Payroll Tax

Payroll tax is a tax imposed on wages paid by employers with taxable wages in excess of $1 500 000. The rate of tax is 5.5 per cent. The Territory Revenue Office administers payroll tax and employers are able to register and lodge their returns electronically through the online payroll tax system, INTRA.

For a summary of the Northern Territory payroll tax scheme and obligations of employers, refer to:

Payroll Tax Guide for Northern Territory Employers and Businesses (569.0 kb)
Payroll Tax Guide Appendix 4: Relevant Contract Analysis Schedule (25.5 kb)

Hiring Resident Employees

From 1 May 2018, a payroll tax exemption was introduced to encourage the employment of additional Territory residents. Employers may be eligible for a payroll tax exemption for up to two years in relation to wages paid to:

  1. A Territory resident who, when hired, increases the total number of Territory residents employed by that business
  2. An existing employee of a business, who relocates from living interstate or overseas to reside in the Territory as their principal place of residence, or
  3. A Territory resident hired to replace a former employee who resides interstate or overseas.

Commissioner’s Guideline CG-PRT-008: Hiring resident employees provides further details on this exemption.

The Territory Revenue Office has also published a series of commonly asked questions in respect of this exemption under Frequently Asked Questions: Hiring Resident Employees Exemption.

Last updated: 21 November 2018