COVID19 Update – WA Payroll tax and other measures

The WA State Government announced further measures to assist both small business and consumers during the COVID crisis.

Please contact us here if you require assistance or to discuss how this and other measures announced affect your business.

Payroll Tax

Of particular benefit to small business is the announcement that payroll tax will be waived for the period 1 March 2020 to 30 June 2020, where the Australian taxable wages are less than $7.5m in the 2020 year.

If your taxable wages as at 29 February 2020 were less than $5m:
Your payroll tax for March to June will automatically be waived.

  • Lodge and pay all returns up to and including your February return.
  • If your Australian taxable wages (including WA taxable wages and interstate taxable wages) are less than $5 million, lodge your returns for March to June, entering your WA taxable wages as normal. Then record your WA taxable wages in the ‘exempt (other) wages’ field to apply the waiver, for wages paid March, April, May and June.

If your Australian taxable wages are $5m or more as at 29 February 2020:

  • Apply to defer lodging and paying returns if your Australian taxable wages were $5 million or more at 29 February and you expect your wages to be less than $7.5 million at 30 June, or if you are a new employer registered for payroll tax from 1 March 2020.

Payroll tax for March to June 2020 will be waived at annual reconciliation if the Australian taxable wages are less than $7.5 million at 30 June 2020.

Previously advised Grant Payment of $17,500

A one-off grant of $17,500 will be given to employers, or groups of employers, whose annual Australian taxable wages for 2018-19 were more than $1 million and less than $4 million.  Grants will automatically be paid by cheque from July.

Note that the grant may now not be available to some employers due to the wages from March to June being classified as exempt, rather than taxable. For example, if your taxable wages as at 29 February 2020 are less than $1m, you may not receive this grant.

We will provide more information on this as it comes to hand.

Other Measures Announced 31/3/20 for business

Government fees will be waived including:

  • Licensing for building services, plumbers and electricians
  • Tourism businesses in national parks
  • Boat registration fees for tourism operators and commercial fishers
  • Taxi booking service authorisation fees
  • Liquor licence renewals
  • Settlement agent licence fees

Power utilities will provide a one off credit to charities and community service providers of $2,500.

Power utilities will provide a one off credit of $2,500 to business that uses less than 50 megawatt hours of electricity. Starting from 1 May 2020.

Other Measures Announced 31/3/20 for individuals

Two $305 credits will be applied to your power bill, one in May, and one later in the year.

If you have trouble paying some bills, listed below, you can make arrangements with the government for interest free repayment.

  • Stamp or transfer duty
  • Landholder duty
  • Vehicle licence duty
  • Land tax
  • Power

In addition, the government will be providing $500m to the frontline Health services, who are doing a fantastic job of looking after us.

We will be continuing to monitor the quickly evolving landscape and keep you updated but if you have any questions regarding the above you can contact us here.

Thank you for your continued support and we hope you all stay safe