Payroll tax and compliance

Payroll tax can be lodged either monthly or annually. The due dates for the 2021 Financial Year are as follows.

• VIC Monthly Lodgement Due Date: Returns must be lodged and paid within seven days after the close of the month to which the return relates. If the seventh day falls on a weekend or public holiday, your return and payment is due on the next business day.
• VIC Annual Lodgment Due Date: 21 July after each financial year. If that day falls on a weekend, your AR is due the next business day.
• NSW Monthly Lodgement Due Date: Each monthly payment or nil return is due within seven days after the end of each month. If the seventh day is a weekend or public holiday, the due date is the next business day.
• NSW Annual Lodgment Due Date: 30 October each financial year.
• ACT Monthly Lodgement Due Date: All monthly returns except December are required to be lodged and paid by the 7th of each month. December return is due on the 14th of January every year.
• ACT Annual Lodgment Due Date: 21 July after each financial year. If that day falls on a weekend, your AR is due the next business day.
• QLD Monthly Lodgement Due Date: Returns must be lodged and paid within seven days after the close of the month to which the return relates. If the seventh day falls on a weekend or public holiday, your return and payment is due on the next business day.
• QLD Annual Lodgment Due Date: 21 July after each financial year. If that day falls on a weekend, your AR is due the next business day.
• SA Monthly Lodgement Due Date: Your monthly return and payment of your tax liability for the return period is due on or before the 7th day of the month following the applicable return period (e.g. your payroll tax return and payment for the month of January will be due on 7 February).
• SA Annual Lodgment Due Date: The payroll tax annual reconciliation and payment of your tax liability for the financial year is due on or before 28 July of the year following the annual reconciliation period that you are reconciling. For example the 2019-20 South Australian payroll tax annual reconciliation lodgement and payment is due 28 July 2020.
• WA Monthly Lodgement Due Date: Monthly returns are due and payable by the 7th of the following month in which the taxable wages were paid or payable. The June return is due and payable by 21 July.
• WA Quarterly Lodgment Due Date: Quarterly returns are due and payable by 7th October, January and April and 21 July.
• WA Annual Lodgment Due Date: Annual returns are due and payable by 21 July.
• NT Monthly Lodgement Due Date: You must pay payroll tax within 21 days of the end of the month in which your total Australian wages reaches the threshold amount.
• NT Annual Lodgment Due Date: You must pay payroll tax within 21 days of the end of the month in which your total Australian wages reaches the threshold amount.
• TAS Monthly Lodgement Due Date: Returns must be lodged by the 7th of the month following - for example, the September return is due on 7 October.
• TAS Annual Lodgment Due Date: The Annual Adjustment Return (AAR) must be lodged by 21 July each year. If you lodge monthly, the AAR replaces the June monthly return.

Payroll tax is a general-purpose Australia-wide tax that is assessed on salary and wages paid by an employer to its employees. This covers both payments and benefits, and is assessed based on your accumulated sum each year. Your business only has to pay this tax if you exceed your state’s tax-free threshold.

Payroll tax includes:

• Employee wages (including PAYG) and contractor payments
• Leave payments
• Superannuation
• Bonuses, commissions, allowances, and fringe benefits
• Remuneration for company directors (if applicable)
• Employee termination payments

If your Australian wages have exceeded your state’s tax-free threshold amount, then you’ll need to register for payroll tax in each state where you have employees. You can find the threshold and payroll tax rate for each state or territory here:

• ACT Revenue Office
• Northern Territory Revenue
• NSW Revenue
• Business Queensland payroll tax
• Revenue SA
• State Revenue Office of Tasmania
• State Revenue Office Victoria
• WA Office of State Revenue
  

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The payroll tax-free threshold varies from state to state. Here are the thresholds for each state, current until 30 June 2021.

• VIC threshold: $54,166 (monthly), $650,000 (annually)
• ‍VIC rate: 4.85% or 2.02% for regional employers, and 1.2125% for regional employers based in bushfire affected areas
• NSW threshold: $76,712 (28-day month), $82,192 (30-day month), $84,931 (31-day month), $1,000,000 (annually)
• ‍NSW rate: 5.45%
• ACT threshold: $166,666.66 (monthly), $2 million (annually)
• ‍ACT rate: 6.85%
• QLD threshold: $25,000 (weekly), $108,333 (monthly), $1.3 million (annually)
• ‍QLD rate: 4.75%
• SA threshold: $125,000 (monthly), $1.5 million (annually)
• ‍SA rate: variable from 0% to 4.95%
• WA threshold: $83,333 (monthly), $1,000,000 (annually)
• ‍WA rate: 5.5%
• NT threshold: $125,000 (monthly), $1.5 million (annually)
• ‍NT rate: 5.5%
• TAS threshold: $99,043 (28-day month), $102,459 (30-day month), $105,874 (31-day month), $1.25 million (annually)
• ‍TAS rate: 4%, but wages bills over $2 million receive a subsequent rate of 6.1%

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