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What is payroll tax?
Payroll tax is an employer self-assessed tax, and different states and territories have different requirements.
In Australia, payroll tax is a state or territory tax that is calculated on the total wages payable (not just those paid), and funds government programmes and services. The state or territory in which employees are located collects the tax.
Not all organisations have to pay payroll tax. It is known as a ‘self-assessed tax’ which means that employers themselves determine their liability.