The Payroll Tax Amendment Act 2024 (NT) has been enacted, bringing significant payroll tax changes to businesses operating in the Northern Territory (NT). Effective from 1 July 2025, these amendments aim to provide relief for businesses while incentivizing apprenticeships and training.
Key Changes to Payroll Tax in the NT
- Increase in the Tax-Free Threshold
- The annual tax-free payroll threshold will rise to $2.5 million, reducing the payroll tax burden for small to medium-sized businesses.
- The annual tax-free payroll threshold will rise to $2.5 million, reducing the payroll tax burden for small to medium-sized businesses.
- Changes to the Annual Deduction Reduction Rate
- The rate at which the annual deduction reduces will now be $1 for every $2 in wages exceeding the tax-free threshold.
- The rate at which the annual deduction reduces will now be $1 for every $2 in wages exceeding the tax-free threshold.
- Payroll Tax Exemption for Apprentices and Trainees
- Wages paid to apprentices and trainees will be exempt from payroll tax, encouraging businesses to invest in workforce training and development.
- Wages paid to apprentices and trainees will be exempt from payroll tax, encouraging businesses to invest in workforce training and development.
How These Changes Affect Your Business
- Small and Medium Businesses Benefit: With the tax-free threshold rising to $2.5 million, many smaller businesses may no longer need to pay payroll tax.
- Larger Employers Need to Reassess Payroll Tax Obligations: Businesses exceeding the new threshold should review their wage structures and deductions to understand their tax liability.
- Apprenticeship & Trainee Incentives: Businesses employing apprentices and trainees will see reduced payroll costs, making it more attractive to invest in workforce development.
Get Expert Guidance on Payroll Tax Compliance
Navigating payroll tax changes can be complex, and ensuring full compliance with the new Northern Territory payroll tax laws is crucial for your business. At Boa & Co. Chartered Accountants, we specialize in payroll tax planning, compliance, and optimization. Whether you need assistance calculating your new payroll tax obligations, applying exemptions, or restructuring your payroll, our team is here to help.Stay ahead of these changes—contact us today. Call 1300 952 286, email [email protected], or visit www.boanco.com.au to speak with our payroll tax experts.