Payroll tax exemption extended for JobKeeper payments

The WA Government has ensured Western Australian businesses will continue to be exempt from paying payroll tax on the Commonwealth Government’s JobKeeper Payment scheme.

The original JobKeeper Payment scheme enabled eligible employers to claim a fortnightly payment for current and recently stood-down employees from March 30 to September 27, 2020. This was subsequently extended by the Commonwealth Government until March 28, 2021.

Payroll tax relief legislation was passed in April 2020 to provide a payroll tax exemption for subsidies under the original scheme. This legislation included the ability for the State Government to continue the payroll tax exemption if the JobKeeper Scheme was extended.

The new regulations mean Western Australian businesses will be exempt from payroll tax on JobKeeper wage subsidies paid from September 28, 2020 to March 28, 2021.

Source: WA Government