Payroll Tax – Your Questions Answered

To see if you are eligible for one or more payroll tax relief measures

What options are available to businesses with Payroll Tax liabilities?

The current options available to businesses are:

  • refund of payroll tax for 2 months
  • a payroll tax holiday for 3 months
  • deferral of paying payroll tax for the 2020 calendar year

Is my business eligible?

There are two categories of eligible businesses:

1) If you are an employer (or part of a group of employers) who pays $6.5 million or less in annual Australian taxable wages you will receive a refund on your November and December 2019 payroll tax returns, and a payroll tax holiday (which means that you pay no tax) for January, February and March 2020.2) If you are an employer (or part of a group of employers) who pays more than $6.5 million in annual Australian taxable wages and have been negatively affected, directly or indirectly, by COVID-19 you will receive a refund on your January and February 2020 returns.
It is important to note that a business is directly or indirectly affected by COVID-19 if their current turnover, profit, customers, bookings, retail sales, supply contracts or other factors is negatively impacted compared with normal operating conditions.

How do I apply? 

If your business is eligible, you may receive an email with steps provided on how to apply.  If you do not receive an email, or you are unsure about your eligibility, complete the refund/holiday application form or the Deferral application form.

If I am eligible for a refund, when will it be paid?

The Government is aiming for the refunds to be paid within 48 hours of you completing all the required steps.

How will the payment be made?

The payment will be made to the business’ nominated bank account. As you go through the process, you will have the opportunity to either update or provide your bank details.

How long have I got to make an application?

Applications for the deferral can be made up until the end of the 2020 calendar year. Applications for the refund and/or holiday need to be made by 31 May 2020.

What happens if I get a deferral?

Once your applications have been processed, you will receive an email with instructions on what you need to do.

  • You won’t need to pay payroll tax returns for the 2020 calendar year.
  • You must continue to lodge returns in OSRconnect – without paying them – during this time.
  • You can resume paying returns at any time during the deferral period.
Return periodLodgement due dateDeferred payment due date
March7April 202014 January 2021
January-March quarter7April 202014 January 2021
April7May 202014 January 2021
May8June 202014 January 2021
2019-20 annual21July 202014 January 2021
July7 August 202014 January 2021
August7 September 202014 January 2021
September7 October 202014 January 2021
July-September quarter7 October 202014 January 2021
October9 November 202014 January 2021
November7 December 202014 January 2021
December14 January 202114 January 2021
October-December quarter14 January 202114 January 2021
July-December half-year14 January 202114 January 2021

Where can I find out more information?

business.gov.au

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