NSW Payroll Tax – Updated Threshold & Rates

The NSW Government has reduced the payroll tax rate to 4.85% from 5.45% for the 2020-21 and 2021-22 financial years.

Moreover, the annual threshold has also increased to $1,200,000 from $900,000.

These changes have been applied retrospectively from 1 July 2020.

The Monthly Calculator (available through the online portal) can be used to recalculate lodged monthly liabilities for FY 2021 based on the new tax rate and threshold. Any overpayments have to be manually calculated (i.e. previous tax paid less the adjusted tax liability). The difference can be used to offset future monthly liability.

Alternatively, a refund can be requested relating to the overpayments by emailing payrolltax@revenue.nsw.gov.au. This email must detail the adjusted tax liability for each period and expected refund amount.

If a lodger’s wages have fallen below the revised threshold, they would need to lodge an online cancellation form. Once this is processed, they will receive the refund for any amount(s) paid since July 2020.

Please do not hesitate to get in touch with us via your Banks Group representative, (03) 9810 0700 or info@banksgroup.com.au if you have any further questions relating to the above.

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All services are provided as a Corporate Authorised Representative of Magnitude Group Pty Ltd (ABN 54 086 266202, AFSL 221557).

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Financial Planning Services provided as an authorised representative of Count Financial Limited ABN 19 001 974 625 Australian Financial Services Licence Holder Number 227232 a wholly-owned, non-guaranteed subsidiary of Commonwealth Bank of Australia ABN 48 123 123 124. Count is a Professional Partner of the Financial Planning Association of Australia Limited. Count advisers are authorised representatives of Count. www.count.com.au

"Please note that any taxation and accounting services are not endorsed nor the responsibility of Count Financial Limited".