The McGowan Labor Government will deliver payroll tax relief to up to 12,000 WA businesses, providing a stimulus to the State’s economy and supporting new jobs for Western Australians.
As part of the $170 million payroll tax package, the payroll tax exemption threshold will be increased by $150,000 over the next two years.
Currently, WA businesses with Australia-wide payrolls of up to $850,000 are exempt from payroll tax. The annual threshold will be increased to $950,000 from January 1, 2020, and again to $1 million from January 1, 2021.
Raising the payroll tax threshold will result in around 1,000 businesses in Western Australia no longer being liable for any payroll tax, while also cutting payroll tax liability for an additional 11,000 businesses.
Reducing the payroll tax burden on Western Australian small and medium businesses will lower the costs associated with the hiring of additional staff, and provide an opportunity for those businesses to reinvest.
Importantly, these changes will also bring Western Australia’s payroll tax regime more into line with those in other States.
As Mark McGowan said “This package will deliver real incentives for thousands of local businesses to hire additional staff, and is the latest in a series of measures announced to stimulate WA’s economy.
Please contact our office on 9387 5637 if you would like to discuss these changes.
