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 pay 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.
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 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 21 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.
For more information on payroll tax, contact us.