NSW Payroll Tax Annual Reconciliation for 2025 Now Open — Key Updates to Note
- Cecilia
- Jun 23
- 3 min read
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The New South Wales Government has officially opened the 2025 Payroll Tax Annual Reconciliation portal. All registered employers must complete their submission by Monday, 28 July 2025. Several important updates apply this year — please ensure you review the changes and lodge accordingly.
Key Reminders
No June return required: June wages are included in the annual reconciliation.
No payment due by 7 July: There is no monthly payment requirement in July.
Monthly calculator temporarily unavailable: The calculator will be offline from 5:00pm Friday, 13 June until 9:00am Sunday, 20 July.
Enhancements to the 2025 Annual Reconciliation
To assist businesses in lodging payroll tax more accurately, several updates have been introduced:
🔹 New Wage Field: Employment Agency and Labour Hire Payments
A new field labelled "Employment agency payments" has been added to help employers correctly report payments made to workers through employment agencies or labour hire arrangements.
You must include all taxable payments in this category, including:
Wages
Fringe benefits
Superannuation
These payments should no longer be reported under “Contractor payments.”
🔹 New “Workforce Details” Questions
To support accurate calculation of payroll tax, the Workforce Details section now includes additional questions:
If your business engages employment agencies or labour hire, you must report the total taxable and non-taxable payments made in NSW.
If you make payments to contractors, you must report the total taxable and exempt payments made in NSW.
Please ensure all amounts are declared accurately to remain compliant.
🔹 New Question: Bulk Billing Support Initiative
If your business paid general practitioner contractors in NSW, a new question regarding the Bulk Billing Support Initiative rebate will appear in your return.
Only eligible medical centre operators may answer “Yes.”
A video guide is available from Revenue NSW to assist with completing this section.
Healthcare employers should pay special attention to this update.
Payroll Tax Rates and Thresholds for 2025–26 Released Early
In response to employer feedback, the NSW Government has published the payroll tax thresholds and rates for the 2025–26 financial year ahead of schedule, enabling businesses to plan with greater certainty.
Payroll tax obligations are based on both annual and monthly thresholds:
🔹 Annual Threshold - Determines When You Need to Pay Payroll Tax
Your business must pay payroll tax if:
It pays wages in NSW, and
The total Australian wages in a financial year exceed the annual threshold.
Tax Year | Tax-Free Threshold | Tax Rate |
1 Jul 2025 – 30 Jun 2026 | $1,200,000 | 5.45% |
1 Jul 2024 – 30 Jun 2025 | $1,200,000 | 5.45% |
1 Jul 2023 – 30 Jun 2024 | $1,200,000 | 5.45% |
1 Jul 2022 – 30 Jun 2023 | $1,200,000 | 5.45% |
1 Jul 2021 – 30 Jun 2022 | $1,200,000 | 4.85% |
1 Jul 2020 – 30 Jun 2021 | $1,200,000 | 4.85% |
🔹 Monthly Threshold - Determines When You Need to Register for Payroll Tax
Your business must register for payroll tax in NSW if:
It pays wages in NSW, and
The total Australian wages exceed the monthly threshold in any given month.
Days in Month | Monthly Threshold |
28 | $92,055 |
30 | $98,630 |
31 | $101,918 |
Conclusion
The NSW Government continues to improve the payroll tax lodgment process by refining reporting requirements and releasing tax thresholds and rates earlier. These efforts aim to support businesses in fulfilling their obligations more efficiently and compliantly. A clear understanding and effective use of the latest policies can help optimise tax management and enhance operational certainty.
If you require assistance with completing your 2025 payroll tax annual return or have any questions regarding compliance, please do not hesitate to contact our professional team. We are here to provide tailored guidance and practical support to ensure a smooth and accurate lodgement.
Source: 2025 payroll tax annual return is now live, NSW Government website, 2025 payroll tax annual return is now live | Revenue NSW.
Payroll tax thresholds and rates, NSW Government website, Payroll tax thresholds and rates | Revenue NSW.
