NSW Payroll Tax Cuts

Are you an employer in NSW?

At a glance: The New South Wales [NSW] Government has confirmed that it will permanently reduce payroll tax rates in a bid to stimulate the NSW economy.

The NSW Government has confirmed that it will permanently reduce payroll tax rates in order to support the NSW economy over the next 4 years. The gradual reductions in payroll tax rates are effective beginning January 1, 2009 as follows:

 

a. From 6% to 5.75% from January 1, 2009

b. From 5.75% to 5.65% from January 1, 2010

c. From 5.65% to 5.50% from January 1, 2011

 

In addition, the payroll tax threshold was increased to $623,000 from July 1, 2008. This threshold will be indexed annually to be in line with the Consumer Price Index. According to the NSW Treasurer, businesses with a $1m payroll in 2008/09 will save approximately 20% on their payroll tax bill as a result of the new reduced payroll tax rates and indexed threshold.

Remember: - Ensure you are aware of the three stage reductions to the NSW payroll tax rates over the next 4 years. Contact us if you require any clarification or advice.