Our ATO Community is here to help make tax and super easier. Ask questions, share your knowledge and discuss your experiences with us and our Community.
31 March 2020
The company calculates income tax on the accrual basis. Is NSW payroll tax expense deductible regardless if paid or not? Or can the company claim only the payroll tax paid in the financial year (like super)?
Most helpful response
1 April 2020
Thank you for post.
Pay-roll tax is deductible in the year in which it is incurred, meaning the year in which the wages are paid or payable.
It does not matter if the employer pays the tax in a later year either voluntarily, or as the result of a default assessment being issued. I refer to: Income Tax Assessment Act 1997, section 8-1 and Claiming a tax deduction for workers' salaries, wages and super contributions pages on our ATO website.
I hope this information helps.
Tell us about your ATO Community experience and help us improve it for everyone.
Australian Taxation Office
Working for all Australians