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%. 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.
Changes from 1 January 2025
From 1 January 2025, the Treasurer will waive payroll tax, for liabilities incurred between 1 January 2025 to 30 June 2025, for employers with 2024-25 taxable Australian wages of $2.5 million or less.
If an employer is part of a group, liabilities will be waived where the 2024‑25 taxable Australian wages of the group are $2.5 million or less. Only the Designated Group Employer will be able to claim the waiver in the Group Annual Return.
Employers who are eligible for the waiver will still need to pay payroll tax liabilities incurred between 1 July 2024 to 31 December 2024.
For more information on eligibility and steps to claim the waiver, read the payroll changes from 1 January 2025.
Changes from 1 July 2025
From 1 July 2025, the Payroll Tax Act 2009 will be amended to:
- increase the tax-free threshold to $2.5 million
- increase the maximum annual deduction to $2.5 million
- exempt wages paid to apprentices and trainees.
For more information, read the payroll changes from 1 January 2025.
2024-25 Annual payroll tax return
If you are eligible for the waiver, it will be calculated based on information declared in your annual return, or if you are part of a group, the group annual return lodged by the Designated Group Employer.
The 2024-25 annual return must be lodged via INTRA by 21 July 2025.
The Territory Revenue Office will contact you once the waiver has been applied to confirm your tax position.
Paying the correct amount
To help you in paying the correct amount of tax, the Territory Revenue Office (TRO) has published a range of information on our website.
Common mistakes to avoid are:
- overpaying tax by paying the amount calculated in the June return and the amount in the annual return. Please only pay the amount in the annual return
- incorrectly declaring wages, such as those to apprentices, as exempt
- not declaring interstate wages.
Payment
After lodging the annual return, please ensure you promptly pay any difference between the tax paid during the year and the full year liability by 22 July 2024. Do not wait for the Territory Revenue Office to issue a notice of assessment.
Late payments
If you do not pay your payroll tax by the due date, interest will apply to the outstanding amount and penalty tax may also be imposed.
Overpayment
If you have overpaid payroll tax, we can apply the credit to the 2024-25 financial year. This will then reduce the amount payable in your next return. Please let us know if you would prefer this to a refund.
Need help?
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 DOCX (368.9 KB)
Payroll tax guide for Northern Territory employers and businesses PDF (840.5 KB)
Payroll tax guide Appendix 4: Relevant contract analysis schedule XLSX (25.5 KB)
If you need assistance to complete your return, please contact our office via email at ntrevenue@nt.gov.au or by calling 1300 305 353.
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