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All posts tagged Payroll Tax

Good News ACT Payroll tax changes pushed back to January 2015

ACT Payroll Tax Changes

The ACT Payroll Tax adjustment to 6.85% has been pushed back a further 3 months, by Treasurer Andrew Barr till January 2015, giving contracts extra time to adjust to the change.

The tax was announced in the June budget, taking Canberra’s contractors by surprise, with an estimated 1000 contractors losing their payroll tax exemption and facing pay cuts amounting to thousands of dollars.

The tax change was to take effect on July 1, but under pressure from contractors the government pushed the start date back to September 1.  Now after further criticism from the cross-party estimates committee, Mr Barr pushed the date back further, to January 1.

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Changes to Payroll Tax

Liability of Payroll Tax

Payroll Tax liability within the on-hire environment has always been surrounded by some sort of uncertainty… does the responsibility lie with the recruitment agency, the end client or the contractor?

Australian Payroll Tax Laws vary from state-to-state. All states and territories the ‘Employment Agent’ provision of the various Acts requires that the company that on-hires the contractor to the end-user client is responsible for payroll tax. 
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Fury at mooted payroll tax rise

Businesses have reacted with fury after Treasury chief Martin Parkinson suggested the states should take more responsibility for their own revenue bases and consider extending one of the imposts companies hate most — payroll tax.

The Australian Chamber of Commerce and Industry’s chief economist Burchell Wilson urged state and territory governments to rule out extending the reach of payroll tax to small businesses.
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