Payroll Tax differs from state to state and it’s really important to ensure you are registered if you are likely to go over the threshold given by each state. Even if you think you maybe getting close when calculating your total remuneration – it’s much easier to register and lodge the returns than face the potential fines for non-lodgment.
If you are required to register and lodge, you receive the following thresholds tax-free. Once you go over these amounts tax is payable on the excess remuneration.
State by state you will notice the differences in the thresholds;
Western Australia – $850,000 per annum
Northern Territory – $1,500,000 per annum
South Australia – $1,500,000 per annum
Queensland – $1,300,000 per annum
New South Wales – $900,000 per annum
ACT – $2,000,000 per annum
Victoria – $650,000 per annum
Tasmania – $1,250,000 per annum
(based on 19/20 financial year)
There are various rates that apply once you reach these thresholds, but with some states tiered, you may need some help determining a) do you need to register as not all wages may be included in your total remuneration and b) what rate will you pay.
Payroll taxes are normally due on the 7th of the month to report for the previous month, therefore there’s not a lot of time to get these reports prepared, lodged and paid.
So please contact us if your wages are close or over the amounts above for your state. We can get you registered and determine your monthly liability before the due date.