Question

Explain the periodic deductions process within designated timelines and identify who are the nominated creditors.

Answer 1

A deduction may be available if your total annual Australian taxable wages are less than $5.5 million.

For annual Australian taxable wages over the $1.1 million threshold, the deduction reduces by $1 for every $4 of taxable wages over this amount. The deduction reduces to zero when your Australian taxable wages reach $5.5 million.

For example, currently the maximum monthly deduction is $91,666 and is reduced by $1 for every $4 over this amount. The deduction reduces to zero when monthly wages reach $458,333.

If you are part of a group, only one group member can claim a deduction. The deduction is available if the group's total Australian wages are less than $5.5 million.

Actual periodic deductions

You can claim an actual periodic deduction if you are not grouped and pay only Queensland wages. The deduction is based on the taxable wages you pay during a return period and is automatically calculated if you lodge online through OSRconnect.

You can also use our periodic liability calculator to work out your payroll tax for each return period.

Fixed periodic deductions

You can claim a fixed periodic deduction if you are not in a group but pay interstate wages, or you are a designated group employer.

Use the fixed periodic deduction calculator to work out your deduction amount for the current financial year.

In most cases, you only need to calculate your fixed periodic deduction at the start of each financial year (1 July) and deduct that same amount from your wages in each periodic return during that year.

If a creditor is a company, the creditor cannominate, in writing, an individual to represent it on the committee. A person can be appointed as a member of the committee of inspection: by resolution of creditors. by acreditor or group of creditors owed at least 10% of the value of creditors' claims.