Tax Consequences of the Tasmanian Budget

Payroll tax relief

Payroll tax relief is one of several initiatives aimed at helping Tasmanian businesses announced in yesterday’s Budget. The new payroll tax rebate will apply to any new positions created from 11 June 2009 until 30 June 2010.

The rebate will be payable to any business that has a payroll tax liability, but will only be payable where the new job that is created is maintained.

Eligible employers will be required to declare their total taxable wages, including wages paid to new employees, in payroll tax returns and to pay the tax by the due date. A rebate equivalent to the full payroll tax liability on wages paid to an eligible employee in 2009-10 and 2010-11 will then be paid to the employer.

Changes to duty

Duty on agreements for sale will be abolished from 1 July 2009 to simplify the treatment of duty on conditional and off the plan sales. Duty will now only be payable at the time of the transfer of property, so taxpayers will not be required to pay duty before taking possession of the property, which can currently occur where an agreement is entered into well before the transfer date.

Other measures

The budget provides for continuation of the Tasmanian Trainee and Apprentice Incentive Scheme which provides a payroll tax rebate on wages paid to trainee employees and apprentices.

The Tasmanian Industry Support Scheme will continue to provide financial support for sustainable private sector businesses, which are otherwise at risk of closure or significant downsizing, or are experiencing an impaired investment capacity, as a result of the global financial crisis.

$325,000 funding for the Enterprise Growth Program is aimed to help Tasmanian businesses identify, evaluate and invest in projects or activities that will significantly improve their performance and productivity.

The provision of low interest loans to farmers is being made under the Farm Water Development Loan Scheme to support the uptake of best practice irrigation infrastructure and associated on farm water storage.