Queenslanders! Are you ready for the new mental health levy?

As part of a State Government plan to fund mental health services, Queensland’s businesses soon will be required to contribute a new payroll levy.

The new payroll tax surcharge will come into effect on 1 January 2023.

The Palaszczuk Government announced the measure as part of the 2022-23 Budget, saying it would create a dedicated funding source for mental health, alcohol, and other drugs services.

At that time, the Government estimated the new levy would inject $1.64 billion into the state over five years to improve mental health and wellbeing and combat substance abuse.

So, what do you need to know?

The mental health surcharge is 0.75%. This means the current rate of payroll tax will increase from 4.95% to 5.7%.

How does this affect you?

This means for workers subject to payroll tax in Queensland, the invoices we provide to you will include an increased payroll tax component for taxable wages. We also advise all our customers to take this increase into consideration for all future placements.

With the new surcharge, the total Queensland payroll tax will increase accordingly for any wages payable on or after 1 January 2023, irrespective of the invoice date or when the work was performed.

Where can you find out more?

You can refer to this Queensland Government notice for more details about the surcharge.

We’re here to help!

At The Ayers Group, we’re here to help you prepare and manage this change.

Our purpose-built payroll software takes the hassle out of managing payroll and meeting state and federal obligations.

If you’re a Queensland-based business and you already have an Ayers Group custom-designed payroll solution in place, you’ll receive a software update soon.

If you’re interested in finding out about how our payroll solutions can streamline administration for your business, or you simply need advice and assistance, talk to an expert from The Ayers Group today.