The State Government of NSW has released a business support package to alleviate the impact of the COVID-19 outbreak. The State Government has mainly focused on providing assistance through the payroll tax relief, as the intention is to help businesses keep their employees on the payroll.
NSW has opted to waive payroll tax for businesses with Australian taxable wages of up to $10m for the three months leading to 30 June 2020.
The payroll tax threshold will be raised to $1m in 2020/21, thereby providing another round of relief for eligible businesses.
You can claim the payroll tax waiver when lodging your annual reconciliation, which is due on 28 July, which will result in your annual tax liability being reduced by 25%. When lodging your annual reconciliation, you will still need to provide wage details paid in these months and will receive the benefit of a 25% reduction in the amount of tax you would have had to pay for 2019/20.
Source: CCH
