Rates and thresholds
Payroll tax threshold and rate
The payroll tax threshold for the period 1 July 2012 to 30 June 2013 is $689,000.
The rate of payroll tax:
from 1 July 2012 is 5.45%.
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 month | Threshold |
|---|---|
28 | $52,855 |
30 | $56,630 |
31 | $58,518 |
Circumstances affecting the threshold
The following factors may affect a business’s threshold entitlement:
1) Wages are only paid for part of a year:
If a business starts or stops employing in NSW within a financial year it does not get a full threshold entitlement. The business will receive a proportion of the threshold equal to the ratio of the number of days they employ to the number of days in the financial year.
2) A business pays liable wages in another Australian State or Territory:
When a business pays wages in NSW and interstate, the NSW threshold is determined as a proportion equal to the ratio of the NSW wages to the total Australian wages.
If a payment is not taxable in a jurisdiction as a wage, then it is not included in the total Australian wages.
3) A business is part of a group:
Grouped employers receive one threshold entitlement between them.
Motor vehicle allowance
Motor vehicle allowances have an exempt component and are not subject to payroll tax if they do not exceed:
| Period | Allowance |
|---|---|
01/07/2012 - 30/06/2013 | 75¢ per km |
01/07/2011 - 30/06/2012 | 75¢ per km |
01/07/2010 - 30/06/2011 | 75¢ per km |
01/07/2009 - 30/06/2010 | 75¢ per km |
01/07/2008 - 30/06/2009 | 70¢ per km |
Accommodation allowance
Accommodation allowances have an exempt component and are not subject to payroll tax if they do not exceed:
| Period | Allowance |
|---|---|
01/07/2012 - 30/06/2013 | $248.25 per night |
01/07/2011 - 30/06/2012 | $238.10 per night |
01/07/2010 - 30/06/2011 | $227.35 per night |
01/07/2009 - 30/06/2010 | $223.80 per night |
01/07/2008 - 30/06/2009 | $218.30 per night |
Read more about these allowances in our Revenue Rulings.