What is Payroll tax?
Finance & accounting. A plain-English definition for Australian business owners.
Payroll tax is a state-based tax on wages paid above a state-specific threshold.
Each Australian state and territory sets its own threshold and rate. Approximate 2026 thresholds: NSW ~$1.2M, VIC ~$700k, QLD ~$1.3M, WA ~$1M, SA ~$1.5M, TAS ~$1.25M. Businesses operating in multiple states aggregate group wages and apportion the tax across jurisdictions. Payroll tax obligations frequently catch out growing SMEs that cross the threshold without re-checking their position.
In a connected back office this sits with the Finance hub, where Valont runs bookkeeping, managed payroll and bas & tax compliance for Australian SMEs as one team. The full definition set is on the glossary.
Talk to an Advisor
General information, not advice. For how this applies to your business, talk it through with a Trusted Advisor or start with the Business Health Check.