Question 1

What is the payroll tax threshold?

Accepted Answer

Payroll tax thresholds vary by state. NSW is $1.2M, VIC is $900K, QLD is $1.3M, WA is $1M, SA is $1.5M, TAS is $1.25M, ACT is $2M, and NT is $1.5M. Businesses with total wages below the threshold are exempt.

Question 2

How is payroll tax calculated?

Accepted Answer

Payroll tax is charged on total Australian wages above the state threshold. The rate varies from 4% (TAS) to 6.85% (ACT). Only the amount above the threshold is taxed. For example, $2M wages in NSW: ($2M - $1.2M) x 5.5% = $44,000.

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