Payroll tax

• Lodgment of monthly returns
• Calculation of payroll tax
• Taxable wages and payments
• Exempt wages and payments
• Grouping of employers

Payroll tax administration

Legislation

The relevant legislative provisions in relation to ACT payroll tax are contained in the Payroll Tax Act 1987 and the Taxation Administration Act 1999.

Payroll tax return forms

• Application for Payroll Tax Registration (external site)
• Online Payroll Tax Return Form (external site)
• Designated Group Employer Nomination Form [RTF, 1.5Mb], [PDF, 126Kb]

Payroll tax thresholds and rate

If your business employs personnel in the ACT and you or your group pays monthly Australia-wide wages exceeding the ACT determined monthly threshold, then you are required to register, lodge a return and pay payroll tax in the ACT.  The various wages thresholds for the ACT are as follows:

1 July 2008 to 30 June 2010 $125,000.00 per month ($1,500,000 per annum)
1 July 2001 to 30 June 2008 $104,166.67 per month ($1,250,000 per annum)
1 July 2000 to 30 June 2001 $ 70,833.33 per month ($ 850,000 per annum) 
1 July 1998 to 30 June 2000 $ 66.666.67 per month ($ 800,000 per annum) 
1 July 1997 to 30 June 1998 $ 62,500.00 per month ($ 750,000 per annum)

The current rate of payroll tax that applies in 2009-10 is 6.85% of taxable wages that exceed the monthly or annual threshold.

Division 81 of the GST legislation exempts ACT payroll tax from GST.

Registration

From 1 July 2006, any employer who becomes liable for ACT payroll tax must register with the Commissioner for ACT Revenue.  An employer commits an offence if they do not apply to be registered within 7 days after the end of the month in which the total of all taxable wages paid or payable in Australia exceeds the determined threshold amount.

To register for ACT payroll tax please complete the Application for Payroll Tax Registration.  Any employer who lodged a payroll tax return for June 2009 is already registered and is not required to complete an application.

For more information about the requirement to register for ACT payroll tax, please refer to circular PTX009 [RTF, 1.5Mb], [PDF, 41Kb]

Payroll tax changes from 1 July 2009

From 1 July 2009, new payroll nexus rules will apply to wages paid to workers who provide their services in the ACT and in another State or Territory in a month.  Under the proposed rules, payroll tax is to be paid to the State or Territory where the worker resides.  Where the worker resides overseas, the payroll tax is to be paid to the State or Territory where the employer's ABN address is located. 

These changes only affect wages for workers providing their services across jurisdictions.  Where a worker provides their services solely in the ACT, the payroll tax is to be paid to the ACT.

Further details are provided in the Information Sheet [RTF, 49Kb], [PDF, 32Kb].

Next page Lodgment of monthly returns

Exchange of information

To assist in the identification and assessment of ACT taxes and grants we exchange information with other Revenue Offices and the Australian Taxation Office (ATO). 

The exchange of information with other Revenue Offices is in accordance with part 9 of the Taxation Administration Act 1999 (ACT) and similar legislation in the States and the Northern Territory.  The exchange of information with the ATO is in accordance with section 13J of the Taxation Administration Act 1953 (Cth).