How to meet your obligations and make payments.
Paying tax on property you own.
Calculate and lodge tax on the wages paid by your business.
Calculate and pay transfer (stamp) duty on purchases.
We collect and audit mineral resources royalties.
We collect gaming and wagering taxes.
For businesses that provide health benefits to contributors.
Providers of general and life insurance pay a duty.
Aims to reduce traffic congestion in Sydney's busiest areas.
Surcharge fees that apply to residential land.
Duty applies to some vehicle registrations and transfers.
Applies to authorised taxi and booking service providers.
We collect funds to support emergency services in NSW.
How government and the private sector compete
Payroll tax is a state tax. It is 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.
As an agent or advisor (accountant, solicitor, tax agent, lawyer, payroll processor, legal and tax professional), you’re responsible for making sure your clients meet their payroll tax obligations.
Your clients, who pay wages in NSW, must register for payroll tax if their total Australian wages exceed the relevant monthly threshold.
You should monitor their wage levels to make sure they’re registered for payroll tax within seven days after the month they exceed the threshold.
We run a series of payroll tax awareness programs so you can help your client meet their obligations. The programs highlight common errors and provide information on our online resources.
Our compliance program ensures the integrity and fairness of the tax and benefit systems by:
We work closely with the Australian Tax Office (ATO) and other government agencies to share information and data. Last year we identified a payroll tax shortfall in eight out of 10 audits conducted.
Payments to contractors are liable for payroll tax unless one of these seven exemptions applies.
If your client wants to claim one of the seven exemptions, you must show sufficient documentation. For help on what records you should keep read, Commissioner’s Practice Note CPN 007.
Your clients may be grouped with other businesses for payroll tax under the following structures:
Where a group exists:
If a payroll tax group exists, your client can:
If your client needs to appoint a DGE or single lodger, complete the appropriate application form:
Shares and options granted to an employee are classed as wages.
To determine whether your client is liable for shares and options, you should understand these rules:
If your client is an employment agent, they are liable for payroll tax on wages they pay to workers. The relevant contractor provisions are not applicable where a worker is provided under an employment agency contract.
For more information to help decide on whether particular arrangements constitute an employment agency contract, read Commissioner’s Practice Note CNP 005.
We work closely with industries to assist them with their up-front compliance. Our industry experts have identified common errors in these industries:
If a client fails to include all liable amounts in their monthly payroll tax returns for the current financial year, you should make sure they include them in their annual reconciliation return, due 28 July.
If you find any of your clients have failed to include all liable amounts in their payroll tax returns for previous financial years, contact us to make a voluntary disclosure. Voluntary disclosures attract a lower penalty compared to cases where we identify the problem.
We have information and tools to help you and your clients understand your obligations and to comply with payroll tax. We offer:
Payroll tax assist can help you work out if your clients are meeting their payroll obligations. By answering a series of questions you’ll be able to check whether they’re lodging and paying payroll tax returns correctly.
Revenue NSW administers the Payroll Tax Act 2007 and the Taxation Administration Act 1996.
Copies of rulings and case summaries can be found in our resource library.
Take a look at the most common errors businesses make when calculating payroll tax, and case studies to assist in your client lodgement.
If you have a question about payroll tax and cannot find the answer on this website, contact us.