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Taxes, duties, levies and royalties
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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

Payroll tax is a state tax. It's assessed on the wages paid or payable to employees by an employer (or group of employers) whose total Australian taxable wages exceed the threshold amount.

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.

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

As part of previous state budget announcements, the NSW Government will lift the payroll tax threshold to $1 million by 2021-22.

Tax year Threshold
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 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.

You must lodge your annual reconciliation lodgement and pay your tax by 28 July each year.

  • Lodge your return
  • Pay your payroll tax

Rebates

Jobs Action Plan

If you employ new employees, the Jobs Action Plan rebate is available.

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 the NSW Department of Industry (NSW DOI).

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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