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February 18, 2020

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Changes to calculation of Payroll Tax in WA

The way businesses must calculate payroll tax will change in Western Australia as of 1 July this year. 

 

The changes see an introduction of a progressive scale for payroll tax, which operates in a similar way  to the tax scales used to calculate personal income tax.  Put simply, the higher the amount of taxable wages paid, the higher the rate of payroll tax is applied. 

 

The table below outlines the tax rates and tax scale caps:

 

By Leigh Sampson, CFO Bayside Group and Chair of RCSA’s Tax and Finance Working Group

 

The way businesses must calculate payroll tax will change in Western Australia as of 1 July this year.  

 

The changes see an introduction of a progressive scale for payroll tax, which operates in a similar way  to the tax scales used to calculate personal income tax.  Put simply, the higher the amount of taxable wages paid, the higher the rate of payroll tax is applied. 

 

The table below outlines the tax rates and tax scale caps: