State & Territory updates

Payroll tax relief 

 

Payroll tax - State & Territory updates

The State and Territory Governments have been announcing payroll tax relief that will be offered to business impacted by COVID-19. These concessions have been summarised below.

2020-05-05

Updated 5 May 2020

Click below to select a State or Territories update:

Australian Capital Territory

What relief is available?

  •  A 6 month waiver of payroll tax (for April to September 2020) has been announced for employers operating in “prohibited business activity” who are directly impacted by COVID-19, including food and drink, beauty and personal care services, entertainment venues, leisure and recreation, residential facilities (including hotels, apartments and hostels), outdoor recreation, non-residential institutions (including galleries, museums and community facilities), and potentially others

  • For employers who lodge annually, the waiver will be applied to their annual return (due on 21 July 2020), calculated at 25% of the total tax payable and capped at $1,500.

  • Construction sector businesses may defer payroll tax for six months (April-September 2020) interest free until 1 September 2020.

  • All ACT businesses with Australia wide wages of less than $10 million can defer their 2020-2021 payroll tax interest free until 1 July 2022.

What is the eligibility criteria?

  • Businesses impacted by COVID-19 prohibited activities list

  • For deferral businesses with less than $10 million Australian taxable wages or construction industry.

Evidentiary requirements

Must show negative impact of COVID-19 in application

Timing for relief

  • Waiver from April to September 2020

  • Deferral to 1 July 2022

How to access the concession

Must complete payroll tax waiver application form and submit to revenue ACT.

Back to top

New South Wales

What relief is available?

  • Deferral of payroll tax for all businesses with payroll taxable wages exceeding $10 million for six months (Until October 2020). Impacted businesses will also be able to apply for a Payment plan.

  • Businesses with grouped Australian wages of $10 million or less will have their annual liability reduced by 25% when they lodge their annual reconciliation.

  • The next round of NSW payroll tax cuts will be brought forward by raising the threshold limit to $1m in 2020-21.

What is the eligibility criteria?

 25% discount applies only to business with taxable wages under $10 million.

Evidentiary requirements

 Must show that total Australian annual group wages are below $10 million

Timing for relief

 Payroll tax payments deferral to October 2020, annual liability concession from 1 July 2020.  Still required to lodge the 2019-20 annual reconciliation by the due date.

How to access the concession

 No registration required 

Other concessions if you don't meet the eligibility criteria

Optional 6 Month tax deferral for all other businesses.

Back to top

Northern Territory

What relief is available?

 The Northern Territory Government has announced that payroll tax waivers are available for the March to August 2020 return periods for employers with:

  1. Confirmed listing on the DTBI Central Hardship Register

  2. Total Australian taxable wages for 2019-20 of under $7.5 million.

The Northern Territory Government has also announced that payroll tax deferrals are available for registered employers until 21 September 2020 that meet the following conditions:

  1. Confirmed listing on the DTBI Central Hardship Register

  2. Estimated total Australian taxable wages for 2019-20 of over $7.5 million

  3. A reduction in turnover of at least 50 per cent (rather than 30 per cent) due to COVID-19 when compared to the corresponding month or quarter in 2019.

What is the eligibility criteria?

  •  Up to $7.5 million wages waiver

  • Over $7.5 million and impacted by COVID-19 can apply for deferral until 21 September

Evidentiary requirements

Must show that the business is directly or indirectly affected by COVID-19 if their current turnover, profit, customers, bookings, retail sales, supply contracts or other factors are negatively affected compared with normal operating conditions.

Timing for relief

  • Waiver from March to August

  • Deferral until 21 September.

How to access the concession

  • A business with an annual turnover of up to $50 million that can demonstrate a reduction in turnover of at least 30 per cent due to COVID-19 when compared to the same month or quarter in 2019 can apply to be included on the Central Hardship Register.

  • Inclusion on the Central Hardship Register is a prerequisite for payroll tax relief. More information about the Central Hardship Register and how to apply will be available from 1 May 2020. Once listed you will be contacted by the Territory Revenue Office.

Other concessions if you don't meet the eligibility criteria

  • The payment of the March return (usually due 21 April, has been extended to 15 May 2020.

  • Flexible payment plan options are available for impacted businesses.

Back to top

Queensland

What relief is available?

  • A 6 month deferral of payroll tax will be available to all impacted businesses with the option to agree to a repayment plan with the Queensland OSR at the end of the 6 month period

  • Coupled with this group employers with annual taxable Australian wages of less than $6.5 million can also obtain a refund of November and December 2019 payroll tax as well as a payroll tax holiday for three months (January to March 2020)

  • Immediate payroll tax refunds will be provided for COVID-19 affected businesses. Eligible businesses can also apply for deferral until the end of 2020 and the payroll tax holiday

  • For group employers with annual taxable Australian wages of greater than $6.5 million, where their businesses have been impacted by COVID-19 (eg reduced turnover, customers, profits etc) they will also be able to obtain a refund of two months payroll tax (January and February 2020) and have their deferral extended for all of 2020. All this means no Queensland business impacted by COVID-19 will have to make a payroll tax payment in 2020.

What is the eligibility criteria?

  • Employer that pays $6.5 million or less in Australian taxable wages eligible for refund and holiday.

