THE PAYROLL TAX SPECIALISTS
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Payroll Tax Rated and Thresholds

Payroll tax in Australia is a State or Territory based tax on “salaries and wages”, the employer is liable to pay this tax.

Some businesses in Australia are not required to pay payroll tax. The payroll of a business must exceed the exempt monthly or annual threshold for its State or Territory before it is liable to pay payroll tax. Each State and Territory has its own exempt threshold amount and its own rate of tax.

The current tax rates and thresholds for payroll tax in Australia are set out in the table below.

State Annual Threshold Tax Rate
Victoria $700,000 4.85% or 1.2125% for regional employers
South Australia Under $1,500,000 $1.5m - $1.7m Over $1.7m 0% 1.48% 4.95%
New South Wales $1,200,000 5.45%
Western Australia $1,000,000 >$1m and <$7.5m >$100m and <$1.5b Over $1.5b 5.50% 5.50% diminishing Tier 4 rate* Tier 5 rate*
Tasmania Under $1,250,000 $1.25m to $2m Above $2m 0% 4% 6.10%
Queensland Under $1,300,000 $1.3m to $6.5m Over $6.5m 0% 4.75% / 3.75% regional 4.95% / 3.95% regional
Northern Territory $1,500,000 5.50%
Australian Capital Territory $2,000,000 6.85%

* WA – If your wages exceed $100m, do not use the calculator, please contact our office.

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Tobin Partners Pty Ltd – ABN: 63 271 835 131
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