Payroll Tax is a state tax on the wages paid by employers. It's calculated on the amount of wages you pay per month and collected in each state or territory that your staff are location in.
However, not all businesses will have a tax obligation. You are only liable for payroll tax if your total Australian wages exceed the exemption threshold that applies in your state or territory—exemption thresholds vary between states.
In financial year 2013-14, QLD and NSW have a 31-day threshold of $91,666 and $63,699 respectively.
If you employ staff in QLD and NSW and your total Australia-wide wage bill for those 31 days is $95,000, you will need to register for Payroll Tax in both states. If your bill is $75,000, you would only need to register in NSW.
If your total Australian wage bill is under the maximum threshold for your state or territory, you're not liable to pay. Find out the monthly threshold by visiting the Revenue Office website in your state or territory - listed below.
Visit Payroll Tax Australia for more information, videos and webinars to help you understand the process of registering for payroll tax in your business.
What to do...
You need to register for payroll tax in your state or territory. Check with the Revenue Office in your state or territory for the payroll tax rate and threshold that applies to you.
You'll also need to contact the relevant State or Territory office when closing your business.