Introduction
Payroll tax is a tax for employers. It is based on the amount of monthly wages paid to permanent, temporary and casual employees and certain contractors.
The payroll tax threshold determines at what point employers must pay the payroll tax. Each state and territory has its own payroll tax threshold.
You can register for payroll tax online.
Who needs to register
You must register for payroll tax if your monthly wages bill during any month exceeds the threshold amount.
In the financial year 2023-24:
- the monthly threshold is set at $101,918 for a 31-day month
- the tax rate is set at 5.45%.
To work out your wages bill, include all forms of taxable wages.
If your estimated tax payable over a full financial year is:
- $20,000 or less, you can pay annually
- more than $20,000, you must pay monthly.
Note: If you start or stop employing within a financial year, you’re not entitled to the full threshold. You’ll receive a proportion of the threshold equal to the number of days you employ to the number of days in a year.
What you need
- your Australian Business Number (ABN)
- your address, contact and bank details
- the date your business first employed staff
- your grouping status (businesses may be grouped with other businesses if there is a link between them)
- all payments to employees for the current year, plus the 4 previous years (if applicable), including:
- salaries and wages
- fringe benefits
- employer superannuation contributions
- termination payments
- contractor payments
- allowances
- apprentice and trainee wages
- bonuses and commissions
- director fees
- shares and options.
Note: You cannot save and resume your registration once you have started so make sure you have all the necessary details ready.