Generous South Australian payroll tax incentives

By Ali Suleyman - November 11, 2016

To encourage employment growth, the South Australian government is currently offering a Job Accelerator Grant of up to $10,000 ($5,000 each year for two years) for each new full-time equivalent job created between 1 July 2016 and 30 June 2018.

The Grant is available for South Australian employers that are liable for payroll tax in South Australia, and have total Australian wages of less than $5 million.

For small businesses and start-ups, a Job Accelerator Grant of up to $4,000 ($2,000 each year for two years) is offered for each new employee hired between 1 July 2016 and 30 June 2018.  The Grant of up to $4,000 is available to businesses with total Australian wages below the payroll tax free threshold (currently, $600,000 in South Australia) and for most organisations that are exempt from payroll tax. (Find out more: https://www.revenuesa.sa.gov.au/grants-and-concessions/jobacceleratorgrantscheme)

In addition, a small business payroll tax rebate is provided to eligible employers with a taxable Australian payroll of less than or equal to $1.2 million. (Find out more: https://www.revenuesa.sa.gov.au/taxes-and-duties/payroll-tax/rebates)

We would be pleased to assist employers with determining eligibility and claiming this incentive.

Furthermore, in the past few months, each of the different jurisdictions have released updates on their payroll tax-free thresholds and incentives to promote employment and economic growth for the 2016-17 year and beyond.

Please find below a summary for each jurisdiction affected by the updates.

Payroll tax concessions to encourage employment

  • In Victoria, payments of $5,000 and $7,000 are available for hiring dairy industry workers and retrenched automotive workers.  A further payment of $4,000 is available if employers provide these workers with accredited training. (Find out more: http://www.sro.vic.gov.au/backtowork) A payroll tax exemption will also be introduced for wages paid by employers to a displaced apprentice or trainee who recommences their apprenticeship or traineeship on or after 1 July 2016. (Find out more: http://www.sro.vic.gov.au/exempt-wages-and-organisations)
     
  • In New South Wales, as part of Jobs Action Plan, the payroll tax rebate has increased from $5,000 to $6,000 for each additional employee that a business with less than 50 full-time equivalent employees takes on. Where an employer is eligible under the Jobs Action Plan, $2,000 is payable on the first anniversary and $4,000 is payable on the second anniversary of employment.  The Fresh Start Support rebate, which is a one off amount of $1,000 payable on the first anniversary, continues to be available.  (Find out more: http://www.osr.nsw.gov.au/taxes/payroll/jap) An exemption is also available for wages paid by non-profit organisations to apprentices and trainees. A rebate is available for apprentices, trainees and group apprenticeship or traineeship schemes. (Find out more).
     
  • In Queensland, a payroll tax rebate is available for employers of exempt apprentices and trainees until 30 June 2018.  The rebate has been increased from 25% to 50% for the 2016-17 year.  The amount of the rebate can be worked out by multiplying 50% of total wages paid to eligible apprentices and trainees by 4.75% (payroll tax rate) for each return period. (Find out more: https://www.business.qld.gov.au/business/employing/payroll-tax/exemptions/apprentice-trainee-rebate)
     
  • In Western Australia, there is a payroll tax exemption available for wages paid to a Group Training Organisation in respect of wages paid to apprentices (including trainees) or in respect of new employees with a disability. (Find out more: https://www.finance.wa.gov.au/cms/uploadedFiles/_State_Revenue/Pay-roll_Tax/Wages_definitions_fact_sheet.pdf)
     
  • In the Australian Capital Territory, exemptions are available for wages paid to the long term unemployed, or a new starter for the first time in an industry or occupation who is receiving approved training. (Find out more: http://www.revenue.act.gov.au/duties-and-taxes/payroll-tax/exempt-wages-and-payments)

Updates to tax-free thresholds


Contact our experts


Other articles


 

Top of Page


 Back to News




IN THIS SECTION:


Rob Southwell

Rob Southwell's picture

Sydney

Managing Partner and Partner – Private Business and Family Advisory


> View profile

Michael Minter

Michael Minter's picture

Newcastle

Managing Partner


> View profile

Leon Mok

Leon Mok's picture

Perth

Managing Director


> View profile

Brendan Britten

Brendan Britten's picture

Melbourne

Managing Partner and Executive Director/Partner- Business Advisory and Assurance


> View profile

Nigel Fischer

Nigel Fischer's picture

Brisbane

Managing Partner - Private Business and Family Advisory


> View profile

Tom Verco

Tom Verco's picture

Adelaide

Managing Principal - Private Business and Family Advisory


> View profile



Partnership fraud

SUCCESS

Paperwork and independent advice saves partnerships from fraud

Discover more

Kia Ora Horse Stud

CASE STUDY

Pitcher Partners fills a Financial Manager gap to keep the business on track

Discover more

Fuel Injection Company Administration

LEADERSHIP

A fuel injection company began life as an Australian public company before being acquired by a UK publicly listed company while in the research and development stage of a “green...

Discover more



@PitcherPartner GRATEFUL | Talk about a 'long' lunch. Our Melbourne firm said 'Thank you' to our 42 Personal, Team and Executive As… https://t.co/e5XI0HyV8t