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.
Employers who pay wages in NSW must register for payroll tax if their total Australian wages exceed the relevant monthly threshold.
If the employer is a member of a group, the total Australian wages paid by all members of the group determines whether the employer should register for payroll tax.
As part of the 2018 NSW Budget, the payroll tax threshold has gone up.
|1 July 2018 to 30 June 2019||$850,000|
|1 July 2019 to 30 June 2020||$900,000|
|1 July 2020 to 30 June 2021||$950,000|
|1 July 2021 to 30 June 2022||$1 million|
The current payroll tax rate is 5.45%. View previous rates and thresholds.
Each monthly payment or nil return is due within seven days after the end of each month.
Jobs Action Plan
If you employ new employees, the Jobs Action Plan rebate is available. Learn about eligibility, payments, registration and how to apply.
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 must keep records for no less than five years. Records must be:
The Chief Commissioner of State Revenue can ask you to keep additional records.
If your business is 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 or how we can assist, contact us.