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A harmonised payroll tax system for NSW and Victoria

30/3/2009

Author: Travis Ahearn, Gabrielle Stewart

NSW and Victoria enacted virtually identical payroll tax legislation with effect from 1 July 2007. This report outlines the estimated change in the administrative burden arising from the changes to Victorian payroll tax definitions, using the Standard Cost Model (SCM). Under the Reducing the Regulatory Burden initiative, the Victorian Government made a commitment to measure changes in the administrative burden of Victorian regulation using the SCM to provide a consistent method for estimating the administrative costs imposed on business by government. This is the first time the SCM has been used in Victoria to measure the change in the administrative burden arising from harmonisation of legislation between two jurisdictions. Overall, harmonisation is estimated to save Victorian businesses $1.5 million in administrative burden.