Include all Australian wages for the group
Payroll Tax
$98,100.00
Monthly Payment
$8,175.00
Effective Rate
3.27%
Tax by State
What is Payroll Tax?
Payroll tax is a state/territory tax on wages paid by employers. It applies when your total Australian wages exceed the state's tax-free threshold. Each state sets its own rate and threshold, so the cost varies significantly depending on location.
What Counts as Wages?
Payroll tax generally applies to wages, salaries, commissions, bonuses, directors' fees, superannuation contributions, eligible termination payments, and the grossed-up value of fringe benefits. Contractor payments may also be included in certain circumstances.
Grouping Provisions
Related businesses may be "grouped" for payroll tax purposes. The group shares one tax-free threshold across all entities. This prevents businesses from splitting into multiple entities to stay below the threshold.
Multi-State Operations
If your business operates across multiple states, each state taxes wages paid in that state. The threshold is apportioned based on your proportion of wages in each state. You must register in each state where you pay wages.
Note: This calculator uses standard payroll tax rates and thresholds. Some states have additional surcharges, deductions, or phase-out provisions. Consult your state revenue office for exact calculations.
How state payroll tax works, including thresholds, rates, and who needs to pay
What is payroll tax?
Payroll tax is a state and territory tax on the total wages you pay as an employer. Each state has its own rate and threshold. You only pay payroll tax if your total Australian wages exceed your state's threshold. For example, in NSW the threshold is A$1,200,000 and the rate is 5.45%. If your wage bill is A$1,500,000, you pay 5.45% on the A$300,000 above the threshold — about A$16,350 per year.
What are the thresholds and rates in each state?
NSW: A$1,200,000 threshold at 5.45%. Victoria: A$900,000 at 4.85% (with a surcharge for large employers). Queensland: A$1,300,000 at 4.75% (4.95% for regional employers in some cases). South Australia: A$1,500,000 at 4.95%. Western Australia: A$1,000,000 at 5.5%. Tasmania: A$1,250,000 at 4%. ACT: A$2,000,000 at 6.85%. NT: A$1,500,000 at 5.5%. These figures change, so check your state revenue office.
What counts as taxable wages?
Taxable wages include salary and wages, superannuation contributions, fringe benefits, directors' fees, bonuses, commissions, allowances, and payments to some contractors. If you pay a contractor who works mainly for you and is treated like an employee, their payments may count as taxable wages. Worker's compensation payments and redundancy payments are generally excluded.
Do you need to register for payroll tax?
You must register for payroll tax in each state where you have employees if your total Australian wages exceed that state's monthly threshold. If you have employees in multiple states, your wages from all states are combined to determine if you exceed the threshold, but you only pay each state on the wages paid in that state. Registration is usually done online through the state revenue office.
How does the grouping provision work?
If you own or control multiple businesses, their wages are grouped together to determine whether you exceed the payroll tax threshold. For example, if you have two companies each paying A$700,000 in wages in NSW, individually they are below the A$1,200,000 threshold. But grouped together, they total A$1,400,000, so you pay payroll tax on A$200,000. Grouping prevents businesses from splitting to avoid payroll tax.
When is payroll tax due?
Payroll tax is paid monthly in most states, with returns due by the 7th of the following month. At the end of the financial year (30 June), you lodge an annual reconciliation that adjusts for any differences between monthly estimates and actual wages paid. In some states, small employers may be able to lodge quarterly instead of monthly. Late payments attract penalties and interest.
Are there any payroll tax exemptions?
Some wages are exempt from payroll tax, including wages paid to apprentices and trainees (full or partial exemption in most states), wages paid by charities and non-profits (varying by state), maternity and parental leave wages, and wages to employees under certain government wage subsidy programs. Some states also offer regional or industry-specific exemptions to encourage employment in certain areas.
ATO-Aligned: Based on 2024-25 ATO rates and thresholds. For personal advice, speak to a qualified tax agent.
Disclaimer: This calculator provides estimates based on current ATO rates and thresholds for the 2024–25 financial year. It does not constitute professional tax, financial, or legal advice. Your actual liability may differ depending on your individual circumstances. Always consult a qualified tax agent before making financial decisions. Read our terms
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