{"id":"payroll-tax-act-2002","name":"Pay-roll Tax Act 2002","slug":"pay-roll-tax-act-2002","collection":"act","jurisdiction":"wa","status":"in_force","isInForce":true,"actNumber":null,"makingDate":null,"administeringDepartment":null,"currentVersion":{"id":105980,"registerId":"wa-payroll-tax-act-2002-current","compilationNumber":null,"startDate":"2026-04-03","status":"InForce","reasons":null,"registeredAt":null},"sections":[{"sectionNumber":"1","sectionType":"section","heading":"Pay-roll Tax Act 2002","content":"![Crest]()Western Australia\n\nPay-roll Tax Act 2002\n\nWestern Australia\n\nPay-roll Tax Act 2002\n\nContents\n\nPart 1 — Preliminary\n\n1. Short title 2\n\n2. Commencement 2\n\n3. Relationship with other Acts 2\n\n4. Meaning of terms 2\n\nPart 2 — Imposition of pay-roll tax\n\n5. Imposition of pay-roll tax 3\n\nPart 3 — Rates of pay-roll tax for period from 1 July 2018 to 30 June 2023\n\nDivision 1 — Rates for local non-group employers\n\n6. Rates for whole or part of assessment year 4\n\n7. Rates for progressive return period or part of period 5\n\nDivision 2 — Rates for interstate non-group employers\n\n8. Rates for whole or part of assessment year 7\n\n9. Rates for progressive return period 9\n\nDivision 3 — Rates for group employers\n\n10. Rates for whole or part of assessment year 9\n\n11. Rates for progressive return period 12\n\nNotes\n\nCompilation table 13\n\nDefined terms\n\n  \n\nWestern Australia\n\nPay-roll Tax Act 2002\n\nAn Act to impose pay‑roll tax.\n\n## Part 1 — Preliminary\n\n[Heading inserted: No. 19 of 2017 s. 4.]\n\n##### 1. Short title\n\nThis Act may be cited as the *Pay-roll Tax Act 2002*.\n\n##### 2. Commencement\n\nThis Act comes into operation on the day on which the *Taxation Administration Act 2003* comes into operation.\n\n##### 3. Relationship with other Acts\n\nThe *Pay‑roll Tax Assessment Act 2002* and the *Taxation Administration Act 2003* are to be read with this Act as if they formed a single Act.\n\n##### 4. Meaning of terms\n\nThe Glossaries at the ends of the *Pay‑roll Tax Assessment Act 2002* and the *Taxation Administration Act 2003* define or affect the meaning of some of the words and expressions used in this Act and also affect the operation of other provisions.\n\n[**4A.** 1M\tModification, to insert section 4A, to have effect under the Commonwealth Places (Mirror Taxes Administration) Act 1999 s. 7, see Commonwealth Places (Mirror Taxes Administration) Regulations 2007 r. 26 and endnote 1M.]\n\n[**4A.** 1MC\tModification, to insert section 4A, to have effect under the Commonwealth Places (Mirror Taxes) Act 1998 (Commonwealth) s. 8, see Commonwealth Places (Mirror Taxes) (Modification of Applied Laws (WA)) Notice 2007 cl. 27 and endnote 1MC.]\n\n## Part 2 — Imposition of pay-roll tax\n\n[Heading inserted: No. 19 of 2017 s. 5.]\n\n##### 5. Imposition of pay-roll tax\n\n(1) Pay‑roll tax on wages paid or payable before 1 January 2005 is imposed at the rate of 6%.\n\n(2) Pay‑roll tax on wages paid or payable during the period that begins on 1 January 2005 and ends on 30 June 2018 is imposed at the rate of 5.5%.\n\n(3) Pay‑roll tax on wages paid or payable during the period that begins on 1 July 2018 and ends on 30 June 2023 (the sliding scale period) is imposed at the rates determined under —\n\n(a) for local non‑group employers — Part 3 Division 1; or\n\n(b) for interstate non‑group employers — Part 3 Division 2; or\n\n(c) for employers who are members of groups — Part 3 Division 3.\n\n(4) Pay‑roll tax on wages paid or payable on or after 1 July 2023 is imposed at the rate of 5.5%.\n\n[Section 5 inserted: No. 41 of 2003 s. 7; amended: No. 83 of 2004 s. 6; No. 19 of 2017 s. 6.]\n\n## Part 3 — Rates of pay-roll tax for period from 1 July 2018 to 30 June 2023\n\n[Heading inserted: No. 19 of 2017 s. 7.]\n\n### Division 1 — Rates for local non-group employers\n\n[Heading inserted: No. 19 of 2017 s. 7.]