NSW Payroll Tax Relief Due to Coronavirus (COVID-19)

With the ongoing COVID-19 crisis, the NSW Government has announced a series of economic stimulus measures to protect jobs at risk. The centrepiece of the measures is the reduction in the 2019/20 payroll tax liability by 25% and the waiver of payroll tax payments for three months for employers with grouped Australian wages of no more than $10 million.

Eligibility

Employers whose total grouped Australian wages for the 2019-20 financial year are no more than $10 million. 

Payroll Tax Reduction

Eligible employers will have their 2019/20 financial year payroll tax liability reduced by 25%.  The reduction in the liability will be received when the annual reconciliation for the year is lodged, which is due on 28 July 2020.

Payroll Tax Payment Waiver

Eligible employers will not be required to make payroll tax payments in NSW for the months of March, April and May 2020.  It is currently unclear whether the monthly returns will still need to be lodged.

In this manner, the measures provide almost immediate effect by relieving eligible employers from the March 2020 payroll tax payment which would have been due on 7 April 2020.

Eligible employers will still be required to report wages paid during those months in their annual reconciliation.   

Payroll Tax Threshold Increased from 1 July 2020

The NSW Government has also announced the payroll tax free threshold will increase from $900,000 to $1,000,000 with effect from 1 July 2020. This increase is a general increase and will apply to all employers. This replaces the previously scheduled increase in the threshold to $950,000.

The increase in the threshold will result in annual savings of up to $5,450 in payroll tax based on the standard rates.

Other Measures

Other economic stimulus measures announced are targeted at small businesses in highly affected industry sectors such as bars, cafes, restaurants and the trades.

If you require further assistance or have any questions, please contact your usual Mazars advisor or alternatively can contact one of our experts.

Sydney – Gaibrielle Cleary

Brisbane – Jamie Towers

Melbourne – Evan Beissel

+61 2 9922 1166

+61 7 3218 3900

+61 3 9252 0800

Published:  19/3/2020

 

Please note that this publication is intended to provide a general summary and should not be relied upon as a substitute for personal advice.

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