Regulation-making power
101 Regulation-making power
The Executive may make regulations for this Act.
Schedule 1 Calculation of payroll tax liability (see s 8, s 29 (6) and s 82)
Part 1.1 Interpretation—sch 1
1.1 Definitions—sch 1
In this schedule:
financial year means the financial year beginning on 1 July 2011 or 1 July in any later financial year.
FY means the number of days in the financial year.
R means the rate determined under the Taxation Administration Act 1999, section 139 for this schedule.
TA (or threshold amount) means the amount determined under the Taxation Administration Act 1999, section 139 for this schedule.
Part 1.2 Employers who are not members of a group
This part may apply to a period other than a financial year or a month (see s 87A (4) (b)).
1.2 Application—pt 1.2
This part applies only to an employer who is not a member of a group.
1.3 Definitions—pt 1.2
In this part:
C, for a financial year, means the number of days in the financial year for which the employer paid or was liable to pay taxable wages or interstate wages (otherwise than as a member of a group).
IW, for a financial year, means the total interstate wages paid or payable by the employer (otherwise than as a member of a group) in the financial year.
TW, for a financial year, means the total taxable wages paid or payable by the employer (otherwise than as a member of a group) in the financial year.
1.4 Payroll of employer not more than threshold
The employer is not liable to pay payroll tax for a financial year if the total taxable wages and interstate wages paid or payable by the employer (otherwise than as a member of a group) in that year is not more than the employer’s threshold amount worked out as follows:
1.5 Payroll of employer over threshold
If the total taxable wages and interstate wages paid or payable by an employer (otherwise than as a member of a group) in a financial year is more than the employer’s threshold amount, the employer is liable to pay as payroll tax for that year the amount worked out as follows:
Part 1.3 Groups with a designated group employer
This part may apply to a period other than a financial year or a month (see s 87A (4) (b)).
1.6 Application—pt 1.3
This part applies only to an employer who is a member of a group for which there is a designated group employer.
1.7 Definitions—pt 1.3
In this part:
C, for a financial year, means the number of days in the financial year in relation to which at least 1 member of the group paid or was liable to pay (as a member of the group) taxable wages or interstate wages.
GIW, for a financial year, means the total interstate wages paid or payable by the group in the financial year.
GTW, for a financial year, means the total taxable wages paid or payable by the group in the financial year.
TW, for a financial year, means the total taxable wages paid or payable by the employer (as a member of the group) in the financial year.
1.8 Payroll of group not more than threshold
None of the members of a group is liable to pay payroll tax for a financial year if the total taxable wages and interstate wages paid or payable by the group in that year is not more than the group threshold amount worked out as follows:
1.9 Payroll of group over threshold
If the total taxable wages and interstate wages paid or payable by a group in a financial year is more than the group threshold amount, payroll tax is payable in accordance with subsections (2) and (3).
The designated group employer for the group is liable to pay as payroll tax for the financial year the amount worked out as follows:
Each member of the group (other than the designated group employer) is liable to pay as payroll tax for the financial year the amount worked out as follows:
Part 1.4 Groups with no designated group employer
This part may apply to a period other than a financial year or a month (see s 87A (4) (b)).
1.10 Application—pt 1.4
This part applies only to an employer who is a member of a group for which there is no designated group employer.
1.11 Meaning of TW—pt 1.4
In this part:
TW¸ for a financial year, means the total taxable wages paid or payable by the employer (as a member of the group) in the financial year.
1.12 Calculation of payroll tax
Each member of the group is liable to pay as payroll tax for the financial year the amount worked out as follows:
Part 1.5 Motor vehicle allowances
1.12A Meaning of business journey—pt 1.5
In this part:
business journey means—
a journey undertaken in a motor vehicle by a person otherwise than in the application of the vehicle to a private use, that is an application that, if the person is paid a motor vehicle allowance for the use, results in the provision of a fringe benefit (under the FBTA Act) by the employer; or
a journey undertaken in a motor vehicle by a person in the course of producing assessable income of the person (under the Income Tax Assessment Act 1936 (Cwlth)).
1.13 Continuous recording method
If an employer selects the continuous recording method for the purpose of working out the number of business kilometres travelled in a financial year, the following details are required to be recorded by the employer:
the odometer readings at the beginning and end of each business journey (a relevant business journey) undertaken by the person in the financial year by means of a motor vehicle provided or maintained by the person;
the specific purpose for which each relevant business journey was taken;
the distance travelled by the person in the financial year in the course of all relevant business journeys (which is taken to be the number of business kilometres travelled in the financial year), worked out on the basis of the odometer readings mentioned in paragraph (a).
