Pay NSW payroll tax when threshold met
NSW: 5.45% rate on Australian wages above the $1.2M tax-free threshold (FY26).
Who must comply
Employers with Australian wages above the NSW threshold (including grouping).
What triggers it
Wages above the threshold; grouping.
When due
Monthly returns by 7th of following month; annual reconciliation by 28 July.
Evidence required
Monthly returns via Revenue NSW, wage records, group nomination.
Max penalty
Tax shortfall + interest + penalty tax up to 75%
Summary
NSW payroll tax applies to employers paying Australian wages above the threshold under the Payroll Tax Act 2007 (NSW). FY26 threshold: $1.2M annual ($100K monthly), 5.45% standard rate (mental health levy surcharge of 0.5% above $1.5M payroll for some groups). Monthly returns due 7th of following month; annual reconciliation by 28 July.
Enforced by
Source legislation
Topics
Related obligations
- QLDPay Queensland payroll tax when threshold metQLD: 4.75% rate on Australian wages above the $1.3M tax-free threshold (FY26).
- VICPay Victorian payroll tax when threshold metVIC: 4.85% rate on Australian wages above the $1,000,000 tax-free threshold (from 1 July 2025).
- WAPay Western Australian payroll tax when threshold metWA: 5.5% rate on Australian wages above the $1M tax-free threshold (FY26), with diminishing deduction up to $7.5M.
- SAPay South Australian payroll tax when threshold metSA: 4.95% rate on Australian wages above the $1.5M tax-free threshold (FY26).
- TASPay Tasmanian payroll tax when threshold metTAS: 4.0% / 6.1% on Australian wages above the $1.25M tax-free threshold (FY26).
- NTPay Northern Territory payroll tax when threshold metNT: 5.5% rate on Australian wages above the $2.5M tax-free threshold (from 1 July 2024).
Frequently asked questions
- Who must comply with NSW payroll tax when threshold met?
- Employers with Australian wages above the NSW threshold (including grouping).
- What triggers NSW payroll tax when threshold met?
- Wages above the threshold; grouping.
- When is NSW payroll tax when threshold met due?
- Monthly returns by 7th of following month; annual reconciliation by 28 July.
- What is the maximum penalty for NSW payroll tax when threshold met?
- Tax shortfall + interest + penalty tax up to 75%
- What evidence is required for NSW payroll tax when threshold met?
- Monthly returns via Revenue NSW, wage records, group nomination.
Source: https://revenue.nsw.gov.au/taxes-duties-levies-royalties/payroll-tax. Rules Mate is not a law firm. Always verify against the live regulator source before acting.