The 2020 Payroll Tax annual reconciliation is now available.
The due date for lodgement and payment of the 2019/2020 annual reconciliation has been extended to 30 October 2020.
After lodging the annual reconciliation, customers will have the option of paying their outstanding liability in full or entering into a Stimulus Payment Arrangement which can also include any monthly liabilities for the July, August and September 2020 return periods.
Customers can now establish a Stimulus Payment Arrangement for a period of up to 24 months. This option will only be available until 29 November 2020.
Employers must pay their eligible employees a minimum amount per fortnight to meet the wage condition of the JobKeeper Scheme. The NSW government will exempt from payroll tax any additional wages paid to employees to meet the wage condition.
For more information on the exempt and taxable components of wages paid to employees eligible for the JobKeeper, please visit our Annual Reconciliation lodgement page.
Visit the ATO website for further information on the Jobkeeper Scheme and rates.
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.
The payroll tax threshold has increased to $1 million for the tax year 1 July 2020 to 30 June 2021.
|1 July 2020 to 30 June 2021||$1 million|
|1 July 2019 to 30 June 2020||$900,000|
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.
For the 2019/20 financial year only, you must lodge and pay your annual reconciliation by 30 October 2020.
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.