The Mental Health and Wellbeing surcharge will commence from 1 January 2022 and is payable on Victorian taxable wages paid or payable from 1 January 2022 by an employer or a group of employers.

These employers will commence paying the surcharge when they lodge their January 2022 monthly return in PTX Express, due on 7 February 2022.

The surcharge is a revenue mechanism that will provide a stable and dedicated form of additional funding for the mental health system. Revenue collected will be spent on the provision of mental health services.

Who pays the surcharge?

You must pay the levy if you pay Victorian taxable wages and your Australian wages exceed the first annual threshold of $10 million, with a first monthly threshold of $833,333.

You must also pay the additional surcharge if you pay Victorian taxable wages and your Australian wages exceed the second annual threshold of $100 million, with a second monthly threshold of $8,333,333.

If you are a member of a group, these thresholds apply at the group level.

How much is the surcharge?

The surcharge is 0.5% of Victorian taxable wages over $10 million and an additional 0.5% of Victorian taxable wages over $100 million.

Existing payroll tax exemptions for private schools, hospitals, charities, local councils, and wages paid for parental and volunteer leave will apply for the surcharge.

To discuss or for more information please contact:

Phil Broderick
Principal
M +61 419 512 801 | T +61 3 9611 0163
E: pbroderick@sladen.com.au

Lucy Liang
Lawyer
T +61 9611 0131
E lliang@sladen.com.au