Payroll tax is a state tax that is calculated on wages paid or payable. Employers (or groups of employers) with Australian wages exceeding the monthly threshold amounts are required to be registered in New South Wales. Australian wages comprise both New South Wales wages and all interstate wages. The monthly threshold amounts are:
- $71,311 in a month with 29 days
- $73,770 in a month with 30 days
- $76,230 in a month with 31 days.
In general, any remuneration attributed to employees is included in your total Australian wages. Common items are wages, salaries, commissions, bonuses, allowances, directors fees, fringe benefits, payments in kind, eligible termination payments and superannuation contributions.
For the 2019-20 financial year, if your total annual Australian taxable wages exceed $900 000, payroll tax will be calculated at 5.45%.