1.14 Averaging method
If an employer selects the averaging method for the purpose of working out the number of business kilometres travelled in a financial year, the following details are required to be recorded by the employer:
the odometer readings at the beginning and end of each business journey (a relevant business journey) undertaken by the person in the relevant 12-week period by means of a motor vehicle provided or maintained by the person;
Relevant 12-week period is defined in s 1.15.
the specific purpose for which each relevant business journey was taken;
the distance travelled by the person in the relevant 12‑week period in the course of all relevant business journeys, worked out on the basis of the odometer readings mentioned in paragraph (a);
the odometer readings at the beginning and end of the relevant 12-week period for each motor vehicle (a relevant motor vehicle) provided or maintained by the person for the purpose of undertaking business journeys;
the distance travelled by each relevant motor vehicle in the relevant 12-week period, worked out on the basis of the odometer readings mentioned in paragraph (d);
the distance travelled by the person in the course of business journeys undertaken by means of each relevant motor vehicle in the relevant 12-week period, worked out as a percentage of the distance travelled by the vehicle in the period (the relevant percentage);
the odometer readings at the beginning and end of the financial year for each motor vehicle (a relevant vehicle) provided or maintained by the person for the purpose of undertaking business journeys;
the distance travelled by each relevant vehicle in the financial year, worked out on the basis of the odometer readings mentioned in paragraph (g);
the distance travelled by the person in the course of business journeys undertaken by means of each relevant vehicle in the financial year (which is taken to be the number of business kilometres travelled in the financial year), worked out on the basis that the percentage of the distance that was travelled by the person in the course of business journeys undertaken by means of each relevant vehicle in the financial year is the same as the relevant percentage.
For the next 4 financial years after the first financial year in which odometer details are recorded in accordance with subsection (1), an employer is not required to work out the relevant percentage, or record the details mentioned in subsection (1) (a) to (f), for the person but is required to record the other details mentioned in subsection (1).
Accordingly, for the next 4 financial years after the first financial year in which odometer details are recorded in accordance with subsection (1), the number of business kilometres travelled in the financial year must be worked out (as mentioned in subsection (1) (i)) on the basis of the relevant percentage worked out for the first financial year.
Despite subsections (2) and (3), an employer is required to work out the relevant percentage for a financial year, and record the details mentioned in subsection (1) (a) to (f), if—
the commissioner serves a notice on the employer before the beginning of a financial year in the 4-year period directing the employer to keep the details mentioned in subsection (1) (a) to (f) for the financial year; or
the employer wishes to use the recording method mentioned in this section for 1 or more additional motor vehicles used by the person in any financial year or for any other reason.
In a situation mentioned in subsection (4), the new record for the financial year replaces the relevant percentage details previously recorded and subsections (2) and (3) apply in relation to the new record for the financial year as if it were the first financial year in which odometer details were recorded.
An employer who has adopted and employed the method of recording mentioned in subsections (2) and (3) for a person for 4 successive financial years must, in the next succeeding financial year, make a fresh recording of all the details stated in subsection (1) if the employer intends to continue to use the same method of recording for the person.
Subsections (2) and (3) apply in relation to the new record under subsection (6) for the financial year as if it were the first financial year in which odometer details were recorded.
If the odometer of a motor vehicle is replaced or recalibrated in any period for which its readings are relevant for this section, the odometer readings immediately before and after the replacement or recalibration must be recorded.
1.15 Meaning of relevant 12-week period—s 1.16
For section 1.14, relevant 12-week period means a continuous period of at least 12 weeks, selected by the employer, throughout which a motor vehicle is provided or maintained by a person.
If the motor vehicle is provided or maintained for less than 12 weeks, the period must be the entire period for which the motor vehicle is provided or maintained.
The period may overlap the beginning or end of the financial year, so long as it includes part of the year.
If the averaging method is used for 2 or more motor vehicles for the same financial year, the odometer readings for those motor vehicles must cover periods that are concurrent.
1.16 Replacing one motor vehicle with another motor vehicle
For the purpose of using the averaging method, an employer may nominate 1 motor vehicle as having replaced another motor vehicle with effect from a day stated in the nomination.
After the nomination takes effect, the replacement motor vehicle is treated as the original motor vehicle, and the original motor vehicle is treated as a different motor vehicle.
An employer need not repeat for the replacement vehicle the steps already taken for the original motor vehicle.
An employer must record the nomination in writing in the financial year when the nomination takes effect.
