Pay NSW payroll tax when threshold met
NSW: 5.45% on Australian wages above the $1.2 million tax-free threshold (FY2026-27).
Who must comply
Employers with Australian wages above the NSW threshold (including grouping).
What triggers it
Wages above the threshold; grouping.
When due
Monthly by the 7th of the 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%
Who must comply with this? The applicability test by industry, business structure and size.
Summary
New South Wales payroll tax under the Payroll Tax Act 2007 (NSW). FY2026-27: tax-free threshold $1.2 million a year (monthly: $92,055 (28-day month) / $98,630 (30-day) / $101,918 (31-day)). 5.45% on wages above the threshold. Flat tax-free threshold, apportioned by the share of Australian wages paid in NSW and by days employed; only one group member claims it. Returns lodged via Revenue NSW.
Enforced by
Source legislation
Topics
Related
- QLDPay Queensland payroll tax when threshold metQLD: 4.75% on Australian wages above the $1.3 million tax-free threshold (FY2026-27).
- ACTPay ACT payroll tax when threshold metACT: 6.75% on Australian wages above the $1.75 million tax-free threshold (FY2026-27).
- VICPay Victorian payroll tax when threshold metVIC: 4.85% on Australian wages above the $1 million tax-free threshold (FY2026-27).
- SAPay South Australian payroll tax when threshold metSA: 4.95% on Australian wages above the $1.5 million tax-free threshold (FY2026-27).
- NTPay Northern Territory payroll tax when threshold metNT: 5.5% on Australian wages above the $2.5 million tax-free threshold (FY2026-27).
- TASPay Tasmanian payroll tax when threshold metTAS: 4% / 6.1% on Australian wages above the $1.25 million tax-free threshold (FY2026-27).
Reading
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 by the 7th of the 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://www.revenue.nsw.gov.au/taxes-duties-levies-royalties/payroll-tax/lodge-and-pay-returns/thresholds-and-rates. Rules Mate is not a law firm. Always verify against the live regulator source before acting.