Further to the Federal Government Stimulus Package announcements made last week, the State and Territory Governments across Australia have also announced today further incentives in response to COVID-19 (Coronavirus) outbreak.
We stress that these announcements have not yet been legislated and are therefore subject to change. In saying that, with payroll tax lodgements and payments due imminently in most States / Territories, we expect these measures to be enacted imminently.
Once law, we will be able to provide more details in relation to how the changes impact your business and your current payroll processes. In the meantime, below is a high level summary of the announcements.
New South Wales
- For businesses with payrolls up to $10 million, there will be a waiver of payroll tax liabilities for the period from April 2020 to June 2020. The announcement indicates that this is a waiver not a deferral.
- The payroll tax threshold for the 2021 income year will be increased to $1 million bringing forward the increase in threshold.
- Further fees for certain small businesses (i.e. bars, cafes, restaurants) will also be waived.
- Deferral of lodgement and payment of monthly, quarterly and annual payroll tax returns from February 2020 onwards, to 3 August 2020. This will apply to all businesses.
- Concessional loan facilities of up to $250,000 available, with interest-free terms for up to 12 months, to assist employers with retention of staff.
- For businesses with payrolls up to $7.5 million, the due date for payment of 2019-20 payroll tax will be deferred until 21 July 2020. This is available where employers have been directly or indirectly impacted by COVID-19.
- For businesses with payroll between $1 million and $4 million, a one-off grant will be provided, totalling $17,500.
- The payroll tax threshold increase to $1 million will be brought forward to 1 July 2020, six months earlier than anticipated.
Victoria, South Australia, Tasmania, Australian Capital Territory & Northern Territory
- No announcements at this stage
If you have any queries in relation to the proposed changes to payroll tax, please don’t hesitate to contact your ESV Engagement Partner on 9283 1666.