Payroll tax exemption extended for JobKeeper payments

  • WA businesses will continue to be exempt from payroll tax on payments provided under the extended JobKeeper scheme
  • Payroll tax exemption will help drive WA’s economic and social recovery across the State 
  • The McGowan Government has ensured Western Australian businesses will continue to be exempt from paying payroll tax on the Commonwealth Government’s JobKeeper Payment scheme.

    The original JobKeeper Payment scheme enabled eligible employers to claim a fortnightly payment for current and recently stood-down employees from March 30 to September 27, 2020. This was subsequently extended by the Commonwealth Government until March 28, 2021. 

    Payroll tax relief legislation was passed in April 2020 to provide a payroll tax exemption for subsidies under the original scheme. This legislation included the ability for the State Government to continue the payroll tax exemption if the JobKeeper Scheme was extended.

    The new regulations mean Western Australian businesses will be exempt from payroll tax on JobKeeper wage subsidies paid from September 28, 2020 to March 28, 2021.

    As stated by Finance Minister Ben Wyatt:

    “Extending the payroll tax exemption for employers on the JobKeeper Payment scheme ensures Western Australian businesses will continue to get the full benefit of the program.

    “This shows the McGowan Government’s ongoing support for WA businesses through the COVID-19 pandemic by providing further payroll tax relief on top of the recent threshold increase, four-month payroll tax waiver and one-off $17,500 grant for small-to-medium businesses.”

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