However, the commissioner may allow an employer to record the nomination at a later time.
1.17 Changing method of recording
An employer may change from using the averaging method to using the continuous recording method with effect from the beginning of a financial year if the employer complies with section 1.13 (Continuous recording method) for the financial year.
An employer may change from using the continuous recording method to using the averaging method with effect from the beginning of a financial year if the employer complies with section 1.14 (Averaging method) for the financial year.
Schedule 2 Other ACT provisions (see s 8, ss 48 to 51 and s 53A)
Part 2.1 Calculation of monthly payroll tax
Division 2.1.1 Employer not member of group
2.1 Application—div 2.1.1
This division applies only to an employer who is not a member of a group.
2.2 Employer not member of group—amount of tax payable each month
The amount of payroll tax payable by an employer on taxable wages paid or payable by the employer in a month is the amount worked out as follows:
If D is equal to or more than TW for a month, the employer is not required to pay payroll tax for the month.
In this section:
D means the deductible amount mentioned in section 2.3 or section 2.4 for the employer.
R means the rate determined under the Taxation Administration Act 1999, section 139 for this section.
TW means the total taxable wages paid or payable by the employer (otherwise than as a member of a group) in the month.
2.3 Employer not member of group—deductible amount for employer not paying interstate wages
For an employer who pays or is liable to pay taxable wages in a month but does not pay and is not liable to pay interstate wages in the month, the deductible amount for the month is the amount determined for section 86 (Registration).
Subsection (1) applies whether the employer pays or is liable to pay wages for all of the month or only part of the month.
2.4 Employer not member of group—deductible amount for employer who pays taxable and interstate wages
The deductible amount for an employer who pays or is liable to pay taxable wages and interstate wages in a month is—
if notice has been given under subsection (2) and no determination under subsection (6) is in force—the amount stated in the most recent notice given under subsection (2); or
if a determination is in force under subsection (6)—the amount stated in the determination.
From time to time, the employer may give a notice to the commissioner, containing the information required by the commissioner, of an amount, worked out in accordance with subsection (3), that the employer claims to be the employer’s deductible amount for the month and later months.
The amount must be worked out as follows:
In subsection (3):
A means the amount determined for section 86 (Registration).
D means the deductible amount for the month.
I means the estimated interstate wages in the financial year in which D occurs.
T means the estimated taxable wages in the financial year in which D occurs.
The deductible amount claimed must not be more than the amount mentioned in section 2.3 (1).
At any time, the commissioner may, by written notice to the employer, determine an amount, not more than the amount mentioned in section 2.3 (1), as the deductible amount for the employer for 1 or more months stated in the determination.
A determination under subsection (6) may be made on application by the employer or on the commissioner’s own initiative.
At any time, the commissioner may, by written notice to the employer, revoke a determination made under subsection (6).
Division 2.1.2 Group with designated group employer
2.5 Application—div 2.1.2
This division applies only to an employer who is a member of a group for which there is a designated group employer.
2.6 Group with designated group employer—amount of tax payable each month if approval in force
If an approval is in force under section 87 (3) (Returns) for the designated group employer to lodge a joint return—
the amount of payroll tax payable by the designated group employer on taxable wages paid or payable in a month by the employers covered by the return is the amount worked out as follows:
the amount of payroll tax payable by each employer who is a member of the group but is not covered by the return on taxable wages paid or payable by the employer in a month is the amount worked out as follows:
If D is equal to or more than JTW for a month, the designated group employer is not required to pay payroll tax for the month.
In this section:
D means the deductible amount mentioned in section 2.8 (Group with designated group employer—deductible amount for groups not paying interstate wages) or section 2.9 (Group with designated group employer—deductible amount for groups paying taxable and interstate wages) for the group.
JTW means the total taxable wages paid or payable in the month by the employers covered by the return (as members of a group).
R means the rate determined under the Taxation Administration Act 1999, section 139 for this section.
TW means the total taxable wages paid or payable by the employer (as a member of the group) in the month.
2.7 Group with designated group employer—amount of tax payable each month if approval not in force
If an approval under section 87 (3) (Returns) is not in force for the designated group employer to lodge a group return—
the amount of payroll tax payable by the designated group employer on taxable wages paid or payable by the designated group employer in a month is the amount worked out as follows:
the amount of payroll tax payable by each employer who is a member of the group on taxable wages paid or payable by the employer in a month is the amount worked out as follows:
If D is equal to or more than GTW for a month, the designated group employer is not required to pay payroll tax for the month.
