Payroll tax rates and thresholds

Payroll tax rate

The payroll tax rate is:

• 4.75% for employers or groups of employers who pay $6.5 million or less in Australian taxable wages
• 4.95% for employers or groups of employers who pay more than $6.5 million in Australian taxable wages.

Regional employers may be entitled to a 1% discount on the rate until 30 June 2030.

Threshold

The current threshold is $1.3 million in annual Australian taxable wages.

If your annual Australian taxable wages are $1.3 million or less, you may still need to register for payroll tax, even though you may not have a liability.

If you are a member of a group of employers, the $1.3 million threshold is calculated on the group’s combined annual Australian taxable wages.

If you do not employ for a full financial year or lodged a final return, the $1.3 million threshold is calculated proportionately on the number of days you paid, or were liable to pay, wages in that period.

Mental health levy

In addition to the payroll tax rate, a mental health levy applies proportionately to the Queensland taxable wages that exceed the mental health levy thresholds.

Read about the mental health levy, including calculating and reporting requirements.

Also consider…

• Use our payroll tax calculators to work out how much you need to pay.
• Find out if you can claim a deduction on your annual Australian wages.
• Read about exemptions for payroll tax.
• See previous payroll tax rates and thresholds.