Calculating Payroll Tax in Australia

Payroll Tax Audit

Payroll Tax Rates and Thresholds

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

Some businesses in Australia don’t pay payroll tax. The payroll of a business must exceed the exempt 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 650,000 4.85% or 2.425% for regional employers
South Australia Under $1,500,000
$1.5m – $1.7m
Over $1.7m
0%
1.48%
4.95%
New South Wales 850,000 5.45%
Western Australia 850,000 – 100m
100m – 1.5b
Over 1.5b
5.50% diminishing
6%
6.5%
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%

The calculations on this page should not be used where you employ workers in more than one State or Territory. The calculations on this page are designed where the business employs all its workers in just one State or Territory for a full year.

You can calculate your current payroll tax liability by clicking on the State or Territory that applies to your business.

Note: These calculations are provided as an estimate only and only where the employees are all in the one State/Territory. The calculations should not be relied upon as final. For actual calculations please contact our office.