A designated group employer (DGE) must be nominated for every group and must pay wages in WA. Only the DGE can claim any threshold amount on behalf of the group during the financial year.
Payroll tax is calculated on the difference between the taxable wages paid in WA and the deductible amount to which you are entitled.
For a monthly or quarterly return period, an estimated deductible amount is calculated and applied based on the group’s estimated Australian taxable wages supplied through the Estimated Taxable Wages function in Online Payroll Tax (Revenue Online).
An estimated deductible amount is allocated to the DGE.
The DGE is responsible for submitting the group’s estimated Australian taxable wages on behalf of the group.
If estimated taxable wages are not submitted, there will be no deductible amount applied.
At annual reconciliation, you finalise the payroll tax returns to determine the actual deductible amount based on actual wages paid, and you calculate the total payroll tax payable.
A credit or debit amount may arise based on the difference between the estimated deductible amount allocated to the DGE and the actual deductible amount. Any unused deductible amount is allocated to other group members on a pro-rata basis.
You are not liable for payroll tax if you are a member of a group that has total Australian taxable wages of not more than $1 million for the period 1 July 2023 to 30 June 2024 ($83,333 monthly).
The DGE is entitled to a deductible amount if you are a member of a group that has total Australian taxable wages of more than $1 million but less than $7.5 million for the period 1 July 2023 to 30 June 2024.
A group of employers pay $1,000,000 in WA and $3,000,000 in South Australia for the whole financial year commencing 1 July 2023.
The DGE of the group is entitled to receive a deductible amount as the group's total Australian taxable wages for the financial year is less than $7.5 million.
1 July 2023 to 30 June 2024
The annual deductible amount is calculated as follows:
(Annual threshold amount – [(total annual Australian taxable wages – annual threshold amount) x tapering value]) x (total annual WA taxable wages/total annual Australian taxable wages)
($1,000,000 – [($4,000,000 – $1,000,000) x (2/13)]) x ($1,000,000/$4,000,000)
($1,000,000 – [$3,000,000 x (2/13)]) x ($1,000,000/$4,000,000)
($1,000,000 – $461,538) x ($1,000,000/$4,000,000)
$538,462 x ($1,000,000/$4,000,000)
$538,462 x 0.25
The annual tax payable is calculated as follows:
(total annual WA taxable wages – deductible amount) x rate
$1,000,000 - $134,615) x 5.5%
$865,385 x 5.5%