WA Payroll Tax Rate 2026-27
A flat 5.5% on WA taxable wages above the deductable amount. There is no higher tier for large employers in 2026-27.
WA Payroll Tax Threshold
- Annual: $1,000,000 of Australian taxable wages
- Monthly: $83,333
WA uses a diminishing threshold: the $1 million deductable amount falls by $2 for every $13 of Australian wages above $1 million, and disappears at $7.5 million. Interstate employers get the WA share.
How to Calculate WA Payroll Tax
WA's deductable amount is $1 million − (Australian wages − $1 million) × 2/13, multiplied by the WA share. It is zero from $7.5 million.
| WA wages (all in WA) | Threshold / deduction | Payroll tax | Effective rate |
|---|---|---|---|
| $1,500,000 | $923,077 | $31,731 | 2.12% |
| $3,000,000 | $692,308 | $126,923 | 4.23% |
| $5,000,000 | $384,615 | $253,846 | 5.08% |
| $10,000,000 | $0 | $550,000 | 5.5% |
Interstate example: an employer paying $2,000,000 in WA out of $5,000,000 Australia-wide (40% in WA) gets a threshold or deduction of $153,846 and pays $101,538 in WA. It also pays payroll tax in the other states on the other $3m.
Who Must Register for WA Payroll Tax
Register within seven days after the end of the month in which you pay wages in WA and your total Australian taxable wages exceed $83,333.
The test uses total Australian wages, including every business you are grouped with, so an employer with a small WA payroll can still be liable. Grouped businesses add their wages together, and only the designated group employer claims the threshold.
WA Payroll Tax Due Dates 2026-27
- Monthly returns: 7th of the following month (next business day if the 7th is a weekend or public holiday).
- Annual reconciliation: 21 July 2027
Returns are lodged and paid online with the RevenueWA (Department of Treasury and Finance). Late payment attracts interest and penalty tax.
What Counts as Wages for WA Payroll Tax
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.
WA Payroll Tax and Your Employees
Payroll tax is an on-cost, like super and WorkCover WA workers compensation premiums: the employer pays it on top of wages and none of it is withheld from pay. Employees who want their own figures should use the WA pay calculator for take-home pay. For the full cost of a hire — salary, super, leave and payroll tax — use the employer cost calculator.
WA Compared With Other States
| State | Rate | Annual threshold | Threshold phase-out / extras |
|---|---|---|---|
| NSW payroll tax | 5.45% | $1,200,000 | No phase-out; no surcharge |
| VIC payroll tax | 4.85% | $1,000,000 | Phases out $3m–$5m; 1.2125% regional rate; surcharges from $10m |
| QLD payroll tax | 4.75% | $1,300,000 | 4.95% above $6.5m; deduction nil at $10.4m; regional discount; mental health levy from $10m |
| WA payroll tax | 5.5% | $1,000,000 | Diminishes to nil at $7.5m |
| SA payroll tax | 4.95% | $1,500,000 | Rate phases in 0%–4.95% between $1.5m and $1.7m; $600k deduction |
| TAS payroll tax | 4% / 6.1% | $1,250,000 | 4% from $1.25m to $2m, 6.1% above |
| ACT payroll tax | 6.75% | $1,750,000 | Rate rises in bands to 8.75% above $150m |
| NT payroll tax | 5.5% | $2,500,000 | Tapers to nil at $7.5m; 6.5% from $100m |
Frequently Asked Questions
What is the WA payroll tax rate for 2026-27?
A flat 5.5% on WA taxable wages above the deductable amount. There is no higher tier for large employers in 2026-27.
What is the WA payroll tax threshold?
$1,000,000 a year of Australian taxable wages; the monthly figure is $83,333. WA uses a diminishing threshold: the $1 million deductable amount falls by $2 for every $13 of Australian wages above $1 million, and disappears at $7.5 million. Interstate employers get the WA share.
How much WA payroll tax is payable on a $3 million wage bill?
For an employer paying $3,000,000 of taxable wages, all in Western Australia, for the full 2026-27 year: the threshold or deduction is $692,308, leaving $2,307,692 taxed, and the payroll tax is $126,923 (4.23% of the wage bill).
When do I have to register for WA payroll tax?
Register within seven days after the end of the month in which you pay wages in WA and your total Australian taxable wages exceed $83,333.
When is WA payroll tax due?
Monthly returns: 7th of the following month (next business day if the 7th is a weekend or public holiday). Annual return for 2026-27: 21 July 2027.
Does WA payroll tax come out of an employee's pay?
No. Payroll tax is paid by the employer to the RevenueWA (Department of Treasury and Finance) on top of wages. It is not withheld from pay and does not appear on a payslip, so it does not change an employee's take-home pay.
How these figures are worked out▼
Rates, thresholds and rules come from the RevenueWA (Department of Treasury and Finance) and were checked on 23 September 2026. The calculator and tables assume a full 2026-27 year of wages with the threshold claimed in full (by the designated group employer, for a group) and no exemptions. They do not model part-year employers or monthly returns; the RevenueWA (Department of Treasury and Finance)’s online return is the final word. The engine is tested against the worked examples the revenue offices publish.
Sources & References
- 1Western Australia payroll tax rates and thresholds— RevenueWA (Department of Treasury and Finance)
- 2Local non-group employer: payroll tax— Department of Treasury and Finance WA
- 3Interstate non-group employer: payroll tax— Department of Treasury and Finance WA
- 4Registration: Payroll Tax Employer Guide— Department of Treasury and Finance WA
- 5Lodging payroll tax returns— Payroll Tax Australia
Last verified: 23 September 2026. Our content is based on the latest information from official Australian government sources.
Anita Bell
AuthorFounder & Senior Bookkeeper
Accountancy degree (2015); certified in Xero, QuickBooks Online, MYOB, Saasu, Zoho and Reckon One
Anita Bell earned her accountancy degree in 2015 and has worked as a senior bookkeeper with Prime Bookkeeping for over 5 years. This built her skills in Australian and New Zealand tax legislation and industry regulations. She is certified in Xero, QuickBooks Online, MYOB, Saasu, Zoho and Reckon One, and works with payroll and rostering software including Gusto, Deputy, Tsheets and KeyPay. She has strong experience in hospitality, building and construction, financial services, real estate, ecommerce, and medical and health services.
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