2012-2013 Budget Measures – Pay-roll Tax
The 2012-2013 Budget provides for a one-off pay-roll tax rebate, a rebate for wages paid in relation to eligible indigenous employees and an exemption for wages paid to new employees with a disability.
Administrative arrangements are being prepared for these measures and further clarification will be provided once the legislative scheme is passed by the Parliament.
The Our State Budget website contains further information on 2012-13 Budget measures, including the $135 Million Tax Relief Package.
Pay-roll Tax Rebate for Small Businesses
Employers, or grouped employers, who pay Australia-wide wages of up to $1.5 million will be paid a one-off rebate to fully offset their 2012-2013 pay-roll tax liabilities.
A partial rebate will be paid to employers, or grouped employers, who pay Australia-wide wages between $1.5 million and $3 million.
The rebate will be paid after the 2012-2013 reconciliation process is completed by the Office of State Revenue, which is expected to be around September 2013.
Employers should continue to lodge and pay their pay-roll tax returns as required by the pay-roll tax legislation.
Pay-roll Tax Exemption for Wages Paid to New Employees with a Disability
From 1 July 2012, a pay-roll tax exemption will apply to wages paid in the first two years of employment of new employees with a disability to encourage ongoing employment of disadvantaged and vulnerable members of the community.
It will apply to businesses that hire new employees with a disability (on or after 1 July 2012) who are in receipt of a Commonwealth Disability Employment Service (DES) wage subsidy or who are eligible for any form of Western Australian Disability Services Commission support.
100% Pay-roll Tax Rebate for Wages Paid to New Indigenous Employees of Small to Medium Businesses
Also from 1 July 2012, small to medium businesses will be eligible for a 100% pay-roll tax rebate for wages paid in the first two years of employment to new indigenous employees who also receive a Commonwealth Indigenous Wage Subsidy (IWS).
Eligible employers must have Australia-wide group annual payrolls of $15 million or less (exclusive of wages paid in Western Australia to eligible new indigenous employees).
During the 2012-2013 pay-roll tax reconciliation process, employers will be asked to provide the Office of State Revenue with details of wages paid to new indigenous employees, and the rebate will be paid after the reconciliation process is completed, which is expected to be around September 2013.
Employers should continue to lodge and pay their pay-roll tax returns as required by the pay-roll tax legislation.
Further information on the 2012-13 Budget can be obtained from Our State Budget website.
Published
17
May
2012