Payroll tax in New South Wales is charged at 5.45% on the wages a business pays above an annual tax-free threshold of $1,200,000, as of October 2026. You must register with Revenue NSW once your total Australian wages pass the monthly threshold in any month, then pay monthly and lodge an annual return by 28 July, even if it's a nil return.
It's a state tax on employers, separate from PAYG withholding and super, and the threshold is based on your total Australian wages, not just NSW wages. Everything below comes from Revenue NSW's own payroll tax pages, checked in October 2026.
The rate and threshold
| Financial year | Annual tax-free threshold | Rate |
|---|---|---|
| 1 July 2026 to 30 June 2027 | $1,200,000 | 5.45% |
| 1 July 2025 to 30 June 2026 | $1,200,000 | 5.45% |
| 1 July 2024 to 30 June 2025 | $1,200,000 | 5.45% |
| 1 July 2023 to 30 June 2024 | $1,200,000 | 5.45% |
| 1 July 2022 to 30 June 2023 | $1,200,000 | 5.45% |
The rate is applied only to wages above the threshold. Revenue NSW's example: a business paying $1,500,000 of NSW wages over a full year deducts the $1,200,000 threshold, so payroll tax is calculated on $300,000.
Monthly thresholds and when to register
The monthly threshold decides when you have to register, and it depends on the number of days in the month:
| Days in the month | Monthly threshold 2026-27 |
|---|---|
| 28 | $92,055 |
| 30 | $98,630 |
| 31 | $101,918 |
You should register within 7 days after the month in which your total Australian wages go above the monthly threshold. If you're part of a group, you register as a grouped employer when the group's combined Australian wages pass it.
Due dates for 2026-27
| Return | Due |
|---|---|
| July to September monthly returns | 7 August, 7 September, 7 October 2026 |
| October monthly return | 9 November 2026 |
| November monthly return | 7 December 2026 |
| December monthly return | 14 January 2027 |
| January and February monthly returns | 8 February, 8 March 2027 |
| March to May monthly returns | 7 April, 7 May, 7 June 2027 |
| June, plus the annual return | 28 July 2027 |
There's no separate June monthly return: June is included in the annual return. Revenue NSW also publishes a calendar file you can import into Outlook, Google or Apple Calendar each July.
When you don't get the full threshold
- Part-year employers: if you start or stop employing during the year, the threshold is apportioned by days. Revenue NSW's example of 184 days in a 365-day year gives a threshold of $604,931.51.
- Interstate wages: if you also pay wages in other states, your NSW threshold is the proportion of your total Australian wages paid in NSW. With $900,000 of NSW wages out of $3,000,000 in total, the NSW threshold is $360,000.
- Groups: only one business in a group can claim the threshold, either a designated group employer or a group single lodger. Everyone else is a non-threshold claimer.
The interstate rule is the one that surprises growing businesses. A company with a small NSW office and a big Melbourne team can owe NSW payroll tax on a modest NSW payroll, because the threshold shrinks with the NSW share.
What counts as taxable wages
Payroll tax is assessed on gross Australian wages paid or payable to employees. Revenue NSW lists these, among others, as liable unless an exemption applies:
- Superannuation contributions. All contributions are liable for payroll tax.
- Payments to contractors, unless an exemption applies.
- Directors' wages, bonuses and commissions.
- Taxable fringe benefits.
- Termination payments, salary sacrifice and shares and options, under their own rules.
Some wages are exempt, such as maternity leave, and not-for-profits and religious institutions can apply for an exemption. Apprentice and trainee wages recognised by Training NSW can attract a rebate. The national rules that sit beside payroll tax are separate: see how payroll tax works across Australia and the US, your superannuation guarantee obligations, and Single Touch Payroll reporting to the ATO.
Getting it right step by step
- Track your total Australian wages, including super, contractors and fringe benefits, every month.
- Register with Revenue NSW within 7 days after the first month you go over the monthly threshold.
- Lodge and pay each monthly return by its due date.
- Lodge the annual return by 28 July, reconciling the year and including June.
- Keep lodging annual returns while registered, even nil returns.
Mid-year changes
Revenue NSW's examples also cover a business that stops employing in NSW part way through the year but keeps paying wages interstate. Because it employed in other states for the full year, its NSW threshold is still worked out on the share of wages: in the example, $1,000,000 of NSW wages out of $3,000,000 in total gives a threshold of $400,000. Stopping in NSW doesn't reduce the threshold further.
If you can't pay on time, Revenue NSW's audits, penalties and compliance pages cover interest and penalty tax on late payments, voluntary disclosure if you've under-declared wages, and objections and reviews. Telling Revenue NSW early through voluntary disclosure is the route its pages point to when wages were missed.
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The verdict
If your total Australian wage bill, super included, is heading towards $100,000 a month, start tracking it now, because registration is due within 7 days of crossing the line. And if you have staff in more than one state or related businesses, assume the full $1,200,000 threshold doesn't apply to you until you've done the apportionment.
Frequently asked questions
What is the payroll tax rate in NSW?
5.45% of taxable wages above the annual tax-free threshold, for 2026-27.
What is the NSW payroll tax threshold for 2026-27?
$1,200,000 a year. The monthly thresholds are $92,055 for a 28-day month, $98,630 for a 30-day month and $101,918 for a 31-day month.
When do I need to register for payroll tax in NSW?
Within 7 days after the month in which your total Australian wages go above the monthly threshold.
When is the NSW payroll tax annual return due?
By 28 July. The June return is included in the annual return, and all registered businesses must lodge it, even if it's nil.
Is superannuation included in NSW payroll tax?
Yes. Revenue NSW says all superannuation contributions are liable for payroll tax.
Do grouped businesses each get the NSW payroll tax threshold?
No. Only one group member can claim the threshold, either the designated group employer or the group single lodger.
Is there a monthly payroll tax return for June in NSW?
No. The June return is included in the annual return, which is due on 28 July.
