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Read more about HomeBuilder and other relief measures to help customers impacted by COVID-19.

Taxes, duties, levies and royalties
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    How to meet your obligations and make payments.

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    Paying tax on property you own.

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In this section
  1. Register for payroll tax
  2. Lodge your return
  3. Pay your payroll tax
  4. Rates and thresholds
  5. Wages
  6. Contractors
  7. Grouping
  8. Rebates and exemptions
  9. Your business
  10. Your industry
  11. Tax agents and advisors
  12. Help getting it right

About payroll tax

About payroll tax

Payroll tax rate reduction and increase to threshold for 2020/21

The NSW Government has announced a reduction in the payroll tax rate to 4.85 per cent for the 2020/21 and 2021/22 financial years.

The threshold has also increased to $1.2 million for the 2020/21 and subsequent financial years. These changes apply retrospectively from 1 July 2020.

Further information can be found in the Frequently Asked Questions.

COVID-19 (coronavirus) and payroll tax

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

Customers can access and view the details of their Stimulus Payment Arrangement via the portal.

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 has increased to $1.2 million for the tax year 1 July 2020 to 30 June 2021.

Tax year Threshold
1 July 2020 to 30 June 2021 $1.2 million
1 July 2019 to 30 June 2020 $900,000

The current payroll tax rate is 4.85 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.

For the 2019/20 financial year only, you must lodge and pay your annual reconciliation by 30 October 2020.

  • Lodge your return
  • Pay your payroll tax

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.

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