With broad reaching provisions and increasing data matching capabilities of revenue offices, payroll tax is a difficult area of state tax law which businesses cannot overlook. Our State Taxes Team are passionate supporters of private enterprise and apply expert technical and procedural knowledge to help businesses understand and manage this complex area of law.

Payroll tax is a self-assessed tax imposed by governments in all Australian states and territories. The tax is imposed on wages paid, or payable to, employees where combined those payments exceed the relevant state and/or Australian wide thresholds. The rates and thresholds impose vary between states and territories.

Sladen Legal’s specialist State Taxes team continually provide updated industry thoughts here and have published a Payroll Tax Series which includes the following topics:

• Part 1 - The Basics

• Part 2 - Director Fees

• Part 3 - Are Business Profits And Distributions Subject To Payroll Tax?

• Part 4 - The Payroll Tax Nexus Provisions

• Part 5 - Victorian Concessional Regional Rates

• Part 6 - Contractors

• Part 7 - Contractor Exemptions

• Part 8 - Employment Agency Contracts

• Part 9 - General Exemptions

• Part 10 - Payroll Tax Grouping

• Part 11 - Payroll Tax De-Grouping

We have expert knowledge in the payroll tax provisions and can help you:

• understand your liability to payroll tax and relevant compliance dates;

• assess whether wages paid to employees are correctly considered for payroll tax purposes;  

• review contractors and if any contractor exemptions apply;

• review other taxable arrangements under the employment agency provisions;

• prepare applications to access payroll tax exemptions;

• manage payroll tax investigations, objections and disputes with revenue authorities;

• review your business structure to determine the application of the grouping provisions; and

• prepare applications to revenue authorities requesting de-grouping of entities for payroll tax purposes.

For investors, changes in land tax obligations can be an unwanted surprise that can significantly affect a business’s viability.  Our State Tax Team have a comprehensive understanding of these provisions and work diligently to help private enterprises manage, mitigate and understand their obligations.

Land tax is an annual tax levied by revenue authorities on the unimproved value of land. The amount of land tax payable will depend on the land held, specifically:

• the type of land;

• what you use that land for;

• the value of the land; and

• your residency status.

We have in-depth knowledge in land tax and an understanding of the valuation processes taken by revenue authorities in determining these liabilities. We apply our expertise in helping you:

• understand your land tax assessment;

• review the validity of the assessment;

• manage land tax investigations, objections and disputes with revenue authorities; and

• apply for eligible exemptions from land tax.

Our State Tax Team regularly provide our updated industry thoughts here and have published a Land Tax Series which includes the following topics:

• Part 1 - Overview of Land Tax

• Part 2 – Land Held On Trust

• Part 3 – Foreign (Absentee Owner) Surcharge and the Vacant Residential Land Tax Surcharge

• Part 4 – Aggregation, Grouping and “Degrouping”

• Part 5 - Valuations

• Part 6 – Principal Place of Residence Exemption

• Part 7 – Primary Production Exemption

• Part 8 – Charities, Sporting Clubs, Not for Profits and Other Exemptions

• Part 9 - Objections

Economic Entitlement

The Victorian Economic Entitlement provisions can affect any businesses connected with property developments and sales. Our State Taxes and Property Teams have an in-depth understanding of the hurdles faced by developers and investors in land. Our teams help our clients decode these complexities and what they mean for businesses.

The Victorian Economic Entitlement provisions were introduced to create an additional ‘head of duty’ and are contained within land transfer (stamp) duty and landholder duty rules. The provisions impose duty on any acquisition of a right to participate directly or indirectly or with reference to any entitlement or income, rents profits, capital growth or proceeds of sale of any Victorian land valued at $1 million and over.

Our Tax and Property Teams are specialists in providing advice to property developers, investors and landholders and continually provide our updated industry thoughts here.

Working collaboratively with our Property Team, the State Taxes team can provide holistic advice to help you:

• understand your obligations, liabilities and options from all perspectives;

• comply with all obligations;

• managing your duty liabilities; and

• managing any investigations, objections and disputes with revenue authorities.

Growth Area Infrastructure Contribution

Developers and investors are exposed to an increasing list of state liabilities, including a one-off growth area infrastructure contribution (GAIC). Our State Tax Team, working collaboratively with our Federal Tax and Property Teams have a deep understanding of the hurdles faced by developers and investors in land and help our clients manage, plan for and understand their options and obligations.

GAIC is a one off contribution payable on certain events occurring typically associated with urban property development, including buying subdividing and applying for a building permit on large land.

Our Tax and Property Teams are specialists in providing advice to property developers, investors and landholders and regularly provide our updated industry thoughts here.

We have expertise in GAIC, other State and Income Tax and property issues that need to be considered holistically and therefore we help you:

• understand your obligations, liabilities and options from all perspective;

• exercise your best options from a holistic perspective;

• comply with all obligations;

• managing your GAIC liabilities;

• applying for an exemption or deferring your GAIC liabilities; and

• managing any investigations, objections and disputes with revenue authorities.

Windfall Gains Tax

The windfall gains tax was first announced by the Victorian Government in its 2021/22 Budget announcement with the intention to tax windfalls brought about by land rezonings. 

From 1 July 2023, Victorian land owners are liable for windfall gains tax if a rezoning of land takes place and the taxable value uplift, resulting from the rezoning, is higher than the applicable threshold at the relevant time.

Currently, windfall gains tax is levied at a rate of 50% where the taxable value uplift resulting from the rezoning of land is $500,000 or more. In addition, there is a graduated scale between $100,000 to $500,000, where the effective rate of WGT progressively increases from 1% to 50%.

The following diagram further indicates the applicable windfall gains tax rates based on the relevant taxable value uplifts:

Sladen Legal’s specialist State Taxes team can provide advice in relation to windfall gains tax, especially in determining whether a windfall gains tax liability might apply to your particular circumstance. We apply our expertise in helping you:

• Understand if you are liable for windfall gains tax;

• Determining if an exemption to windfall gains tax applies;

• Considering if the transitional provisions apply;

• If liable, assisting with correctly calculating the taxable value uplift and tax applicable;

• Advising how the deferral provisions operate, including what the consequences of deferring payment are;

• Assisting with lodging an objection to a windfall gains tax assessment either in relation to:

  • The value of the land assessed; or

  • Any other matter relating to the imposition of windfall gains tax

For more information, see our following articles on the windfall gains tax regime:

1. https://sladen.com.au/news/tag/Windfall+Gains+Tax

2. https://sladen.com.au/news/2021/10/14/windfall-gains-tax-legislation-released-certain-concessions-granted

3. https://sladen.com.au/news/2022/5/20/2022-victorian-state-budget-unannounced-changes-introduced-to-the-victorian-tax-regime