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 and the rate of tax applicable, however, 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
- apply penalty tax and
- make an estimate assessment of your liability and
- conduct an audit to verify your liability.
See the payroll tax employer guide for more information about your payroll tax obligations and assessments.
- You can lodge an objection if you disagree with an assessment.
- We carry out compliance activities to make sure you pay the right amount of tax.
Rates and thresholds
Show moreFrom 1 July 2018 to 30 June 2023, payroll tax is calculated on a tiered rate scale that gradually increases the tax rate to a maximum of 6.5% for employers, or groups of employers, with annual taxable wages in Australia of more than $1 million. See information about calculating your payroll tax or use our payroll tax calculator.
Changes to the threshold amount
From 1 July 2020, the annual threshold is $1 million.
The tax-free threshold gradually phases out 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 2020-21 assessment year, their total wages of $1,104,000 exceed the annual taxable threshold. Payroll tax of $6,600 will apply during this period.
Rates and thresholds
| Annual Australian taxable wages | Tax rate | Calculation of tax payable | |
|---|---|---|---|
| 1 July 2020 - when monthly Australian taxable wages are more than $83,333 | |||
| 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 |
WA taxable wages x tax rate |
|
|
More than $1.5 billion* |
5.5% for wages up to |
WA taxable wages x tax rate |
|
| 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 |
| 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 |
WA taxable wages x tax rate |
|
|
More than $1.5 billion* |
5.5% for wages up to |
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.
Calculation for 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
Show moreTaxable wages include the following types of payments
- salaries and wages
- commissions, bonuses and allowances
- remuneration paid or payable to a director
- superannuation contributions
- payments to contractors
- payments to another person under an employment agency arrangement
- contractor payments questionnaire
- contractors in the shipbuilding industry
- fringe benefits
- salary sacrifice arrangements
- termination payments
- contributions to an industry redundancy fund or portable long service leave fund
- employee share acquisitions
- payments to trainees for training contracts registered after 1 July 2019
- some allowances and reimbursements to cover expenses or as compensation for working conditions
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
Show moreWe calculate your payroll tax liability after you have declared your taxable wages. The calculation depends on the type of employer you are.
- 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.
- 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.
- 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.
- 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
Show moreNexus 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
