Wednesday, September 22, 2021

Crack down on payroll tax avoidance on wage theft

The NSW Government is set to introduce tough new laws designed to crack down on companies who avoid their payroll tax obligations on instances of wage theft.

Minister for Finance and Small Business Damien Tudehope said the new laws would serve as a major deterrent to the avoidance of payroll tax on unpaid wages or other practices associated with tax avoidance or minimisation.

“The new legislation, including harsher penalties and naming taxpayers who have underpaid payroll tax on wages, sends a clear message to businesses – do the right thing by your employees and by the taxpayers of NSW,” Mr Tudehope said.

“It will allow Revenue NSW to name taxpayers who have avoided payroll tax on underpaid wages and will also allow Revenue NSW to disclose information to the Commonwealth Fair Work Ombudsman to assist in its wage theft investigations.”

Payroll tax is paid by employers when total wages for a financial year is above $1.2 million in NSW. Unpaid wages constitute taxable wages for the purposes of payroll tax. 

MUST READ  Nominations for ‘sustainable development goals action awards’ to be filled till September 16

Modelling undertaken by PwC estimates 13  per cent of Australian workers are underpaid a total of around $1.35 billion per year, with potentially millions of dollars being missed out in payroll tax revenue on unpaid wages in NSW.

Mr Tudehope said while the majority of businesses did the right thing, there were some who flouted their obligations.

“The NSW Government is committed to playing its part in tackling wage theft as the underpayment of wages is not only unfair but completely unacceptable,” Mr Tudehope said. 

“Wage theft not only impacts workers and their families, it also affects NSW taxpayers, who end up paying the price.

“Those who engage in wage theft deprive workers of their due wages and also minimise their payroll tax liabilities while gaining a competitive advantage over those who do the right thing.”

The new legislation will allow for Ministerial Guidelines to be developed which will set a framework for Revenue NSW’s Chief Commissioner to follow when looking to name taxpayers who have avoided payroll tax on underpaid wages.

MUST READ  Hot deals keep seniors Card holders cool for Christmas
MUST READ  More restrictions as NSW records 111 new local COVID-19 cases

It will also enable Revenue NSW to reassess payroll tax more than five years after the initial tax assessment when wages have been underpaid, and strengthen the penalties for taxpayers who do the wrong thing.

These measures are designed to complement the Commonwealth’s ongoing work to tackle wage theft at a national level by seeking to ensure NSW residents do not miss out on payroll tax revenue which funds critical services and infrastructure in local communities. 

“The NSW Government will continue to work with the Commonwealth in this area as the Commonwealth is primarily responsible for legislating on industrial relations including dealing with wage theft,” Mr Tudehope said. 

“The Commonwealth Government has shown leadership in this space but now this needs to come back onto the national agenda. The NSW Government is also calling on the Commonwealth Opposition and cross bench in the Senate to work constructively with the Commonwealth Government and establish a national framework for combatting wage theft.”

Latest news

Adam Treloar: 2018 Grand Final loss will hurt me till I die

It’s a pain that no footy player ever wants to feel but Western Bulldogs star Adam Treloar has admitted that losing the 2018 Grand...

NSW construction sites to return to full capacity from Sept 27

By next week, all construction sites in NSW will be allowed to return to full capacity, regardless of the vaccination status of the workers...

Earthquake strikes Melbourne, buildings damaged, no loss of life

An earthquake has struck Victoria, causing damage to buildings across Melbourne. The 5.8 magnitude quake hit near Mansfield, 180kms north-east of Melbourne, about 9.15am today, according to Geoscience...

NSW’s Together Home program providing shelter to the homeless

More than 500 people who were previously sleeping rough now have a safe place to call home, one year on from the establishment of...

Related news

MUST READ  India's first paddy straw-based briquetting plant to overcome stubble burning comes up in Patiala

Adam Treloar: 2018 Grand Final loss will hurt me till I die

It’s a pain that no footy player ever wants to feel but Western Bulldogs star Adam Treloar has admitted that losing the 2018 Grand...

NSW construction sites to return to full capacity from Sept 27

By next week, all construction sites in NSW will be allowed to return to full capacity, regardless of the vaccination status of the workers...

Earthquake strikes Melbourne, buildings damaged, no loss of life

An earthquake has struck Victoria, causing damage to buildings across Melbourne. The 5.8 magnitude quake hit near Mansfield, 180kms north-east of Melbourne, about 9.15am today, according to Geoscience...

NSW’s Together Home program providing shelter to the homeless

More than 500 people who were previously sleeping rough now have a safe place to call home, one year on from the establishment of...

Canada’s Justin Trudeau set to form minority govt, snap elections not liked by many

Prime Minister Justin Trudeau's Liberal Party will form Canada's next government following a tightly contested general election against conservative rival Erin O'Toole. Trudeau, however, fell...

Rajasthan Royals beat Punjab Kings by two runs, Kartik Tyagi shines

Rajasthan Royals won an exhilarating clash against Punjab Kings by 2 runs in Match 32 of the Indian Premier League (IPL) on Tuesday. Kartik...

Navya Naveli Nanda with naani Jaya Bachchan

Amitabh Bachchan's granddaughter Navya Naveli Nanda, shared an adorable picture of her naani Jaya Bachchan on Instagram. In the image, Jaya Bachchan looks pretty...

Tunak Di Taar music video album asks viewers to go off worries

Tunak Di Taar is a song sung Birender Dhillon & Shamsher Lehri and produced  by Tips Punjabi Music. The music has been given by...