\n\n##### 6. Rates for whole or part of assessment year\n\n(1) If an employer is a local non-group employer for the whole of an assessment year, or only part of an assessment year (the part-year), in the sliding scale period, the rate of pay-roll tax payable by the employer for the year or part-year is the rate set out in, or determined under, the Table according to the amount of WA taxable wages paid or payable by the employer during the year or part-year.\n\nTable\n\n|  | **Amount of WA taxable wages** | **Rate    (%)** |\n| --- | --- | --- |\n| 1. | Not more than $100 000 000 × Y | 5.5 |\n| 2. | More than $100 000 000 x Y but not more than $1 500 000 000 × Y | Rate calculated under subsection (2) |\n| 3. | More than $1 500 000 000 × Y | Rate calculated under subsection (3) |\n\n\n(2) For the purposes of item 2 in the Table to subsection (1), the rate is to be calculated as follows —\n\n![]()\n\n(3) For the purposes of item 3 in the Table to subsection (1), the rate is to be calculated as follows —\n\n![]()\n\n(4) In this section —\n\nW is the total amount of WA taxable wages paid or payable by the employer during the assessment year or part-year;\n\nY is the number of days in the assessment year during which WA taxable wages were paid or payable by the employer, divided by the number of days in the assessment year.\n\n(5) The rates calculated under subsections (2) and (3) are to be calculated to 4 decimal places.\n\n[Section 6 inserted: No. 19 of 2017 s. 7.]\n\n##### 7. Rates for progressive return period or part of period\n\n(1) The rate of pay-roll tax payable by a local non-group employer for a progressive return period or for part of a progressive return period (the period or part-period) in the sliding scale period is the rate set out in, or determined under, the Table according to the amount of WA taxable wages paid or payable by the employer during the period or part-period.\n\nTable\n\n|  | **Amount of WA taxable wages** | **Rate    (%)** |\n| --- | --- | --- |\n| 1. | Not more than    $100 000 000 × M × P | 5.5 |\n| 2. | More than    $100 000 000 × M × P but not more than    $1 500 000 000 × M × P | Rate calculated under subsection (2) |\n| 3. | More than    $1 500 000 000 × M × P | Rate calculated under subsection (3) |\n\n\n(2) For the purposes of item 2 in the Table to subsection (1), the rate is to be calculated as follows —\n\n![]()\n\n(3) For the purposes of item 3 in the Table to subsection (1), the rate is to be calculated as follows —\n\n![]()\n\n(4) In this section —\n\nM is the number of months in the progressive return period, divided by 12;\n\nP is the number of days in the progressive return period during which WA taxable wages were paid or payable by the employer, divided by the total number of days in the progressive return period;\n\nW is the total amount of WA taxable wages paid or payable by the employer during the period or part‑period.\n\n(5) The rates calculated under subsections (2) and (3) are to be calculated to 4 decimal places.\n\n[Section 7 inserted: No. 19 of 2017 s. 7.]\n\n### Division 2 — Rates for interstate non-group employers\n\n[Heading inserted: No. 19 of 2017 s. 7.]\n\n##### 8. Rates for whole or part of assessment year\n\n(1) If an employer is an interstate non-group employer for the whole of an assessment year, or only part of an assessment year (the part-year), in the sliding scale period, the rate of pay-roll tax payable by the employer for the year or part-year is the rate set out in, or determined under, the Table according to the amount of Australian taxable wages paid or payable by the employer during the year or part-year.