What is the payroll tax threshold in NSW?

The NSW payroll tax threshold for 2025-26 is $1,200,000 (annual) or $100,000 (monthly). The tax rate is 5.45% on wages above the threshold. Employers must register once their total Australian wages exceed or are likely to exceed the threshold.

What is the payroll tax threshold in Victoria?

Victoria's payroll tax threshold for 2025-26 is $900,000 (annual) or $75,000 (monthly), with a rate of 4.85%. An additional mental health and wellbeing surcharge of 0.5% applies for payrolls over $10 million (1% for payrolls over $100 million).

What is the payroll tax threshold in Queensland?

Queensland's payroll tax threshold for 2025-26 is $1,300,000 (annual). The tax rate is 4.75% on taxable wages above the threshold. For employers with wages exceeding $6.5 million, a higher rate of 4.95% applies.

Do foreign companies pay payroll tax in Australia?

Yes, any employer (including foreign companies) that pays wages in a state or territory must register and pay payroll tax if total Australian wages exceed that jurisdiction's threshold. This applies to branches, subsidiaries, and any entity with employees in Australia.

What are payroll tax grouping rules?

Payroll tax grouping rules combine the wages of related entities (e.g., parent company and subsidiaries) to determine if the threshold is exceeded. Grouped employers share a single threshold, meaning companies cannot avoid payroll tax by splitting employees across related entities.

Which Australian state has the lowest payroll tax rate?

Queensland has the lowest headline payroll tax rate at 4.75%, followed by Victoria at 4.85%. However, Queensland's rate increases to 4.95% for employers with wages above $6.5M. The ACT has the highest threshold at $2,000,000 with a rate of 6.85%.

Payroll Tax Rates by State 2026 [NSW VIC QLD WA SA Table]

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