NSW GOVT TO REDUCE PAYROLL TAX
The NSW Government has announced in its budget, an increase to its payroll tax threshold from $750,000 to $1 million per annum.
Subject to this legislation passing, the changes will be phased in over the next 4 years, starting with an increase to $850,000 in the 2018-19 financial year.
These changes are set to impact around 40,000 businesses who will save up to $5450 each in the next financial year, and up to $13,625 per year by the 2022 financial year, and about 5,000 business will be removed from having to pay the tax altogether.
The step is designed to take some of the pressure off small business and to enable them to grow their operations and add more jobs, touting the low threshold for payroll tax in NSW has discouraged small business from hiring additional staff.
The move may allow many small businesses to hire 1-2 additional staff members without any increase in taxes.
If you need additional information, please reach out to your Evolve online bookkeeper.