In addition to Federal taxes, each State administers its own system of payroll tax, a levy imposed on employers based on the total value of benefits provided to employees including wages, superannuation contributions and fringe benefits. Payroll tax can extend beyond standard employment relationships to contracts under which one person supplies work-related services to another person in the course of that second person's business. See for example the NSW Supreme Court case of Loan Market Group Pty Ltd v Chief Commissioner of State Revenue [2024] NSWSC 390, in which the tax was applied to commissions paid by a mortgage aggregator to mortgage brokers.
A tax-free threshold serves to exclude small businesses from liability. For example, for the Northern Territory this threshold currently sits at AUD 1.5 million and, from 1 July 2025, increases
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Web page updated on 17 Mar 2025 14:57