Payroll tax

Payroll tax

Payroll tax is applied to a business’s New South Wales (NSW) wages that exceed the payroll tax threshold.

New payroll tax clients can use our online registration form to register for payroll tax.

Existing clients can log in to Payroll tax online to:

  • lodge your monthly calculation, annual reconciliation or nil return
  • change your details, including grouping and banking
  • register for online payment
  • cancel your registration and payments
  • view your payment history, return history summary, payment options and payment codes
  • complete the employers questionnaire.

Rates and thresholds

What is the current rate and threshold?

The payroll tax rate is 5.45%.

The payroll tax threshold for 2015-16 (July – June) is $750,000.

The monthly threshold amounts are:

Days in the monthThreshold
29 days $59,426
30 days $61,475
31 days $63,525

The 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.

To view rates and thresholds for previous years, visit the rates and thresholds page.

Are there any factors that may affect my entitlement to the threshold?

The following factors will 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 are not entitled to the full threshold. You will receive a proportion of the threshold equal to the ratio of the number of days you employ to the number of days in a year.

  • A business pays liable wages in another State or Territory

    If you pay wages in another State or Territory the threshold will be determined as a proportion equal to the ratio of NSW wages to total Australian wages. For example, if 75% of your total wages are paid in NSW then you are entitled to 75% 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.

Calculate, lodge and pay payroll tax

How do I calculate, lodge and pay my payroll tax?

To calculate and pay your monthly liability, use our monthly calculator.

To calculate, lodge and pay your annual liability, complete an annual reconciliation.

For example payroll tax calculations, download the example calculations for the monthly calculator and annual reconciliation.

When are my payments due?

Each monthly payment or ‘nil’ return is due within seven days after the end of each month. The due date is the next business day if the seventh day is a weekend or public holiday.

Your annual reconciliation and payment are due by 21 July.

Rebates

Are there any rebates available?

The Jobs Action Plan rebate is available if you employ new employees.

View the Jobs Action Plan page for more information on eligibility, payments and registration/application.

A rebate was available if you employed an employee with a disability under the Payroll Tax Rebate Scheme (Disability Employment) Act 2011. This Act has been repealed from 1 July 2014.

If you were employed prior to 1 July 2014 and believe you were eligible for the Payroll Tax Rebate Scheme (Disability Employment), you may still make a claim for payment. Contact us to make a claim.

Records

What records do I need to keep?

When keeping records you must meet the following requirements:

  • They must be sufficient to enable a payroll tax liability to be properly assessed.
  • Records need to be kept for no less than five years.
  • The Chief Commissioner can require a person to keep additional specified records.
  • Records must be kept in English or in a form easily translated to English.
  • Records must be readily available for production to the Chief Commissioner if required.

New clients

Can I get help working out my payroll tax?

If your business is working out payroll tax for the first time, you can contact our client account managers for help.

Your dedicated client account manager will help you with all legislative or administrative enquiries during your first year of registration, and will provide:

  • a single point of contact for all payroll tax legislative and administrative enquiries
  • high level tax technical assistance
  • information about your rights and obligations
  • free payroll tax seminars and online resources
  • help using our website resources and calculators
  • assistance to correctly determine your payroll tax liability.

To get in touch with a client account manager, contact us.

Last updated: 24 March 2016