Payroll Tax Services

No. PAYG withholding is a federal obligation administered by the ATO and relates to tax withheld from employee wages. Payroll tax is a separate state and territory tax on the employer, based on total wages paid once a threshold is exceeded. Many business owners confuse the two, but they are lodged with different agencies and calculated in entirely different ways.

Any employer, or group of related employers, whose total Australian wages exceed the threshold in a state or territory where they pay wages must register with that state's revenue office. Thresholds and registration deadlines vary by jurisdiction, so it is worth checking your position as soon as your wage bill starts to grow.

Yes. Superannuation contributions, including salary sacrifice amounts, are included in taxable wages in every state and territory.

Late registration can mean unpaid tax accrues over several years, plus interest and penalties once the revenue office identifies the shortfall. A voluntary disclosure made before an audit generally leads to a better outcome than being caught through a compliance review.

Yes, in many cases. Payments to contractors can be treated as taxable wages under the relevant contracts provisions, even where the contractor operates through their own ABN or company. Some exemptions apply, such as contractors who provide services to the public generally, but these need to be assessed carefully against each state's rules.

You may need to register in every state or territory where you pay wages, with each jurisdiction's threshold reduced to reflect the proportion of total Australian wages paid there. This is one of the more complex areas of payroll tax, and we would recommend professional advice if you employ staff interstate.

Revenue NSW sets the annual threshold at $1,200,000, with monthly thresholds ranging from $92,055 to $101,918 depending on the number of days in the month. The rate is 5.45% on wages above the threshold. Full details are on the Revenue NSW website: Revenue NSW: Payroll tax thresholds and rates

The State Revenue Office Victoria sets the annual threshold at $1,000,000. The standard rate is 4.85%, reduced to 1.2125% for eligible regional employers. Large employer groups may also pay the Mental Health and Wellbeing Levy and a temporary COVID-19 debt payroll tax surcharge on wages above $10 million and $100 million. Current thresholds, rates and surcharges are published on the State Revenue Office Victoria website: State Revenue Office Victoria: Payroll tax

The Queensland Revenue Office sets the annual threshold at $1,300,000. The rate is 4.75% for employers or groups paying $6.5 million or less in annual taxable wages, and 4.95% above that, with a 1% discount available for eligible regional employers until 30 June 2030. A mental health levy of 0.25% also applies to wages above $10 million, with an additional 0.5% on wages above $100 million. Full details are on the Queensland Revenue Office website: Queensland Revenue Office: Payroll tax rates and thresholds

RevenueWA sets the annual threshold at $1,000,000 ($83,333 a month), with a flat rate of 5.5%. A diminishing threshold applies for employers with wages between $1 million and $7.5 million, gradually reducing the deductible amount as wages increase. Details are set out in the WA Government's payroll tax employer guide: WA Government: Payroll Tax Employer Guide

RevenueSA does not use a single flat threshold. Wages up to $600,000 are tax free, wages between $600,000 and $1.7 million are taxed at a variable rate rising towards the maximum, and wages above $1.7 million are taxed at a flat 4.95%. Employers generally need to register once wages reach $1.5 million a year ($125,000 a month). Because the variable rate calculation is not straightforward, we recommend using RevenueSA's calculators or speaking with us directly. Full details are on the RevenueSA website: RevenueSA: Payroll tax rates and thresholds

The State Revenue Office Tasmania sets the annual threshold at $1.25 million. Wages between $1,250,001 and $2 million are taxed at 4%, and wages above $2 million are taxed at 6.1%. Current rates are published on the State Revenue Office Tasmania website: State Revenue Office Tasmania: Payroll tax rates and thresholds

From 1 July 2026, the ACT Revenue Office sets the annual threshold at $1.75 million ($145,833.33 a month), with tiered rates starting at 6.75% for wages up to $20 million and rising in stages to 8.75% for wages above $150 million. Eligible universities have their rate capped at 6.85%. Full details are on the ACT Revenue Office website: ACT Revenue Office: About payroll tax

The Territory Revenue Office sets the annual threshold at $2.5 million ($208,333 a month). The rate is 5.5% for employers with Australia-wide wages below $100 million, rising to 6.5% for larger employers and groups from 1 July 2026. Details are available on the NT Department of Treasury and Finance website: NT Department of Treasury and Finance: Payroll tax rates and thresholds

You should retain wage records, superannuation records, contractor payment records and agreements, group structure documentation, and evidence supporting any exemptions claimed, such as apprentice or trainee wages. Most states require these records to be kept for at least five years.

Yes. We regularly help businesses that have unknowingly crossed a threshold, or that have grown into a payroll tax liability through grouping. We can review your position, quantify any exposure, and manage a voluntary disclosure to the relevant revenue office, which generally leads to a better outcome than waiting to be caught through an audit.

Most states and territories offer an exemption or rebate on wages paid to apprentices and registered trainees, though the rules and the definition of an eligible apprenticeship differ between jurisdictions. We can confirm whether your arrangements qualify.