• About Payroll Tax

     

    What is payroll tax?

    Payroll tax is a general purpose tax assessed on the wages paid by an employer in Western Australia.

    Payroll tax is a self assessed tax meaning that the onus is on you, as an employer, to ensure that any information you provide is correct and that you comply with your tax obligations.

    Employers registered for payroll tax declare wages by way of a monthly, quarterly, or annual return. As part of the return lodgment process, your liability is calculated by the Office of State Revenue and you are required to pay the appropriate amount of tax.  See the Payroll Tax Employer Guide for more information.

    Payroll tax is paid into the Consolidated Fund of Western Australia to meet the costs of public services such as Education, Health, Public Safety, and Law and Order.

    For a detailed overview on payroll tax, please refer to the Payroll Tax Employer Guide or watch the video below.

    PRT Employer Guide

    Payroll Tax Employer Guide

    The Payroll Tax Employer Guide is a comprehensive resource with information on payroll tax in WA, all in one interactive, easy to use document.

    Why not join those making the most of the guide now?

     

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    Payroll tax rate and thresholds

    Prior to 1 July 2018, the payroll tax rate was 5.5% for all employers regardless of the level of taxable wages paid in Australia.

    From 1 July 2018 to 30 June 2023, payroll tax is calculated on a tiered rate scale in which the payroll tax rate gradually increases to a maximum of 6.5% for employers, or groups of employers, with annual taxable wages in Australia of more than $100 million.

    For more information about how your payroll rate is calculated, please refer to the applicable Calculation of Tax Payable Fact Sheet available on our Calculating Payroll Tax webpage.

    Effective Date Tax Rate Australian Taxable Wages Calculation of Tax Payable
    Annual Monthly
    1 July 2018 5.5% More than $850,000 but less than $7.5 million More than $70,833 WA Taxable Wages - Deductable Amount x Tax Rate
    5.5% $7.5 million or more but not exceeding $100 million   WA Taxable Wages x Tax Rate
    Tier 4 rate* More than $100 million but not exceeding $1.5 billion   WA Taxable Wages x Tax Rate
    Tier 5 rate* More than $1.5 billion   WA Taxable Wages x Tax Rate
    1 July 2016
    - 30 June 2018
    5.5% More than $850,000 More than $70,833 WA Taxable Wages x Tax Rate
    1 July 2014
    - 30 June 2016
    5.5% More than $800,000 More than $66,667 WA Taxable Wages x Tax Rate
    up to
    30 June 2014
    5.5% More than $750,000 More than $62,500 WA Taxable Wages x Tax Rate

    * See the Calculation of Tax Payable Fact Sheets for information about how the tax rate is calculated.

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    Do I have to register for payroll tax?

    As an employer, you will have to register for payroll tax if the total Australian taxable wages paid by you or your group exceed the monthly or annual threshold amount.

     

    How do I register for payroll tax?

    You can register for payroll tax electronically via our electronic portal, Revenue Online.