Payroll Tax

Payroll Tax

Payroll tax is imposed on an employer’s liable NSW wages minus any threshold entitlement.

An individual employer or a group of related businesses may be liable for payroll tax if the total liable wages throughout Australia, including NSW, exceeds the payroll tax threshold for that year.

When to lodge?

Employers should usually lodge their payroll tax returns on a monthly basis, and pay any tax they have outstanding to the appropriate taxation office within 7 days after the end of the month that the wages were paid in.

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.

Monthly threshold from Jul 2012

  • 28 days = $52,855
  • 30 days = $56,630
  • 31 days = $58,518

Effective 1 January 2011 to 30 June 2011,

  • Payroll tax rate of 5.50% will reduce to 5.45%
  • Threshold is $658,000

Monthly threshold 2010 – 2011

  • 28 days = $50,477
  • 30 days = $54,082
  • 31 days = $55,885

Each monthly payment or ‘nil’ remittance is due seven days after the end of each month or the next business day if the seventh day is a weekend or public holiday (ie August payment is due by 7 September). The annual reconciliation and payment or ‘nil’ remittance is due by 21 July.

From 1 July 2010 the maternity and adoption leave exemption will be extended to include paternity leave payments for up to 14 weeks.