About payroll tax

Payroll tax is assessed on the wages paid by an employer in Western Australia and the Indian Ocean Territories.
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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. 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.

Register for payroll tax

Register through Revenue Online if the total Australian taxable wages paid by you or your group exceed the threshold:

  • monthly $83,333
  • annually $1 million

Find out more about when to register for payroll tax.

Lodge and pay returns

Returns are due and payable by the following dates:

  • Monthly: 7th of the following month (June return due 
    21 July)
  • Quarterly: 7 October, January and April, and 21 July
  • Annual: 21 July

Annual reconciliation

We will complete the annual reconciliation process in August.

  • Adjustments will appear on the assessment advice issued from
    7 September.
  • Estimates and Australian taxable wages due 21 July.

Your total Australian taxable wages are used to determine whether you are liable, but you only pay tax on wages paid or payable in Western Australia or the Indian Ocean Territories (IOT).  See details of the arrangement between Western Australia and the Commonwealth.

If you don't register and lodge your returns as required, we may

See the payroll tax employer guide for more information about your payroll tax obligations and assessments.

Current rates and thresholds

From 1 July 2023, the payroll tax rate is 5.5% on the taxable wages paid by employers or groups of employers. A diminishing threshold will apply for employers or groups of employers with annual taxable wages in Australia between $1 million and $7.5 million. See videos about the diminishing tax-free threshold.

For example, if an employer pays monthly wages of $92,000, for the 2023-24 assessment year, their total wages of $1,104,000 exceed the annual taxable threshold. Payroll tax of $6,600 will apply during this period.

See information about calculating your payroll tax or use our payroll tax calculator.

From 1 July 2023 - when monthly Australian taxable wages are more than $83,333
Annual Australian taxable wages Tax rate Calculation of tax payable
More than $1 million but less than $7.5 million 5.5% WA taxable wages - deductable amount x tax rate
$7.5 million or more 5.5% WA taxable wages
x tax rate

Previous rates and thresholds

1 July 2020 - 30 June 2023 - when monthly Australian taxable wages are more than $83,333
Annual Australian taxable wages Tax rate Calculation of tax payable
More than $1 million but less than $7.5 million 5.5% WA taxable wages - deductable amount x tax rate
$7.5 million or more but not exceeding $100 million 5.5% WA taxable wages
x tax rate

More than $100 million but not exceeding $1.5 billion*

5.5% for wages up to
$100 million
+
6% for wages from $100 million to $1.5 billion

WA taxable wages
x tax rate

More than $1.5 billion*

5.5% for wages up to
$100 million
+
6% for wages from $100 million
to $1.5 billion
+
6.5% for wages above
$1.5 billion

WA taxable wages
x tax rate

 

1 July 2019 - 30 June 2020
Period Annual threshold Half-year taxable threshold Half-year upper threshold
1 July - 31 December 2019 $850,000 $425,000 $3,750,000
1 January - 30 June 2020 $950,000 $475,000 $3,750,000

 

Before 1 July 2019
Annual Australian taxable wages Tax rate Calculation of tax payable
1 July 2018 - when monthly Australian taxable wages are more than $70,833
More than $850,000 but less than $7.5 million
From 1 July 2019 to 30 June 2020, this amount is affected by the threshold changes in the table above.
5.5% WA taxable wages - deductable amount x tax rate
$7.5 million or more but not exceeding $100 million 5.5% WA taxable wages
x tax rate

More than $100 million but not exceeding $1.5 billion*

5.5% for wages up to
$100 million
+
6% for wages from $100 million to $1.5 billion

WA taxable wages
x tax rate

More than $1.5 billion*

5.5% for wages up to
$100 million
+
6% for wages from $100 million
to $1.5 billion
+
6.5% for wages above
$1.5 billion

WA taxable wages
x tax rate
1 July 2016 - 30 June 2018 - when monthly Australian taxable wages are more than $70,833
More than $850,000 5.5% WA taxable wages
x tax rate
1 July 2014 - 30 June 2016 - when monthly Australian taxable wages are more than $66,667
More than $800,000 5.5% WA taxable wages
x tax rate

* A single payroll tax liability is calculated based on the combination of rates.

Calculating the diminishing threshold

A tapering value formula is used to calculate the gradual reduction in the deductable amount which employers may claim against their WA taxable wages between the annual threshold amount of $1,000,000 and the upper threshold amount of $7,500,000.

From 2020-21, the tapering value is based on the upper thresholds shown above.

TV = AT / (UT - AT or $1,000,000 / ($7,500,000 - $1,000,000)

Where

  • TV is the tapering value
  • AT is the annual threshold amount for the year
  • UT is the upper threshold amount

This can be simplified to 2/13.

This means the threshold amount will reduce by $2 for every $13 of wages over the threshold.

The deductable amount is equal to AT - [(Wages - AT) X TV]

For example, for annual wages of $1,200,000, the deductable amount (threshold) would be
$1,000,000 - [($1,200,000 - $1,000,000) X (2/13)] = $969,231

Taxable wages

Taxable wages include the following types of payments

If you’re a registered payroll tax employer, you must provide us with any information about an understatement of taxable wages, superannuation or fringe benefits tax that has occurred as a result of an enforceable undertaking or an audit from the Fair Work Ombudsman, Australian Taxation Office or any other authority. You can amend your taxable wages for the current financial year through Revenue Online (ROL). If you need to adjust previous years’ taxable wages, let us know by lodging a web enquiry.

See information about exempt wages.

Calculating your liability

We calculate your payroll tax liability after you have declared your taxable wages. The calculation depends on the type of employer you are.

Local non-group employer

  • 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.

Local group employer

  • 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 designated group employer (DGE) must be nominated for every group and must pay wages in WA.

Interstate non-group employer

  • 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.

Interstate group employer

  • 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 designated group employer (DGE) must be nominated for every group and must pay wages in WA.

Paying payroll tax

Nexus provisions determine in which Australian State or Territory payroll tax is to be paid.

If you don't pay an amount by the due date, we may apply penalty tax.

Apply for payment arrangement to extend the time to pay or to pay an amount in specified instalments.

Pay through Online Payroll Tax

If you are registered, you can lodge and pay your returns through Online Payroll Tax.

Pay by credit card

Make payment by MasterCard or Visa card using our online payment facility or by phoning 1300 936 103.

A card administration fee will apply to all credit or debit card payments.

To obtain a Bpoint reference, log in to Online Payroll Tax and

  • under ‘Lodge Return and Pay’, select the Credit Card Reference option and press submit or
  • under ‘Payment Only’, select the Credit Card Reference option and press submit or
  • under ‘Account Enquiry’, select an unpaid amount and press the ‘Payment Option’ button.

It may take up to 3 business days for your payment to be processed.

Pay by BPay

Contact or log in to your bank, credit union or building society to make a payment from your cheque or savings account. See your assessment notice for details.

Payroll tax Biller Code: 38141

It may take up to 3 business days for your payment to be processed.

Pay by post

Make cheques payable to 'Commissioner of State Revenue'

RevenueWA
GPO Box T1600
PERTH WA 6845

Pay in person

Pay by cash or cheque at

Level 3
200 St Georges Tce
Perth WA 6000

8.30am - 4.30pm weekdays