Payroll Tax in Australia 2026-27: Rates and Thresholds by State

Payroll Tax Rates by State, 2026-27

Tasmania’s main rate is 6.1% (4% applies only between $1.25 million and $2 million), and the ACT’s rate rises with payroll size. Queensland charges 4.95% once Australian wages pass $6.5 million, and the NT 6.5% from $100 million.

State-by-State Guides

• NSW payroll tax — 5.45%, $1,200,000 threshold. Administered by Revenue NSW.
• VIC payroll tax — 4.85%, $1,000,000 threshold. Administered by State Revenue Office Victoria.
• QLD payroll tax — 4.75%, $1,300,000 threshold. Administered by Queensland Revenue Office.
• WA payroll tax — 5.5%, $1,000,000 threshold. Administered by RevenueWA (Department of Treasury and Finance).
• SA payroll tax — 4.95%, $1,500,000 threshold. Administered by RevenueSA.
• TAS payroll tax — 4% / 6.1%, $1,250,000 threshold. Administered by State Revenue Office Tasmania.
• ACT payroll tax — 6.75%, $1,750,000 threshold. Administered by ACT Revenue Office.
• NT payroll tax — 5.5%, $2,500,000 threshold. Administered by Territory Revenue Office.

Payroll Tax on the Same Wage Bill in Each State

Thresholds, tapers and rates interact, so the cheapest state depends on the size of the payroll. Annual tax for a business paying wages in one state for the full year:

Who Has to Pay Payroll Tax

An employer pays payroll tax in a state when it pays wages there and its total Australian wages — including the wages of every business it is grouped with — exceed that state’s threshold. A business with a $900,000 Victorian payroll that belongs to a group paying $4 million nationally is liable, even though its own wages are under the threshold.

Registration is triggered monthly, not annually. NSW, Queensland, WA and the ACT require you to register within 7 days after the end of the month in which Australian wages first exceed the monthly threshold; the NT allows 21 days. Each state guide below gives its exact rule. Returns are then lodged monthly, usually by the 7th, with an annual reconciliation due 21 July (28 July in NSW, the ACT and SA).

What Payroll Tax Is Charged On

Payroll tax law is harmonised across the states on what counts as wages, so the list is broadly the same everywhere. Taxable wages include:

• salaries, wages, commissions, bonuses and allowances;
• employer superannuation contributions;
• fringe benefits and employee share scheme benefits;
• director’s fees and termination payments such as paid-out leave;
• payments to many contractors (the “relevant contract” rules) and to employment agencies, unless an exemption applies.

Commonly exempt: government Paid Parental Leave, paid parental leave the employer provides (within limits), workers compensation payments, and the tax-free part of a genuine redundancy payment. Exemptions and their limits do differ by state, so check the revenue office’s list before you rely on one.

Does Payroll Tax Affect Employees?

Not directly. It is not withheld from pay and never appears on a payslip. If you are an employee, the state pay calculators (NSW, VIC, QLD, WA) show your take-home pay; if you are an employer, the employer cost calculator adds payroll tax to super and leave to give the full cost of a hire.

Frequently Asked Questions