• Calculation of Payroll Tax

     

     

    How is payroll tax calculated?

    Your payroll tax liability is calculated by the Office of State Revenue after you have declared your taxable wages through Revenue Online (ROL - Online Payroll Tax).

    From 1 July 2018, payroll tax is calculated on a tiered rate scale that gradually increases to a maximum of 6.5% for employers, or groups of employers, with Australian taxable wages exceeding $100 million.

    For more detailed information and calculation examples, please refer to the relevant fact sheet applicable to your registration status:

    Registration Description 1 July 2018
    onwards
    1 July 2017
    - 30 June 2018
    Local Non-group An employer who pays wages only in Western Australia and is not related to, or grouped for payroll tax purposes with, any other wage-paying entity A icon - pdf (SSC) A icon - pdf (SSC)
    Local Group An employer who is grouped with at least one other wage-paying entity and all members of the group pay wages only in Western Australia A icon - pdf (SSC) A icon - pdf (SSC)
    Interstate Non-group An employer who pays wages both in Western Australia and at least one other Australian State or Territory and is not related to, or grouped for payroll tax purposes with, any other wage-paying entity A icon - pdf (SSC) A icon - pdf (SSC)
    Interstate Group An employer who is grouped with at least one other wage-paying entity and pays wages in Western Australia. At least one member of the group pays wages in another Australian State or Territory A icon - pdf (SSC) A icon - pdf (SSC)

    For previous years' calculations, see the archived fact sheets.

    If you are unsure of your registration status or require further information, please contact us by lodging a web enquiry below or by telephone on 08 9262 1300 or 1300 368 364 (WA country callers only - local call charge).

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    Diminishing threshold

    The Pay-roll Tax Assessment Act 2002 has been amended to introduce a gradual diminishing tax-free threshold.

    From 1 July 2016, the tax-free threshold gradually phases out for employers or groups of employers with annual taxable wages in Australia between $850,000 and $7.5m. Employers with annual Australian taxable wages of $7.5m or more will pay payroll tax on their entire taxable wages.

    Click here to see training videos about the payroll tax gradual diminishing tax-free threshold.

     

    Tax calculator

    Use our online Payroll Tax Calculator to estimate your payroll tax liability.

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