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Taxes, duties, levies and royalties
  • About

    How to meet your obligations and make payments.

  • Land tax

    Paying tax on property you own.

  • Payroll tax

    Calculate and lodge tax on the wages paid by your business.

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    Calculate and pay transfer (stamp) duty on purchases.

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    We collect and audit mineral resources royalties.

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    We collect gaming and wagering taxes.

  • Health insurance levy

    For businesses that provide health benefits to contributors.

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    Providers of general and life insurance pay a duty.

  • Parking space levy

    Aims to reduce traffic congestion in Sydney's busiest areas.

  • Foreign buyers and land owners

    Surcharge fees that apply to residential land.

  • Motor vehicle duty

    Duty applies to some vehicle registrations and transfers.

  • Passenger service levy

    Applies to authorised taxi and booking service providers.

  • Emergency services levy

    We collect funds to support emergency services in NSW.

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    How government and the private sector compete

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Payroll processors

As a payroll processor, you must pass on payroll tax to the relevant state revenue offices.

Some contracted payroll processors are not passing on payroll tax, even after receiving the funds from the employer. Employers must then meet their outstanding tax liabilities and attempt to recover the amounts already paid to the payroll processor.

About payroll tax

Payroll tax is a tax on wages. It’s payable when your wages first exceed the monthly threshold amount. The 2020/21 threshold is $1,200,000, and the full threshold applies if you employ only in NSW and for the full financial year.

Several factors determine whether you get the full threshold entitlement.

Wages are only paid for part of the year

If you start or stop employing in NSW within a financial year you’re not entitled to the full threshold. You’ll receive a proportion of the threshold equal to the number of days you employ to the number of days in a year.

A business pays wages liable to payroll tax in another state or territory

If you pay wages in another Australian state or territory, the threshold is calculated as a proportion equal to the ratio of NSW wages to total Australian wages. For example, if 80 per cent of your total wages are paid in NSW, you’re entitled to 80 per cent of the threshold.

A business is part of a group

If your business is part of a group of businesses, only one threshold applies to the whole group.

Common errors made when calculating payroll tax

Find out about the most common errors businesses make when calculating their payroll tax.

Encourage and assist clients to comply

We have information and tools to help you and your client understand your payroll tax obligations.

  • tax update seminars and webinars
  • online services to register, calculate, lodge and pay
  • a free subscription service where you can register to receive email alerts about our latest changes
  • telephone support.

Payroll tax assist

By answering a series of questions, payroll tax assist can help you work out if you, or your clients, are meeting your payroll tax obligations.

Anti-avoidance provisions

The payroll tax anti-avoidance provisions apply where an arrangement reduces or avoids liability for payroll tax. There does not need to be proof the arrangement was intentional. What matters is the effect the arrangement has on the payroll tax liability.

We examine the facts and circumstances of your business to work out whether to apply the provisions.

We disregard any arrangements, including contracts, when the payroll tax anti-avoidance provisions apply. Your business is then considered an employer and all payments are taxable wages. You’ll be given a notice outlining the details.

Contact us

If you have a question about payroll tax and cannot find the answer on this website, contact us.

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