Hon Ben Wyatt LLB MSc MLA

Hon Ben Wyatt LLB MSc MLA

Former Treasurer; Minister for Finance; Aboriginal Affairs; Lands

    JobKeeper payments exempt from payroll tax

    9/04/2020 5:00 PM
    • WA businesses will not need to pay payroll tax on Commonwealth JobKeeper payments
    • Bill to guarantee exemption will be introduced into Parliament next week
    • Parliament called back to deal with urgent legislation related to COVID-19 response

    The McGowan Government will introduce urgent legislation to Parliament next week to exempt Western Australian businesses from paying payroll tax on the Commonwealth's JobKeeper wage subsidy.


    The Commonwealth's JobKeeper Payment scheme provides eligible employers with payments of $1,500 per fortnight for up to six months for each current and recently stood-down employee. 


    Under existing laws, the $1,500-a-fortnight JobKeeper payment would attract payroll tax.


    However, the new legislation will ensure WA businesses are exempt from any payroll tax on the wage subsidy.


    This legislation comes on top of $1.7 billion in support measures for WA businesses and households announced by the McGowan Government last month.


    For more information, visit: https://www.wa.gov.au/government/announcements/covid-19-payroll-tax-relief


    Comments attributed to Treasurer Ben Wyatt:


    "The McGowan Government is committed to supporting WA businesses weather the impacts of COVID-19 to ensure continued employment for Western Australians post-pandemic.


    "This legislation will remove the unintended tax consequence of the Commonwealth's JobKeeper scheme and ensure WA businesses and employees get the full benefit of the program.


    "It comes on top of our announcement last month of $1.7 billion in relief measures for WA businesses and households, which includes significant payroll tax relief.


    "This included the bringing forward of the increase in the payroll tax exemption threshold to $1 million by six months, as well as a four-month waiver of payroll tax and a one-off grant of $17,500 for eligible small-to medium businesses."


    Minister's office - 6552 5900