Managing payroll tax in New South Wales (NSW) can be one of the most challenging compliance areas for growing businesses. With new payroll tax thresholds, enhanced digital reporting requirements, and closer collaboration between the ATO and NSW Revenue, staying compliant in 2025 is more important than ever.
Key NSW Payroll Tax Updates in 2025
1. Payroll Tax Threshold Adjustments
The NSW payroll tax threshold for 2025 has been updated. This means some businesses that previously did not pay payroll tax may now be liable. Employers should carefully review their total wages paid across all states to confirm whether they meet the new threshold.
👉 See official NSW Revenue payroll tax thresholds.
2. Groupings and Shared Liabilities
If your business operates under multiple entities, be aware of payroll tax grouping rules. Even if one company falls below the threshold, being grouped with others can bring the entire group into the payroll tax net, creating unexpected liabilities.
3. Digital Reporting Enhancements
The NSW Government continues to expand digital lodgment requirements. Businesses are now expected to:
- Lodge payroll tax returns electronically
- Make payments online
- Avoid late or inaccurate lodgments (with higher penalties in 2025)
4. ATO and State Revenue Collaboration
The ATO now shares Single Touch Payroll (STP) data with NSW Revenue. This makes it easier for authorities to flag wage reporting discrepancies, significantly increasing the chance of an audit for non-compliant businesses.
Why Payroll Tax Compliance Matters
Ignoring payroll tax obligations can lead to:
- Heavy penalties and interest charges
- Increased audit scrutiny
- Negative impact on cash flow and business planning
For growing companies, proactive payroll tax management is not optional — it’s essential.
How Boa & Co. Can Help
At Boa & Co. Chartered Accountants, we support Sydney businesses by:
- ✅ Reviewing payroll records to ensure compliance with updated thresholds
- ✅ Assessing grouping risks across multiple entities
- ✅ Assisting with digital lodgments and streamlining reporting
- ✅ Providing audit support and advice to minimise risks
The Bottom Line
Payroll tax is often overlooked until it becomes a costly problem. By staying informed and seeking expert advice, businesses can manage their obligations confidently and avoid unnecessary penalties.
📩 Contact Boa & Co. Chartered Accountants today to discuss how the 2025 payroll tax changes may affect your business:
📞 1300 952 286
📧 [email protected]
🌐 www.boanco.com.au
Stay compliant. Stay confident. Stay ahead.