Employers must register their business for payroll tax if their total Australian wages exceed the relevant monthly thresholds. The payroll tax rates and thresholds vary between states and territories.

For example:

• In VIC, the payroll tax threshold has is $650,000 for the tax year 1 July 2020 to 30 June 2021. The current payroll tax rate is 4.85% except for regional Victorian employers where it is 2.02%.
• In NSW, the payroll tax threshold has increased to $1.2 million for the tax year 1 July 2020 to 30 June 2021. The current payroll tax rate is 4.85%.

Grouping provisions apply and so businesses may be grouped together and effectively treated as a single entity for payroll tax purposes.

Payroll tax is a self-assessed and so it is important for employers to stay on top of this additional tax as their business grows. Ask our team if you need to enroll for Payroll Tax.