Payroll Tax the biggest earner for Queensland and Victoria
by Peter Tobin, Tobin Partners Pty Ltd
The single largest contributor of taxation revenue in Queensland and Victoria is payroll tax.
Queensland taxed businesses on their wages nearly $4 billion in 2014-15. Victoria which has a lower exemption threshold and higher payroll taxation rate taxed its businesses nearly $1 billion more.
Payroll tax is a tax on employers calculated on the employer’s payroll.
The current exemption threshold in Queensland is $1.1m whilst in Victoria it is only $550,000.
In Queensland employers pay 4.75% tax on their wages above the threshold amount. Victorian businesses pay 4.85%.
There are frequently calls by business associations throughout Australia to substantially reduce or remove payroll tax because it is regarded as a disincentive to employ staff.
Need Advice on Payroll tax?
Contact Peter Tobin of Tobin Partners Pty Ltd, Lawyers and Notaries
Telephone 07 3260 5189