 July 2020.
 
Businesses with grouped Australian wages over $7.5 million can apply for an interest-free payment arrangement where a business is concerned about meeting its pay-roll tax obligations.

The above summary is for general information purposes and should not be relied upon as advice.  The comments have been prepared based on public announcements by the various State and Territory Governments.  The payroll tax relief is dependent on legislation being passed in the various States and Territories.  As part of that process, the eligibility requirements or nature of the relief may change.
 
If you have any questions or require assistance with obtaining relief, please contact Scott Pease on 07 3157 1625 or Philip Magoffin on 07 3157 1628.

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