Payroll tax exemption

A payroll tax exemption prioritising the employment of Territory residents is available.

From 1 May 2018, a payroll tax exemption was introduced to encourage the employment of additional Territory residents. Employers may be eligible for a payroll tax exemption for up to two years in relation to wages paid to:

  1. A Territory resident who, when hired, increases the total number of Territory residents employed by that business
  2. An existing employee of a business, who relocates from living interstate or overseas to reside in the Territory as their principal place of residence, or
  3. A Territory resident hired to replace a former employee who resides interstate or overseas.

Commissioner’s Guideline CG-PRT-008: Hiring resident employees provides further details on this exemption.

The Territory Revenue Office has also published a series of Frequently Asked Questions in respect of this exemption.