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VIC PAYROLL TAX EXEMPTON

As of May 22, 2024, the Victorian Government has made significant changes to the payroll tax exemption for GPs. Here are the key points:

  1. Retrospective Relief for GP Practices:
    • All Victorian GP practices will receive a retrospective exemption from payroll tax. This means that they will not be hit with a payroll tax bill that could potentially shut them down.
    • The exemption applies to payments made to contractor GPs up to June 30, 2024.
  2. Extension of Exemption:
    • For GP businesses that have not yet begun paying payroll tax on contractor payments, there is a further 12-month exemption extension.
    • This extension will apply until June 30, 2025.

Payroll tax is calculated based on wages paid to employees above a certain threshold. For metropolitan businesses, the payroll tax rate is 4.85%. Regional employers pay a lower rate of 1.2125%

For Non-Exempt businesses, from 1 July 2024, the threshold will be raised to $900,000, and from 1 July 2025 the threshold will be raised again to $1,000,000 annually.

For further information, please contact us & we’ll be happy to answer any question you may have on the topic.

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