Commencing 1 July 2017, employers who pay at least 85% of their Victorian wages to employees working mainly in regional areas, will be eligible for a reduction in their payroll tax rate.
The rate will be reduced from 4.85% to 3.65% for all taxable wages with no strings attached.
The provisions were primarily introduced to stimulate regional employment but equally apply to employers with pre-existing employees. Another benefit for employers is that there are virtually no additional record keeping requirements.
Regional Victoria includes all Victorian regions other than the Melbourne Metropolitan area. That means employers based in large regional hubs including Geelong, Ballarat, Mildura, Echuca and Bendigo are eligible.
For grouped employers, each member of the group is individually assessed for the concessions regardless of whether the other members of the group satisfy the criteria.
Employers who meet the criteria can self-assess from July 2017, so it’s an opportunity that should be fully explored now.
If you think your business or your clients could be eligible for the concessions, please contact your Pitcher Partners tax expert for further information.