  • Over $6.5 millsion and have been negatively affect by COVID-19 can apply for deferral or refund for January and February 2020.

Evidentiary requirements

Over $6.5 million must show that the business is directly or indirectly affected by COVID-19 if their current turnover, profit, customers, bookings, retail sales, supply contracts or other factors are negatively affected compared with normal operating conditions.

Timing for relief

Must apply for payroll tax refund/ holiday before 31 May 2020.

How to access the concession

Must complete online application forms through OSRconnect to apply for payroll tax deferral and/or the refund and holiday.

Back to top

South Australia

What relief is available?

Up to $4 million wages

  • Business groups with annual Australian grouped wages of up to $4 million will get a 6 month waiver. Eligible groups will not be required to pay payroll tax for the months of April to September 2020 (for the return periods March 2020 to August 2020)

  • Monthly returns must still be lodged to capture the information

  • Waiver will be finalised as part of annual reconciliation process for 2019-20 and 2020-21.

Over $4 million wages

  • If able to demonstrate significant impact by COVID-19 then the same 6 month deferral can be granted via an online application

  • Businesses whose employees qualify for the JobKeeper payments will be exempt from paying any payroll tax on the wage subsidy

What is the eligibility criteria?

  • Up to $4 million wages waiver

  • Over $4 million and impacted by COVID-19 can apply for deferral of up to 6 months.

Evidentiary requirements

Business groups with annual Australian grouped wages of up to $4 million will get a 6 month waiver (not required to pay payroll tax for the months of April to September).

Timing for relief

Payroll tax payments will be either waived or deferred until October 2020 depending on eligibility.

How to access the concession

  • No application required where business meet the under $4 million threshold in 208-19 FY, they will be notified through RevenueSA Online.

  • An online application is being developed for businesses over $4 million to apply for the payroll tax deferral.

Back to top

Tasmania

What relief is available?

  • Last 4 months of the income year ending 30 June 2020 will be waived for payroll tax paying businesses in the hospitality, tourism and seafood sectors.

  • Tasmanian businesses with Australian taxable wages of $5 million or less that have been impacted by COVID-19 will have the payroll tax for the last 3 months of the income year waived.

  • To encourage the employment of young people, a youth employment payroll tax rebate will be introduced from 1 April 2020.

  • JobKeeper Payments will be exempt from Tasmanian Payroll Tax.

What is the eligibility criteria?

To be considered an eligible business at least one of the following conditions must be met:

  1. You are not grouped and only pay wages in Tasmania

  2. You are not grouped and the Tasmanian portion of your wages will be 50 per cent or more of your total Australian Wages

  3. You are grouped and the Tasmanian portion of the Australian Group Wages will be 50 per cent or more of the group’s Australian Group Wages; and you have been adversely impacted by COVID-19.

Evidentiary requirements

Must show negative impact of COVID-19 in application.

Timing for relief

Waivers available to impacted businesses from March to May 2020, specific industries extends to June.

How to access the concession

Must complete application form available of revenue office website and return to state revenue office.

Back to top

Victoria

What relief is available?

  • Small and medium-sized businesses with annual Australian Group wages of less than $3 million will have their payroll tax for the 2019-20 financial year waived.

  • These businesses can also defer paying payroll tax for the first quarter of the 2020-21 income year.

  • JobKeeper payments made to employees that have been stood down and the component of JobKeeper payments above a part-time employees usual salary will be exempt from payroll tax.

What is the eligibility criteria?

Businesses with annual Victorian taxable wages up to $3 million.

Evidentiary requirements

Must show that total Australian annual group wages are below $3 million.

Timing for relief

Deferral to October 2020. Still required to lodge returns, but do not need to make further payments for this financial year.

How to access the concession

Eligible businesses are required to claim a reimbursement of payroll tax already paid through PTX Express, these businesses will be contacted by the State Revenue Office.

Other concessions if you don't meet the eligibility criteria

Impacted businesses may be able to apply for deferral on the basis of hardship.

Back to top

Western Australia

What relief is available?

  • Payroll tax will be waived for March to June 2020 for employers who have Australian taxable wages of less than $7.5 million at 30 June 2020

  • JobKeeper Payment will be exempt from WA payroll tax

  • $1 million payroll tax threshold brought forward by six months to 1 July 2020.

What is the eligibility criteria?

  • Businesses with Australian taxable wages up to $7.5 million for payroll tax waiver

  • Over $7.5 million and impacted by COVID-19 can apply for deferral of up to 6 months.

Evidentiary requirements

  • Employers with less than $5 million in Australian taxable wages at 29 February 2020 will automatically have payroll tax waived

  • Payroll tax will be waived at annual reconciliation on Australian taxable wages that are less than $7.5 million.

Timing for relief

Waiver from March to June 2020.

How to access the concession

  • Employers with less than $5 million in wages at 29 February 2020 will automatically have payroll tax waived

  • Australian taxable wages $5 million or more at 29 February 2020, or new employers from 1 March 2020 can apply for deferral if they believe that their annual reconciliation will be under $7.5 million.

Back to top

 

2004 View our latest COVID 19 news and updates2

Contacts

Stephen O'Flynn

E soflynn@shinewing.com.au

Daniel Minihan

E dminihan@shinewing.com.au