Powered by MOMENTUM MEDIA

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.

Revenue NSW issues JobKeeper payroll tax guidance

A new practice note from Revenue NSW has clarified the application of payroll tax on JobKeeper payments.

Tax&Compliance Reporter 04 March 2021
— 1 minute read

Issued by Revenue NSW commissioner Cullen Smythe on Monday, the new guidance notes that the amount of top-up payment made by an employer will be exempt from payroll tax.

Advertisement
Advertisement

Top-up payments are necessary when ordinary wages are less than the JobKeeper amount.

However, other amounts such as employer superannuation contributions, fringe benefits and employee share scheme interests are not entitled to an exemption.

The practice note also states that JobKeeper payments made to employees who have been stood down will be wholly exempt from payroll tax.

However, wages paid to employees that are greater than a JobKeeper subsidy for a fortnight will see the entire payment liable to payroll tax.

Finally, if an employer receives JobKeeper but was ultimately not entitled to the wage subsidy program, the whole payment will be liable to payroll tax.

Revenue NSW notes that the latest guidance is effective retrospectively from 30 March 2020. JobKeeper comes to its legislated end on 28 March 2021.

View the Revenue NSW practice note here.

Revenue NSW issues JobKeeper payroll tax guidance
image intro
accountantsdaily logo
Tax&Compliance