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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.

Financial yearThreshold
WeeklyMonthlyYearly
2019-20 to 2020-21 $25,000 $108,333 $1,300,000
2012-13 to 2018-19 $21,153 $91,666 $1,100,000

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