Payroll Tax

For larger employers, payroll tax is a charge imposed by each state on the level of wages and benefits paid to employees and certain contractors.

payrollGrouping provisions apply when employing staff across multiple business entities, and/or working in multiple states. A grouping adjustment can result in a payroll tax liability where prima facie you may be below the threshold for a particular state due to business entity grouping, and/or due to the requirement to adjust thresholds where operating across multiple states.

We recommend a regular review of payroll tax ever 2-3 years once the whole of Australia wages for the business group is approaching the state thresholds for each of the states you operate in. We recommend knowing this additional business overhead is approaching in advance, rather than finding our years after the fact.

Payroll tax thresholds and rates are generally updated annually, however changes at other times do occur. Key payroll tax information for each Australian state from 1 July 2016:

State Threshold Rate
ACT $2,000,000 6.85%
NSW $750,000 5.45%
VIC $575,000 4.85%
QLD $1,100,000 4.75%
NT $1,500,000 5.5%
WA $850,000 5.5%
SA $600,000 4.95%
TAS $1,250,000 6.1%