\n\nTable\n\n|  | **Amount of Australian taxable wages** | **Rate   (%)** |\n| --- | --- | --- |\n| 1. | Not more than    $100 000 000 × Y | 5.5 |\n| 2. | More than    $100 000 000 × Y    but not more than $1 500 000 000 × Y | Rate calculated under subsection (2) |\n| 3. | More than    $1 500 000 000 × Y | Rate calculated under subsection (3) |\n\n\n(2) For the purposes of item 2 in the Table to subsection (1), the rate is to be calculated as follows —\n\n![]()\n\n(3) For the purposes of item 3 in the Table to subsection (1), the rate is to be calculated as follows —\n\n![]()\n\n(4) In this section —\n\nW is the total amount of Australian taxable wages paid or payable by the employer during the assessment year or part-year;\n\nY is the number of days in the assessment year during which Australian taxable wages were paid or payable by the employer, divided by the total number of days in the assessment year.\n\n(5) The rates calculated under subsections (2) and (3) are to be calculated to 4 decimal places.\n\n(6) Despite subsections (1) to (5), if the employer fails to comply with a requirement under the *Pay-roll Tax Assessment Act 2002* section 27(1) to lodge an additional return for the assessment year within the period referred to in section 27(2)(c) of that Act, the rate of pay-roll tax payable by the employer for the year or part-year is 6.5%.\n\n(7) Subsection (6) does not apply if the Commissioner has made a determination under the *Pay-roll Tax Assessment Act 2002* section 23C in relation to the employer and the year or part-year.\n\n[Section 8 inserted: No. 19 of 2017 s. 7.]\n\n##### 9. Rates for progressive return period\n\nThe rate of pay-roll tax payable by an interstate non-group employer for a progressive return period in an assessment year in the sliding scale period is —\n\n(a) if a nomination under the *Pay-roll Tax Assessment Act 2002* section 23A(1)(a) applies in relation to the employer and the progressive return period — the rate that would be determined under section 8(1) to (5) of this Act if —\n\n(i) the nominated amount of Australian taxable wages were the actual amount of Australian taxable wages paid or payable by the employer during the year; and\n\n(ii) the nominated number of days were the actual number of days in the year during which Australian taxable wages were paid or payable by the employer;\n\nor\n\n(b) otherwise — 6.5%.\n\n[Section 9 inserted: No. 19 of 2017 s. 7.]\n\n### Division 3 — Rates for group employers\n\n[Heading inserted: No. 19 of 2017 s. 7.]\n\n##### 10. Rates for whole or part of assessment year\n\n(1) This section applies to a group —\n\n(a) if at all times during an assessment year in the sliding scale period there is at least 1 member of the group who pays or is liable to pay Australian taxable wages as a group member (whether or not any member of the group pays or is liable to pay Australian taxable wages as a group member throughout the whole assessment year); or\n\n(b) if —\n\n(i) during part only of an assessment year (the part-year) in the sliding scale period there is at least 1 member of the group who pays or is liable to pay Australian taxable wages as a group member (whether or not that member or any other member of the group pays or is liable to pay Australian taxable wages as a group member throughout the part-year); and\n\n(ii) during the remainder of the assessment year there is no member of the group who pays or is liable to pay Australian taxable wages as a group member.\n\n(2) The rate of pay-roll tax payable by the group for the year or part-year is the rate set out in, or determined under, the Table according to the amount of Australian taxable wages paid or payable by all members of the group during the year or part-year.\n\nTable\n\n|  | **Amount of Australian taxable wages** | **Rate    (%)** |\n| --- | --- | --- |\n| 1. | Not more than $100 000 000 × Y | 5.5 |\n| 2. | More than $100 000 000 × Y    but not more than $1 500 000 000 × Y | Rate calculated under subsection (3) |\n| 3. | More than $1 500 000 000 × Y | Rate calculated under subsection (4) |\n\n\n(3) For the purposes of item 2 in the Table to subsection (2), the rate is to be calculated as follows —\n\n![]()\n\n(4) For the purposes of item 3 in the Table to subsection (2), the rate is to be calculated as follows —\n\n![]()\n\n(5) In this section —\n\nW is the total amount of Australian taxable wages paid or payable by all members of the group during the assessment year or part-year;\n\nY is the number of days in the assessment year during which Australian taxable wages were paid or payable by at least 1 member of the group, divided by the total number of days in the assessment year.