Apart from GST, the majority of our state tax revenue is raised from payroll tax, stamp duty on conveyances and to a lesser extent from land tax. However, this small list can lead to big complexities for business in knowing how they apply, in what circumstances and the cost implications of each.
How BDO can help
BDO’s state tax experts have detailed knowledge in all state taxes. We can help you work out the tax implications for your business - and plan for relevant transactions - with our practical and detailed knowledge of how each state tax applies.
If you have entered into transactions involving transfers of property (e.g. a business, real estate, and certain shares), stamp duty implications must always be considered. As stamp duty is applied selectively on certain transactions, our stamp duty experts can review all such transactions to determine whether they give rise to stamp duty obligations and if any exemptions apply.
Payroll tax can be costly for businesses. It is levied on employers based on components of their employees' remuneration and a heavy compliance burden applies due to complex grouping provisions, exemptions and tax-free thresholds. We can help you work out which wages are subject to payroll tax; and which organisations are exempt (e.g. religious institutions, public hospitals, and schools). We can also advise on grouping provisions, for example, whether subsidiaries are related to a holding company and therefore whether there is only one or more payroll tax thresholds for the group.
Land tax is levied on landowners in all states, and also on leases of land in the ACT. However, compliance can be onerous for many businesses, particularly small businesses, because it differs from state-to-state, is subject to tax-free thresholds, and many other exemptions. Our land tax experts can provide you with appropriate tax planning advice and where possible help minimise any land tax liabilities.