Although both States will continue to set their own rates and thresholds, from 1 July 2007 Victoria and NSW will have the same definitions, standardised laws and common eligibility.

The changes will also benefit all businesses in Victoria and NSW through streamlined administrative arrangements and the expected development of standardised software.

The NSW Government will adopt a number of provisions in Victoria’s law, including an exemption from pay-roll tax for maternity and adoption leave payments.

The Victoria Government is adopting the NSW approach to pay-roll tax for emergency services volunteers.

Leading business solutions provider MYOB said the changes would lighten the compliance burden on many Victorian and NSW businesses.

Victoria and NSW will also examine introducing a ‘one-stop shop’ for businesses liable for pay-roll tax in both States and the creation of common pay-roll tax forms.

NSW and Victoria make up around 60 per cent of the Australian economy, and are home to approximately 57,000 of the country’s 95,000 pay-roll tax paying businesses.

NSW and Victoria remain committed to pay-roll tax harmonisation with all States and Territories.

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Further information:
NSW and Victorian Governments Cut Red Tape with Historic Pay-roll Tax Reform
Harmonised Pay-roll Tax Systems between NSW and Victoria

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