When do I need to pay Payroll Tax?

Once you reach each state payroll tax threshold you have to start reporting and paying payroll tax each month.

Payroll Tax is administered on a state-by-state basis.

You need to monitor your wages paid in the state where you have most employees and when your wages exceed that state's payroll threshold you'll then need to register for that state's payroll tax (and likely others - see below).

Once registered (in each state), you are required to lodge each month via each state’s online system to declare total wages and pay any applicable payroll tax (which is based on a state-by-state payroll tax rates above state-based wages thresholds).  At the end of the financial year an annual declaration is lodged (per state) and any net payable / refund relative to the annual wages threshold is paid / refunded.

Taxable wages typically includes:

  • Direct salaries
  • Director fees
  • Superannuation
  • Bonuses
  • Allowances
  • Fringe Benefits
  • Contractors who are primarily working for you 
  • Any shares or options granted

Note that, painfully, most states require you to lodge and report when you meet national salary thresholds even if (based on that state’s thresholds) there would be no payroll tax payable.  Practically what this means is that as soon as you meet the threshold in any one state (typically where you have most employees) then you are likely to need to register in all states as / when you employ in other states.

Note: Payroll Tax lodgement is typically due on the 7th of each month

 

State

Annual threshold

Monthly Threshold

Rate

ACT

$2,000,000

$166,666.66

6.85%

New South Wales

$900,000

$65,205 (28 day month)

$69,863 (30 day month)

$72,192 (31 day month)

5.45%

Northern Territory

$1,500,000

$125,000

5.50%

South Australia

$1,500,000

$125,000

$1.5-1.7m: 0% - 4.95%

> $1.7m:           4.95%

Tasmania

>$1,250,000




> $2,000,000

  $95,890 (28 day month)

$102,740 (30 day month)

$106,164 (31 day month)


$153,425 (28 day month)

$164,384 (30 day month)

$169,863 (31 day month)

4.00%




6.10%

Victoria

$650,000

$54,166

4.85%

Western Australia

$850,000

$70,833

5.50%

Rates are correct as at July 2019 but are subject to change

 

Note that because of the different thresholds per state it is theoretically possible for, say, your primary state to be below that state's payroll tax payable while, nevertheless, needing to register and report in another state's payroll tax regime - note Victoria's low threshold in particular.