Payroll tax harmonisation

Payroll tax

In 2007, the Revenue Commissioners across all Australian States and Territories committed to harmonisation of payroll tax administration.

All jurisdictions have fully harmonised in eight key areas and from 1 July, 2009 essentially identical legislation is in use (excluding thresholds, rates and some minor differences found in the respective Acts). Seven jurisdictions have agreed to use the jointly issued revenue rulings.

In July 2010, the Commissioners signed A Protocol for Payroll Tax Harmonisation between Jurisdictions (PDF) confirming their continued commitment to the harmonisation process.

For more information, visit the Payroll Tax Australia website.

What does this mean for businesses?

The harmonisation of payroll tax legislation means that although each jurisdiction continues to have different payroll tax rates and general deduction thresholds, the payroll tax legislation is virtually identical.

NSW and other Australian States and Territories are also committed to greater administrative consistency:

  • working towards harmonising all payroll tax revenue rulings in the harmonised areas. Over 30 joint revenue rulings have already been published.

  • where an employer operates in more than one jurisdiction with harmonised payroll tax legislation, the relevant revenue offices will consult one another and share relevant taxpayer information in determining private rulings and objection matters.

Last updated: 16 April 2015