Businesses, what's the tax implication on JobKeeper payments?
Do you know that JobKeeper payments are exempt from payroll tax?
South Australian businesses whose employees qualify for the federal government’s $1500-a-fortnight JobKeeper support payments will be exempt from paying any payroll tax on the wage subsidy, the Marshall Liberal government has announced.
Under existing laws, the JobKeeper payment – part of the Commonwealth’s $130 billion stimulus measure to keep eligible businesses connected with their workforce during the coronavirus crisis - would attract payroll tax.
However, Treasurer Rob Lucas said the state government had moved swiftly to exempt these
payments from payroll tax, to ensure no unintended impost to businesses already impacted by the pandemic and necessary trading, travel and social gathering restrictions to limit its spread.
“We want to do everything in our power to ensure local businesses and jobs are supported
throughout the greatest economic challenge of our time,” said Treasurer Lucas.
Accordingly, the government will be introducing urgent legislation into State Parliament on Tuesday to amend the Payroll Tax Act 2009.
As many as 6 million Australian workers are expected to benefit from the wage subsidy, which will be issued from the first week of May but be backdated to March 30.