COVID-19 and NSW Payroll Tax

The NSW Government has announced payroll tax relief measures as part of its COVID-10 economic package. Businesses who are registered for Payroll tax and have wages less than $10 million

Payroll tax relief for businesses with grouped Australian wages of no more than $10 million

Payroll tax customers whose total grouped Australian wages for the 2019/20 financial year are no more than $10 million will automatically have their annual tax liability reduced by 25% when they lodge their annual reconciliation, which is due on 28 July.

For those customers who lodge and pay monthly and whose total Australian wages will be no more than $10 million for the current financial year, no payment for the months of March, April or May 2020 will be required.

These customers will also have the option of deferring these payments for an additional three months and more information will be provided on the deferral arrangements in the upcoming days.

When lodging your annual reconciliation, you will still need to provide wage details paid in these months and will receive the benefit of a 25% reduction in the amount of tax you would have had to pay for 2019-20.

If you cancelled your payroll tax registration earlier in the year you may still be entitled to apply for the discount. Please contact Revenue NSW directly at payrolltax@revenue.nsw.gov.au They will then review your request, or alternatively contact our office and we will liaise with Revenue NSW on your behalf.

Payroll tax deferral arrangements for businesses with total grouped Australian wages over $10 million

Payroll tax customers whose total grouped Australian wages for the 2019/20 financial year are over $10 million, will have the option of deferring the payment of payroll tax for up to six months.

These businesses will not need to make their payment for the March period, normally due on 7 April 2020.

More information will be provided on the deferral arrangement in the upcoming days.

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