6 jurisdictions Thresholds from $1,000,000 to $2,500,000
Payroll Tax Rates — Australia
Payroll tax is a state tax on wages, so the threshold and the rate change the moment you cross a border. Thresholds here run from $1,000,000 to $2,500,000, and two states do not use a single flat rate at all.
NSW
New South Wales
$1.2m threshold, 5.45%
Revenue NSW
VIC
Victoria
$1m threshold, 4.85%
State Revenue Office Victoria
QLD
Queensland
$1.3m threshold, 4.75% / 4.95%
Queensland Revenue Office
WA
Western Australia
$1m threshold, 5.5% — diminishing
RevenueWA
TAS
Tasmania
Three tiers: nil / 4% / 6.1%
State Revenue Office Tasmania
NT
Northern Territory
$2.5m threshold, 5.5% or 6.5%
NT Territory Revenue Office
Compared
| State or territory | Annual threshold | Rate | Authority |
|---|---|---|---|
| New South Wales | $1,200,000 | 5.45% | Revenue NSW |
| Victoria | $1,000,000 | 4.85% | State Revenue Office Victoria |
| Queensland | $1,300,000 | 4.75% | Queensland Revenue Office |
| Western Australia | $1,000,000 | 5.5% | RevenueWA |
| Tasmania | $1,250,000 | 4% / 6.1% | State Revenue Office Tasmania |
| Northern Territory | $2,500,000 | 5.5% / 6.5% | NT Territory Revenue Office |
Two jurisdictions here do not use a flat rate. Tasmania has three bands (nil, 4%, 6.1%) and the Northern Territory applies 6.5% rather than 5.5% to employers with $100 million or more in Australia-wide wages. Western Australia keeps a flat 5.5% but shrinks the threshold as wages rise.
The three traps
- Australia-wide wages. The threshold test counts wages paid everywhere, not just in that state.
- Grouping. Related employers share one threshold. Four companies in a group do not get four tax-free amounts.
- Register even when you owe nothing. Several states require registration below the threshold, because wages can cross it mid-year.
What we have not covered
South Australia publishes a variable rate from 0% to 4.95% with a deduction entitlement, and the ACT's rate is rendered by script on its own page. We could not resolve either into a threshold and a rate with confidence, so this page covers the six jurisdictions we could verify rather than guessing at eight.
Frequently asked questions
What is payroll tax?
A state tax on the wages you pay, not on your profit and not on your income. Once your Australian taxable wages pass the state threshold, you pay a percentage of the wages above it — so it is a tax on employing people, which is why it is often described as a tax on jobs.
Is the threshold per state or Australia-wide?
The threshold is tested on Australia-wide wages in most states. A business with staff in three states adds all of it up to work out whether it is over the line in each one.
Do related companies each get their own threshold?
No. Related employers are grouped and share a single threshold between them, based on the group's combined wages. Businesses that restructure into several entities often discover this the hard way.
What is the highest threshold?
Of the six jurisdictions covered here, the Northern Territory is highest at $2,500,000, followed by Queensland at $1,300,000 and NSW at $1,200,000. Victoria and WA are at $1,000,000, and Tasmania has a nil band up to $1,250,000.
Which state has the highest rate?
The Northern Territory's new 6.5% rate for employers with Australia-wide wages of $100 million or more, and Tasmania's 6.1% top band. The lowest standard rates here are Victoria's 4.85% and Queensland's 4.75%.
Why is Western Australia different?
WA uses a diminishing threshold rather than a fixed one — the tax-free amount shrinks as wages rise and disappears at $7,500,000. Most other states keep a fixed threshold and phase the benefit out through the rate instead.
Do I have to register if I am under the threshold?
Often yes. Several states require registration even when there is no liability, because wages can cross the threshold during the year. Registration and liability are separate questions.
Related
- Land tax calculator — the other state tax that catches growing businesses
- Rental bond calculator
- Company tax rates
- Take-home pay calculator
Thresholds and rates from each state revenue office, checked 12 October 2026. General information only — not tax advice.