Annual Payroll Tax Reconciliation: Here’s What It Means for You

Payroll tax often flies under the radar for small and growing businesses – but if your wage bill is creeping toward the state-specific threshold, now is the time to pay attention.

Whether you’re already paying payroll tax or getting close to the limit, July is a key month, especially for those preparing their Annual Payroll Tax Reconciliation.

It’s a State-Based Tax – With State-Based Rules

Payroll tax is not federal. Each state and territory has:

• Its own threshold
  
• Its own due dates
  
• Its own reporting requirements
  

If your business operates across multiple states, you’ll need to comply with each one separately.

Annual Reconciliation Deadlines – July 2025

For most businesses, June payroll tax isn’t due on the usual 7-day timeline. Instead, it must be included in your annual reconciliation.

Here are the key due dates for lodging your annual reconciliation:

• 21 July 2025 — VIC, QLD, TAS, WA & NT
• 28 July 2025 — NSW, ACT & SA
  

Missing these can lead to penalties and interest, so mark your calendar and prepare early.

Are You Close to the Threshold?

Even if you’re not paying payroll tax yet, it’s worth checking your total wages paid against your state’s threshold. It’s easy to accidentally cross the limit – especially during periods of growth or when hiring casual or part-time staff.

Tip: Most payroll software has tools to help track your running total against the relevant state thresholds.

Final Reminder for SMEs

• Don’t assume payroll tax doesn’t apply to you – thresholds vary widely
• Prepare your annual reconciliation early, especially if you’re juggling EOFY tasks
• Talk to your bookkeeper or accountant if you’re unsure about state-specific obligations