The Victorian State Government has announced some payroll tax changes as part of its 2023-24 budget. These are:
1. From 1 July 2023 (until 30 June 2033):
- A payroll tax surcharge of 0.5% to ‘wages’ (i.e. remuneration for payroll tax purposes) paid in Victoria by businesses with national payrolls of greater than $10 million.
- A further 0.5% payroll tax surcharge (i.e. 1% in total) for businesses with national payrolls of greater than $100 million.
2. From 1 July 2024:
- An increase in the tax-free threshold from $700,000 to $900,000.
- Phasing out the tax-free threshold for businesses that pay wages of more than $3 million so that the threshold reduces for every dollar over this amount and is then not available to businesses with wages of over $5 million.
- Removal of the payroll tax exemption for ‘high-fee’ non-government schools.
3. From 1 July 2025:
- A further increase in the tax-free threshold from $900,000 to $1 million.
More information on the above and other changes made in the budget is available here.