Understanding Payroll Tax Thresholds Across AU States
Payroll tax is a state-based tax on wages paid by employers. Each state/territory sets its own annual threshold and rate. For FY 2025-26, NSW has a threshold of $1.2M (5.45%), VIC $700k (4.85%), QLD $1.3M (4.75%). If your business wages exceed the threshold in a state, you must register and pay payroll tax. This calculator helps estimate your liability.
FAQ
Q1: Do I need to pay payroll tax in multiple states?
If you have employees in multiple states, you may have payroll tax obligations in each state where you pay wages. Each state applies its own threshold and rates. However, some states offer grouping provisions that may affect thresholds if your business is part of a group. You must calculate separately for each jurisdiction.
Q2: What wages are subject to payroll tax?
Generally, all payments to employees (salary, wages, allowances, bonuses, commissions, leave payments, superannuation contributions) are included in the payroll tax base. Some amounts may be exempt (e.g., certain apprentice wages). Refer to your state's payroll tax guidelines for details.
Q3: How often is payroll tax paid?
Payroll tax is typically paid monthly or quarterly via electronic funds transfer. You must lodge an annual return to reconcile. Due dates vary by state. Late payments incur interest and penalties. Some states offer instalment plans if your liability is high. Ensure you register once wages exceed the threshold.
Important: Payroll tax thresholds and rates are indexed annually. For precise calculations and compliance, check your state revenue office website (e.g., Revenue NSW, State Revenue Office VIC, Queensland Revenue Office).