Australian Payroll Association | News and Resources

NSW payroll tax deferral 2021

Written by Admin | Jul 25, 2021 7:59:45 PM

In response to the worsening impacts of COVID-19 in NSW, last week, the NSW Government announced a further Payroll Tax deferral and a new stimulus payment arrangement for all businesses.

  • Employers are still required to lodge the 2020/21 annual reconciliation by the due date, which has been extended to 7 October 2021.
  • In addition, employers have the option of deferring their payments for the July and August 2021 return periods until 7 October 2021.
  • After lodging their 2021 annual reconciliation, employers will have the option of paying all of their outstanding liability in full or entering into a new Stimulus payment arrangement.
  • If employers choose to enter into a 2021 Stimulus Payment Arrangement, they will have the option to include tax payable from the 2020/21 annual reconciliation and any monthly liabilities for the July, August and September 2021 return periods.

More information on how to establish a 2021 Stimulus Payment Arrangement will be provided by Revenue NSW by the end of August 2021.

A 25% reduction for businesses:

Employers whose total grouped Australian wages for the 2021/22 financial year are $10 million or less AND who have had a decline in revenue of 30 per cent or more will have their annual tax liability reduced by 25 per cent.

More information on this 25% reduction will be provided by Revenue NSW by the end of August 2021.