Interstate wages are any wages liable for payroll tax under the legislation of another state or territory. If your business pays interstate wages, you cannot claim the full payroll tax threshold deduction in NSW. Your available threshold is reduced based on your interstate wages.
If your workers work in multiple states, you can determine where the wages should be reported by following our nexus provisions.
Your available threshold in NSW is calculated as:
(Total NSW wages / Total Australian wages) x NSW payroll tax threshold
Make sure that all wage items such as superannuation, contractors and allowances are included. If your business is grouped, you need to include the wages of all group members when calculating the threshold.
Find out more about common errors.
King Pty Ltd is not grouped and employs in NSW and QLD.
The available NSW threshold in 2018-19 is:
($1,000,000 / $3,000,000) x $850,000 = $283,333
King Pty Ltd is grouped with Queen Pty Ltd and employs in NSW and QLD.
The available NSW threshold in 2018-19 for the group is:
($1,000,000 / $4,000,000) x $850,000 = $212,500