In this section:
D means the deductible amount mentioned in section 2.8 (Group with designated group employer—deductible amount for groups not paying interstate wages) or section 2.9 (Group with designated group employer—deductible amount for groups paying taxable and interstate wages) for the group.
GTW means the total taxable wages paid or payable in the month by the designated group employer (as a member of a group).
R means the rate determined under the Taxation Administration Act 1999, section 139 for this section.
TW means the total taxable wages paid or payable by the employer (as a member of the group) in the month.
2.8 Group with designated group employer—deductible amount for groups not paying interstate wages
For a group in which 1 or more members pay or are liable to pay taxable wages in a month but no members pay or are liable to pay interstate wages in the month, the deductible amount for the month is the amount determined for section 86 (Registration).
Subsection (1) applies whether group members pay or are liable to pay wages for all of the month or only part of the month.
2.9 Group with designated group employer—deductible amount for groups paying taxable and interstate wages
The deductible amount for a group in which 1 or more members pay or are liable to pay taxable wages or interstate wages in a month is—
if notice has been given under subsection (2) and no determination under subsection (6) is in force—the amount stated in the most recent notice given under subsection (2); or
if a determination is in force under subsection (6)—the amount stated in the determination.
From time to time, the designated group employer may give a notice to the commissioner, containing the information required by the commissioner, of an amount, worked out in accordance with subsection (3), that the employer claims to be the group’s deductible amount for the month and later months.
The amount must be worked out as follows:
In subsection (3):
A means the amount determined for section 86 (Registration).
D means the deductible amount for the month.
I means the estimated interstate wages payable by the group in the financial year in which D occurs.
T means the estimated taxable wages payable by the group in the financial year in which D occurs.
The deductible amount claimed must not be more than the amount mentioned in section 2.8 (1).
At any time, the commissioner may, by written notice to the designated group employer, determine an amount, not more than the amount mentioned in section 2.8 (1), as the deductible amount for the group for 1 or more months stated in the determination.
A determination under subsection (6) may be made on application by the designated group employer or on the commissioner’s own initiative.
At any time, the commissioner may, by written notice to the designated group employer, revoke a determination made under subsection (6).
Division 2.1.3 Group with no designated group employer
2.10 Application—div 2.1.3
This division applies only to an employer who is a member of a group for which there is no designated group employer.
2.11 Group with no designated group employer—amount of tax payable each month
The amount of payroll tax payable by each member of the group on taxable wages paid or payable by the member in a month is the amount worked out as follows:
In this section:
R means the rate determined under the Taxation Administration Act 1999, section 139 for this section.
TW means the total taxable wages paid or payable by the employer (as a member of the group) in the month.
Part 2.2 Charitable organisations
2.12 Meaning of charitable organisation—pt 2.2
In this part:
charitable organisation, for a tax law—see the Taxation Administration Act 1999, section 18B.
2.13 Exemption from payroll tax—charitable organisations
Wages are exempt wages if they are paid or payable—
by a charitable organisation (other than a charitable organisation carried on for an educational purpose); or
by a charitable organisation that is a school or college (other than a technical school or college) carried on by a body corporate, society or association and providing education at or below, but not above, the secondary level of education.
Part 2.3 Employment agents
2.14 Employment agents and subcontractors
Wages are exempt wages if they are paid or payable by an employment agent to a person (the subcontractor) under a contract between the agent and the subcontractor for work performed by the subcontractor for a client of the agent in any of the following cases:
the subcontractor also supplies goods to the client under the contract and the wages amount to less than 50% of the value of the consideration paid or payable by the agent to the subcontractor for services and goods supplied to that client;
the services provided by the subcontractor to the client are of a kind not ordinarily required by the employment agent and the subcontractor ordinarily provides services of that kind to the public generally;
the subcontractor is a body corporate and individuals of both the following kinds perform the work for which the wages are paid or payable:
a director or shareholder of the body;
an employee of the body who is not a director or shareholder;
the subcontractor is a partnership and individuals of both the following kinds perform the work for which the wages are paid or payable:
a partner;
an employee of the partnership;
the subcontractor is a sole trader and individuals of both of the following kinds perform the work for which the wages are paid or payable:
the subcontractor;
an employee of the subcontractor;
the individuals who perform the work for which the wages are paid or payable together work for not more than 8 days in any month under a contract with the agent.
For this section—
a reference to a contract is taken to include a reference to an agreement, arrangement or undertaking, whether formal or informal and whether express or implied; and
a reference to supply is taken to include a reference to supply by sale, exchange, lease, hire or hire‑purchase, and in relation to services includes the providing, granting or conferring of services; and
a reference to services is taken to include a reference to results (whether goods or services) of work performed.
