The majority of Australia's state treasurers have agreed to implement new uniform payroll tax rules related to employees who work in more than one jurisdiction, with Queensland being the exception.
The announcement is below:
Treasurers in the majority of States and Territories today announced that agreement had been reached across Australia to implement new uniform payroll tax rules.
Western Australian Treasurer Troy Buswell said these would apply where an employer paid wages that related to an employee who works in more than one jurisdiction in a month, such as in the airline industry.
In the future, payroll tax will be paid to the jurisdiction where the worker resides.
In cases where the worker does not reside in Australia, tax is to be paid to the jurisdiction where the registered Australian Business Number address of the employer is located.
Where possible, the new rules will come into operation on July 1, 2009.
It is expected that the new arrangements will provide greater clarity to affected employers, a more robust taxation regime in light of modern electronic payment methods and will reduce potential compliance costs that could otherwise arise for employers under existing arrangements.
States and Territories will be progressively seeking to legislate the new arrangements as their parliamentary timetables allow.
The Queensland Government is currently considering its position and is expected to make an announcement shortly.
Further details regarding the proposed changes, and what it means for affected employers, will be released by State Revenue offices within the next week.
