NSW payroll tax catches business owners by surprise — because “wages” means far more than salaries. Super, bonuses, fringe benefits, and many contractor payments all count. Check where you stand against the $1.2 million threshold for 2025–26.
Enter your wage components below. The calculator totals your taxable wages the way Revenue NSW does, apportions the threshold if you employ interstate or for part of the year, and shows your estimated annual liability at the 5.45% rate — plus the monthly figure to budget for.
NSW Payroll Tax Calculator 2025–26
$1,200,000 threshold · 5.45% rate · interstate apportionment and grouping included.
1Annual NSW wage components
2Threshold adjustments
Three steps, one liability figure
Add up taxable wages
Payroll tax “wages” include gross salaries, super (including salary sacrifice), bonuses and commissions, grossed-up fringe benefits, many contractor payments, and directors fees. The calculator totals them the way Revenue NSW does.
Adjust the threshold
The $1.2m threshold shrinks if you pay wages interstate (apportioned by NSW share), employ for part of the year (prorated by months), or sit in a group where another member claims it (reduced to nil).
See the liability
Annual payroll tax at 5.45% on wages above your threshold entitlement, the monthly cash-flow figure, your effective rate, and registration warnings where they apply.
NSW payroll tax at a glance, 2025–26
Authoritative source for thresholds, rates and wage definitions: revenue.nsw.gov.au.
| Item | 2025–26 |
|---|---|
| Annual threshold | $1,200,000 of Australia-wide wages (claimed once per group) |
| Rate | 5.45% on NSW taxable wages above the threshold entitlement |
| Monthly registration trigger | Around $100,000 of monthly wages (varies slightly with days in the month) |
| Monthly returns due | 7th of the following month |
| Annual reconciliation due | 28 July |
| Wages include | Gross salaries, super, bonuses, commissions, allowances (taxable portion), grossed-up fringe benefits, contractor deemed wages, directors fees, some termination payments |
| Common exemptions | Approved apprentice and trainee wage rebates, maternity/adoption leave wages (up to 14 weeks), some not-for-profit employers |
The questions that decide whether the number is right
Do contractor payments really count as wages?
Often, yes — and this is the single biggest audit issue in NSW payroll tax. Payments under “relevant contracts” are deemed wages unless an exemption applies: services needed for fewer than 180 days a year, the contractor works fewer than 90 days for you, they engage their own staff, or services are genuinely provided to the public at large. Each exemption has technical conditions. If you pay regular contractors, get the analysis done properly — back-assessments run five years deep.
What is grouping and why should I care?
Revenue NSW groups businesses that are related companies, share common employees, or are controlled by the same people — including many family structures with a trading company plus a service trust. A group gets one threshold between all members, and every member is jointly liable for the group’s debt. Plenty of businesses sitting comfortably “under the threshold” are actually over it once grouped wages are added together.
Does super really count? What about salary sacrifice?
Yes — all employer super contributions are taxable wages, including the compulsory 12% super guarantee and any salary-sacrificed amounts. This surprises employers because super is not “take-home pay” — but it has been in the wage definition for years. When you budget for a new hire near the threshold, add their super to the wage number.
I employ in NSW and Queensland. How does the threshold work?
Your NSW threshold entitlement is apportioned: $1.2m multiplied by NSW wages over total Australian wages. If 60% of your wages are in NSW, you get 60% of the threshold — and you may also have obligations in the other state under its own rules. Each state has different thresholds and rates, so multi-state employers usually need a state-by-state review.
When do I have to register?
When your wages (or your group’s wages) exceed the monthly threshold — around $100,000 in a typical month. Register through Revenue NSW online. Waiting for the annual figure to clip $1.2m is a mistake: registration is triggered monthly, and late registration attracts interest plus penalty tax. Revenue NSW cross-matches Single Touch Payroll data with the ATO, so unregistered employers over the threshold are routinely identified.
Are there any rebates or exemptions worth knowing?
Wages paid to approved apprentices and new-entrant trainees attract a rebate, maternity and adoption leave wages are exempt for up to 14 weeks, and some charitable and not-for-profit employers are exempt entirely. If you run an NFP, check the exemption carefully — it depends on the nature of the work, not just the entity’s charitable status.
Is my data sent anywhere?
No — every number stays in your browser. Nothing is logged or transmitted. Close the tab and it is gone.
Payroll tax reviews before Revenue NSW does one for you
Trinity Accounting Practice handles payroll tax registration, monthly returns, annual reconciliations, contractor and grouping reviews for NSW employers — alongside payroll, BAS and Virtual CFO support. One firm across the whole obligation, since 2003.
Book a free 15-min chat See our services
Ramy Hanna · Principal, Trinity Accounting Practice · Registered Tax Agent · Fellow IPA, TIA, NTAA · Certified Xero Advisor
Estimates use the 2025–26 NSW threshold ($1,200,000) and rate (5.45%). General information only — wage definitions, grouping and exemptions depend on your facts. Verify at revenue.nsw.gov.au.
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