From 1 July 2026 the ACT payroll tax threshold is $1,750,000 (down from $2 million) and the rate depends on Australia-wide group wages: 6.75% up to $20 million, rising in steps to 8.75% above $150 million. The whole rate applies to all ACT wages above the threshold.
Payroll tax in the ACT is administered by the ACT Revenue Office. This page sets out the 2026-27 rates and threshold (from 1 July 2026), how to work out the tax, and when to register, lodge and pay. For every state side by side, see our payroll tax by state guide.
ACT payroll tax rates and threshold 2026-27
| 2026-27 | |
|---|---|
| Annual threshold | $1,750,000 (was $2M before 1 July 2026) |
| Monthly threshold | $145,833.33 |
| Rate (by Australia-wide wages) | 6.75% to $20M; 6.85% to $50M; 7.35% to $100M; 7.85% to $150M; 8.75% above $150M |
| Monthly returns | Due the 7th of the next month (December: 14 January) |
| Annual reconciliation | 28 July |
| Online system | Self Service Portal |
How to calculate ACT payroll tax
The ACT folded its old surcharges into a single tiered rate from 1 July 2026. Your Australia-wide group wages set the rate, and that one rate applies to all ACT wages above the threshold: it is not a marginal scale.
Example: $5,000,000 of wages, all in Canberra. Australia-wide wages are under $20 million, so the rate is 6.75%. Tax = ($5,000,000 - $1,750,000) x 6.75% = $219,375.
The threshold is apportioned by days employed and by the ACT share of Australian wages. There is no phase-out for large employers.
When you must register
Apply to register within 7 days after the end of the month in which you go over the threshold amount.
Lodging and paying
- Monthly: returns are due on the 7th of the next month. The December return is due 14 January, and there is no June return.
- Annually: annual lodgement may be approved if your annual ACT payroll tax will be $80,000 or less.
- Annual reconciliation: due 28 July.
- Returns are lodged through the ACT Revenue Office Self Service Portal.
Exemptions and concessions
Exempt wages include those paid to new starters receiving eligible training and paid parental leave. From 1 July 2025 wages relating to bulk-billed GP services are exempt. Eligible universities are capped at 6.85%.
Interest and penalties
Simple daily interest of 12.43% applies to overdue tax for July to December 2026. Penalty tax ranges from 25% to 90% depending on the circumstances.
Employers in more than one state, and overseas companies
Payroll tax is charged by each state on the wages paid for work done there, but the threshold tests use your total Australian wages, including those of related companies. Two consequences catch new employers:
- Interstate wages reduce the threshold. If you also pay wages in other states, you claim only the ACT share of the threshold (ACT wages / total Australian wages). You must register in every state where you pay wages once the group passes the threshold, even if you have only one employee there.
- Grouping. Related businesses, such as two Australian subsidiaries of the same overseas parent, are grouped. The group shares one threshold, claimed by the designated group employer.
We register overseas-owned companies for payroll tax in every state, lodge the monthly and annual returns, and run the payroll itself through our payroll service, from $200 a month. If you have no Australian entity yet, our employer of record service (from $500 per employee a month) employs your staff and handles payroll tax for you.
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Frequently asked questions
What is the ACT payroll tax threshold for 2026-27?
$1,750,000 a year ($145,833.33 a month). It was $2 million before 1 July 2026.
What is the ACT payroll tax rate from 1 July 2026?
6.75% if Australia-wide group wages are $20 million or less, then 6.85%, 7.35%, 7.85% and 8.75% above $150 million. The rate applies to all ACT wages above the threshold.
When is the ACT annual reconciliation due?
28 July each year.
This content is general information only and is not legal, financial or tax advice. Laws and regulations change often. For advice on your circumstances, speak to a qualified adviser.