There have been changes to the payroll tax rate and thresholds across various Australian states and territories. Below you will find the relevant details for Queensland, New South Wales, Victoria and the other states in Australia.

queensland

In Queensland, the payroll tax threshold has been increased to $1,300,000 effective from 1 July 2019. The payroll tax rate remains at 4.75% for employers who pay less than $6,500,000 million in taxable wages.  Employers who pay over $6,500,000 in taxable wages are now liable for payroll tax at a higher rate of 4.95% on all taxable wages.

In line with the increase to the annual threshold, the weekly threshold for Queensland is now $25,000 and the monthly threshold is $108,333.

 From 1 July 2019, regional employers may be eligible for a 1% reduction on their payroll tax rate. This is available where the employer’s principal place of employment is in regional Queensland and they pay at least 85% of taxable wages to regional employees.

 

new south wales

In New South Wales, the payroll tax threshold has been increased to $900,000 effective from 1 July 2019. The payroll tax rate remains unchanged at 5.45%.

 

victoria

In Victoria, the payroll tax threshold remains unchanged at $650,000 per year or $54,166 per month. The payroll tax rate also remains unchanged at 4.85%.

Regional employers are entitled to apply a discounted rate of 2.425%. This is available where the employers pay at least 85% of taxable wages to regional employees.

 

other states

Below is a summary of the various rates and thresholds for all states and territories; 

Payroll Tax Rates
State 2020 Annual Threshold 2020 Rate
QLD $1,300,000 4.75% *for employers who pay over $6,500,000 in taxable wages the rate increases to 4.95%
NSW $900,000 5.45%
VIC $650,000 4.85%
SA $1,500,000 4.95% *for employers who pay over $1,500,000 but less than $1,700,000 in wages the rate is variable
WA $850,000 5.50%
TAS $1,250,000 4.00% *for employers who pay over $2,000,000 in taxable wages the rate increases to 6.1%
NT $1,500,000 5.50%
ACT $2,000,000 6.85%

For further details or advice as to what is counted for payroll tax, feel free to contact our team on (07) 3193 3000.