New jobs payroll tax credit

Waiving of 2020-21 and 2021-22 payroll tax after applying for New Jobs payroll tax credit

Eligible employers will be entitled to a waiver of their 2020-21 and 2021-22 payroll tax after applying the New Jobs payroll tax credit against their liability for each of the financial years (designated financial year).

Please note that this is not applied automatically.  You will need to contact State Revenue Office to have this applied.

Eligible employers will receive a credit of 10 cents for every dollar of Victorian taxable wages paid in the relevant designated financial year that are above the previous financial year’s wages. The credit will be applied against the employer’s payroll tax liabilities at the end of the relevant designated financial year. The waiver may partially or fully extinguish the payroll tax liability for an eligible employer for the designated year.

An employer or a group of employers is eligible for the relief if their total Australian wages (i.e. Victorian taxable wages plus interstate wages) do not exceed $10 million in the financial year preceding the designated financial year. There are other eligibility requirements which must be met and this will depend on whether or not the employer is a member of a payroll tax group as at 30 June of the relevant designated financial year.