Payroll tax on interstate and overseas employees

The nexus rules began on 1 July 2009 by amendment to the Payroll Tax Act 1971 and they identify the jurisdiction in which to declare wages for payroll tax, to prevent double-taxing (i.e. charging tax in more than one jurisdiction).

Read the public ruling on payroll tax nexus provisions (PTA039) for more information.

Nexus rules

The table below explains when wages are taxable in Queensland under the nexus provisions.

If your employee or contractor’s wages are identified as taxable in Queensland, include these payments when calculating your taxable wages.

When you lodge your periodic return, include these payments as part of your Queensland taxable wages. For your annual return, include payments that are taxable in Queensland in the corresponding fields that account for your Queensland taxable wages.

If not identified as taxable in Queensland, when you lodge your annual return, include:

• payments that are taxable in another state or territory, in the ‘Total interstate wages’ field as part of your interstate wages
• payments that are not taxable, in the ‘Other non-taxable payments’ field as part of your Queensland non-taxable wages.

Taxable wages interactive help

Use the interactive help below to work out if wages for a given month are taxable in Queensland.

Beside each question, you’ll see the section of the Payroll Tax Act that applies.

- Step 1 of 13

Does the employee work entirely in Queensland in a month? s.9(1)(a) *

• Yes
• No

Next

Does the employee work in 2 or more states or territories in a month? s.9(1)(b) *

• Yes
• No

Next

Does the employee work partly in at least one state or territory and partly in another country in a month ? s.9(1)(b) *

• Yes
• No

Next

Does the employee work entirely outside all states and territories in the month but the wages are paid or payable in Queensland? s.9(1)(c) *

• Yes
• No

Next

Is the employee based in Queensland? s.9(1)(b)(i) *

• Yes
• No

Generally, this means: Is the employee's principal place of residence in Queensland?

Next

Is the employee based in any other state or territory? s.9(1)(b)(ii) *

• Yes
• No

Next

Is the employer based in Queensland? s.9(1)(b)(ii) *

• Yes
• No

Generally, this means: Is the employer's ABN-registered address in Queensland, or is their principal place of business in Queensland?

Next

Is the employer based in any other state or territory? s.9(1)(b)(iii) *

• Yes
• No

Next

Are the wages paid or payable in Queensland? s.9(1)(b)(iii) *

• Yes
• No

Next

Are the wages paid or payable in another state or territory? s.9(1)(b)(iv) *

• Yes
• No

Next

Does the employee work mainly (more than 50% during the month) in Queensland? s.9(1)(b)(iv) *

• Yes
• No

Next

Does the employee work entirely in another country for a continuous period of more than 6 months? ss.9(1)(c) & 15A *

• Yes
• No

Next

Not taxable in Queensland

Based on the information you provided, the wages are not taxable in Queensland.

Next steps

These wages may be taxable in another state or territory.

Taxable in Queensland

Based on the information you provided, the wages are taxable in Queensland.

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