FURTHER COVID-19 PAYROLL TAX RELIEF IN QLD
21st September 2020
"The waiver of the July and August 2020 Payroll Tax liability will be a welcome cost saving for the businesses in Queensland that continue to do it tough..."
Author: Carl Valentine
While a sensible and well publicised plan for re-opening our State’s borders and its economy is probably one of the best things our State Government could do for businesses in QLD, the recently announced further payroll tax relief measures will nonetheless be welcomed.
Businesses who pay $6.5 million or less in Australian taxable wages will have their July & August 2020 payroll tax liabilities waived (but must still lodge their payroll tax returns for those periods) and are also eligible to apply to further defer the balance of their 2020 payroll tax payments for up to 12 months after they would otherwise have fallen due. Those businesses that had already obtained approval for deferral of their 2020 payroll tax payments until January 2021 will automatically obtain the benefits of these further deferrals.
The waiver of the July and August 2020 Payroll Tax liability will be a welcome cost saving for the businesses in Queensland that continue to do it tough, especially those in the tourism and hospitality sectors.
It’s wonderful to see this support from the State Government for the businesses in our economy that continue to be committed to maintaining and growing job opportunities in Queensland.
The extended deferral for payment of 2020 monthly Payroll Tax amounts, out to as far as January 2022, will help businesses manage their cash reserves and working capital over the next 12 months or so, an important aspect of their longer-term sustainability during continuingly uncertain times.
It is timely for businesses to note that if they are liable for Payroll Tax, they must continue to lodge their Payroll Tax returns in the allocated window and should take careful note of the deferred due dates for payment.
Of all the taxes and regulations that businesses are subject to, payroll tax is arguably the most abhorrent to employers who continue to build their businesses with a view to sustainably employing more Queenslanders. These temporary relief measures are welcomed, however broad-based tax reform, that includes the phasing out of payroll taxes, would be catalytic in QLD and Australia’s economic recovery.
Please contact your trusted PVW Partners Advisor if you require assistance in confirming your eligibility for these refunds or deferred payment dates.