Simeoni News Update – NSW Payroll Tax Relief for the Covid-19 Crisis - Simeoni

Simeoni News Update – NSW Payroll Tax Relief for the Covid-19 Crisis


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 1st 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 – There is also similar payroll tax reduction for most states in Australia, please check the various state governments payroll tax announcements.

Paul Simeoni & Team