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JobKeeper payment payroll tax relief announced

The Victorian Government has announced payroll tax relief for employers who receive the Federal Government’s $1,500 per fortnight JobKeeper payment.
Under the Victorian measures, any top-up payments – that is, additional payments to employees earning less than $1,500 per fortnight that bridge the gap between their actual wage or salary and the scheme’s minimum payment of $1,500 per fortnight – will be exempt from payroll tax.

Example:
An employee normally earns $1,300 per fortnight (pre-tax). Under the JobKeeper scheme the employee is eligible to receive a $1,500 per fortnight. Victoria’s newly announced payroll tax exemption means that, while the $1,300 payment will be subject to payroll tax, the additional $200 top-up from the employer will be exempt.

However, for employees who earn more than $1,500 per fortnight, the full wage or salary will be subject to payroll tax.

For employees who have been stood down, the full $1,500 JobKeeper payment will be exempt from payroll tax.

The Victorian Government’s announcement follows payroll tax measures announced by Western Australia, South Australia, Tasmania and the Australian Capital Territory in relation to the JobKeeper scheme. However, unlike the Victorian exemption, in each of those jurisdictions, the full $1,500 JobKeeper payments will be exempt from payroll tax regardless of the employee’s actual earnings in the fortnight.

call Julius Mather on 03 9404 2737

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