Payroll Tax
Payroll tax is a state based tax levied on businesses whose annual payroll exceeds the payroll tax threshhold. The current threshold in NSW is $678,000 which includes salaries and wages, superannuation and fringe benefits. The current rate of tax is 5.45% for wages in excess of the threshhold.
There are grouping provisions that apply to ensure that taxpayers do not artificially come below the threshold.
Other states also impose payroll tax and there are implications for entities that pay wages in more than one state.
The Office of State Revenue is the government department responsible for the administration of payroll tax and you can obtain more information from their website by
clicking here.