State and territory payroll tax
Payroll tax is a tax on the wages paid by employers. Employers are liable for payroll tax when their total Australian wages exceed a certain level called the 'exemption threshold'. Exemption thresholds vary between states and territories.
The payroll tax obligations for not-for-profit organisations are the same as for businesses, except in certain circumstances.
Payroll tax should not be confused with the pay as you go (PAYG) withholding system. Payroll tax is payable to the relevant state or territory by an employer, based on the total wages paid to all employees. Wages include salary, allowances, super contributions, fringe benefits, shares and options and certain contractor payments.
Some organisations may be exempt from payroll tax provided specific conditions are satisfied. These organisations may include religious institutions, public benevolent institutions, public or not-for-profit hospitals, not-for-profit non-government schools and charitable organisations.
You need to direct enquiries about state and territory taxes to the relevant state or territory revenue office and not to us.
Payroll tax is payable to the state or territory government by a not-for-profit employer, based on total wages paid to all employees. Exemption thresholds vary between states and territories.