🧮 Your Payroll Details
🗺️ Payroll Tax by State — Same Wage Bill
How much payroll tax you'd pay in each state on the same total wage bill
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Australian Payroll Tax: What Every Business Owner Must Know
Payroll tax is a state and territory tax on the wages you pay to employees. It is one of the most commonly misunderstood business taxes in Australia — many small business owners don't realise they've crossed the threshold until they receive an assessment from the state revenue authority.
2025–26 Payroll Tax Rates and Thresholds by State
| State | Annual Threshold | Rate | Monthly Threshold |
|---|---|---|---|
| NSW | $1,200,000 | 5.45% | $100,000 |
| VIC | $900,000 | 4.85% | $75,000 |
| QLD | $1,300,000 | 4.75% | $108,333 |
| WA | $1,000,000 | 5.5% | $83,333 |
| SA | $1,500,000 | 4.95% | $125,000 |
| TAS | $1,250,000 | 4.0% | $104,167 |
| ACT | $2,000,000 | 6.85% | $166,667 |
| NT | $1,500,000 | 5.5% | $125,000 |
What Counts as Wages for Payroll Tax?
- Salaries and wages (including super contributions)
- Directors' fees and bonuses
- Fringe benefits (grossed up)
- Contractor payments in certain circumstances
- Allowances and commission
Multi-State Payroll Tax — The Key Rule
If you have employees in multiple states, your total Australian wages are used to determine if you exceed the threshold — then each state taxes only its share of wages above an apportioned threshold. This means a $900,000 wage bill split across two states may result in payroll tax in both, or only one, depending on apportionment rules.
Estimates based on 2025-26 published state rates. Grouping, exemptions and contractor rules may change your liability. Consult a registered tax agent or your state revenue authority.