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.

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.

Also consider...

• Use our payroll tax calculators to work out how much you need to pay.
• Find out if you can claim a deduction on your annual Australian wages.
• Read about claiming exemptions for payroll tax.
• See previous payroll tax rates and thresholds.