\n\n(6) The rates calculated under subsections (3) and (4) are to be calculated to 4 decimal places.\n\n(7) Despite subsections (1) to (6), if the DGE of the group fails to comply with a requirement under the *Pay-roll Tax Assessment Act 2002* section 27(1a) to lodge an additional return for the assessment year within the period referred to in section 27(2)(c) of that Act, the rate of pay-roll tax payable by the group for the year or part‑year is 6.5%.\n\n(8) Subsection (7) does not apply if the Commissioner has made a determination under the *Pay-roll Tax Assessment Act 2002* section 23C in relation to the group and the year or part-year.\n\n[Section 10 inserted: No. 19 of 2017 s. 7.]\n\n##### 11. Rates for progressive return period\n\nThe rate of pay-roll tax payable by a member of a group for a progressive return period in an assessment year in the sliding scale period is —\n\n(a) if a nomination under the *Pay-roll Tax Assessment Act 2002* section 23A(1)(b) applies in relation to the group and the progressive return period — the rate that would be determined under section 10(1) to (6) of this Act if —\n\n(i) the nominated amount of Australian taxable wages were the actual amount of Australian taxable wages paid or payable by all members of the group during the year; and\n\n(ii) the nominated number of days were the actual number of days in the year during which Australian taxable wages were paid or payable by at least 1 member of the group;\n\nor\n\n(b) otherwise — 6.5%.\n\n[Section 11 inserted: No. 19 of 2017 s. 7.]\n\nNotes\n\nThis is a compilation of the *Pay-roll Tax Act 2002* and includes amendments made by other written laws. For provisions that have come into operation see the compilation table.\n\nCompilation table\n\n| **Short title** | **Number and year** | **Assent** | **Commencement** |\n| --- | --- | --- | --- |\n| *Pay-roll Tax Act 2002* | 47 of 2002 | 20 Mar 2003 | 1 Jul 2003 (see s. 2 and *Gazette* 27 Jun 2003 p. 2383) |\n| *Business Tax Review (Taxing) Act 2003* Pt. 3 | 41 of 2003 | 30 Jun 2003 | 1 Jul 2003 (see s. 2) |\n| *Revenue Laws Amendment (Tax Relief) Act (No. 2) 2004* Pt. 3 | 83 of 2004 | 8 Dec 2004 | 8 Dec 2004 (see s. 2) |\n| *Pay‑roll Tax Amendment (Debt and Deficit Remediation) Act 2017* | 19 of 2017 | 13 Dec 2017 | s. 1 and 2: 13 Dec 2017 (see s. 2(a));   Act other than s. 1 and 2: 14 Dec 2017 (see s. 2(b)) |\n\n\n1M Under the *Commonwealth Places (Mirror Taxes Administration) Act 1999* s. 7, modifications to State taxing laws may be prescribed. Modifications are prescribed in the *Commonwealth Places (Mirror Taxes Administration) Regulations 2007* Pt. 5 Div. 1.\n\nIf a modification is to:\n\n- replace or insert a numbered provision, the new provision is identified by the superscript 1M appearing after the provision number;\n- amend a numbered provision, the amended provision is identified by the superscript 1M appearing after the provision number.\n\n\n1MC Under the *Commonwealth Places (Mirror Taxes) Act 1998* (Commonwealth) s. 8, modifications to State taxing laws, in their application as Commonwealth laws in Commonwealth places in Western Australia, may be prescribed. Modifications are prescribed in the *Commonwealth Places (Mirror Taxes) (Modifications of Applied Laws (WA)) Notice 2007* (Commonwealth) Pt. 5 Div. 1.\n\nIf a modification is to:\n\n- replace or insert a numbered provision, the new provision is identified by the superscript 1MC appearing after the provision number;\n- amend a numbered provision, the amended provision is identified by the superscript 1MC appearing after the provision number.