Payroll Tax

June 2003

Reduction in Tax Rate

For wages paid or payable from 1 July 2003 the rate of payroll tax will reduce from 5.35% to 5.25% and the threshold of which employer is required to pay tax is $550,000.

July 2002

Amendments to the Pay-Roll Tax Act 1971

Rates of tax and thresholds

From July 1 2002, the following changes to the Pay-roll Tax Act will apply:

• the payroll-tax rate will be reduced from 5.45% to 5.35%
• the threshold at which an employer is required to pay tax will increase from $515,000 to $550,000 (employers should remember that this threshold applies to wages paid Australia wide)
• From July 2003, the pay-roll tax rate will be further reduced to 5.25%