Overview of payroll tax

You must register for payroll tax within 7 days after the end of the month in which you:

• pay more than $19,230 a week in Australian taxable wages
  
  or
  
  
• become a member of a group that pays more than $19,230 a week in Australian taxable wages.

You must register for payroll tax if you meet the above criteria, even if you think that you will pay less than $1,000,000 in Australian wages in a year.

We may charge penalties if you do not register on time.

See Payroll tax thresholds for more information.

Complete an Application for payroll tax registration/Notification of designated group employer—Form P10 (PDF 150 K).

Once you have been registered for payroll tax, we will tell you:

• your client number
• how and when to lodge periodic returns and annual returns
• how to make payments
• whether any further information is needed to calculate your liability.

If you receive assessments for any outstanding taxes, you must pay them by the due date shown on the notices of assessment.

Any payments liable for payroll tax made to an employee for their services are called taxable wages.

In general, payments are liable for payroll tax if they are:

• a reward for services rendered by an employee and/or director
• payments to which the recipient has an enforceable right
• taxable termination payments.

This includes cash salary which an employee elects to forego in return for other benefits.

See Payroll tax liability for more information.

Note: Where an employee sacrifices an increase in cash wages for additional superannuation contributions by the employer, the amount sacrificed is taxable. 

Use our calculator to work out your payroll tax by:

1. determining your total taxable wages
2. subtracting any deductions 
3. multiplying this amount by the current tax rate of 4.75%.