When your national wages reach above the threshold for the state or territory you pay taxes in, you need to register with the revenue office for payroll tax. However, if you’re only paying wages for part of the financial year, the threshold is reduced.
There are generally six types of wages subject to payroll tax. These include:
1. Termination payments
3. Fringe benefits
5. Bonuses and commissions; and,
6. Total gross wages
Payroll Taxes: State by State Analysis
Each Australian state and territory has varying requirements when it comes to payroll tax. It is self assessed on wages which are payable by employers to employees. When a particular amount has been reached, this is when the employer must register for payroll tax.
- NSW: Employers must register for payroll tax when the amount of $689,000 annually or approximately $57,417 a month is reached. The payroll tax rate is 5.45%.
- VIC: Victorian employers need to register for payroll tax when $550,000 annually or approximately $45,833 a month in wages is reached. The state’s payroll tax rate is 4.85%.
- WA: Since July, 2014, the threshold rate for Western Australia is $800,000 annually or approximately $66,667 a month in wages. The payroll tax rate: 5.50%.
- TAS: Tasmanian employers have an obligation to register for payroll tax when their wages reach $1.01 million annually, or approximately $84,167 a month. Their payroll tax rate is 6.1%.
- ACT: Employers in the ACT are obliged to register for payroll tax when their Australian wages reach $1.75 million annually, or approximately $145,833 a month. The payroll tax rate for the ACT is 6.85%.
- NT: Employers in the Northern Territory have to register for payroll tax when their total wages reach $1.5 million annually or approximately $125,000 a month; and their payroll tax rate is 5.5%.
- QLD: Employers from Queensland must register for payroll tax when their Australian wages reach $1.1 million annually or approximately $91,667 a month. Their payroll tax rate is 4.75%.
- SA: $600,000 annually or approximately $50,000 a month. Payroll tax rate: 4.95%
Note: Payroll tax may also apply to payments to contractors you use in your business, as well as director’s fees.
Useful Links for Further Information
If you are looking for specific information regarding a particular state, view the link below to navigate to the relevant state’s government website.
- ACT Payroll Tax Information
- New South Wales Payroll Tax Information
- Northern Territory Payroll Tax Information
- Tasmania Payroll Tax Information
- Queensland Payroll Tax Information
- Victoria Payroll Tax Information
- South Australia Payroll Tax Information
- Western Australia Payroll Tax Information
Alternatively, visit the Australian Tax Office or the Standard Business Reporting website for further information. The Tax Institute also contains valuable information regarding different types of tax, including payroll tax.
If you’re looking for a service to assist you with your payroll tax, feel free to give us a call on 1300 725 647 or click here to email us directly.