We've improved the 2025 payroll tax annual return

Improvements to the annual return will help you calculate payroll tax more accurately and to help your business understand which payments are taxable so you can report them correctly.

You can now lodge your annual return which is due by 28 July. Find out below what has changed.

New wage field – Employment agency payments

In response to common errors related to employment agency payments, we've added a new wage field to the wages section titled, 'Employment agency payments.' This will help businesses who use staff from employment agencies or labour hire, to correctly calculate their payroll tax.

Please include all liable employment agency or labour hire payments. Liable payments include amounts paid to workers under an employment agency or labour hire arrangement, including wages, fringe benefits and superannuation.

You will no longer need to include these payments in the 'Contractor payments' field.

Read more about employment agency payments.

Workforce details

To help businesses to correctly calculate their payroll tax, we've added some new questions in the ‘Workforce details’ section of the annual return form.

For employers with employment agency or labour hire arrangements, you will need to provide the total amount of liable and non-taxable (if applicable) payments made in NSW.

Similarly, for employers who make payments to contractors, you will need to provide the total amount of liable and exempt (if applicable) payments made in NSW.

Learn more about which contractor payments are liable for payroll tax.

Bulk Billing Support Initiative

If you made any payments to general practitioner contractors who provided services to your business in NSW, you will be asked a new question about the Bulk Billing Support Initiative rebate.

Only eligible customers who operate medical centre businesses may answer ‘yes’ to this question.

A video is now available to assist you with declaring the Bulk Billing Support Initiative rebate on your annual return.

More information is available on the Bulk Billing Support Initiative page.

Rates for the new financial year

The payroll tax rates for the 2025-26 financial year are now available on our website, including on the Payroll tax thresholds and rates page.

In response to customer feedback, the updated rates have been made available earlier than in previous years to provide businesses with greater certainty and more time to plan.

Need Help?

If you're unable to lodge by the due date or need assistance, please contact us.