Payroll tax

Payroll tax is assessed on the wages paid by an employer in Western Australia.

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 through Online Payroll Tax if the total Australian taxable wages paid by you or your group exceed the monthly or annual threshold amount. While your total Australian taxable wages are used to determine whether you are liable and the rate of tax applicable, you only pay tax on wages paid or payable in Western Australia.

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

Once you have registered for payroll tax, you will be advised of your registration details and your lodgment frequency - either monthly, quarterly or annually.

  • Monthly returns are due and payable by the 7th of the following month in which the taxable wages were paid or payable. The June return is due and payable by 21 July.
  • Quarterly returns are due and payable by 7th October, January and April and 21 July.
  • Annual returns are due and payable by 21 July.

As part of the annual reconciliation process, we calculate your annual liability to see if you have paid the right amount of tax.

A payroll tax liability may exist if you pay wages in the Indian Ocean Territories of Cocos and Christmas Islands as if they were Western Australia. See details of the arrangement between Western Australia and the Commonwealth.

Rates and thresholds

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From 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 $100 million. See information about calculating your payroll tax.

Effective date Tax rate Annual Australian taxable wages Monthly Australian taxable wages Calculation of tax payable
1 July 2018 5.5% More than $850,000 but less than $7.5 million More than $70,833 WA taxable wages - deductable amount x tax rate
  5.5% $7.5 million or more but not exceeding $100 million   WA taxable wages x tax rate
  Tier 4 rate More than $100 million but not exceeding $1.5 billion   WA taxable wages x tax rate
  Tier 5 rate More than $1.5 billion   WA taxable wages x tax rate
1 July 2016
- 30 June 2018
5.5% More than $850,000 More than $70,833 WA taxable wages x tax rate
1 July 2014
- 30 June 2016
5.5% More than $800,000 More than $66,667 WA taxable wages x tax rate

The tax-free threshold gradually phases out for employers or groups of employers with annual taxable wages in Australia between $850,000 and $7.5m. See videos about the diminishing tax-free threshold.

Taxable wages

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Taxable wages include the following types of payments

See information about exempt wages.

See more videos on our YouTube channel.

 

Calculating your liability

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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

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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'

Office of State Revenue
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

Standard business reporting

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Standard Business Reporting (SBR) offers a quicker and easier way for businesses to complete government reporting requirements.

You can lodge the following returns directly to us through your SBR-enabled financial, accounting or payroll software if you have an AUSkey

  • payroll tax returns
  • wage adjustments for any unreconciled period
  • Australian taxable wage details.
Page reviewed 19 September 2019