Western Australian payroll tax for 2026-27 is 5.5% of taxable wages. The $1,000,000 threshold reduces by $2 for every $13 of Australian wages above $1 million and is fully phased out at $7.5 million. You must register once monthly Australian wages exceed $83,333.
Payroll tax in Western Australia is administered by RevenueWA. 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.
WA payroll tax rates and threshold 2026-27
| 2026-27 | |
|---|---|
| Rate | 5.5% flat, no surcharge |
| Annual threshold | $1,000,000, reducing by $2 for every $13 above $1M, nil at $7.5M |
| Registration trigger | Australian wages above $83,333 in a month |
| Returns | Due the 7th of the next month (monthly, quarterly or annual) |
| Annual reconciliation | 21 July |
| Online system | Revenue Online |
How to calculate WA payroll tax
The deductible amount is $1,000,000 - [(Australian wages - $1,000,000) x 2/13]. Tax is 5.5% of WA taxable wages above the deductible amount.
Example: $3,000,000 of wages, all in Perth. The deductible amount is $1,000,000 - ($2,000,000 x 2/13) = $692,308. Tax = ($3,000,000 - $692,308) x 5.5% = about $126,923.
The higher 6% and 6.5% rates for large employers ended on 30 June 2023.
When you must register
Register within 7 days after the end of the month in which you pay wages in WA and your total Australian taxable wages (or your group's) exceed $83,333.
Lodging and paying
- Frequency depends on your estimated annual liability: monthly at $150,000 or more, quarterly below $150,000, and annually below $20,000.
- Due dates: the 7th day of the month after the end of the period. Monthly returns are needed even when no tax is payable.
- Annual reconciliation: due with the June return on or before 21 July.
- Returns are lodged through Revenue Online (via RevenueWAConnect).
Exemptions and concessions
WA has no regional rate. Wages paid to apprentices are exempt, but trainees under contracts registered from 1 July 2019 are not. Other exemptions include wages for new employees with a disability (first two years) and up to 14 weeks of parental leave.
Interest and penalties
Tax not paid by the due date attracts penalty tax of 20% of the amount outstanding, plus interest.
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 WA share of the threshold (WA 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 WA payroll tax threshold for 2026-27?
$1,000,000 a year. It reduces by $2 for every $13 of Australian wages above $1 million and is fully phased out at $7.5 million.
What is the WA payroll tax rate?
5.5% of taxable wages above the threshold. There is no surcharge.
When must I register for WA payroll tax?
Within 7 days after the end of the month in which you pay WA wages and your total Australian wages exceed $83,333.
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.