Positive Changes to the Payroll Tax Threshold are coming to NSW and SA.
This is great news for small businesses! The NSW Payroll Tax Threshold is said to increase from $750,000 to $1,000,000 over the next 4 years. Similar for SA with an increase from $600, 000 to $1, 500,000.
The new tax-free thresholds under the State Revenue Legislation Amendment Bill 2018 are as follows:
1 July 2018 – 30 June 2019
1 July 2019 – 30 June 2020
1 July 2020 – 30 June 2021
|1 July 2021 – Future Financial Years||
$1, 000, 000
What are the benefits?
The increase to the Payroll Tax Threshold provides incentives for small businesses to invest in the growth of their business.
Some of these benefits include:
Increase staff employment or retain staff for longer
Ability to invest in services or goods for the business
Freedom to spend money to drive growth
The proposed tax-free thresholds are said to take effect at the commencement of the 1 July 2019 financial year.
Interested in understanding more about Payroll Tax?
Single touch payroll has been on the minds of many small business owners. The basic gist of it is this – if you have 20 or more employees then you need to already be utilising Single Touch Payroll ready software.
What constitutes an employee? Check the list below:
- Full-time employees
- Part-time employees
- Casual employees and seasonal workers who were on your payroll 1 April 2018 and worked any time during March
- Employees based overseas
- Employees absent or on leave (paid or unpaid).
© Fitzpatrick Group 2018
Have any questions about Payroll Tax?
Peter Carter – Certified Practicing Accountant
Peter is a Certified Practicing Accountant (CPA) and has completed an Advanced Diploma in Accounting and Bachelor of Commerce (Accounting and Finance Law).