Payroll Tax - State Taxes

Payroll Tax

Payroll Tax is a state tax payable on wages paid to employees. Tax is assessed on the basis of total wages paid by an employer (employer group).  An employer group is formed when there is a link between companies, regardless of where the business operates. Business can be grouped in situations such as (to name a few):

-        Common employees

-        Common control

-        Related Companies

The annual threshold for 2019 in NSW is $850,000 with a tax rate of 5.45%. The annual threshold for QLD is $1.1mil with a tax rate of 4.75%. Monthly and weekly thresholds are also available on the respective states website.

As an employer in NSW, you must register for payroll tax if during any month your wages are above the monthly threshold.

Monthly Thresholds NSW:

Days in the month

Threshold

28

$65,205

30

$69,863

31

$72,192

 

If your estimated payroll tax for the financial year is less than $12,000.00, you have the option to lodge and pay annually. If greater than $12,000.00 you must lodge and pay monthly.

As an employer in QLD, you must register for payroll tax if your wages are above the thresholds.

QLD Thresholds:

 

Threshold

Weekly

$21,153

Monthly

$91,666

Yearly

$1,000,000

 

Lodgement dates:

Monthly

7th day after the end of each month, or the next business day if this falls on a weekend

Half Yearly (only applicable to QLD)

14th December 2019

Yearly

21st July 2019

 

 

 

Land Tax

Land Tax is another state tax payable on land/property you own. Land tax is calculated on the total value of your taxable land above the threshold and varies with each state.

Thresholds for land held in NSW are published in October each year and will apply to land held at 31 December of the previous year.

2019 Thresholds for NSW:

General Threshold: $692,000

Premium Threshold: $4,231,000

Land Tax Rates:

General Threshold $100 plus 1.6% of the value above the general threshold but below the premium threshold

Premium Threshold: 2% above the threshold

You will need to pay land tax even if the land is held by a company or jointly owned with a company. You will also need to pay land tax even if the trust owns the property. Generally, the land tax thresholds apply to all trusts except special trusts. Special trusts are when a trustee is the only person who meets the definition of an owner for land tax purposes and beneficiaries are not.

Special trusts include:

-        Most family Trusts

-        Discretionary Trusts

-        Most Unit Trusts

-        Some trusts created by a will

Special trusts are taxed at a flat rate of 1.6% for amounts up to the premium land tax threshold where they will be taxed at 2%.

If you pay your land tax in full by the 1st instalment date you’ll receive a 1.5% discount otherwise you have the option to pay in three instalments. Instalments fall due a month after the last.

You will need to complete a pre-registration form in order to receive a client/corro ID for land tax. You need to register if the value of your land is above the threshold for the relevant year.

For land held in QLD, you will only be liable for land tax if value over $600,000 for individuals and $350,000 for companies and trustees. Tax is calculated on land held at 30 June each year.

Unlike NSW there are varying rates for land tax based on whether you’re an individual or company and which value bracket your total land value falls under.

 

 

2019 Land Tax Rates QLD – Individuals:

Total Taxable Value

Rate of Tax

$0 -$599,999

$0

$600,000 -$999,999

$500 + 1cent  for each $1  more than $600,000

$1,000,000 -$2,999,999

$4,500 + 1.65cents for each $1 more than $1,000,000

$3,000,000 - $4,999,999

$37,500 + 1.25 cents for each $1 more than $3,000,000

$5,000,000 - $9,999,999

$62,500 + 1.75 cents for each $1 more than $5,000,000

$10,000,000 or more

$150,000 + 2.25cents for each $1 more than $10,000,000

 

2019 Land Tax Rates QLD – Companies, Trusts, Absentees:

Total Taxable Value

Rate of Tax

$0 -$349,999

$0

$350,000 -$2,249,999

$1,450 + 1.7cents for each $1 more than $350,000

$2,250,000 -$4,999,999

$33,750 + 1.5cents for each $1 more than $2,250,000

$5,000,000 - $9,999,999

$75,000 + 2.0cents for each $1 more than $5,000,000

$10,000,000 or more

$175,000 + 2.5cents for each $1 more than $10,000,000

 

There are situations in which exemptions and rebates for land tax and payroll tax may apply.

General exemptions & concessions include:

-        Your home – principal place of residence

-        Your farm – primary production land

-        Any of your land if the total taxable value is below the land tax threshold

Kristen LovettComment