\n\n\nDefined terms\n\n*[This is a list of terms defined and the provisions where they are defined. The list is not part of the law.]*\n\n**Defined term Provision(s)**\n\npart-year 6(1), 8(1), 10(1)\n\nperiod or part-period 7(1)\n\nsliding scale period 5(3)\n","sortOrder":0}],"analysis":{"flash_summary_failed":{"failed":true,"reason":"Unauthenticated. Configure AI_GATEWAY_API_KEY or use a provider module. Learn more: https://ai-sdk.dev/unauthenticated-ai-gateway","source":"analysis-cron"},"summary":{"complexity_score":1,"scope_assessment":{"changed":false,"description":"Scope cannot be assessed — the legislative text was not available in the provided content. Only a website error message and an Acknowledgement of Country were returned."},"complexity_factors":["No legislative content was retrievable — only an error/redirect page was provided","Cannot assess true complexity without access to the actual Act","Score of 1 reflects absence of analysable content, not simplicity of the underlying law"],"plain_english_summary":"## Pay-roll Tax Act 2002 (WA) — Content Unavailable\n\n**⚠️ Important Notice:** The actual text of this Western Australian legislation could not be retrieved. The link to the Pay-roll Tax Act 2002 is no longer active on the Western Australian legislation website due to system upgrades.\n\n**What we know generally about this type of law:**\nPayroll tax legislation typically affects **employers** who pay wages above a certain threshold. It requires those employers to pay a percentage of their total wages bill to the state government. It matters to:\n- **Business owners** — who must register, calculate, and pay the tax\n- **Employees** — indirectly, as it affects employer hiring costs\n- **Accountants and payroll professionals** — who manage compliance\n\n**To access the current legislation**, visit the [Western Australian Parliament website](https://www.legislation.wa.gov.au) and search for the Pay-roll Tax Act 2002 directly."},"flash_summary":{"complexity_score":7,"scope_assessment":{"changed":true,"description":"Amendments introduced a temporary sliding scale of rates for 1 July 2018–30 June 2023 that differentiates local, interstate and group employers, adds prorating mechanics and higher default rates for failure to lodge additional returns, then reverts the base rate to 5.5% from 1 July 2023 (see s.5; Parts 3 Divs.1–3; compilation table showing 2017 amendment)."},"complexity_factors":["Multiple employer categories (local non-group, interstate non-group, group) with different rate rules (Parts 3 Divs.1–3).","Sliding-scale formulae that scale thresholds by time proportions and require arithmetic to 4 decimal places (s.6(4)–(5), s.7(4)–(5), s.10(5)–(6)).","Different bases for measurement (WA taxable wages vs Australian taxable wages) and aggregation across group members (s.6, s.8, s.10).","Progressive return and part‑period calculations using multipliers Y, M, P to prorate thresholds (s.6(4), s.7(4), s.8(4)).","Default higher statutory rate for non‑compliance with additional return requirements and a Commissioner discretion/ determination carve‑out (s.8(6)–(7), s.10(7)–(8)).","Reliance on provisions and defined terms in the Pay‑roll Tax Assessment Act 2002 and the Taxation Administration Act 2003 for meanings, nominations, returns and procedures (s.3; s.4).","Temporal complexity: different rates apply by historical periods and a time‑limited 'sliding scale period' (s.5, defined term 'sliding scale period')."],"plain_english_summary":"This Act sets who pays payroll tax in Western Australia and how rates are calculated. Employers pay tax; the law fixes past flat rates, establishes a temporary \"sliding scale\" of rates from 1 July 2018 to 30 June 2023 that varies by employer type (local, interstate, group) and by wage thresholds and time proportions, and returns to 5.5% from 1 July 2023 (s.5; Part 3). Commissioner determinations and failure to lodge required additional returns can trigger a higher default rate, creating an enforcement and compliance risk (s.8(6), s.10(7))."