Payroll tax exemption reviews
Employers with a payroll tax exemption are reviewed every 3 years and must inform Revenue NSW about changes in their organisation.
Employers who have an approved exemption from payroll tax in New South Wales (NSW) are reviewed every 3 years to ensure they still qualify for their exemption.
We notify exempt employers via letter when their exemption is due to be reviewed.
Exempt employers must also inform Revenue NSW of certain organisational changes that occur between reviews.
How to submit your review
You will receive an exemption letter a month before your review is due. When you receive the letter you must:
- confirm that your organisation’s details remain unchanged, or
- provide details of any organisational changes, including changes to your organisation's:
- name
- constitution
- rules
- memorandum, or
- articles of association.
This information can be entered into our exemption review form.
You will need to log-in to the form with your Client ID and Correspondence ID.
Your Correspondence ID is only valid for 16 months. Contact us during business hours if you do not have a Client ID or Correspondence ID.
You must complete the review by the due date in the letter. A reminder letter is sent a week before the due date to businesses that have not completed their review.
If you do not provide the requested information your exemption will be revoked.
What happens after your review is submitted
The information you provide is used to assess the exemption status of your organisation.
We will decide to either renew your exemption or revoke it. You will be informed of our decision by letter within 10 business days.
If your organisation is not exempt you must register for payroll tax, if you have not already done so, and start paying payroll tax. Read more about monthly returns and annual returns.
If you are not satisfied with our decision you can lodge a formal objection in writing. You have 60 days from the date of the decision to lodge an objection. Read the objections and reviews page for more details.
Reporting changes before a review
You must inform us immediately of any changes to your organisation, particularly to your objects or non-profit status. Do not wait for an exemption review.
Email [email protected] to advise us of changes to your organisation's:
- name
- constitution
- rules
- memorandum, and/or
- articles of association.
What happens if you do not report changes
You may be subject to interest and penalty tax on any additional liability found during an exemption review.
Penalty tax will not be imposed to an error:
- if you make a voluntary disclosure before the error is discovered by us, and
- the disclosure provides enough details of the nature and extent of the tax default for us to determine your payroll tax liability.
Although penalty tax will not be applied in the above circumstances, interest will still be imposed on any underpayments identified by the change in exemption status.
Read more about interest and penalty tax and how to make a voluntary disclosure.
Privacy policy
The information collected on the exemption review form is necessary to see if you have a payroll tax liability or entitlement to an exemption.
The information may be provided to third parties with your consent, or as required, or permitted by law. We will correct or update your personal information at your request.
Read our privacy policy.