Change in NSW Payroll Tax

SDP welcome the recent NSW Budget measures, the announcement for payroll tax reforms to boost jobs and will aim to kick-start business with payroll tax relief.

So, what exactly is changing and what does it mean?

Under the changes announced in the Budget, the payroll tax threshold for business will be raised from $689,000 to $750,000 on 1 July 2013.

The changes will provide tax relief to thousands of businesses including labour on-hire agencies making payroll tax more efficient over the longer term.

Businesses that continue to pay the tax will be more than $3,000 better off as a result of the one-off increase to the threshold.

The payroll tax rebate for businesses that employ an additional worker in a new job will increase by 25% from $4,000 to $5,000.

Every business which employs a new employee will receive a $2,000 rebate on their payroll tax on their first anniversary of employment at the firm and $3,000 on the second anniversary. Businesses can apply for a rebate for employing new staff hasbeen extended to 20 June 2015.

Indexation will cease from 1 July 2013 resulting in broadening the base of payroll tax and making it more efficient.

Around 1300 businesses that would have paid payroll tax in 2013-2014 will not be liable for the tax.

The above information is a summary of the payroll tax reforms; for any specific advise including checking if you are eligible for the new employment rebate, please call Tax Agent and SDP Director, Raj Sesha on +61 (0) 2 9233 2233.

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