State payroll tax has traditionally been seen as a deterrent to employment, but new government legislation recently introduced to Parliament should provide some welcome payroll tax relief for WA businesses.

The legislation to change the threshold at which the state payroll tax applies sees an increase from the present threshold of $850,000 to $950,000 on and from 1 January 2020.

Assuming Parliamentary approval for the change to the state payroll tax threshold, this is welcome news for employers, as is the proposed further increase from $950,000 to $1,000,000 which will apply from 1 January 2021.

Any easing in the application of state payroll tax is good news and a step in the right direction!

Of course, the bad news is that the tax is applied against not only wages but also allowances, employee benefits in general, and even employee superannuation!