We are a few months into 2022 now, but incase you missed it some changes to payroll tax lodgements for Victoria rolled in with the new year.
Victoria has introduced a Mental Health and Wellbeing Surcharge as part of their payroll tax lodgements from 1 Jan 2022.
This is a new revenue mechanism designed to provide stable and increased funding to the Victorian mental health system. This was one of the recommendations made in the recent Royal commission into Victoria’s Mental Health System. According to the Victorian government “every dollar collected will be spent on the provision of mental health services.”
Who does this affect?
It is payable on Victorian taxable wages paid or payable from 1 January 2022 by an employer or a group of employers whose Australia wages exceed the first annual threshold of $10 million. Thresholds do apply.
The surcharge is payable at the same time that payroll tax is payable. Therefore, if you pay payroll tax monthly, you will also pay the surcharge monthly and if you pay payroll tax annually, you will pay the surcharge annually. No separate registration is required.
How much is the surcharge?
The surcharge is 0.5% of your Victorian taxable wages over $10 million and an additional 0.5% of your Victorian taxable wages over $100 million. For the transitional period, the respective annual thresholds are $5 million and $50 million.
For more information you can visit the State Revenue Office Victoria website here: https://www.sro.vic.gov.au/mentalhealthsurcharge.