The thresholds and rates
Payroll tax is levied by each state and territory on an employer's total Australian wages once they pass that jurisdiction's threshold, with grouping rules for related businesses. The figures below were verified against each revenue office on the date shown (src/data/local-facts.json, FY2026-27 basis) and are the same figures Valont's agent tools serve. Confirm the current amount at the linked source before relying on it.
| Jurisdiction | Annual threshold | Rate | Administered by | Verified |
|---|---|---|---|---|
| New South Wales | $1.2 million ($1,200,000) a year | 5.45% | Revenue NSW | 2026-07-02 |
| Victoria | $1 million ($1,000,000) a year ($83,333 a month) | 4.85% (metropolitan); 1.2125% for eligible regional employers | State Revenue Office Victoria | 2026-07-02 |
| Queensland | $1.3 million ($1,300,000) a year | 4.75% for annual Australian taxable wages up to $6.5 million; 4.95% above $6.5 million | Queensland Revenue Office (QRO) | 2026-07-02 |
| Western Australia | $1 million ($1,000,000) a year | 5.5% | RevenueWA | 2026-07-02 |
| South Australia | $1.5 million ($1,500,000) a year | 4.95% | RevenueSA | 2026-07-02 |
| Tasmania | $1.25 million ($1,250,000) a year | 4% for the taxable amount between $1.25 million and $2 million; 6.1% above $2 million | State Revenue Office Tasmania | 2026-07-02 |
| Australian Capital Territory | $1.75 million ($1,750,000) a year | 6.75% | ACT Revenue Office | 2026-07-02 |
| Northern Territory | $2.5 million ($2,500,000) a year ($208,333 a month) | 5.5% | Territory Revenue Office | 2026-07-02 |
Three traps in multi-state payrolls
The threshold is apportioned, not duplicated. An employer with wages in two states does not get two full thresholds; each state's threshold is reduced in proportion to the share of Australian wages paid elsewhere. Grouping catches related entities: two companies under common control are grouped and share one threshold. And the state is the employee's work location, not the business's head office, which is why a Brisbane business with a Sydney team member has a New South Wales question to answer.
Queensland's regional discount and the surcharges
Queensland offers a 1% discount on the rate for eligible regional employers until 30 June 2030 and applies a mental health levy to employers above $10 million in wages (Queensland Revenue Office, rates and thresholds). Victoria adds a mental health and wellbeing surcharge above $10 million (State Revenue Office Victoria). Western Australia's threshold tapers rather than switching off. These are the details a national template misses.
How to keep this current
Every figure above changes at 1 July in most jurisdictions. The state payroll pages on this site, such as payroll in Queensland and payroll in New South Wales, carry the same data with the public holiday calendar and the safety regulator for each state, and are re-verified at each annual review.
If this is the problem you are working on, Valont’s Finance hub runs managed payroll and bookkeeping as part of a connected back office, and the back-office cost calculator shows where to start.
About the author
Nick Lucock
Chief Executive Officer, Valont
Nick Lucock is the Chief Executive Officer of Valont and leads its day-to-day operations across Finance, People, Operations and Growth. He runs the team that does the work Valont publishes about: the bookkeeping, BAS and payroll runs, the award interpretation on every pay cycle, the IT and security layer, and the advisor cadence that keeps an owner's back office current. Nick writes the practical side of Valont's library, the processes, systems and tools that keep Australian SMEs compliant and growing, and he is the author of most of the operational articles on the site. He works with owners across construction and trades, health, hospitality and professional services.
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