COVID-19 payroll tax relief
See the payroll tax measures that have been introduced to support businesses impacted by the coronavirus.
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 (Revenue Online) 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 or the Indian Ocean Territories (IOT).
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.
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.
- See the payroll tax employer guide for more information.
- 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.
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
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 $100 million. See information about calculating your payroll tax or use our payroll tax calculator.
Changes to the threshold amount
From 1 July 2019 to 30 June 2020, tax will be calculated separately for each six-month period (half-year) using the following thresholds:
| 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 |
The annual liability will be the sum of the liability for each half-year in the assessment year.
For example, an employer pays monthly wages of $75,000 ($900,000 per annum).
- For July – December 2019, the total wages of $450,000 exceed the taxable threshold of $425,000. Payroll tax of $1,551 is paid during this period.
- For January – June 2020, the total wages of $450,000 are below the taxable threshold of $475,000. There is no payroll tax liability for this period.
- Without the threshold increase, payroll tax of $3,102 would have been paid during 2019-20.
- Based on the 2019-20 wages, the employer will not be liable for payroll tax in 2020-21.
See Circular 12 for more information.
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 |
|
| 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.
Currently, the tax-free threshold gradually phases out for employers or groups of employers with annual taxable wages in Australia between $850,000 and $7.5 million. See videos about the diminishing tax-free threshold.
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 $850,000 and the upper threshold amount of $7,500,000.
During 2019-20 and 2020-21, there will be a separate tapering value for each half-year period based on the half-year taxable and upper thresholds shown above.
TV = AT / (UT - AT or $850,000 / ($7,500,000 - $850,000)
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 17/133.
This means the threshold amount will reduce by $17 for every $133 of wages over the threshold.
The deductable amount is equal to AT - [(Wages - AT) X TV]
For example, for annual wages of $900,000, the deductable amount (threshold) would be
$850,000 - [($900,000 - $850,000) X (17/133)] = $843,609
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
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'
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
Show moreStandard 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 created machine credentials using your myGovID and Relationship Authorisation Manager (RAM):
- payroll tax returns
- wage adjustments for any unreconciled period
- Australian taxable wage details.