Rates and thresholds

Payroll tax threshold and rate

The payroll tax threshold for the period 1 July 2011 to 30 June 2012 is $678,000.

The rate of payroll tax:

Your monthly threshold is calculated using the number of days in the month, divided by the number of days in the year, multiplied by the threshold.

The following factors may affect a business’s threshold entitlement:

1) Wages are only paid for part of a year:
If a business starts or stops employing in NSW within a financial year it does not get a full threshold entitlement. The business will receive a proportion of the threshold equal to the ratio of the number of days they employ to the number of days in the financial year.
2) A business pays liable wages in another Australian State or Territory:
When a business pays wages in NSW and interstate, the NSW threshold is determined as a proportion equal to the ratio of the NSW wages to the total Australian wages.
If a payment is not taxable in a jurisdiction as a wage, then it is not included in the total Australian wages.
3) A business is part of a group:
Grouped employers receive one threshold entitlement between them.

Motor vehicle allowances have an exempt component and are not subject to payroll tax if they do not exceed:

Accommodation allowances have an exempt component and are not subject to payroll tax if they do not exceed:

Read more about these allowances in our Revenue Rulings.

Last updated: 04-Jul-2011