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    State governments in Australia levy a payroll tax on the wages outlay of employers. Typically the tax applies to all wages above a threshold. Groups of companies may be taxed as a single entity where their operations are significantly integrated or related.

    Current Payroll Tax Rates and Thresholds

    State Annual Threshold Tax Rate
    New South Wales[8] $658,000 5.55%
    Queensland $1,000,000 4.75%
    South Australia $600,000 4.95%
    Australian Capital Territory $1,200,000 6.85%
    Victoria $550,000 4.95%
    Western Australia[9] $750,000 5.50%
    Tasmania[10] $1,010,000 6.10%

    Some companies are eligible for deductions, concessions and exemptions.

    Family Tax Benefit

    For families with dependent children the income tax system includes a supplementary set of rules known as Family Tax Benefits (FTB) that are applied in a more complex way by different departments. The benefits and thresholds vary depending on the number of children, and which of the married partners earns the additional income.

    There are two parts, FTB-A and FTB-B.

    For FTB-A each family receives a payment for each child. In 2008/9 this was

    Value Age
    $4,631 under 13
    $5,818 13..15
    $1,945 16..17
    $2,379 18..24 (if still dependent)

    These payments are reduced by 20% for total family income over $42,559 ($45,114 for 2010/11). It plateaus at roughly $1,300 per child until income over $94,000 is reached, at which point it is reduced by 30%.

    FTB-B pays about $3,358 if the youngest child is under 5, $2,339 if 5..15. Only one payment for the youngest child is made. The payment is means tested on the income of the parent with the lower income, reducing by 20% for income over $4,526 ($4,745 for 2010/11).

    Income is calculated more strictly for FTB purposes. For example, investment losses are considered to be income for the purpose of FTB, and salary sacrifice superannuation contributions are also counted as income.

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