Payroll Tax in New South Wales ( NSW): Rates, Thresholds, Due Dates and Calculator

Payroll tax is a state and territory tax based on the wages you pay your employees. The rates and thresholds for payroll tax vary depending on where your business operates.

In New South Wales (NSW), your business needs to register for payroll tax if it exceeds the threshold in wages paid. Currently, the threshold is $1.2 million per year (as of 12 April 2024). If your business exceeds this threshold, you must register for payroll tax.

• Payroll tax in New South Wales

• NSW payroll tax rates & thresholds

• NSW payroll tax due dates

• Who needs to register

• How to register

• How QuickBooks can help

Payroll tax in New South Wales

The payroll tax in New South Wales (NSW) goes to cover social welfare systems, such as healthcare and education. Though the tax rate is set by the state or territory it is paid to a federal fund. In NSW, the Payroll Tax Act 2007 No 21 sets the rules. It means that the payroll tax in NSW varies from other states such as Queensland and Australian Capital Territory.

NSW payroll tax rates & thresholds

The NSW payroll tax rate is to 5.45% for the 2023-2024 financial year. If you are an employer and you pay wages in NSW, and those wages exceed the monthly threshold, you need to register for payroll tax.

If you are a member of a group, members of the group hold payroll tax liability if one member of the group's wages paid exceeds the threshold. 

Rate		Monthly Threshold		Annual Threshold
5.45		$92,055 (28 days in the month) $98,630 (30 days in the month) $101,918 (31 days in the month)		$1,200,000

*The rate up to 30 June 2022 is 4.85% and 5.45% from 1 July 2022. 

NSW payroll tax due dates

Monthly payments or nil returns must be submitted within 7 days following the end of each month. In the event that the seventh day falls on a weekend or public holiday, the deadline will be postponed to the following business day.

The annual reconciliation is usually required to be submitted by 28 July of each year. In case the 28th falls on a weekend or public holiday, the due date is postponed to the next business day.

Who needs to register 

If you exceed the threshold in a single month of the year, you need to register for payroll tax. If you are a member of a group and only one member exceeds the threshold, everyone in the group must register for payroll tax.