Update on NSW Stimulus Package

Stimulus Update: NSW Revenue Provides Details Of The Payroll Tax Rebate

Updated March 25th 2020

Further clarification from NSW revenue regarding the payroll tax rebate that was posted on Tuesday here.

The below clarifies the fact that total Australian Wages is the figure for the $10m threshold, not solely NSW wages, and how the rebate will apply and be paid.

As per NSW Revenue –

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 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.

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.

Threshold increase – 2020/2021 financial year

The tax-free threshold will increase from $900,000 to $1 million for the financial year commencing on 1 July 2020.