In good news for SA businesses, and despite the Budget falling into deficit, the State Government has again met its pre-election promise to not introduce any new taxes or increase existing taxes.
In order to repair the gaping hole in the state’s budget, Victorian businesses with national payrolls above $10 million a year will be subject to an additional 0.5% levy on top of the existing payroll tax rate, with a further 0.5% for businesses with a payroll over $100 million.
Treasurer Tim Pallas handed down the Victorian State Budget 2023-24 on the afternoon of 23 May 2023. It contains a number of proposed changes to Victoria’s tax regime, the most significant of which for business relate to payroll tax, land tax and stamp duty reform for commercial and industrial properties.
The COVID Debt Levy relating to payroll has been introduced as a temporary measure as part of the COVID Debt Repayment Plan. The levy will apply from 1 July 2023 as a surcharge on Victorian wages (in addition to the Mental Health and Wellbeing Levy) paid by businesses with annual Australia-wide wages over $10 million.
Medical and allied health practices across Australia should consider their payroll tax obligations in relation to payments to medical and healthcare practitioners. Revenue Authorities are likely to enhance their payroll tax compliance activities following the decision by the NSW Civil and Administrative Tribunal Appeals Panel decision to dismiss the taxpayer’s appeal against the original Tribunal decision in Thomas and Naaz Pty Ltd v Chief Commissioner of State Revenue.
On 25 November 2022, the Senate passed the Treasury Laws Amendment (Electric Car Discount) Bill 2022 with amendments. The amendments were accepted by the House of Representatives on 28 November and the Bill now awaits Royal Assent.
To entice more parents into the workforce, address labour market concerns and reflect modern family and work requirements, the Federal Government confirmed plans to scale up the paid parental leave scheme in the October Budget.
The Government has introduced a Bill to provide an exemption from Fringe Benefits Tax (“FBT”) for a car fringe benefit attributable to an eligible low or zero emission car. The exemption is intended to encourage a greater take up of fuel-efficient cars and reduce Australia’s carbon emissions.
Cessation of employment removed as a taxing point for ESS interests which are subject to deferred taxation from 1 July 2022.
Several key super changes are set to apply for employers and superannuation members from 1 July 2022.
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