Introduction to Payroll Tax
Any employer who pays wages to employees in Tasmania is liable for payroll tax in Tasmania where:
- their total wages paid in Australia are greater than $1.25 million per annum (or $24 038 per week during a month); or
- they are a member of a group where the total Australian wages of the group exceed $1.25 million per annum (or $24 038 per week during a month).
Payroll Tax is calculated on wages paid or payable, and is collected and administered in Tasmania in accordance with the Payroll Tax Act 2008.
This legislation harmonises key aspects of the Tasmanian Act with the New South Wales and Victorian Payroll Tax Acts. However the payroll tax rates and general deduction thresholds are different in each state.
Registering to lodge Returns
You can register to lodge and pay Payroll tax returns using Tasmanian Revenue Online.
More information is available in Employers Guide to Payroll Tax 2018-19. You can also learn about payroll tax mistakes to avoid.
Monthly and Annual Returns
Monthly Payroll tax returns must be lodged and paid by the 7th of each month, for example the Payroll tax return for October must be lodged and paid by 7th November.
Instead of lodging a monthly return for June, employers submit an Annual Adjustment Return and Reconciliation (AAR).
The AAR is an extended version of the normal return and requires details of wages for the entire financial year (including the June period).
For help completing your AAR read the Annual Adjustment Return Guideline.
Exemptions
Regional Relocation Exemption
This exemption provides payroll tax relief for non-Tasmanian businesses who physically relocate all or part of their existing business to regional Tasmania.
Further information can be found here.
Other exemptions
If you are eligible to claim an exemption other than the Regional Relocation Exemption under the Payroll Tax Act 2008 please read the Payroll Tax Exemption Application for the exemption categories and lodge it with the State Revenue Office.
Rebates
Payroll Tax Rebate Scheme
Between 1 July 2017 and 30 June 2019, the scheme provides a payroll tax incentive for Tasmanian employers to help create additional employment for apprentices, trainees and youth employees.
From 1 July 2019 to 30 June 2021, the scheme offers a rebate to employers who pay payroll tax and commence employment of eligible apprentices and trainees in industries with identified skills shortages. The eligible industry sectors are building and construction, tourism and hospitality and manufacturing.
Learn more about the Payroll tax rebate scheme.
Standard Business Reporting
Standard Business Reporting (SBR) is an Australian Government initiative to reduce the business-to-government reporting burden. It was co-designed by 12 Australian, State and Territory government agencies in partnership with software developers, business and their accountants, bookkeepers, tax agents and payroll professionals.
Using SBR for your Tasmanian Payroll Tax reporting requires an AUSkey
