Economic Stimulus Package – Payroll Tax Relief

On the 17^th March 2020, the State Government announced as part of the economic stimulus package, a payroll tax relief. Details of the relief have now been clarified and we can confirm:

• The payroll tax relief is for businesses with grouped Australian wages of no more than $10 million in the 2019/20 financial year
• Employers in this category will have their annual tax liability reduced by 25% when they lodge their annual reconciliation, which is due on 28 July
• For those employers that lodge and pay monthly, no payment for the months of March, April or May 2020 will be required. However we suggest you continue to use the online monthly calculator to record your monthly figures as this with assist with the annual reconciliation in June.

HQB can assist with the preparation of your payroll tax annual reconciliation so we suggest contacting our office when it’s time to prepare this reconciliation.

We note that the payroll tax threshold will increase in the new financial year from $900,000 to $1 million.

If you would like to discuss any of the details in this payroll tax article, please call.

– Ian Hogbin & Kanista Arokianathan

Posted 20.03.2020

This article is compiled as a helpful guide for your private information and is subject to copyright. We suggest that you do not act solely on the basis of material contained in this article because items are of general nature only and may be liable to misinterpretation in particular circumstances. We recommend that our advice be sought before acting on any of these crucial areas.