Payroll tax

If you’re an employment agent with workers on-hired to certain government clients (e.g. local councils), you may be exempt from paying payroll tax on their wages.

Your government client will need to provide you with a declaration by exempt client (Form P9) for you to claim the exemption. If the on-hired workers are contracted for more than 1 financial year, the client only needs to complete this form once for the contract timeframe.

Read more about employment agents with government clients.

The wages you pay to an employee for a month’s service are taxable in one state or territory. In some circumstances, wages paid for overseas work may be taxable.

• Read more about employees working in multiple states.
• Use our interactive tool to work out if wages are taxable in Queensland.

‘Taxable wages’ are wages paid by an employer for an employee that are taxable in Queensland and not exempt from payroll tax.

Examples of taxable wages include:

• gross salary and wages (including leave)
• allowances
• bonuses (including workforce retention)
• commissions
• director fees
• superannuation contributions
• fringe benefits
• termination payments
• contractor payments
• shares and options.

See a list of taxable and non-taxable items.

If you’re still employing in Queensland but want to cancel your registration, you need to contact us.

If you’ve ceased employing in Australia, you need to lodge a final return.

Find out about:

• change of status for payroll tax
• final returns.