Western Australia (WA) offers a dynamic environment for small businesses, from retail and trades to tech and professional services. However, running a successful business in WA means more than just delivering products or services—it requires understanding and managing your local tax obligations effectively.
Beyond national tax responsibilities managed by the Australian Taxation Office (ATO), WA small businesses must also comply with state-specific taxes and regulations. With support from an experienced business tax accountant in Perth, you can stay compliant, avoid penalties, and position your business for sustainable growth.
This guide outlines key WA-specific tax obligations small business owners should know, and how a trusted business accountant in Perth can help manage them throughout the financial year.
- Payroll Tax in WA
Payroll tax is a state tax that applies to employers whose total Australian taxable wages exceed a threshold. In WA, if your total wages exceed $1 million per year, you must register for payroll tax with RevenueWA. The tax is calculated on the portion of wages above this threshold at a variable rate.
Key considerations:
- Wages include salaries, bonuses, commissions, superannuation, and fringe benefits
- Grouping provisions apply if your business is related to others, potentially affecting your threshold
- Lodgements and payments are due monthly, with an annual reconciliation at the end of the financial year
A small business tax accountant in Perth can help you calculate your payroll tax obligations and ensure accurate, timely reporting to RevenueWA.
- Stamp Duty (Transfer Duty)
WA applies stamp duty, also known as transfer duty, to transactions involving the transfer of certain assets, such as:
- Business assets
- Real property (e.g. office premises)
- Motor vehicles (when not purchased from a licensed dealer)
When buying or restructuring a business, understanding stamp duty implications is crucial. A business accountant in Perth can work with your legal advisor to ensure you’re not overpaying and that any exemptions or concessions are applied correctly.
- Land Tax
If your business owns land in WA that’s not exempt (such as your principal residence), you’re likely liable for land tax. This is calculated annually based on the unimproved value of land holdings.
Important points:
- The land tax threshold and rates are set by the WA State Government and may change annually
- Land used for business purposes may not qualify for exemptions
Your business tax accountant in Perth will assess your property portfolio and advise on applicable land tax liabilities, including ensuring accurate valuation and eligibility for concessions.
- Royalties and Industry-Specific Levies
Certain industries in WA—particularly mining, quarrying, and petroleum—are subject to state royalties. Additionally, industries such as fishing, gaming, and hospitality may face industry-specific levies and licence fees.
A knowledgeable business accountant in Perth familiar with your industry can help manage and forecast these obligations, and ensure compliance with both state and federal reporting.
- State-Based Grants and Incentives
WA businesses may be eligible for various state-funded grants, rebates, and support programs. While not a tax, these financial supports often require thorough financial documentation and reporting.
Some examples include:
- Payroll tax rebates for SMEs
- Regional business development grants
- Energy efficiency incentives
A small business tax accountant in Perth can assist with applications, help you meet reporting criteria, and maximise opportunities to reduce your business costs.
- WA Compliance and Record Keeping
Like with federal tax obligations, WA-based taxes require accurate record keeping. Ensure your records:
- Are retained for a minimum of five years
- Include wage details for payroll tax
- Document all asset transfers for stamp duty
- Show land ownership and use for land tax
Digital tools such as cloud accounting software, combined with the oversight of a business tax accountant in Perth, make compliance more manageable and reduce the risk of errors.
- Lodgement with RevenueWA
Unlike the ATO, WA state taxes are managed by RevenueWA. Depending on your business structure and activities, you may need to lodge:
- Payroll tax returns
- Stamp duty assessments
- Land tax assessments
Your accountant will handle these lodgements on your behalf or guide you through them, ensuring accuracy and compliance.
Conclusion
Understanding your WA-specific tax obligations is critical for any small business owner operating in the state. Whether it’s payroll tax, stamp duty, or land tax, staying on top of your obligations prevents unexpected liabilities and supports smoother business operations.
Working with an experienced business tax accountant in Perth ensures you meet all state and federal requirements efficiently and strategically.
Need help managing your WA tax obligations?
Visit our website https://perthtaxpeople.com.au/business-accountants-perth/ to connect with a knowledgeable business accountant in Perth and ensure your business stays compliant and tax-effective year-round.
Frequently Asked Questions
Q1: What is the payroll tax threshold in Western Australia?
The current threshold is $1 million in taxable wages per year. Employers exceeding this must register for payroll tax with RevenueWA.
Q2: Does every business in WA pay stamp duty?
No. Stamp duty only applies to specific asset transfers, such as real estate or business purchases. Your accountant can confirm if your transaction is liable.
Q3: Who pays land tax in WA?
Businesses that own land not exempt under state rules, such as commercial properties, must pay land tax annually based on the land’s value.
Q4: How do I lodge state taxes in WA?
State tax lodgements are handled through RevenueWA’s online portal. Your business accountant can manage these on your behalf.
Q5: What industries are subject to WA royalties or levies?
Industries like mining, petroleum, fishing, and gaming may have royalty or licensing obligations. A business accountant familiar with your sector will provide tailored advice.
