You play an important role in meeting your own payroll tax obligations. Our job is to make it easy for you to understand your obligations and comply with them.
Our tax systems rely on you to voluntarily self-assess and comply with your payroll tax obligations.
We regularly conduct audits to make sure you’re paying the correct payroll tax. We'll audit you if you fail to register with us for payroll tax or have understated your wages.
Sometimes errors occur because you do not fully understand legislative requirements. We’ll help you bring your tax affairs up to date and understand any future payroll tax obligations.
Our audits also help us identify customer education needs or issues that need improvements in policy and legislation.
Penalties will generally apply if the tax is underpaid. The penalty depends on the level of fault and is outlined in the Taxation Administration Act 1996.
Penalties can range from nothing, where you’ve taken reasonable care to comply or where circumstances occurred beyond your control, through to 75 per cent of the unpaid tax when you’ve intentionally disregarded the law.
Voluntary disclosure before or during the audit can give you a reduced penalty. On the other hand, hindering or obstructing the auditor or concealing information will result in increased penalties.
If you have any questions about how penalties are applied, ask the auditor for assistance.
Payment is due 21 days after the issue date of an assessment notice. Failure to pay, or make alternative arrangements by the due date will result in interest charges and the matter being referred for debt recovery.
The auditor will negotiate an appropriate payment arrangement if you’re unable to pay the amount in full by the due date. A written application accompanied by financial information, including detailed cash flow projections, is required for an extension to your payment arrangements.
Interest is generally charged on amounts payable between the time the debt should have first been paid and when it’s paid in full.
If you’re not satisfied with any assessment of liability or decision, you can lodge a formal objection in writing. You have 60 days from the date of the assessment, or the decision, to lodge an objection. Your objection will be considered by independent staff who work in a separate review unit.
If you remain dissatisfied after the determination of your objection, you can ask for further review either through the NSW Civil and Administrative Tribunal (NCAT) or the NSW Supreme Court within the required timeframe.
For more information, read the objections and reviews page.
If you have a question about our compliance activities and cannot find the answer on this website, contact us.