Additional WA Payroll Tax Relief
Posted on 1st April 2020 by Ashley Dawson
The WA State Government has announced a range of additional payroll tax measures to support businesses impacted by the Coronavirus.
The payroll tax threshold will be increased to $1 million on 1 July 2020. This brings the increase forward from the planned date of 1 January 2021 and will result in approximately an additional 300 businesses no longer being liable for payroll tax. The threshold increase will be reflected in Revenue Online when it comes into effect.
Payroll tax will be waived for March to June for employers who have Australian taxable wages of less than $7.5 million at 30 June 2020. This waiver replaces the previously announced option to defer payment of payroll tax until July.
Employers, or groups of employers, with Australian taxable wages less than $5 million at 29 February can automatically claim the waiver by:
- declaring WA taxable wages as normal in Revenue Online and
- recording the value of WA taxable wages as exempt wages using the ‘Other Exempt Wages’ field.
Employers, or groups of employers, with Australian taxable wages of $5 million or more at 29 February, or new employers registered for payroll tax from 1 March 2020, can apply to defer lodgment and payment of returns. Payroll tax for March to June 2020 will be waived at annual reconciliation if Australian taxable wages are less than $7.5 million at 30 June 2020.
The Treasurer encourages eligible businesses not negatively affected by COVID-19 to keep paying tax as normal so the funds allocated to this initiative can be used to assist other businesses that are not so fortunate.
A one-off grant of $17,500 will be given to employers, or groups of employers, whose annual Australian taxable wages are more than $1 million and less than $4 million.
We are here to help
Trying to think of everything you need to do keep your team and customers safe and healthy right now as well as run your business is tough.
We will continue to keep you informed of all government stimulus and other measures and how they apply to your business and are here at any time of the day to give you advice on your business continuity plans and cashflow.
Please call us on (08) 9316 7000 if there is anything we can do to help you.
If you need us outside of work hours, please call one of our Directors:
Andrew Sullivan on 0407 680 698
Chris Grieve on 0417 967 539
Ashley Dawson on 0438 014 318
We are here for you and together we will all get through this.
We will all come out the other side with more resilience, more compassion and more empathy. Until we do, please look out for each other.