Payroll tax rates and thresholds

The payroll tax rate is:

  • 4.75% for employers or groups of employers who pay $6.5 million or less in Australian taxable wages
  • 4.95% for employers or groups of employers who pay more than $6.5 million in Australian taxable wages.

Regional employers may be entitled to a 1% discount on the rate until 30 June 2023.

Mental health levy

From 1 January 2023, a mental health levy will be applied to payroll tax to fund mental health and associated services.

More information on how the levy will be administered will be available later this year.

The levy:

  • will apply to employers and groups of employers who pay more than $10 million in annual Australian taxable wages
  • will be applied to annual Queensland taxable wages.
Threshold based on Australian taxable wages Levy rate
Employers or groups of employers who pay more than $10 million 0.25%
Employers or groups of employers who pay more than $100 million 0.75%

Threshold

The current threshold is $1.3 million in annual Australian taxable wages.

If your annual Australian taxable wages are less than $1.3 million you may not have to pay payroll tax, but you might still need to register for payroll tax.

If you are a member of a group of employers, the $1.3 million threshold is calculated on the group members' combined annual Australian taxable wages.

If you do not employ for a full financial year, the $1.3 million threshold is calculated proportionately on the number of days you paid, or were liable to pay, wages.

This table details the weekly, monthly and yearly threshold for the 2012–13 financial year onwards.

Financial yearThreshold
WeeklyMonthlyYearly
2019-20 to 2022-23 $25,000 $108,333 $1,300,000
2012-13 to 2018-19 $21,153 $91,666 $1,100,000

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