In June 2024, The Chamber of Commerce and Industry WA conducted a business confidence survey among over 800 business, asking them to identify key issues they would like to see addressed by the WA government ahead of the 2025 election. Payroll tax was the overwhelming frontrunner, identified by 67% of businesses surveyed. WA pays more in payroll tax than any other Australian state, with an average business paying $3,285 per employee.
What is Payroll Tax
Payroll tax is a state tax which is appraised on payable wages from an employer to their employees. If an employer’s total taxable wages exceed $1 million AUD per year, they are liable to pay payroll tax. Each state has their own individual payroll tax legislation and rates, with WA bearing the highest.
Roughly 25% of employing businesses in WA pay payroll tax. This tax often stands as an obstacle to expansion for WA businesses, with many opting to remain small to avoid exceeding the $1m threshold. In conjunction with wage increases, the higher tax rate has caused a financial burden for many small and medium businesses.
Navigating payroll tax liabilities and business growth simultaneously can be daunting, particularly for smaller businesses. Optima Partners is committed to helping businesses understand payroll tax obligations and assist them with their ongoing business development. If your business is having trouble with payroll tax, contact us today to find the optimal solutions for your growth.
For more information on how Optima Partners’ services can help your business, contact the team at [email protected] or click here.
