June 27—A number of Australian states and the Australian Capital Territory proposed updates to payroll tax related thresholds, exemptions and rebates for the 2016-17 tax year, which begins on July 1, 2016, and ends June 30, 2017.
In addition to the changes occurring on a national level, regions with upcoming changes include:
• Australian Capital Territory—The payroll tax threshold would increase to A$2 million ($1.49 million) from A$1.85 million ($1.38 million) July 1, 2016, though the payroll tax rate of 6.85 percent would remain unchanged.
• New South Wales—The Job Action Plan, in which the New South Wales government provides a payroll tax rebate to businesses that employ new workers, would be altered. New jobs would only be eligible for the rebate if the number of full time employees is 50 or less on or after July 31, 2016. In addition, the total rebate amount per job would increase to A$6,000 ($4,477) from A$5,000 ($3,731). Employers of new jobs commencing on or after July 31, 2016, would receive a rebate of A$2,000 ($1,492) on the first anniversary and A$4,000 ($2,985) on the second anniversary.
•Victoria—The payroll tax threshold would increase to A$575,000 ($429,117) from A$550,000 ($410,460) on July 1, 2016, and continue to increase by A$25,000 ($18,657) on July 1 every year through 2019. The threshold would then increase to A$600,000 ($447,774) on July 1, 2017, A$625,000 ($466,431) on July 1, 2018, and A$650,000 ($485,089) on July 1, 2019. There are no proposed changes to the payroll tax rate of 4.85 percent.
• Western Australia—The payroll tax threshold would increase to A$850,000 ($634,347) from A$800,000 ($597,032) July 1, 2016, though the payroll tax rate of 5.5 percent would remain unchanged.
• South Australia—The Small Business Tax Rebate, which provides payroll tax savings for employers with taxable payrolls of A$1.2 million ($895,548) and less, would be extended to the 2019-2020 tax year, the South Australia state government said June 20. The rebate would allow employers to each receive up to A$9,800 ($7,313) in 2016-2017.
The proposed changes to payroll taxes are subject to approval by their respective legislatures.
To contact the reporter on this story: Jared Mondschein at firstname.lastname@example.org
To contact the editor responsible for this story: Michael Baer at email@example.com
The New South Wales budget is available at http://www.budget.nsw.gov.au/
The Australian Capital Territory budget is available at http://apps.treasury.act.gov.au/budget
The Victoria budget is available at: http://www.dtf.vic.gov.au/State-Budget .
The Western Australia budget is available at: http://www.ourstatebudget.wa.gov.au/ .
The South Australia government announcement on the extension of the Small Business Tax Rebate is available at http://www.premier.sa.gov.au/index.php/tom-koutsantonis-news-releases/725-state-budget-2016-17-payroll-tax-rebate-extended-for-four-years.
More information on payroll issues in Australia can be found in the Australia country primer.
Copyright © 2016 The Bureau of National Affairs, Inc. All Rights Reserved.
All Bloomberg BNA treatises are available on standing order, which ensures you will always receive the most current edition of the book or supplement of the title you have ordered from Bloomberg BNA’s book division. As soon as a new supplement or edition is published (usually annually) for a title you’ve previously purchased and requested to be placed on standing order, we’ll ship it to you to review for 30 days without any obligation. During this period, you can either (a) honor the invoice and receive a 5% discount (in addition to any other discounts you may qualify for) off the then-current price of the update, plus shipping and handling or (b) return the book(s), in which case, your invoice will be cancelled upon receipt of the book(s). Call us for a prepaid UPS label for your return. It’s as simple and easy as that. Most importantly, standing orders mean you will never have to worry about the timeliness of the information you’re relying on. And, you may discontinue standing orders at any time by contacting us at 1.800.960.1220 or by sending an email to firstname.lastname@example.org.
Put me on standing order at a 5% discount off list price of all future updates, in addition to any other discounts I may quality for. (Returnable within 30 days.)
Notify me when updates are available (No standing order will be created).
This Bloomberg BNA report is available on standing order, which ensures you will all receive the latest edition. This report is updated annually and we will send you the latest edition once it has been published. By signing up for standing order you will never have to worry about the timeliness of the information you need. And, you may discontinue standing orders at any time by contacting us at 1.800.372.1033, option 5, or by sending us an email to email@example.com.
Put me on standing order
Notify me when new releases are available (no standing order will be created)