Wolters Kluwer | Central

Payroll tax relief and other business cashflow support to counter coronavirus impact

Payroll tax relief and other business cashflow support to counter coronavirus impact

The state and territory governments have announced support packages for businesses including immediate payroll tax relief measures. The measures for payroll tax and certain loans and grants are summarised below.

Western Australia

Relief or benefit Who is eligible?How to access? More info
One-off grant of $17,500Business or payroll group with annual taxable wages between $1m and $4mAutomatic payment from July 2020https://www.wa.gov.au/government/multi-step-guides/payroll-tax-employer-guide/covid-19-relief-payroll-tax-employer-guide
Defer payment of 2019/20 tax liability until 21 July 2020Business or payroll group with annual taxable wages less than $7.5m or are directly/indirectly affected by COVID-19Lodge application with Commissioner https://www.wa.gov.au/government/publications/application-defer-payroll-tax-covid-19
Payroll tax threshold increased from 1 July 2020Business or payroll group with annual taxable wages up to $1m will not be liable to payroll taxEligible employers can cancel registration but wait until annual reconciliation function is available in August 2020 to reflect adjustment to liabilityhttps://www.wa.gov.au/government/multi-step-guides/payroll-tax-employer-guide/covid-19-relief-payroll-tax-employer-guide

Queensland

Relief or benefitWho is eligible?How to access? More info
6-month payroll tax deferral from 1 Feb 2020Businesses with payroll of up to $6.5mRegister via OSR website     https://www.business.qld.gov.au/running-business/employing/payroll-tax/lodging/coronavirus-tax-relief
6 month payroll tax deferral (presumably also from 1 Feb 2020)All businessesRegister via OSR website   https://www.business.qld.gov.au/running-business/employing/payroll-tax/lodging/coronavirus-tax-relief
Low interest loans of up to $250,000 (interest free for 12 months)Impacted Queensland businessesRegister expression of interest with Qld Rural and Industry Development Authority by emailing contact_us@qrida.qld.gov.au   http://www.qrida.qld.gov.au/current-programs/covid-19-business-support/queensland-covid19-jobs-support-scheme

New South Wales

Relief or benefit Who is eligible? How to access? More info
Payroll tax waiverBusiness or payroll groups with payrolls of up to $10mAnnual tax liability will be reduced by 25% when lodging annual reconciliation by 28 July 2020

Monthly payers need not pay for March, April and May 2020
https://www.revenue.nsw.gov.au/taxes-duties-levies-royalties/payroll-tax
Payroll tax threshold increased from 1 July 2020 Business or payroll group with annual taxable wages up to $1mEligible businesses will not be subject to payroll tax in 2020/21 https://www.revenue.nsw.gov.au/taxes-duties-levies-royalties/payroll-tax

Tasmania

Relief or benefitWho is eligible? How to access? More info
Payroll tax waiver for March, April, May and June 2020Employers in hospitality, tourism and seafood industry businessesEmployers will not be required to lodge payroll tax returns for March, April and May 2020

Annual Adjustment Returns still due by 21 July 2020
https://www.sro.tas.gov.au/Documents/Coronavirus-payroll-tax-waiver-2019-20-specific-industries-guideline.pdf
Payroll tax waiver for March, April and May 2020Other affected small and medium businesses with annual payroll of up to $5m (need to demonstrate business affected by Coronavirus)Employers will not be required to lodge payroll tax returns for March, April and May 2020

Annual Adjustment Returns still due by 21 July 2020

Details of application process will soon be available at https://www.sro.tas.gov.au/  
https://www.sro.tas.gov.au/Documents/Coronavirus-payroll-tax-waiver-2019-20-wages-less-than-$5-million-guideline.pdf
1 year payroll tax rebate for employing youth from 1 April 2020 Employers that pay payroll tax and employ youth employees aged 24 years and underDetails of application process will soon be available at https://www.sro.tas.gov.au/   https://www.sro.tas.gov.au/about-us/covid-19
One-off $5,000 grants to hire apprentice or traineeBusinesses that hire an apprentice or trainee (tourism, hospitality, building and construction and manufacturing)Application to be submitted https://www.skills.tas.gov.au/employers/training/funding_programs_for_employers_and_industry/targeted_small_business_grant  

ACT

Relief or benefit Who is eligible? How to access? More info
6-month payroll tax waiver    Employers in hospitality, creative arts and entertainment industries   Monthly payers: First credit from April payroll tax liability usually due 7 May   Annual payers: credit will be applied when assessment received at end of 2019/20  Online application form will be available soon at www.revenue.act.gov.au https://apps.treasury.act.gov.au/budget/covid-19-economic-survival-package/local-business-and-industry
Deferral of 2020/21 payroll tax interest free up to 1 July 2022All businesses with group Australia-wide wages up to a payroll threshold of $10mOnline application form will be available soon at www.revenue.act.gov.au https://apps.treasury.act.gov.au/budget/covid-19-economic-survival-package/local-business-and-industry

Victoria

Relief or benefitWho is eligible?How to access?More info
Payroll tax refunds for 2019/20    Small and medium sized businesses with annual taxable wages of less than $3m  Refund payments will begin from 27 March 2020
No further payments for 2019/20 but returns to be lodged
SRO will contact business directly
https://www.sro.vic.gov.au/news/new-tax-measures-support-businesses
Deferral of 2020/21 payroll tax first quarterSmall and medium sized businesses with annual taxable wages of less than $3m  No payroll tax payment required for first 3 months of 2020/21 with payments deferred to 1 January 2021.https://www.sro.vic.gov.au/news/new-tax-measures-support-businesses
Land tax deferral for 2020 until 31 December 2020; to be paid by 31 March 2021Land owners that have at least one taxable non-residential property and total taxable landholdings below $1mSRO will contact eligible land owners Request refunds if land tax already paid   https://www.sro.vic.gov.au/frequently-asked-questions-response-covid-19

Article correct as of 22 March, 2020. Government announcements and legislative changes that occur after this date will not be included in this article.

Related Posts