• Pay-roll Tax

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

    The tax is self-assessed - the employer calculates the liability and pays the appropriate amount to the Office of State Revenue by way of a monthly, quarterly or annual return.

    On 8 December 2004 new legislation was passed making it mandatory for an employer that has, or is a member of a group that has, an expected pay-roll tax liability equal to or greater than $100,000 per annum, to lodge and pay their pay-roll tax return via Revenue Online (ROL). This amendment to the Pay-roll Tax Assessment Act 2002 was effective 1 July 2006.

    Pay-roll Tax Forms and Publications

    Pay-roll Tax rates effective 1 July 2014

    Monthly Wages Annual Wages ($) Tax Rates (%)

    $0 - $66,667

    $0 - $800,000

    Nil

    Over $66,667

    Over $800,000

    5.5

    Pay-roll Tax rates 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

    Important

    Should an employer be uncertain of a liability for pay-roll tax, professional advice should be sought or the Office of State Revenue contacted for further information.

    The Office of State Revenue has compiled a list of some common errors made by employers that are liable for payroll tax. For more information, see the common payroll tax errors page.

    Pay-roll Tax Exemption For Wages Paid To Employees With A Disability

    As announced in the May 2012 State Budget, wages paid to some employees with a disability are now exempt from pay-roll tax.

    This exemption applies to businesses that pay wages to new employees with a disability who commenced employment on or after 1 July 2012, for whom the employer received or was entitled to receive a wages subsidy under the Commonwealth Government's Disability Employment Services program, or where the employee is eligible for any form of support from the Western Australian Disability Services Commission.

    More detailed information is provided in Wages Definition Fact Sheet.

    Harmonisation Protocol

    In 2007 Commissioners from all States and Territories signed a protocol confirming their commitment to the harmonisation of pay-roll tax administration including consistency of rulings.

    The Pay-roll Tax Assessment Amendment Act 2010 amended the Pay-roll Tax Assessment Act 2002 with effect from 1 July 2009 to harmonise the legislation of Western Australia's pay-roll tax system with the legislation of other jurisdictions.

    Information Exchange

    For the purpose of administering WA tax laws, we exchange information with other state revenue offices and the Australian Taxation Office to assist in the proper identification and accurate assessment of taxation liabilities.

    This sharing of information is carried out in accordance with section 114 of the Taxation Administration Act 2003 (WA), similar legislation in other States/Territories and under Table 4 of Section 355-65 of Schedule 1 of the Commonwealth Taxation Administration Act 1953.