Payroll tax
Payroll tax is a state tax assessed on wages paid or payable to employees by an employer whose total Australian taxable wages exceeds the threshold amount.
Who needs to pay payroll tax
If you're an employer who pays wages in NSW, you must register for payroll tax if your total Australian wages exceed the relevant monthly threshold.
If you're a member of a group, the total Australian wages paid by all members of the group determines whether you should register for payroll tax.
Use payroll tax assist to help you meet your payroll tax obligations. It will show you what wages are taxable, including salaries, superannuation, contractors, apprentices and much more.
If you're liable for payroll tax, register now.
Register for payroll tax
Rates and thresholds
Tax year | Threshold |
---|
1 July 2023 to 30 June 2024
|
$1.2 million
|
1 July 2022 to 30 June 2023
|
$1.2 million
|
1 July 2021 to 30 June 2022
|
$1.2 million
|
1 July 2020 to 30 June 2021
|
$1.2 million
|
1 July 2019 to 30 June 2020
|
$900,000
|
The payroll tax rate from 1 July 2023 is 5.45 per cent. View previous rates and thresholds.
Manage your payroll tax with Payroll Tax Online
Once registered for payroll tax, you can use Payroll Tax Online to:
- calculate and pay your monthly payroll tax return
- lodge your annual reconciliation
- change your details, including updating group details, bank account details and payment frequency
- register to pay online (direct debit)
- cancel your registration and direct debit payments, and
- view your payment history, return history, payment options and payment codes.
You need to log-in to Payroll Tax Online using your Client ID and Correspondence ID.
Your Correspondence ID is only valid for 16 months. Contact us during business hours if you do not have a Client ID or Correspondence ID.
Log-in to Payroll Tax Online
Payment due dates
Monthly returns
The due date for paying your monthly payroll tax is 7 days after the end of each month, or the next business day if the 7th day is on a weekend or public holiday. You must also lodge a ‘nil return’ by the due date.
Read Calculate and pay your monthly payroll tax return for more details.
Annual reconciliations
The due date for lodging and paying your annual reconciliation is 28 July each year, or the next business day if 28 July is on a weekend or public holiday.
Read Lodge your annual reconciliation for payroll tax for more details.
If you do not pay your payroll tax by the due date, we will apply interest to the outstanding amount. Penalty tax may also be imposed. Read the interest and penalty tax page for more details.
Read what happens if you do not pay your payroll tax to understand how we help you meet your obligation to pay on time.
Rebates
Apprentice and trainee wages
All wages – including superannuation, allowances and fringe benefits – paid to apprentices and trainees are liable for payroll tax and must be included in your returns.
You can claim a payroll tax rebate on wages paid to approved apprentices and new entrant trainees who are recognised by Training Services NSW.
Keeping records
You must keep records for at least five years. Records must be:
- sufficient for a payroll tax liability to be properly assessed
- in English, or a form easily translated to English
- readily available to us, if required.
Help for new customers
If you're working out payroll tax for the first time, we have a range of services to help you get started.
For more information on payroll tax, see our payroll tax guide.
COVID-19 (coronavirus) and payroll tax
Read more about the the NSW Government's payroll tax relief measures for the 2022 financial year as part of its support to help businesses impacted by COVID-19.
Contact the payroll tax team
If you have more questions about this topic call 1300 139 815 or +61 2 7808 6904 for international callers.
You can also email [email protected]