Legislation to extend payroll tax benefits for new hires and allow broader use of “excess” money in the Sinking Fund were tabled in the House of Assembly on Friday.

The Payroll Tax Amendment Act 2024 would modify the Payroll Tax Act 1995 to change the applicable dates for a new hire payroll tax waiver for exempted companies.

Under the existing legislation, the new hire waiver only applies to those hired between April 1, 2018 and March 31, 2024, and when the hiring increases the employers total number of full-time employees.

The amendment would allow those hired between that period and March 31, 2026 to be included under the waiver.

The amendment would also extend the benefit to those who started work after April 1, 2022 and continue to be employed after April 1, 2024 up until March 31, 2026.

The benefit would, however, not be extended for those hired prior to April 1, 2022.

David Burt, the Premier and Minister of Finance, discussed the possibility of the change during the Pre-Budget Report in December.

The report said it has cost the Government $300 million in untaxed remuneration since the policy began.

While the policy was intended to be assessed every two years, as a result of the pandemic, the Government is allowing the relief to roll over in 2020 so the relief period covered four years.

In 2022, a further two year extension was made; however, the baseline year remained in 2018, meaning the relief was in effect for six years.

The report said: “Given the significant amount of payroll not subject to tax, the Government is considering allowing this new hire relief to expire, or is considering adjusting the baseline year to reflect new hires since 2020 or 2022.”

The Government Loans Amendment Act 2024 would change the originating 1978 legislation to allow broader use of excess money in the Sinking Fund.

The amendments would allow money in the fund to be “applied to a quango or other public funds” if they are, in the view of the Minister of Finance, not required to fund deficits.