PAYROLL TAX ALERT

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					1 September 2008




  PAYROLL TAX ALERT
New South Wales, Queensland, Tasmania and Victoria should now have more harmonised payroll tax
systems in light of the move towards the harmonisation of the payroll tax systems across all States and
Territories.

However, the harmonisation process has not extended to a uniform payroll tax rate or threshold. Differing
payroll tax rates and exemption thresholds between the States may still favour some States and Territories
over others.

Current payroll tax rates and tax-free thresholds for the 2008-09 financial year

  State / Territory           Rate (%)            Annual wages threshold ($)
 ACT                             6.85                         1,500,000
 NSW                               6                           623,000
 NT                               5.9                         1,250,000
 QLD                             4.75                         1,000,000
 SA                                5                           552,000
 TAS                              6.1                         1,010,000
 VIC                             4.95                          550,000
 WA                               5.5                          750,000

Significant Issues Going Forward

• The rate of payroll tax in NSW will be reduced from 6% to 5.5% over the next 3 years (to 1 January 2011)
   and the tax-free threshold will be subject to annual increases indexed to the Sydney CPI .

• In Queensland the $1 million threshold now phases out at a rate of $1 for every $4 of taxable wages above
   the threshold (extended from $1 for every $3 of taxable wages above the threshold).

• The payroll tax rate in South Australia will be reduced from 5% to 4.95% and the tax-free threshold is to be
   increased from $552,000 to $600,000 from 1 July 2009.

If you would like more information in relation to the above, please contact:
Vanessa Andersen, Partner                           Pamela Flynn, Partner                          Stephen Jauncey, Partner
Workplace relations and Safety                      Workplace relations and Safety                 Workplace relations and Safety
telephone: +61 2 9947 6485                          telephone: +61 2 9947 6169                     telephone: +61 2 9947 6507
email: vanessa_andersen@hdy.com.au                  email: pamela_flynn@hdy.com.au                 email: stephen_jauncey@hdy.com.au

Tony Woods, Partner                                 Greg Reinhardt Partner
Workplace relations and Safety                      tax
telephone: +61 2 9947 6329                          telephone: +61 2 9947 6452
email: tony_woods@hdy.com.au                        email: greg_reinhardt@hdy.com.au

this newsletter is general in nature and its brevity could lead to misinterpretation. No responsibility can be accepted for those who act on its
contents without first consulting us and obtaining specific advice.
If you would like to update your contact details, or you no longer wish to receive this publication, please contact marketing on
+61 2 9947 6000 or email publications@hdy.com.au


                          henry davis york 44 martin place sydney nsw australia telephone +61 2 9947 6000
                            facsimile +61 2 9947 6999 dx 173 sydney email hdy@hdy.com.au www.hdy.com.au

				
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