Payroll Tax

Payroll tax is a state and territory tax assessed on salaries and wages paid or payable by an employer to its employees, when the total salary and wage bill of an employer (or group of employers) exceeds the threshold amount for that fiscal year.

Who pays it?

In Victoria, employers pay this state tax if they pay wages in Victoria and Australian wages, exceed the monthly threshold of $54,166, and the annual threshold of $650,000.

The annual threshold will be adjusted if you are not an employer for the full financial year.

The current payroll tax rate is 4.85 per cent.

Regional Victorian employers

For 2020-21, the rate of payroll tax for regional Victorian employers is 2.02%. There is also a special payroll tax rate for businesses in bushfire affected local government areas.

The regional payroll tax rate will reduce further over the next two years:

From 1 July 2021, it will be 1.62%.
From 1 July 2022, it will be 1.2125%.

From 1 July 2019, you are a regional Victorian employer if you are paying at least 85% of your payroll to regional employees. For wages paid before 1 July 2019, you must also satisfy the business location test.

What are wages?

Wages are defined under the Payroll Tax Act 2007 (the Act) and include:

Wages
Remuneration
Salaries
Allowances
Commissions
Bonuses
Employer (pre-tax) superannuation contributions such as:
- superannuation guarantee payments
- salary sacrifice contributions
- from 1 July 2007, the value of non-monetary contributions
- superannuation contributions to defined benefit funds
Fringe benefits within the meaning of the Fringe Benefits Tax Assessment Act 1986
The value of shares and options granted to employees, directors, former directors and some contractors
Payments to some contractors
Payments by employment agencies arising from employment agency contracts
Remuneration paid by a company to company directors
Employment termination payments and accrued leave

Payments (considered wages) to employees engaged on a permanent, temporary or casual basis are always subject to payroll tax.

For assistance with all your Payroll Tax needs call us today on (03) 9736 1877

Taxation Services

Income Tax Returns

No return is too big or too small – we apply the same level of diligence and care to all our clients without exception. We cover individual, trust & partnership, company, back year and superannuation returns.

Goods & Services Tax (GST)

Let us take into account your individual or business circumstances and help you navigate whether or not you need to be registered for GST, as well as ensuring your Business Activity Statement (BAS) is sorted.

Capital Gains Tax (CGT)

Under the Australian taxation system capital gains tax (CGT) applies to the capital gain made on any asset disposal, except for specific exemptions. Let us advise you on your tax requirements for CGT.

Fringe Benefits Tax (FBT)

Fringe benefits tax is separate to income tax and is calculated on the taxable value of the fringe benefits provided.

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Negative vs. Positive Gearing

If you are interested in negative gearing we are able to assess your circumstances and assist you with your requirements.
Negative gearing does not suit all investors; let us help you in your decision.

Strategic Tax Planning

No one likes to pay more tax than they need to. Using the appropriate legal tax planning strategies can result in significant tax savings. With our forward planning strategies we seek to place our clients in the most tax effective position.

Payroll
Tax

Payments (considered wages) to employees engaged on a permanent, temporary or casual basis are always subject to payroll tax. Ensure your company is working with the latest information and let us assist with your payroll tax needs.

Allowable Deductions

The Income Tax Assessment Act 1997 categorises deductions into general deductions and specific deductions. We at Carmelo Mirabile & Co. are focused on maximising your legal deductions and minimising the amount of tax you pay.