Pay NSW payroll tax when threshold met

NSW: 5.45% rate on Australian wages above the $1.2M tax-free threshold (FY26).

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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

taxpayroll-taxstate

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.