Payroll tax is a general purpose tax assessed at a rate of 5.9 per cent on taxable wages paid by an employer for services rendered by employees in the Northern Territory.
Employers are required to self-assess the tax and remit the appropriate amount to Territory Revenue Office, usually by way of a monthly return. The revenue is paid into the Central Holding Authority of the Territory, which is used to meet the costs of essential public services such as education, health, law and order, and public safety.
From 1 July 2006, an employer who is not a member of a group of businesses, will not be liable for payroll tax if their total Australian taxable wages are less than $1 250 000 (click on Rates and Thresholds under Key Links for historical rates and thresholds). If an employer is a member of a group, the total taxable wages paid by all members of the group determines whether the employer has a payroll tax liability.
For further details of the NT payroll tax scheme and responsibilities of employer's, refer to the Employer's guide to payroll tax in the Northern Territory.