$41000 Tax Win for WA's Small Busineses - Australian SME ...

Just recently, it has been revealed that almost 7000 of WA's small businesses have had a tax windfall.

A one-off payroll tax rebate awaits the almost 7000 WA?s small businesses as the Barnett Government commits to reimburse up to $41,250 each for the payroll tax in an attempt to bolster the non-mining parts of the economy.

But the WA?s small businesses will have to wait until next year to get the cash.

This commitment had come hours before Treasurer Christian Porter had handed down the State Budget, which the Government claims will deliver on promise made during the 2008 election of providing $250 million in tax relief during its first term.

Treasurer Porter outlined in the 2012-13 State Budget, the details of the $128 million payroll tax rebate. He also revealed the Government?s conscious decision of assisting the state?s small businesses, which were the backbone of the economy.

The challenges faced by Treasurer Porter as he hands down his second Budget was said to be underscored as the Australian share market experienced sharp falls, which had posted its biggest drop of the year amid growing fears of a global financial meltdown.

Limiting the Government's tax relief options is attributed to the falling property taxes and the $660 million cut to WA's GST revenue. However, a modest Budget surplus of more than $50 million is expected to be post in the next financial year.

Treasurer Porter revealed that there will be about 6,700 mainly small businesses that would get the tax relief from July 1 next year, based on their 2012-13 wages bill.

There will be about 3100 small businesses with Australia-wide group payrolls of up to $1.5 million in the 2012-13 financial year who will receive the full rebate of their WA payroll tax liabilities to a maximum value of $41,250. On the other hand, the remaining 3600 small businesses, with payrolls of $1.5 million and $3 million, are expected to receive part of the rebate, while companies with payrolls above $3 million will get no relief.

Treasurer Porter explained, "We think small businesses probably have done it a little bit tougher in respect to higher electricity prices than big business has, simply because their margins are generally smaller."

According to Treasurer Porter, combined with a similar rebate provided by the State Government in the depths of the financial crisis in 2009, the Liberals are said to have met their 2008 pre-election commitment to cut taxes by $250 million.

A tax refund or tax rebate will be given back at the end of the financial year if the tax taxpayer?s owe is less than the sum of the total amount of the withholding taxes and estimated taxes that they paid, plus the refundable tax credits that they claim.

However, as tax rebates have the reputation of delayed returns, if you want your withholding taxes to be calculated precisely as possible you can make use of small business accounting software.

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