Economic Effects of Payroll Tax - A Parliamentary Paper

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Economic Effects of Payroll Tax - A Parliamentary Paper

Are you?	- An employer who is liable to pay payroll tax?
At a glance:	- A Background Note in relation to an examination of payroll tax in Australia has been released by the Parliamentary Library.
You should:	- Understand how payroll tax operates and how it affects you. - Contact us if you require any clarification or advice.

1.	Payroll tax is a levy on the value of certain types of income paid within a particular state or territory by employers to their employees.
2.	One of the observations from the Background Note was that while the legal incidence of payroll tax falls on employers, the actual economic incidence has shifted to employees as employers' lower wages and to consumers through higher prices.
3.	The Parliamentary Library also found that payroll tax is one of the broadest and more efficient state taxes with a relatively stable base and low administration costs.
4.	The Parliamentary Library recommended that some of the improvements that can be made to payroll tax would be to broaden the base and lower the tax rate.
5.	To see the full publication click here or visit the Parliamentary Library website on http://www.aph.gov.au.