You are here

Payroll tax

Manage my outgoings

There is support available to help manage your business expenses

Go back to home

My business got support but I need it too

Running a small business can be tough. It’s really important to look after yourself. Regular exercise, a healthy diet and getting enough sleep is a good start, but sometimes you need more support.

The good news is there is help available if you need it. Get free mental health support from qualified coaches through Beyond Blue’s NewAccess for Small Business Owners program.

Find out more

Payroll tax

New South Wales

REDUCED TAX LIABILITY

Businesses with total grouped Australian wages for the 2019/20 financial year of $10 million or less, will have their annual tax liability reduced by 25% when they lodge their annual reconciliation.

When lodging your annual reconciliation, you will still need to provide details of the wages paid for the entire financial year.

FIND OUT MORE

DEFERRALS

Businesses have the option of deferring their payroll tax payments until 7 October 2021.

Businesses are still required to lodge the 2020/21 annual reconciliation by the due date which has been extended to 7 October 2021.

In addition, businesses have the option of deferring their payments for the July and August 2021 return periods until 7 October 2021.

After lodging their 2021 annual reconciliation, businesses will have the option of paying all of their outstanding liability in full or entering into a new Support Payment Arrangement.

If businesses choose to enter into a 2021 Support Payment Arrangement, there is the option to include tax payable from the 2020/21 annual reconciliation and any monthly liabilities for the July, August and September 2021 return periods.

More information on how to establish a 2021 Support Payment Arrangement will be provided by the end of August 2021.

Victoria

DEFERRALS

Employers with payrolls up to $10 million, based on your 2019-20 financial year annual reconciliation returns, can defer your 2020-21 payroll tax liabilities until the 2021-22 financial year.

This means they can pay your 2020-21 payroll tax liabilities in four quarterly instalments in the 2021-22 financial year:   

  • Liabilities for July, August and September 2020 will be due on 7 September 2021
  • Liabilities for October, November and December 2020 will be due on 7 December 2021
  • Liabilities for January, February and March 2021 will be due on 7 March 2022
  • Liabilities for April, May and June 2021 will be due on 7 June 2022.

To be eligible for this deferral measure, an employer must lodge:

  • 2019-20 financial year annual reconciliation return, and
  • monthly payroll tax returns for the months of July 2020 through to June 2021.
WAIVERS

Eligible employers will be entitled to a waiver of their 2020-21 and 2021-22 payroll tax after applying the New Jobs payroll tax credit against their liability for each of the financial years (designated financial year).

Eligible employers will receive a credit of 10 cents for every dollar of Victorian taxable wages paid in the relevant designated financial year that are above the previous financial year’s wages. The credit will be applied against the employer’s payroll tax liabilities at the end of the relevant designated financial year. The waiver may partially or fully extinguish the payroll tax liability for an eligible employer for the designated year.

An employer or a group of employers is eligible for the relief if their total Australian wages do not exceed $10 million in the financial year preceding the designated financial year. There are other eligibility requirements which must be met and this will depend on whether or not the employer is a member of a payroll tax group as at 30 June of the relevant designated financial year.

FIND OUT MORE

South Australia

PAYROLL TAX WAIVERS

Businesses and business groups with Australian (annualised grouped) wages up to $4 million will receive a payroll tax waiver for the months of April to June 2021 (for the return periods of March 2020 to May 2021).

Businesses and business groups with wages over $4 million whose employees qualified for JobKeeper support payments between 4 January 2021 and 28 March 2021 will receive a waiver of the payroll tax payable on other wages paid for the months of January to June 2021 (for the return periods of December 2020 to May 2021).

FIND OUT MORE

Northern Territory

DEFERRALS

Payroll tax deferrals are available for registered employers until 21 July 2021 with:

  • confirmed listing on the DTBI Business Hardship Register
  • total Australian taxable wages for 2019-20 of over $7.5 million
  • a reduction in turnover of at least 50% due to COVID-19 when compared to the corresponding month or quarter in 2019.

Eligible employers may be able to defer payment of one or more monthly returns between March 2020 and June 2021 until 21 July 2021, provided returns continue to be lodged by the due date.

WAIVERS

Payroll tax waivers are available for the March 2020 to June 2021 return periods for employers with a confirmed listing on the DTBI Business Hardship Register and total Australian taxable wages for 2019-20 of under $7.5 million.

FIND OUT MORE

Australian Capital Territory

DEFERRAL - ALL BUSINESSES

Businesses that pay less than $10 million in wages can defer 2020-21 payroll tax, interest free until 1 July 2022. Businesses will need to complete a simple online application form to confirm eligibility.

EXEMPTION - NEW APPRENTICE OR TRAINEE WAGES

Wages paid to apprentices or trainees employed after 1 August 2020 are exempt from payroll tax for the period from the start of the employment until 30 June 2021. To ensure this applies only to new employees, the apprentice or trainee cannot have been employed by the business (or another business within the payroll tax group) at any time during the previous month from when the employment commenced.

EXEMPTION - BUSINESSES UNABLE TO TRADE

The exemption applies to wages paid or payable by eligible employers for a specified period – any of the months in the period 1 December 2020 to 30 June 2021.

If at any time during one of the specified months, the employer’s business is unable to trade they will be exempt from payroll tax on wages for that month.

WAIVER - BUSINESSES WITH LIMITED TRADE

Businesses that are able to operate, but only on a very limited basis, as a consequence of an emergency direction in force may be eligible for a payroll tax waiver from January to July 2021, for wages paid or payable between 1 December 2020 and 30 June 2021.

Submissions will be assessed on a case-by-case basis and will need to demonstrate that business operations are severely restricted by a specific emergency direction. A business will not be eligible just because it has reduced capacity due to a maximum person limit per usable space or because customers are required to remain seated.

Find out more