Most Australian states have introduced measures to relieve eligible businesses of payroll tax. Although thresholds and relief measures vary state by state, the general idea is to waive, refund or defer payroll tax payments to wipe or defer taxation liabilities associated with employees.

Who is eligible?

Varies state by state, but in order to receive the benefit you must be paying payroll tax. If you’re unsure whether you are paying payroll tax, speak to an accountant.

Timing:

It is currently unclear how and when refunds will be paid. Your State Revenue Office (or equivalent body) will contact you if you are eligible to receive payment and provide more guidance on timing. Varies state by state.

☝🏻 Our tip: These measures only benefit businesses that pay payroll tax (i.e. in Victoria, this is businesses that pay $54,166 in monthly wages). If you are not currently paying payroll tax but under normal circumstances would have been required to start paying in FY20 (or the first quarter of FY21) then this change will mean you don’t have to, which represents a huge cost saving in the short to medium term and should be factored into your forecast planning.