NSW businesses will benefit from the two economic stimulus packages released by the State Government – stimulus plan phase one and stimulus plan phase two.

The State Government’s recent efforts compliment the Federal Governments stimulus package to sustain business, create new jobs and retrain employees. The area that we’d like to focus on today is payroll tax.

Payroll Tax Waiver

Customers who lodge and pay annually

Payroll tax customers will have their annual tax liability reduced by 25% when they lodge their annual reconciliation for 2019/20, due on 28th July 2020.

Customer who lodge and pay monthly

Businesses with payroll of up to $10 million, will not be required to make payroll tax payments for the three months April to June 2020. Further, after the phase two package, these customers will receive a deferral of payroll tax for the following three months.

 Who is eligible?

Phase 1 of the stimulus package announced the businesses eligible for the discount would include “Payroll tax customers whose total grouped Australian wages for the 2019/20 financial year are no more than $10 million”.

Phase 2 redefined the eligibility and added “business with payrolls over $10 million can defer for six months”.

How do I apply?

If your total grouped Australian wages are no more than $10 million for the 2019/20 financial year, the discount will be automatically applied to your tax liability when you lodge your Annual Reconciliation.

More information

For more information regarding, group members, seasonal employers, payroll tax registration, discount details and more frequently asked questions.

Payroll Tax Threshold Increase

The tax-free threshold will increase from $900,000 to $1 million for the financial year commencing on 1st July 2020.


It is strongly advised that all business owners keep up to date with what is being offered to them from both State and Federal Governments during these uncertain times. It has been made very clear that the Government believe the way through this financial gridlock is by backing Australian business to help retain employees and drive confidence by trying to stimulate the economy.

Let Us Help

If your business has a turnover of over $1 million, ABJ Solutions is offering a complimentary 30 minute Zoom meeting to help answer questions and model critical decisions with you. Get in touch with us today so that we can help guide you through this challenging time.