The NSW Treasurer has announced changes to Payroll Tax as part of the 2010 State Budget.
- From 1 July 2010, the payroll tax rate will reduce from 5.65 per cent to 5.50 per cent.
- From 1 January 2011, the payroll tax rate will reduce from 5.50 per cent to 5.45 per cent.
- From 1 July 2010, an exemption for wages paid in respect of a maximum 14 weeks paternity leave is introduced.
The threshold where payroll tax comes into play is indexed each year based on the percentage change in the Sydney CPI number over the 12 months ending in March prior to the commencement of each payroll tax year (the current threshold for the 2009/10 year is 638,000 in NSW).
I’d be happy to see this unfair tax abolished entirely. Should employers be forced to pay additional taxes (not to mention the pain of additional admin for compliance) simply because they pay over a certain amount in wages? Is that really encouraging employment? What do you think?
Article by Christie Lewis
Christie is Practice Manager at Alan Lewis Accountants . Besides accounting, her passion is for all things small business (and blogging, of course). You can contact Christie directly at christie@lewistaxation.com.au.
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