Payroll tax in Australia is calculated on employees’ wages. If a business is expecting its payroll to be more than $550,000, it must check the registration requirements for the state in which it is operating. If you run a business, you should understand Australian payroll requirements such as:
- Wage Payment Periods
You can pay your workers each week, fortnight or month.
- Single Touch Payroll (STP)
You must report salaries, wages, tax, pay-as-you-go (PAYG) withholding and superannuation data to the Australian Taxation Office (ATO) using STP-enabled software.
- Payroll Tax
When your payments pass the threshold for your state or territory, your company must pay payroll taxes for wages, salaries, allowances, bonuses and commissions.
All Australian states and territories require employers to carry workers compensation insurance for all employees and pay a statutory amount (9.5 per cent, but it could vary in the future) of a worker’s wages to a Superannuation fund, and report fringe benefits tax.
Our BYO Group team sees building a great working relationship you, the business owner, as a crucial part of your success.
At BYO Group, we offer many bookkeeping services, including payroll tax processing.
We also have strong working relationships with many tax agents and accountants.
Payroll Tax Calculator
Businesses don’t remain static; they grow and need more staff, so when this happens, you need to be able to deal with the ATO’s payroll tax requirements. One of the best ways of handling this is to call BYO Group as we are payroll tax specialists.
Payroll Tax Rates
The following payroll tax rates and thresholds applying in the Australian states and territories:
Victoria (Vic)
- July 1, 2019 – June 30, 2020: 6
- Threshold: 50,000 annually, 54,166 monthly
- Rate: 4.85
- 2.425 for regional employers
New South Wales (NSW)
- July 1, 2019 to June 30, 2020:
- Threshold: $900,000
- Rate: 5.4 per cent
Queensland (Qld)
- July 1, 2019 – June 30 2020
- Threshold: $1,300,000
- Rate:4.75 per cent for employers paying $6.5 million or less in wages
- 4.95 per cent for employers paying above $6.5 million in wages.
Western Australia (WA)
- Up to June 30, 2023, payroll tax is calculated on a scale that gradually increases the tax rate to a maximum of 6.5 per cent for employers with annual taxable wages of more than $100 million.
South Australia (SA)
- A payroll tax liability arises in SA when an employer has a wages bill above: $1 500 000 per annum.
- Between $1.5 million and $1.7 million benefit from a reduced payroll tax rate.
Northern Territory (NT)
- July 2019 to June 2020
- Threshold $1.5 million or $125,000 per month.
- Rate 5 per cent
Australian Capital Territory (ACT)
- July 1, 2016 to current
- Threshold: Monthly $166,666.66
- Annual: $2,000,000
- Rate: 6.85 per cent
Tasmania (Tas)
- July 1, 2019 to June 30 2020
- Threshold: $1.25 million to $2 million
- Rate 4 per cent
- Above $2 million: 6.1 per cent
If you’re searching for ‘payroll tax calculator’ or ‘payroll services near me or nearby’ then get in touch with us at BYO Group. We’d love to hear from you, so call us on 0402 100 421, drop in to our Hawthorn Vic office, or complete the convenient online form and we’ll get back to you.
