Australia’s federal and state governments and their respective tax authorities are implementing a broad range of measures to help provide relief to employers. While most measures are targeted at affected industries (such as tourism and hospitality), small to medium enterprises and not-for-profits, there are some measures which apply to all affected businesses (e.g., deferrals in Queensland). Each state and territory approach is different.
The Australian Taxation Office (ATO) and State Revenue authorities are working with both the federal and state governments to implement a broad range of measures and provide relief to employers. We outlined some of the key announcements and responses to employment tax concerns in this GMS Flash Alert.
The various payroll tax-related measures will bring welcome relief for businesses. While most measures are targeted at affected industries (such as tourism and hospitality), small to medium enterprises and not-for-profits, there are some measures which apply to all affected businesses (e.g., deferrals in Queensland). Each state and territory approach is different, so it will be important that tax and finance teams are able to clearly communicate to their business what support may be available.
The KPMG International member firm in Australia is working with the various State Revenue authorities to determine the allocation of payroll tax under the nexus provisions for displaced workers providing services in jurisdictions outside their usual work location. For example, workers returning from overseas who continue to work for their overseas employers but are physically present in a particular state.
The information contained in this newsletter was submitted by the KPMG International member firm in Australia.
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