State and Territory Treasurers have agreed to overhaul payroll tax arrangements, while retaining control over individual rates and thresholds.
The full text of an announcement from the Treasurer's office is pasted below
Treasurer Eric Ripper today thanked the Western Australian Department of Treasury and Finance for taking a leading role in the first-ever national overhaul of payroll tax arrangements.
Mr Ripper said the department had been given the job of working with other jurisdictions to develop a package of reforms to harmonise payroll tax systems.
"The reforms address eight important areas of the payroll tax system and will simplify and harmonise provisions across the country, cutting red tape for thousands of Australian businesses," the Treasurer said.
States and Territories have agreed to adopt common provisions and definitions for:
- Timing of lodgement;
- Motor vehicle allowances;
- Accommodation allowances;
- A range of fringe benefits;
- Work performed outside a jurisdiction;
- Employee share acquisition schemes;
- Superannuation for non-working directors; and
- Grouping of business.
Mr Ripper said States and Territories would retain control over individual rates and thresholds.
The new arrangements will apply by no later than July 1, 2008.
"The outcome of last week's meeting demonstrates the commitment of States and Territories to real tax reform in the national interest," the Treasurer said.
"This new approach in payroll tax will streamline administration for businesses which operate in more than one jurisdiction.
"In addition, those businesses that operate in one jurisdiction will also benefit from reduced red tape and lower compliance costs.
"All businesses stand to benefit from these reforms."