Part 2.4 Education and training
2.15 Exemption from tax—new starters
This section applies to a person (the new starter) if the new starter is—
employed for the first time in an industry or occupation; and
receiving eligible training for work in the industry or occupation.
For this section, eligible training is training that—
is recognised training; and
takes place in a single continuous period (the training period) that—
starts within the first 12 months after the new starter is first employed in the industry or occupation; and
continues for not more than 12 months.
Wages are exempt wages if they are paid or payable to the new starter for employment in the industry or occupation in the training period.
Subsection (3) applies to the new starter only in relation to 1 single continuous period of training that is eligible training.
Subsection (3) applies even if—
the new starter is employed at any time in the training period by an employer or employers different from the employer who first employed the new starter in the industry or occupation; or
the new starter is not continuously employed in the industry or occupation in the training period; or
the eligible training is a part of a course of training that began before the start of the training period, or continues after the end of the training period.
The Minister may declare that approved training is not recognised training.
A declaration is a disallowable instrument.
In this section:
approved training means training under an approved training contract.
approved training contract—see the Training and Tertiary Education Act 2003, dictionary.
recognised training means approved training other than training declared under subsection (6) not to be recognised training.
2.16 Exemption from tax—apprentices or trainees under approved training contracts
This section applies to an apprentice or trainee if an approved group training organisation employs the apprentice or trainee under an approved training contract.
Wages are exempt wages if they are paid or payable to the apprentice or trainee by the approved group training organisation.
On application by an entity, the commissioner may approve the entity as a group training organisation if satisfied that the entity—
is a not-for-profit entity; and
provides training to apprentices or trainees under approved training contracts; and
makes apprentices or trainees available to work for other people.
In this section:
apprentice or trainee—see the Training and Tertiary Education Act 2003, dictionary.
Apprentice or trainee is defined as a person who undertakes an apprenticeship or traineeship under an approved training contract.
approved group training organisation means an organisation that is approved by the commissioner under subsection (3).
approved training contract—see the Training and Tertiary Education Act 2003, dictionary.
Part 2.5 Hospitals
2.17 Hospitals
Wages are exempt wages if they are paid or payable by a hospital that is a recognised hospital under the Health Insurance Act 1973 (Cwlth).
Part 2.6 Primary carer leave
2.18 Primary carer leave
Wages are exempt wages if they are paid or payable to an employee in relation to primary carer leave.
Subsection (1) applies—
only in relation to wages paid or payable for a maximum of 14 weeks leave for any 1 birth or adoption; and
only in relation to leave taken before the relevant day for the birth or adoption; and
only if, in relation to the leave, the employee has given the employer a required document for the leave.
To remove any doubt—
the reference in subsection (2) (a) to wages paid or payable for 14 weeks leave is taken to be a reference to—
for a full-time employee who takes the leave on less than full pay—wages paid or payable for a period equivalent to 14 weeks leave on full pay; and
for a part-time employee who takes the leave at less than the employee’s average rate of pay over the 6 weeks immediately before the leave is taken—wages paid or payable for a period equivalent to 14 weeks leave at that average rate of pay; and
for any other part-time employee—wages paid or payable for a period equivalent to 14 weeks leave at the rate of pay of the employee immediately before the leave was taken; and
a reference to 1 birth includes a reference to a multiple birth; and
a reference to 1 adoption includes a reference to the adoption of more than 1 child at the same time.
The exemption does not apply to any part of wages paid or payable in relation to primary carer leave that consists of fringe benefits.
In this section:
primary carer leave, for an employee—
means leave given to the employee as the primary carer of a child in relation to the birth or adoption of the child (whether the leave is taken before or after the birth or adoption); but
does not include leave given to the employee as leave of another kind.
Examples—primary carers
1 a parent of the child
2 the domestic partner of a parent of the child
3 a grandparent of the child
Examples—leave of another kind
1 sick leave
2 annual leave
3 long service leave
For the meaning of domestic partner, see the Legislation Act, s 169.
relevant day means—
for a birth—the day 6 months after the day of the birth; or
for an adoption—the day 6 months after the day that the child is placed, for the purpose of adoption, in the care of the adoptive parent.
required document means, for primary carer leave in relation to—
a newly born child—
a birth certificate for the child; and
a statement to the effect that the employee is the primary carer for the child; or
a child placed for adoption—a statement setting out the following:
that the child has been placed, for adoption, in the care of the adoptive parent;
the date of the placement;
that the employee is the primary carer for the child; or
any other document prescribed by regulation.
A certificate, statement or other document must be kept for at least 5 years (unless the commissioner authorises earlier destruction) and produced if the commissioner requires its production (see Taxation Administration Act 1999, s 57 (Requirement to keep proper records), s 62 (Accessibility) and s 64 (Period record to be kept)).
It is an offence to make a false or misleading statement, give false or misleading information or produce a false or misleading document (see Criminal Code, pt 3.4).
Part 2.7 Certain unemployed people
2.19 Certain unemployed people
Wages are exempt wages if they are paid or payable to a prescribed person, if the wages are in relation to the period of 2 years beginning on the first day of the person’s employment by the employer by whom those wages were paid or are payable.
In this section:
prescribed person, in relation to an employer, means a person who was, for longer than 12 months immediately before starting employment with the employer—
unemployed; and
receiving an allowance under the Social Security Act 1991 (Cwlth) for that unemployment.
For subsection (2), definition of prescribed person, a period of not longer than 4 weeks, or periods totalling not longer than 4 weeks, when a person was employed, or was not receiving an allowance under the Social Security Act 1991 (Cwlth) for unemployment, must be disregarded in working out whether a period is a period of longer than 12 months mentioned in the definition.
Part 2.8 Certain bank accounts
2.20 Certain bank accounts
Wages are exempt wages if they are paid or payable from a bank account kept under the Financial Management Act 1996, part 5, unless—
the bank account is nominated by the Minister for this paragraph; or
the wages are paid or payable by an entity prescribed for the Taxation (Government Business Enterprises) Act 2003, section 9; or
the wages are paid or payable by an entity to which a direction under the Taxation (Government Business Enterprises) Act 2003, section 10 applies to make the entity liable to tax under this Act.
A nomination under subsection (1) (a) is a disallowable instrument.
Part 2.9 Territory authorities
2.21 Territory authorities
Wages are exempt wages if they are paid or payable by a territory authority funded solely by money appropriated from the public money of the Territory by an Act unless—
the wages are paid or payable by a territory authority prescribed for the Taxation (Government Business Enterprises) Act 2003, section 9; or
the wages are paid or payable by a territory authority to which a direction under the Taxation (Government Business Enterprises) Act 2003, section 10 applies to make the authority liable to tax under this Act.
Schedule 2A Special provisions for 2025‑2026 financial year (see s 8 (2), 29 (7) and 82 (2))
Part 2A.1 Preliminary
2A.1 Definitions—sch 2A
In this schedule:
2025-2026 financial year means the financial year beginning on 1 July 2025.
annual threshold amount means the amount determined under the Taxation Administration Act 1999, section 139 for this Act, schedule 1 for the 2025-2026 financial year.
The annual threshold amount under the Taxation Administration (Amounts and Rates—Payroll Tax) Determination 2025 (DI2025-161) is $2 000 000.
N means each of the following periods:
the period beginning on 1 July 2025 and ending on 31 December 2025;
the period beginning on 1 January 2026 and ending on 30 June 2026.
R means—
for the period beginning on 1 July 2025 and ending on 31 December 2025—the rate determined under the Taxation Administration Act 1999, section 139 for schedule 1 or schedule 2, part 2.1 for the 2025-2026 financial year; and
The applicable rate under the Taxation Administration (Amounts and Rates—Payroll Tax) Determination 2025 (DI2025-161) is 7.85%.
for the period beginning on 1 January 2026 and ending on 30 June 2026—8.75%.
2A.2 Application—sch 2A
This schedule applies to an employer if the total wages paid or payable by the employer for the 2025-2026 financial year are more than $150 million.
Despite subsection (1), this schedule does not apply to the following employers:
Australian Catholic University;
Charles Sturt University;
Australian National University;
University of New South Wales;
University of Canberra.
This schedule applies for the purpose of working out the payroll tax payable by the employer for the 2025-2026 financial year.
In this section:
total wages, for the 2025-2026 financial year, means—
for an employer who is not a member of a group—the total taxable wages and interstate wages paid or payable by the employer in the 2025-2026 financial year; or
for an employer who is a member of a group for which there is a designated group employer—the total taxable wages and interstate wages paid or payable by the group in the 2025-2026 financial year; or
for an employer who is a member of a group for which there is no designated group employer—the total taxable wages and interstate wages paid or payable by the group in the 2025-2026 financial year.
Part 2A.2 Calculation of payroll tax liability
Division 2A.2.1 Preliminary
2A.3 Calculation of payroll tax for 2025-2026 financial year
The amount of payroll tax payable by the employer in the 2025-2026 financial year is the sum of—
the amount payable by the employer for the period beginning on 1 July 2025 and ending on 31 December 2025 worked out in accordance with this schedule; and
the amount payable by the employer for the period beginning on 1 January 2026 and ending on 30 June 2026 worked out in accordance with this schedule.
Division 2A.2.2 Employers who are not members of a group
2A.4 Application—div 2A.2.2
This division applies only to an employer who is not a member of a group.
2A.5 Definitions—div 2A.2.2
In this division:
C means the number of days in N in relation to which the employer paid or was liable to pay taxable wages or interstate wages (otherwise than as a member of a group).
IW means the total interstate wages paid or payable by the employer (otherwise than as a member of a group) for N.
TA (or threshold amount), for the 2025-2026 financial year, means the amount calculated by multiplying the annual threshold amount by C/365.
TW means the total taxable wages paid or payable by the employer (otherwise than as a member of a group) for N.
2A.6 Calculation of payroll tax
The employer is liable to pay as payroll tax for the 2025-2026 financial year the amount worked out as follows:
Division 2A.2.3 Groups with a designated group employer
2A.7 Application—div 2A.2.3
This division applies only to an employer who is a member of a group for which there is a designated group employer.
2A.8 Definitions—div 2A.2.3
In this division:
C means the number of days in N in relation to which at least 1 member of the group paid or was liable to pay taxable wages or interstate wages (as a member of a group).
GIW means the total interstate wages paid or payable by the group for N.
GTW means the total taxable wages paid or payable by the group for N.
TA (or threshold amount), for the 2025-2026 financial year, means the amount calculated by multiplying the annual threshold amount by C/365.
TW means the total taxable wages paid or payable by the employer (as a member of the group) for N.
2A.9 Calculation of payroll tax
The designated group employer for the group is liable to pay as payroll tax for the 2025-2026 financial year the amount worked out as follows:
Each member of the group (other than the designated group employer) is liable to pay as payroll tax for the 2025-2026 financial year the amount worked out as follows:
Division 2A.2.4 Groups with no designated group employer
2A.10 Application—div 2A.2.4
This division applies only to an employer who is a member of a group for which there is no designated group employer.
2A.11 Meaning of TW—div 2A.2.4
In this division:
TW means the total taxable wages paid or payable by the employer (as a member of the group) for N.
2A.12 Calculation of payroll tax
Each member of the group is liable to pay as payroll tax for the 2025‑2026 financial year the amount worked out as follows:
Division 2A.2.5 Motor vehicle allowances
2A.13 Working out business kilometres
Schedule 1, part 1.5 applies to this schedule for the purpose of working out K and the exempt component of a motor vehicle allowance paid or payable for the 2025-2026 financial year under section 29.
Part 2A.3 Calculation of monthly payroll tax
2A.14 Calculation of monthly payroll tax
Schedule 2 applies for the purpose of calculating the payroll tax payable by an employer in a month in the 2025-2026 financial year.
However, subsection (3) also applies if the total taxable wages paid or payable by an employer, or members of a group of which the employer is a member, in a month are more than $12 500 000 for a month in the period beginning on 1 January and ending on 30 June in the 2025‑2026 financial year.
A reference in a provision of schedule 2 to R, or the rate determined under the Taxation Administration Act 1999, section 139 for the provision, is taken to be a reference to 8.75% for the purpose of calculating the payroll tax payable by the employer for the period beginning on 1 January and ending on 30 June in the 2025-2026 financial year.
Schedule 3 Reviewable decisions (see pt 8A)
column 1 item column 2 section column 3 decision column 4 entity
1
32 (3) contract entered into with intention either directly or indirectly of avoiding or evading payment of tax party to contract
2
35 (2) determine part of amount not attributable to performance of work party to contract
3
42 disregard contract etc person taken to be employer
4
47 disregard agreement, transaction or arrangement etc person taken to be employer
5
79 (1) refuse to determine that person is not member of group person who seeks determination
6
79 (5) revoke determination that person is not member of group person who has determination revoked
7
87A (3) refuse to give variation notice applicant for variation
8
87A (5) revoke employer’s variation notice employer
9
87B (3) refuse to give exemption certificate applicant for certificate
10
87B (5) cancel employer’s exemption certificate employer
11 sch 2, s 2.16 (3) refuse to approve entity as group training organisation applicant for approval
Dictionary (see s 3)
The Legislation Act contains definitions and other provisions relevant to this Act.
