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Department of Treasury and Finance
Overview - Payroll tax

From 1 July 2008, 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 $1.01 million per annum (or $19 423 per week during a month), or
  • they are a member of a group where the total Australian wages of the group exceed $1.01 million per annum (or $19 423 per week during a month).

The 2013-14 Tasmanian State Budget announced an increase in the Payroll Tax per annum threshold from $1.01 million to $1.25 million for the 2013/14 Financial year. This change is subject to the passage of legislation. For more information please read the fact sheet.

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 was introduced from 1 July 2008 to harmonise key aspects of our 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.

To lodge Payroll tax returns you will first need to Register as an Employer. The registration kit you subsequently receive will contain information on lodging and paying returns through the Tasmanian Revenue Online (TRO) system.

Further information is available in Employers Guide to Payroll Tax and you can also find out payroll tax mistakes to avoid.

Monthly and Annual Returns

Monthly Payroll tax returns must be lodged and paid by the 7th of each month, e.g. your 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.

Rebates & Exemptions

If you are eligible to claim an exemption under the Payroll Tax Act 2008 complete a Payroll Tax Exemption Application and lodge it with the State Revenue Office.

Other Rebates & Exemptions

  • Tasmanian Trainee and Apprentice Incentive Scheme (TTAIS)

    - TTAIS closed on 30 June 2011 however eligible employers can still make retrospective claims for the 2009/10 and 2010/11 financial years. The rebate covered the payroll tax liability for eligible trainees and apprentices. Further information is available on the TTAIS Retrospective Payroll Tax rebate application.

Standard Business Reporting

In July 2010 a new option for reporting payroll tax, Standard Business Reporting (SBR), became available.

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