Payroll tax is assessed by the state or territory you operate in. If your business operates across several states or territories, you may not need to pay tax in all of them. If you are an employer who pays wages, you need to understand your payroll tax obligations.
Learn the thresholds and rates for every state you issue wages in to ensure you are lodging returns correctly.
As an employer, you are liable to pay payroll tax if you exceed Tasmania's threshold. If your wages are between $1.25m - $2m, your payroll tax is calculated at a rate of 4%. If your total wage bill exceeds $2m, you will pay at a rate of 6.1%.
The Revenue Service Tasmania sets rates and thresholds, and your return is lodged and paid to them.
For FY26-27, the annual threshold is $1.25m, broken down by the number of days in the month: $95,890 for a 28-day month, $102,740 for a 30-day month, and $106,164 for a 31-day month. If the wages you pay don't meet this threshold in a given month, you don't need to register or pay payroll tax.
Software like QuickBooks Payroll can help you track taxable wages and work out when you cross the threshold.
From 1 July 2026, super payment rules are changing. Learn more about the Payday Super changes coming for FY26-27.
You can register for payroll tax online. Be sure to have the correct information on hand to complete the registration. You will receive your Tasmania payroll tax login once your application has been processed.
If you're a group member for payroll tax purposes, you still need to register and pay payroll tax in case any member of the group exceeds the threshold.
You have 7 days from month end to lodge your return and pay. The annual reconciliation is due by 21 July of each financial year.
Taxable wages are the total wages you pay, including all salaries and wages, inclusive of superannuation contributions, commissions, bonuses, termination payments, and fringe benefits.
There are many payroll tax exemptions available, including the Employment Incentive Scheme, which offers employers a rebate for employing trainees, apprentices and youth employees.
In response to COVID-19, there is also a payroll tax waiver for eligible employers in industries such as hospitality, tourism, and supporting businesses.
QuickBooks Payroll powered by Employment Hero can offer you functionalities like efficient automated paydays, payroll tax calculations, automated award identification, and much more. Our payroll software is also Single Touch Payroll compatible keeping you up to date with the latest compliance regulations.
QuickBooks also offers other products to help your business with its accounting and tax needs. Start with a 30-day free trial to see everything that QuickBooks has to offer.
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