On 22nd December 2014, the State Treasurer the Honourable Dr Mike Nahan handed down the 2014/15 Government mid-year financial projections statement. Proposed changes to taxes administered by State Revenue include delaying the increase in the payroll tax threshold and changes to how the payroll tax threshold is calculated.
From 1st July 2015, a gradual diminishing of the payroll tax exemption threshold will be introduced for payrolls between the current exemption threshold of $800,000 up to $7.5 million. For payrolls of $7.5 million and above, payroll tax will be payable (at the current rate of 5.5%) on an employer's entire payroll, with no exemption threshold being granted. This is a change from the current approach, where all employers are exempt from payroll tax on the first $800,000 of payroll, regardless of their size. This change will make the WA process similar to the way the payroll tax exemption threshold is administered in Queensland and the Northern Territory.
The scheduled increase in the payroll tax exemption threshold to $850,000 from 1st July 2016 will also be deferred until 1st July 2017.
Further details of these changes will be available when the legislative amendments are introduced into the parliament later this year.
Source: OSR eNews dated February 2015
Please Note: Many of the comments in this article are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances.