Quick answer
The NSW payroll tax threshold is $1.2 million a year in Australian wages, and the rate is 5.45% on wages above it, unchanged for 2026–27. The catch is the monthly test: a month where total wages pass about $98,630 (in a 30-day month) starts a one-week clock to register. A business paying $1.8 million a year owes about $32,700, or roughly $2,725 a month.
Key points
- NSW threshold is $1.2m a year and the rate is 5.45%, both unchanged for 2026–27
- Registration is triggered monthly, not annually: roughly $98,630 of wages in a 30-day month
- Register within a week of the month you cross it, then lodge by the 7th of each following month
- June is not a separate return: it rolls into the annual return due 28 July
- Wages in other states shrink your NSW threshold in proportion
The NSW payroll tax threshold is $1.2 million of annual Australian wages, with 5.45% charged on everything above it. Neither has changed for 2026–27. Most owners stop reading there, and that’s where the trouble starts, because Revenue NSW doesn’t wait for your year to finish. It tests you month by month.
What is the NSW payroll tax threshold and rate right now?
Revenue NSW’s thresholds page, last updated 1 July 2026, shows:
| Month length | Wages that trigger registration |
|---|---|
| February (28 days) | over $92,055 |
| April, June, September, November (30 days) | over $98,630 |
| The other seven months (31 days) | over $101,918 |
The annual line is $1.2 million, and the rate above it is 5.45%.
Neither figure has moved since 2022–23, so any NSW number that differs from these is stale or belongs to another state. Our state-by-state comparison shows how NSW sits against the rest.
Two things worth knowing about NSW specifically. There is no regional rate or discount, so a Dubbo or Wagga employer pays the same 5.45% as one in Parramatta. And the tax is calculated “only on wages above an annual threshold”: there’s no phase-out that claws the threshold back at higher wage levels, as Victoria has.
Why does the monthly threshold catch owners out?
The monthly figures are the annual threshold spread across the days in the month ($1.2m ÷ 365 × 30 days is the $98,630). Once a month’s total Australian wages pass that month’s figure, registration is required, and the deadline is 7 days after the month ends.
That means a business can trigger registration with an annual wage bill below $1.2 million. Picture a landscaping company that takes on four extra crew for a big spring contract. Its wages jump to $105,000 in October, a 31-day month. It’s over $101,918, so it has until 7 November to register, even though its wages for the year might finish near $1.1 million. The annual reconciliation will square up the year afterwards, but registration comes first.
“Wages” is a wider net than the pay run. Bonuses, commissions, directors’ fees and the super you pay on top all go in the pile, and certain contractor invoices can too. Add super to your payroll total before you hold it up against the threshold. Our registration checklist walks through what to count.
What does the first bill actually look like?
Take the wages sitting above the line, apply the rate, and divide by twelve for a feel of the monthly cost.
Illustrative example: a Newcastle commercial cleaning company pays $1.8 million in wages across the year.
- Wages over the line: $600,000
- Annual bill at 5.45%: $32,700
- Roughly $2,725 a month
Now the cash-flow point. That’s $2,725 leaving the account every month in addition to wages, super and BAS, and the first return often arrives while a new contract is still paying on 30 or 45 day terms. The owners who cope price it in before they quote. A 1.8% bump on a wage-heavy contract is often enough to cover it.
What if I pay wages in more than one state?
Revenue NSW looks at your wages across the whole country, then trims the NSW threshold to match the slice of payroll that sits in NSW. Only one member of a group can claim the threshold, and groups are trimmed the same way.
Illustrative example: a Parramatta events business pays $1.0 million in NSW and $400,000 in Victoria, $1.4 million in total.
- NSW share of wages: about 71.4%
- NSW threshold it can claim: about $857,000 (five-sevenths of $1.2m)
- NSW wages over that: roughly $143,000
- NSW payroll tax: about $7,800 a year
A business that looks “under $1.2 million in NSW” can still owe. Related entities add another layer: if your businesses are grouped, wages are combined before any threshold applies. If you’ve had a grouping letter or suspect you’re in a group, read what grouping means and what to do next, then run your numbers through the payroll tax checker.
If the first return is going to sit awkwardly against your receivables, check your options before it falls due. Enquiring is a short form and doesn’t touch your credit file.
When are NSW payroll tax returns and payments due?
Each monthly return falls due a week after month end, pushed to the next business day if the 7th lands on a weekend or public holiday. Revenue NSW publishes these dates for 2026–27:
| Return for | Due |
|---|---|
| July 2026 | 7 August 2026 |
| August 2026 | 7 September 2026 |
| September 2026 | 7 October 2026 |
| October 2026 | 9 November 2026 |
| November 2026 | 7 December 2026 |
| December 2026 | 14 January 2027 |
| January 2027 | 8 February 2027 |
| February 2027 | 8 March 2027 |
| March 2027 | 7 April 2027 |
| April 2027 | 7 May 2027 |
| May 2027 | 7 June 2027 |
| June 2027 | Rolled into the annual return, 28 July 2027 |
Notice December: a 14 January deadline sits right after the Christmas shutdown, when many owners are least liquid. Mark it now.
The annual return, due 28 July, reconciles the year’s payments against your actual liability, applying your full-year threshold and adjusting for part-year employment (threshold × days employed ÷ days in the year) where it applies. Returns and payments that arrive after 28 July are late and may attract penalty and interest.
What happens if you can’t pay on time?
Talk to Revenue NSW first. Its guidance says that if you can’t pay in full by the due date, it may offer an extension or an instalment plan, and that contacting it before the due date may help you avoid enforcement action and interest and penalty tax. The number is 1300 139 815.
If you stay silent, the sequence is a reminder letter (first-time non-payers only), a Payroll Tax Estimate Assessment, a final notice and then a legal notice, each asking for payment within 14 days. Two mistakes make it worse: holding back a return because you can’t pay the balance (filing and paying are separate jobs, so file anyway), and leaving the phone call until a notice lands.
How should you plan around the threshold?
A sequence that works:
- Track total wages monthly, including super, against the monthly figure for that month’s length. February’s $92,055 is the lowest bar of the year.
- Check grouping before you assume you’re under.
- Check contractors. Payments to contractors who work mainly for you can count as wages.
- Register on time, inside the 7-day window.
- Diarise every due date next to BAS, PAYG withholding and super. The 9 November and 14 January dates move because of weekends and holidays.
- Reserve cash each month, a set percentage of the wage bill in a separate account.
- Review each July, and any time you open a site, win a large contract or change structure.
For the wider picture of what NSW means for a business, including regional support through the Rural Assistance Authority, see our New South Wales hub. Hunter employers can also read how local lenders view the Newcastle and Hunter economy, and Sydney employers the Sydney page.
When does finance make sense?
Payroll tax lands because you’ve grown, and growth needs working capital before it earns it back. Typical uses around the threshold are carrying wages for new staff on a contract that pays in arrears, smoothing the first few returns, funding a second site or a fleet that pushes wages over the line, and clearing a short backlog before it turns into penalties. Unsecured and line-of-credit options for trading businesses typically run from $5,000 to $500,000, sized on turnover and bank statements. Where you have property to offer, secured lending runs from $20,000 to $5,000,000.
Crossing the threshold means the business is working. Let’s keep the cash in step.
If the numbers above looked familiar, or you’re about to hire and can already see the first return coming, tell us where you stand. The enquiry takes about 60 seconds, and there’s no credit check just for asking, so your credit score stays exactly as it is. We don’t send your details to a pile of lenders; one team reads it, and a real person who knows how NSW payroll tax and local business actually work will phone you to talk through what fits. Please fill the form in accurately, with real wage and turnover figures, so we can point you at the right option first time.
Frequently asked questions
What is the NSW payroll tax threshold in 2026–27?
$1.2 million of Australian wages a year, taxed at 5.45% above that line. Revenue NSW lists the same pair from 2022–23 to 2026–27, so 1 July 2026 brought no change.
When do I have to register for payroll tax in NSW?
You have a week after the month closes. The trigger is that month's total Australian wages passing the monthly figure in the table above, which runs from $92,055 up to $101,918 depending on month length. Because the test is monthly, you can need to register part-way through a year even if your annual wages end up modest.
Does NSW have a lower payroll tax rate for regional employers?
No. Revenue NSW lists a single rate of 5.45%, and there is no regional rate or discount. That differs from Queensland and Victoria, which both have regional concessions.
When are NSW payroll tax returns due?
Monthly returns fall due on the 7th of the following month, or the next business day. In 2026–27 that means 9 November 2026 for October and 14 January 2027 for December. June is not lodged separately: it goes into the annual return, due 28 July 2027.
What if I can't pay my payroll tax on time?
Contact Revenue NSW before the due date. It may offer an extension or an instalment plan, and the page on non-payment says contacting them early may help you avoid enforcement action and interest and penalty tax. Ignoring it escalates through a reminder, an estimate assessment, a final notice and a legal notice, each giving 14 days.
Do my interstate wages count towards the NSW threshold?
Yes. The threshold is tested against total Australian wages, and your NSW threshold is cut by the share of those wages paid in NSW. A business with 70% of its wages in NSW gets 70% of the $1.2 million threshold in NSW.
Can a business loan help with payroll tax?
It can help with timing. Unsecured and line-of-credit options sized on turnover are often used to carry wages and tax while new staff or a new contract start paying for themselves. Anything already overdue is considered case by case.