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:
- A Territory resident who, when hired, increases the total number of Territory residents employed by that business
- 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
- 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.