As the end of the financial year looms, there’s one thing we can probably all agree on – this is going to be one heck of a confusing tax season.
Back in April, when lockdowns and isolation had businesses hanging on by their fingernails, each state and territory rolled out their own stimulus packages to help keep businesses afloat. Most of those packages included payroll tax waivers, and they’re likely set to expire next week.
New South Wales waived payroll tax until the end of the financial year for businesses with payroll of up to $10 million. From July 1, all businesses will have the option of deferring their payments until October 2020.
The tax-free threshold for payroll tax is increasing to $1 million in New South Wales from July 1, 2020.
Businesses in Victoria with payroll of less than $3 million were able to claim a full tax refund for the 2019-20 financial year. As of July 1, they will be liable for the tax, but payments for the first three months of the new financial year can be deferred until January 2021.
In Western Australia, for businesses with payroll of less than $7.5 million, payroll tax has been waived for the four months leading up to EOFY. As of July 1, there are currently no deferral plans in place, but the tax-free threshold will increase to $1 million.
The Tasmanian government waived payroll tax for businesses with annual wags of up to $5 million. As it stands, it doesn’t look like there are any ongoing deferral measures.
In Queensland, employers that paid less than $6.5 million in taxable wages were eligible to apply for a refund of two months’ payroll tax, a three-month holiday, or a deferral for the 2020 calendar year. The expiry date for these depends on when the individual business applied.
Elsewhere, the payroll tax waiver in the Australian Capital Territory is in action until September, and 2020-21 payments can be deferred until July 1, 2022. The Northern Territory and South Australia waivers are also applicable for six months.
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