Victoria: New payroll tax ruling on interest and penalty tax

April 6, 2023

The State Revenue Office of Victoria has issued a ruling PTA-036v5 to replace PTA-036v4 , with effect from 1 April 2023. Under PTA-036v5, when an employer makes a voluntary disclosure of a payroll tax default prior to the commencement of an investigation, the amount of premium interest assessed will be capped at 5% of the unpaid tax. This aligns with the approach for other revenue lines where penalty tax of 5% of the primary tax is assessed. The position on market interest is unchanged from the previous ruling (PTA-036v4).

The ruling explains in detail how interest and penalty tax is applied to a range of payroll tax defaults and should be read in conjunction with Revenue Ruling TAA-007v4.