Calculating payroll tax

You can work out how much payroll tax you need to pay (that is, your payroll tax liability) by using this formula:

(Total Queensland taxable wages - Deduction) × Payroll tax rate = Payroll tax liability

Subtract any deduction (calculated on your Australian taxable wages) from your total Queensland taxable wages, then multiply this amount by the applicable payroll tax rate.

You need to pay payroll tax in Queensland if you are an employer (or group of employers) who employs in Queensland and your Australian taxable wages exceed the payroll threshold of $1.3 million a year. Deductions, rebates and exemptions may apply.

If you are part of a group (businesses that are related or connected) you will be treated as a single unit for payroll tax purposes. This means that payroll tax is calculated on the total of Australian taxable wages paid by all the members of the group.

This guide provides information on the payroll tax rates and thresholds, the wage range that the deduction applies to and how to calculate your deduction, depending on your circumstances.