fbpx
X

Payroll tax rates and thresholds

 

State/Territory Rate (%) Annual Threshold ($)1
NSW 5.45 850,000
ACT 6.85 2,000,000
VIC 4.85 / 2.4252 650,000
QLD 4.75 1,100,0003
TAS 6.1 / 4.04 1,250,000
SA 2.5 / 4.955 600,0006
WA 6.5 / 6.0 / 5.57 850,0008
NT 5.5 1,500,0009
  1. The above thresholds may be reduced where the company is part of a group and/or pays interstate wages.

    2. The lower 2.425% rate applies to business where at least 85% of their Victorian payroll goes to regional employees.

    3. This threshold reduces by $1 for every $4 of Australian wages over $1.1 million. Businesses with annual taxable wages of $5.5 million or more will be subject to payroll tax of 4.75% on their entire taxable wages.

    4. A reduced rate of 4% applies for taxable wages between $1.25 million and $2 million per annum. An exemption applies for certain wages paid by an interstate business that has relocated to regional Tasmania.

    5. A small business rate of 2.5% applies to firms with payrolls between $600,000 and $1 million, then phases up to the general rate of 4.95% for payrolls above $1.5 million. From 1 January 2019, it is proposed that those with wages between $1.5 million and $1.7 million will benefit from a reduced payroll tax rate.

    6. From 1 January 2019, it is proposed that businesses with annual taxable wages of up to $1.5 million will be exempt from payroll tax.

    7. From 1 July 2018, a tiered payroll tax rate scale applies. For employers paying annual taxable wages of $100 million or less – the general rate of 5.5% applies. For taxable wages of between $100 million and $1.5 billion – a marginal rate of 6% applies, and for employers paying taxable wages of $1.5 billion or more – a marginal rate of 6.5% applies.

    8. This threshold reduces gradually for employers with annual taxable wages between $850,000 and $7.5 million. Businesses with annual taxable wages of $7.5 million or more will be subject to payroll tax at 5.5% on their entire taxable wages.

    9. This threshold reduces by $1 for every $4 of wages over $1.5 million. Businesses with annual taxable wages of $7.5 million or more will be subject to payroll tax of 5.5% on their entire taxable wages.

The facts and figures outlined in this tax summary are current as at 1 July 2018.

You might also be interested in...

How good is your marketing? – Your accountant can help you to find out!

How successful the marketing of your product or service is, has a great deal to do with how your business operates and what it stands for, and your numbers can tell you a lot about it.

How good is your marketing?

Why you need a business budget!

A good business budget allows you to plan for business events that will affect your business’s performance over the forecast period.

Why you need a business budget

Which business structure is right for my business?

When setting up or buying a business there are a number of business structures you can use to operate the business in. Here are some of the most common structures used in Australia.

Why discounting is a dirty word!

Planning your next Sale – discounting might not be your best strategy to boost revenue! – here is why

Why discounting is a dirty word