You will need to register for payroll tax if you are an employer and your total Australian wages exceed the relevant monthly threshold.
Payroll tax is a state tax that is calculated on wages paid or payable. Australian wages comprise both New South Wales wages and all interstate wages. The monthly threshold amounts are:
- $92,055 in a month with 28 days
- $98,630 in a month with 30 days
- $101,918 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 2023-24 financial year, if your total annual Australian taxable wages exceed $1,200,000, payroll tax will be calculated at 5.45%.
