Food consultant company: Payroll tax to be reduced soon?
By: Sky Accountants
State governments on the east coast are working on reducing their payroll tax.
In Western Australia, companies with total taxable wages that exceed $850,000 a year are required to pay payroll tax. This annual threshold is one of the lowest in the country. New South Wales had the same threshold but increased it to $900,000 on July 1. It plans to lift the threshold to $1 million by 2021. This year alone, NSW businesses are expected to save $187 million in tax.
Meanwhile, the South Australian Government had increased its $600,000 annual threshold to $1.5 million on January 1. The Queensland Government also plans to increase its $1.3 million threshold to $1.5 million whereas the Victorian Government plans to increase its payroll tax threshold from $600,000 to $700,000 by 2022. ACT, the Northern Territory and Tasmania have higher thresholds of $2 million, $1.5 million and $1.25 million, respectively.
The WA Government increased its payroll tax from 5.5 per cent to 6 per cent for businesses with annual payrolls between $100 million and $1.5 billion, and to 6.5 per cent for businesses exceeding $1.5 billion. It is urged to reduce the payroll tax soon because of the 90,000 unemployed West Australians. It needs to support businesses to achieve its 150,000 jobs target.
The Australian Hotels Association WA has joined the call for the Government to reduce their payroll tax burden and determine all the hurdles of job creation. The low payroll threshold is said to act as a disincentive for small businesses to hire more workers and expand operations. With the help of a food consultant company, hospitality businesses could use the tax savings to work on their labour and investment budget.
Hospitality business owners think that if the payroll tax is reduced, it would help small businesses and their staff. Operators would then be in a position to give more hours to staff.
As you look for different ways to grow and improve your business, seeking professional advice could prove to be an important and helpful decision.
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