Payroll tax

Eligible customers may be entitled to a 50 per cent reduction in their payroll tax for the 2021/22 financial year when they lodge their 2022 Annual Payroll Tax Reconciliation online.

Read more about the relief measures for Payroll Tax customers  impacted by COVID-19

About payroll tax

Liability for 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'll 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

The payroll tax threshold increased to $1.2 million from 1 July 2020.

The payroll tax rate from 1 July 2022 is 5.45 per cent. View previous rates and thresholds.

Payment due dates

Each monthly payment or nil return is due within seven days after the end of each month. If the seventh day is a weekend or public holiday, the due date is the next business day.

Typically, the annual reconciliation is due on 28 July each year. If the 28th is a weekend or public holiday, the due date is the next business day.

• Lodge your return
• Pay your payroll tax

COVID-19 (coronavirus) and payroll tax

The NSW Government has announced payroll tax relief measures as part of its to help businesses impacted by COVID-19.

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.

More information

For more information on payroll tax, see our payroll tax guide or contact us.