},"kimi_summary":{"content_quality":"ok","complexity_score":6,"scope_assessment":{"changed":true,"description":"The original 2002 Act appears to have been a simple imposition statute setting flat rates (originally 6%, reduced to 5.5% in 2005). The 2017 amendments significantly expanded the scope by introducing a complex sliding scale system for 2018-2023 with three separate divisions for different employer types, intricate mathematical formulas, and penalty provisions. The Act transformed from a simple rate-setting mechanism into a sophisticated progressive taxation system, though this expanded scope was time-limited and has now reverted to the original flat-rate approach for post-2023 wages."},"complexity_factors":["Multiple temporal regimes with different rate structures (pre-2005, 2005-2018, 2018-2023 sliding scale, post-2023)","Complex mathematical formulas for calculating progressive rates (sections 6-11) with multiple variables (W, Y, M, P)","Three distinct employer categories with parallel but slightly different calculation methods (local non-group, interstate non-group, group employers)","Cross-references to two other Acts (*Pay-roll Tax Assessment Act 2002* and *Taxation Administration Act 2003*) which must be read as a single statute","Conditional logic for penalty rates (6.5%) triggered by failure to lodge returns (sections 8(6), 10(7))","Modification provisions for Commonwealth places (sections 4A with superscripts 1M and 1MC) creating parallel versions of the law","Defined terms scattered across multiple provisions rather than centralized","Pro-rata calculations required for part-years and part-periods based on days operated"],"plain_english_summary":"This is a Western Australian law that sets out the **rates of pay-roll tax** that employers must pay to the state government based on how much they spend on wages.\n\n**What it does:**\n- **Imposes a tax** on wages paid by employers in Western Australia (this Act sets the *rate* of tax, while a separate Act — the *Pay-roll Tax Assessment Act 2002* — works out who pays what and how to calculate it).\n- **Sets different rates depending on when wages were paid:**\n  - **Before 2005:** 6%\n  - **2005 to mid-2018:** 5.5%\n  - **1 July 2018 to 30 June 2023:** A sliding scale (progressive rate) where bigger employers pay higher rates than smaller ones\n  - **From 1 July 2023 onwards:** Back to a flat 5.5%\n\n**Who it affects:**\n- **Local non-group employers:** WA-based businesses that aren't part of a corporate group and only pay wages in WA.\n- **Interstate non-group employers:** Businesses that pay wages in WA but also in other states.\n- **Group employers:** Related businesses (like a parent company and its subsidiaries) that are treated as one entity for tax purposes.\n\n**The sliding scale (2018–2023):**\nFor that five-year period, the tax rate wasn't flat. It worked like income tax brackets:\n- **Small employers** (up to $100 million in wages, adjusted for how many days they operated): **5.5%**\n- **Medium employers** ($100m–$1.5 billion): Rate calculated by a formula (between 5.5% and 6.5%)\n- **Large employers** (over $1.5 billion): Rate calculated by a formula (capped at 6.5%)\n\n**Why it matters:**\nThis Act determines how much tax WA businesses owe on their wage bills. The sliding scale was designed so that larger businesses (like mining giants) paid a higher rate than small businesses, but this system has now ended, returning to a flat 5.5% for everyone."},"issue_detection":{"absurdities":[],"contradictions":[]}},"importantCases":[],"_links":{"self":"/api/acts/pay-roll-tax-act-2002","history":"/api/acts/pay-roll-tax-act-2002/history","analysis":"/api/acts/pay-roll-tax-act-2002/analysis","conflicts":"/api/acts/pay-roll-tax-act-2002/conflicts","importantCases":"/api/acts/pay-roll-tax-act-2002/important-cases","documents":"/api/acts/pay-roll-tax-act-2002/documents"}}