For example, the Legislation Act, dict, pt 1, defines the following terms:
ACAT
ACT
Corporations Act
domestic partner (see s 169 (1))
domestic partnership (see s 169 (2))
exercise (a function)
financial year
function
GST
individual
in relation to
liability
person
reviewable decision notice
rural fire service
SES
State
territory authority
the Territory
under.
ABN means the ABN (Australian Business Number) for an entity under the A New Tax System (Australian Business Number) Act 1999 (Cwlth).
agent includes—
a person who, in the ACT, on behalf of someone else outside the ACT, holds or has the management or control of the business of the other person, and
a person who, by an order of the commissioner, is declared to be an agent or the sole agent for anyone else for this Act and on whom notice of that order has been served.
associated person, for part 5 (Grouping of employers)—see section 67.
Australian jurisdiction means the ACT, another Territory or a State.
business, for part 5 (Grouping of employers)—see section 67.
company includes all bodies and associations (corporate and unincorporate) and partnerships.
contract, for division 3.7 (Contractor provisions)—see section 31.
corporation—see the Corporations Act, section 9.
correct amount of payroll tax, for part 6 (Adjustments of tax)—see section 82.
corresponding law means a law of a State or another Territory relating to the imposition on employers of a tax on wages paid or payable by them and the assessment and collection of that tax.
designated group employer means a member designated for a group under section 80.
director of a company includes a member of the governing body of the company.
employer means a person who pays or is liable to pay wages, and includes—
the Territory or a territory authority; and
a person taken to be an employer under this Act; and
a public, local or municipal body or authority constituted under the law of the Commonwealth, a State or Territory unless, being an authority constituted under the law of the Commonwealth, it is immune from the operation of this Act.
employment agency contract—see section 37.
employment agent—see section 37.
employment termination payment, for division 3.5 (Termination payments)—see section 27.
entity, for part 5 (Grouping of employers)—see section 67.
exempt wages mean wages that are declared under this Act to be exempt wages.
FBTA Act means the Fringe Benefits Tax Assessment Act 1986 (Cwlth).
fringe benefit—see section 14 (3).
granted, for a share or option, for division 3.4 (Shares and options)—see section 19 (2).
group, for part 5 (Grouping of employers)—see section 67.
group employer, for part 6 (Adjustments of tax)—see section 81A.
individual employer, for part 6 (Adjustments of tax)—see section 81A.
instrument includes a cheque, bill of exchange, promissory note, money order or a postal order issued by a post office.
interstate wages means wages that are taxable wages under a corresponding law.
ITAA means the Income Tax Assessment Act 1997 (Cwlth).
month means the month of January, February, March, April, May, June, July, August, September, October, November and December.
option means an option or right, whether actual, prospective or contingent, of a person to acquire a share or to have a share transferred or allotted to the person.
paid, in relation to wages, includes provided, conferred and assigned.
payroll tax means tax imposed by section 6.
perform, in relation to services, includes render.
private company for part 5 (Grouping of employers)—see section 67.
registered business address, for an entity that has an ABN, means the address shown in the Australian Business Register as the entity’s address for service under the A New Tax System (Australian Business Number) Act 1999 (Cwlth).
related body corporate, for part 5 (Grouping of employers)—see section 67.
related person, for part 5 (Grouping of employers)—see section 67.
relevant contract—
for division 3.5 (Termination payments)—see section 27; and
for division 3.7 (Contractor provisions)—see section 32.
relevant day, for division 3.4 (Shares and options)—see section 18 (3).
resupply, of goods, for division 3.7 (Contractor provisions)—see section 31.
return period, in relation to an employer, means a period for which the employer must lodge a return under this Act.
reviewable decision, for part 8A (Notification and review of decisions)—see section 87C.
service provider—see section 37.
services, for division 3.7 (Contractor provisions)—see section 31.
share means a share in a company, and includes a stapled security.
superannuation contribution—see section 17 (2).
supply, for division 3.7 (Contractor provisions)—see section 31.
taxable wages—see section 10.
termination payment, for division 3.5 (Termination payments)—see section 27.
unused annual leave payment, for division 3.5 (Termination payments)—see section 27.
unused long service leave payment, for division 3.5 (Termination payments)—see section 27.
vesting date, for division 3.4 (Shares and options)—
in relation to a share—see section 19 (4); and
in relation to an option—see section 19 (5).
voting share—see the Corporations Act, section 9.
wages—see part 3.
This Act’s bill:Explanatory statementSecond reading speech
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