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 $100,000 per annum, to lodge and pay their pay-roll tax return via Revenue Online (ROL). This amendment to the Pay-roll Tax Assessment Act 2002 was effective 1 July 2006.
Pay-roll Tax Forms and Publications
Pay-roll Tax Rates
||Annual Wages ($)
||Tax Rates (%)
$0 - $62,500
$0 - $750,000
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.
Pay-roll Tax Rebates
You may be eligible for a rebate of pay-roll tax paid during the 2012-13 financial year.
Pay-roll tax rebates on wages paid by small businesses and on wages paid to new indigenous employees were announced in the May 2012 State Budget.
The rebates will be paid as part of the 2012-13 annual reconciliation process, which is expected to commence in September 2013.
Employers must be registered for pay-roll tax by 7 July 2013 to be entitled to a rebate. If you are not registered for pay-roll tax, and your wages are in excess of $62,500 per month, you should register now. Alternatively, if you expect to pay wages of $750,000 or more this financial year, you should also register now to ensure you will be considered for a rebate.
More detailed information is provided in Pay-roll Tax Circular 8.
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.
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.
For the purpose of administering WA tax laws, we exchange information with other state revenue offices and the Australian Taxation Office to assist 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.