Unlike in many countries, Australia follows a unique taxation policy which will be so confusing if you start to look generally. Often business owners and employees prefer to seek advice or to read the guidance offered by several review websites to clear themselves.
Here in this article 2019 payroll tax rates briefed along with the details of monthly threshold details of NSW 2019. Before getting in-depth into the topic, let’s brush up the basics of Payroll taxation in Australia.
What is the Australian Payroll Tax?
In Australia, Payroll Tax referred to as the State Tax and it collected over the wages paid by the employers or group of employers to their employees for their work. Also, the Australian Payroll tax has a threshold limit. If any wages paid over the threshold limit then the Australian government’s payroll tax will come to play.
For information, each state and territory of Australia has its own payroll tax legislation. Also, they have their own set of tax rates and threshold limits. Recently, the NSW government announced its payroll tax rates 2019 along with its monthly threshold limits.
Payroll Tax Rates and Thresholds of NSW Government
As per the recent announcement came from the NSW government the payroll tax rate for the year 2019 which will be calculated from 01/07/2019 to 30/06/2020 at the rate of 5.45%. As per the record, the tax rate is pretty similar to the rate charged in the previous year from 01/07/2018 to 30/06/2019 however, the monthly threshold limits get varied and just like previous years this year too its get hiked.
The payroll tax monthly threshold NSW for the time period starting from 01/07/2019 to 30/06/2020 is $900,000. When compared with the previous year, exactly $50,000 increases. As part of the recently held state budget announcements, the payroll tax threshold limit will increase to $1 million by the 2021 financial year.