COVID-19 and Payroll Tax
During the Corona Virus pandemic, the following states have decided to either waive or defer payments of payroll tax. See below for further information.
For those businesses with a payroll of less than $3M, payroll tax for the whole 2019-20 financial year will be waived.
Also on offer is a deferral of payroll tax payments for businesses as above for the first 3 months of the 2020-21 financial year.
The State Revenue Office will contact eligible businesses by email to advise them about how to apply for the waiver of payments.
For businesses with payrolls up to $10M, payroll tax will be waived for 3 months, plus another 3 month deferral.
For businesses with payrolls over $10M, payroll tax will be deferred for 6 months.
In the 2020-21 financial year, the payroll tax threshold will be raised to $1M, bringing forward payroll tax cuts.
For businesses with Australia-wide annual wages of less than $7.5M, payroll tax will be waived from 1 March to 30 June 2020.
The payroll tax threshold will increase to $1M from 1 July 2020.
If a business with a payroll up to $5M can demonstrate negative impact by COVID-19, payroll tax will be waived for the April-June 2020 period.
Businesses in the hospitality, tourism and seafood industries will have their payroll tax waived for March to June 2020.
If a business employs a person aged 24 of less between April and December 2020, they will receive a payroll tax rebate.
For businesses with payrolls less than $6.5M, payroll tax will be refunded for November and December 2019. Also, payroll tax will not be required to be paid for the January to March 2020 period.
For businesses with payrolls more than $6.5M, payroll tax will be refunded for January and February 2020.
Government is also offering a payroll tax deferral for the 2020 calendar year but this is only by application.
Government has extended the payroll tax exemption for hiring Territory employees to 30 June 2021.
All businesses required to close due to COVID-19 will receive a payroll tax waiver from April to September 2020.
Businesses with group Australia-wide wages of up to $10M will have their payroll tax deferred for 2020-21 until 1 July 2022.
Building and construction businesses will receive a deferral of payroll tax for the period April to September 2020.
Businesses that can demonstrate significant impact by COVID-19 which have payrolls over $4M, will have their payroll tax deferred for the period April to September 2020.