Beginning January 1st, 2022, all employers who pay wages in Victoria (AUS) over AUD 10 million annually will have to pay a new surcharge alongside payroll tax. What is the Mental Health and Wellness Surcharge?
Beginning January 1st, 2022, all employers who pay wages in Victoria, Australia, over AUD 10 million annually will have to pay a new surcharge alongside payroll tax. This Mental Health and Wellness surcharge has been designed with the growing concern around mental health and the state of available treatment options in mind.
Currently, this surcharge is expected to be 0.5% for Australian wages over AUD 10 million annually, rising by an additional 0.5% for wages over AUD 100 million. Importantly, this surcharge will be imposed at a group level for any company operating within a group.
This surcharge will be levied yearly or monthly, depending on when a company makes payroll tax payments. The two payments will then be expected to be made together.
The money raised by this surcharge will ensure and improve mental health resources in the state and has been recommended by Australia’s Royal Commission. It’s currently estimated that this will raise as much as AUD 800 million towards mental health and wellness services across the state by providing stable funding in the coming years.
The surcharge will apply proportionally, depending on how much of the financial year a company acts as an employer. It will also only apply to taxable wages in Victoria. Wages currently exempt from payroll taxes, such as those paid to caregivers, will also be exempted from this surcharge.
How could it affect you and your business?
Keeping on top of changes to regulations and taxes for global companies with operations in different administrative regions can be a complicated task. It’s essential to know how this new surcharge may affect you or your group’s potential payments in Victoria.
However, even if you aren’t currently affected by this surcharge, others like it are expected to appear in the future. Mental health has been a growing concern globally, and this change is not the only one of its kind. With the ever-increasing demand for mental health services worldwide, more and more countries are introducing or expected to introduce similar legislation. Should this result in additional payments in your operating market, it will be on you, the employer, to stay aware of new obligations relating to your payroll procedures.
How can Payroll Outsourcing help you here?
A payroll outsourcing service provider can take care of administration and compliance tasks that could otherwise cost you time and money if you don’t keep up-to-date. An experienced provider can use the best of local and global knowledge to guarantee compliance while also streamlining your company structure.
By partnering with a payroll outsourcing or HR services provider, you can ensure compliance with every new regulation change as it appears. This way, you can stay aware of current policy changes worldwide and future proof yourself against changes as they arise.
Why Choose INS Global as Your International Payroll Services Provider?
INS Global provides HR services to 80+ countries, meaning you could benefit from the expertise and knowledge of a team of specialists wherever you are. Finally, when you partner with a professional payroll outsourcing organization, potential errors or misunderstandings relating to payroll don’t have to be an accepted risk.
So, contact INS Global today to learn more about how they can help you meet your HR service needs. Allow INS Global to take care of the complexities of global payroll organization, letting you focus on the more critical tasks or expanding your company.