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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