Payroll tax
When are wages liable? (new nexus provisions)
From 1 July 2009 the process of determining liability for payroll tax has been changed to specify the employee’s principal place of residence as the primary nexus where employees perform services in more than one jurisdiction during a month.
When the employee does not have a principal place of residence in Australia, or where it cannot be identified, the employer’s ABN registered address will be used.
It is recognised that there may be transitional and implementation issues for some employers who may have to make changes to their payroll systems. In NSW, it is permissible for anyone facing such transitional issues to make any necessary adjustments without penalty as part of the annual reconciliation process for the 2009/10 assessment year.
It is stressed that these changes only affect wages for workers providing their services across jurisdictions. Where a worker provides their services solely in one jurisdiction, as is the case for the majority of workers, tax will continue to be paid to the jurisdiction where those services are performed.
More information
From 1 July 2009 to 30 June 2010 the threshold is $638,000
From 1 July 2009 to 31 December 2009 the rate is 5.75%
From 1 January 2010 to 30 June 2010 the rate is 5.65%
Employers, or a group of related businesses, whose total Australian wages exceed the current NSW monthly threshold, are required to pay NSW payroll tax.
Monthly threshold
28 days = $48,942
30 days = $52,438
31 days = $54,186
Each monthly payment or 'nil' remittance is due seven days after the end of each month or the next business day if the seventh day is a weekend or public holiday (ie August payment is due by 7 September). The annual reconciliation and payment or 'nil' remittance is due by 21 July.
More information
- Registering for payroll tax
- General information
- Interest and penalties
- Payroll tax arrangements for apprentices and trainees
- Harmonisation of NSW, Victorian and Tasmanian legislation
- Payroll Tax Incentive Scheme (PTIS)
- Payroll Tax Act 2007
- Pay-roll Tax Act 1971
- Taxation Administration Act 1996
- Payroll tax frequent questions 2009