Payroll tax alert: Do you have interstate employees?

Does your business have employees working interstate, whether on a permanent basis or on a temporary remote working arrangement?

Many businesses know when to register for payroll tax in their own state, but overlook when they are required to register in other states. Despite some harmonisation, the states and territories still have differing payroll tax thresholds, payroll tax rates and requirements around payroll tax registration.

It is important to understand that the level of your total wages across Australia can affect when you start to have a payroll tax liability in a particular state/territory.

So even though you might not reach the payroll tax threshold when considering actual wages relevant to a state or territory, you may reach the payroll tax threshold considering your total wages across Australia. This would then require you to register for payroll tax in that additional state or territory.

Once you have reached the threshold where you are required to register, it is important to do this quickly – often there is a requirement to do this within seven days of the end of the relevant month or pay period where the threshold was reached.

The table below provides a quick reference of the general payroll tax rates and thresholds applicable across Australia. If you are paying wages in multiple states/territories, you can also look at each of those and see when you would be required to register in that state.

Please note:

    1. Grouping of related entities, either within the same state or across multiple states, can also impact the payroll tax thresholds.
    2. Where your business is not an employer for a full financial year, the applicable payroll tax thresholds may also be reduced.

Businesses who do not register or pay payroll tax when they are required to may receive a default assessment, penalties and an unexpected payroll tax audit.

Payroll Tax Thresholds across Australia 2022/2023

If you have any questions regarding payroll tax or would like assistance with registering, please call us on 03 5339 3200 or contact us here.

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The information contained on this website has been provided as general advice only. The contents have been prepared without taking account of your personal objectives, financial situation or needs. You should, before you make any decision regarding any information, strategies or products mentioned on this website, consult your own financial advisor to consider whether that is appropriate having regard to your own objectives, financial situation and needs.

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