Payroll tax customers whose total grouped Australian wages for the 2019/20 financial year are over $10 million, will have the option of deferring the payment of payroll tax for up to six months.
These businesses will not need to make their payment for the March period, normally due on 7 April 2020.
More information will be provided on the deferral arrangement in the upcoming days.
Payroll tax customers whose total grouped Australian wages for the 2019/20 financial year are no more than $10 million will have their annual tax liability reduced by 25% when they lodge their annual reconciliation, which is due on 28 July.
For those customers who lodge and pay monthly and whose total Australian wages will be no more than $10 million for the current financial year, no payment for the months of March, April or May 2020 will be required.
These customers will also have the option of deferring these payments for an additional three months and more information will be provided on the deferral arrangements in the upcoming days.
When lodging your annual reconciliation, you will still need to provide wage details paid in these months and will receive the benefit of a 25% reduction in the amount of tax you would have had to pay for 2019-20.
Answers to frequently asked questions can be found here.
The tax-free threshold will increase from $900,000 to $1 million for the financial year commencing on 1 July 2020.
Each state and territory has its own payroll tax legislation, with different rates and thresholds.
Efforts to align all states and territories have resulted in payroll tax harmonisation.
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.
As part of the recent Government economic stimulus announcement, the NSW Government will lift the payroll tax threshold to $1 million commencing 1 July 2020.
|1 July 2019 to 30 June 2020||$900,000|
|1 July 2020 to 30 June 2021||$1 million|
The current payroll tax rate is 5.45 per cent. View previous rates and thresholds.
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.
You must lodge your annual reconciliation lodgement and pay your tax by 28 July each year.
If you employ new employees, the Jobs Action Plan rebate is available.
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 must keep records for at least five years. Records must be:
If you're working out payroll tax for the first time, we have a range of services to help you get started.