Monthly example calculations for the 2018-19 financial year

Monthly calculations

The payroll tax rate is 5.45 per cent. From 1 July 2018, the threshold is $850,000.

Your monthly threshold is calculated using the number of days in the month, divided by the number of days in the year, multiplied by the threshold.

Days in months Threshold
28 $65,205
30 $69,863
31 $72,192
  1. Non-grouped employer paying wages in NSW only

    Calculation of threshold for period of employment

    (No. of days employing x threshold) / No. of days in period

    Calculation of employer’s tax payable for the period

    Less threshold for the period / (Balance x rate of tax = tax payable)

  2. Non-grouped employer paying wages in NSW and interstate

    Calculation of threshold for period of employment

    (No. of days employing x threshold) / No. of days in period

    Calculation of threshold for period of employment

    (NSW wages x threshold) / Employer’s total Australian wages

    Calculation of employer’s tax payable for the period

    Employer’s NSW wages for the period less threshold for the period / (Balance x rate of tax = tax payable)

  3. Grouped employer paying as the Designated Group Employer

    Calculation of threshold for period of employment

    (No. of days employing x threshold) / No. of days in period

    Calculation of threshold for period of employment

    (Total NSW wages of group x threshold) / Total Australian group wages

    Calculation of employer’s tax payable for the period

    Employer’s NSW wages for the period less threshold for the period / (Balance x rate of tax = tax payable)

Designated Group Employers

Only one member of a group can claim the group’s NSW threshold entitlement. Grouped employers are required to nominate a Designated Group Employer (DGE) for their group. If you are not the DGE, you do not receive any threshold entitlement. To qualify for DGE status, the individual wages for the nominated DGE member need to be more than the threshold for that period.

If none of the members qualify to be the DGE, which means if no group member’s individual wages are above the threshold, you must nominate a Group Single Lodger to be responsible for lodging and paying payroll tax on behalf of all members of the group.

Apprentice/trainee wages

If you employ apprentices or trainees, to calculate the apprentice/trainee offset, you will need to do 2 calculations as follows:

Calculation 1. Include all apprentice/trainees wages

Calculation 2. Exclude all apprentice/trainees wages

Subtract calculation 2 from calculation 1 = apprentice/trainee offset

Last updated: 3 July 2018