• 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

    In Western Australia, the payroll tax rate is 5.5%. From 1 July 2016, the annual threshold is $850,000 and the monthly threshold is $70,833.

    Payroll Tax Rate (effective 1 July 2016)
    Monthly Wages ($) Annual Wages ($) Tax Rates (%)
    $0 – $70,833 $0 - $850,000 Nil
    Over $70,833 Over $850,000 5.5
    Payroll Tax Rate (1 July 2014 - 30 June 2016)
    Monthly Wages ($) Annual Wages ($) Tax Rates (%)
    $0 – $66,667 $0 - $800,000 Nil
    Over $66,667 Over $800,000 5.5
    Payroll Tax Rate (up to 30 June 2014)
    Monthly Wages ($) Annual Wages ($) Tax Rates (%)
    $0 – $62,500 $0 - $750,000 Nil
    Over $62,500 Over $750,000 5.5

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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.