Additional WA Payroll Tax Relief

The WA State Government has announced a range of additional payroll tax measures to support businesses impacted by the Coronavirus.

The payroll tax threshold will be increased to $1 million on 1 July 2020. This brings the increase forward from the planned date of 1 January 2021 and will result in approximately an additional 300 businesses no longer being liable for payroll tax. The threshold increase will be reflected in Revenue Online when it comes into effect.

Payroll tax will be waived for March to June for employers who have Australian taxable wages of less than $7.5 million at 30 June 2020. This waiver replaces the previously announced option to defer payment of payroll tax until July.

Employers, or groups of employers, with Australian taxable wages less than $5 million at 29 February can automatically claim the waiver by:

1. declaring WA taxable wages as normal in Revenue Online and
2. recording the value of WA taxable wages as exempt wages using the ‘Other Exempt Wages’ field.

Employers, or groups of employers, with Australian taxable wages of $5 million or more at 29 February, or new employers registered for payroll tax from 1 March 2020, can apply to defer lodgment and payment of returns. Payroll tax for March to June 2020 will be waived at annual reconciliation if Australian taxable wages are less than $7.5 million at 30 June 2020.

The Treasurer encourages eligible businesses not negatively affected by COVID-19 to keep paying tax as normal so the funds allocated to this initiative can be used to assist other businesses that are not so fortunate.

A one-off grant of $17,500 will be given to employers, or groups of employers, whose annual Australian taxable wages are more than $1 million and less than $4 million.

We are here to help

Trying to think of everything you need to do keep your team and customers safe and healthy right now as well as run your business is tough.

We will continue to keep you informed of all government stimulus and other measures and how they apply to your business and are here at any time of the day to give you advice on your business continuity plans and cashflow.

Please call us on (08) 9316 7000 if there is anything we can do to help you.

If you need us outside of work hours, please call one of our Directors:

Andrew Sullivan on 0407 680 698
Chris Grieve on 0417 967 539
Ashley Dawson on 0438 014 318

We are here for you and together we will all get through this.

We will all come out the other side with more resilience, more compassion and more empathy.  Until we do, please look out for each other.

• Twitter
• Facebook

Register for Jobkeeper Initiative Updates

Register for Jobkeeper Initiative Updates

Click here to register

Third Stimulus Package – Jobkeeper Initiative

Yesterday, the Federal Government announced its third economic stimulus package against COVID-19, this time in the form of “Jobkeeper” payments and expanded access to the Jobseeker program administered by Centrelink. While many aspects of the program have been outlined, the Prime Minister and Treasurer were quick to confirm that work has not commenced on the draft legislation.

To date limited information about the scheme and how to register has been published by Treasury and the ATO and further details and clarity are being added through additional documents and explanations to the media. We can however confirm the following key features:

In terms of what is on offer:

• The amount of assistance payable is $1,500 per fortnight, per eligible employee
• Each eligible employee must receive at least $1,500 per fortnight (before tax)
• The definition of eligible employee is a full time employee, part time employee or casual employee with over 12 months service

In terms of what restrictions apply:

• The scheme is available to employers with turnover less than $1 billion who have experienced a 30% drop in actual or expected future revenue due to COVID-19
• Employees must be at least 16 years of age
• Are an Australian citizen, the holder of a permanent visa, a Protected Special Category Visa Holder, a non-protected Special Category
• Visa Holder who has been residing continually in Australia for 10 years or more, or a Special Category (Subclass 444) Visa Holder
• Employees must have been on the payroll at 1 March 2020 and, if since stood down or terminated, must return to the payroll
• Employees can only receive the JobKeeper payment from one employer

Sole traders can also register for and receive payments under the scheme.

To take part in the scheme, eligible employers will need to register with the ATO. Click our link at the top of the page to register.

We look forward to providing you with more comprehensive updates as they become available.  If you know anyone who you believe would benefit from our analysis please encourage them to subscribe using this link.

• Twitter
• Facebook