Payroll tax by state — thresholds, rates and levies compared
Every Australian state and territory runs its own payroll tax regime with a different threshold, rate, regional concession and mental health levy. Sortable comparison of NSW, VIC, QLD, WA, SA, TAS, ACT and NT.
Payroll tax is the single biggest state-government revenue line and the most variable across jurisdictions. There is no Commonwealth payroll tax — every state and territory sets its own threshold, rate, surcharge structure, regional concession and grouping rules. An employer with staff in three states deals with three different annual reconciliations on three different forms with three different lodgement portals.
This matrix shows the headline settings each state revenue office publishes for the 2026-27 financial year. Use it to size your exposure, but always confirm the live threshold and rate with the cited revenue office before lodging — surcharges in particular (mental health levy, COVID debt levy, regional concessions) change more often than the headline rate.
Group employers face an additional trap: a single threshold is shared across the whole group in each state, even if the group's wages straddle multiple jurisdictions. The grouping rules and how the threshold is apportioned vary, so a payroll that sits below threshold in any single state can still be liable once group wages are aggregated.
For the full plain-English explainer, see our companion guide: Payroll tax by state 2026.
Comparison matrix
Click any column header to sort.
Tax-free threshold (annual) Annual Australian taxable wages (grouped) at or below this threshold are not subject to payroll tax in that jurisdiction. | $1.2 million Revenue NSW | $1 million SRO Vic | $1.3 million QRO | $1 million RevenueWA | $1.5 million RevenueSA | $1.25 million SRO Tas | $1.75 million ACT Revenue Office | $2.5 million Territory Revenue Office |
|---|---|---|---|---|---|---|---|---|
Tax-free threshold (monthly) Monthly returns use the monthly threshold the revenue office publishes. | $92,055 (28-day month) / $98,630 (30-day) / $101,918 (31-day) Revenue NSW | $83,333 SRO Vic | $108,333 QRO | $83,333 RevenueWA | $125,000 RevenueSA | $24,038 per week in the month SRO Tas | $145,833.33 ACT Revenue Office | $208,333 Territory Revenue Office |
Headline rate Standard rate applied to wages above the threshold (tiers in the next row). | 5.45% Revenue NSW | 4.85% SRO Vic | 4.75% QRO | 5.5% RevenueWA | 4.95% RevenueSA | 4% / 6.1% SRO Tas | 6.75% ACT Revenue Office | 5.5% Territory Revenue Office |
Rate tiers How the rate steps with Australia-wide wages. | 5.45% on wages above the threshold. Revenue NSW | 4.85% standard rate; eligible regional employers pay 1.2125%. SRO Vic | 4.75% where Australian wages are $6.5M or less; 4.95% above $6.5M. Regional employers may get a 1% discount until 30 June 2030. QRO | 5.5% on WA taxable wages. RevenueWA | Nil up to $1.5M of Australian wages; variable 0%–4.95% between $1.5M and $1.7M; 4.95% above $1.7M. RevenueSA | 0% on wages to $1.25M; 4% on $1,250,001–$2M; 6.1% above $2M. SRO Tas | General rate by Australia-wide wages: 6.75% ($1.75M–$20M), 6.85% ($20M–$50M), 7.35% ($50M–$100M), 7.85% ($100M–$150M), 8.75% (above $150M). ACT Revenue Office | 5.5%; from 1 July 2026, 6.5% for employers and groups with Australia-wide wages of $100M or more. Territory Revenue Office |
Threshold mechanics Flat threshold, diminishing deduction or phase-out as wages grow. | Flat tax-free threshold, apportioned by the share of Australian wages paid in NSW and by days employed; only one group member claims it. Revenue NSW | Full threshold below $3M of Australian wages; between $3M and $5M it phases out at 50% of wages over $3M; no threshold above $5M. SRO Vic | Deduction of $1.3M reduces by $1 for every $7 of Australian wages above $1.3M, reaching nil at $10.4M. QRO | Diminishing threshold: reduces by $2 for every $13 of Australian wages above $1M, reaching nil at $7.5M. RevenueWA | Register once Australian wages exceed $1.5M; maximum deduction $600,000 a year ($50,000 a month). RevenueSA | Two-tier marginal structure on total Australian (grouped) wages. SRO Tas | Flat tax-free threshold, apportioned by days employed and the ACT share of Australia-wide wages. ACT Revenue Office | Deductible amount from the $2.5M threshold under the Act's Schedule (deduction settings unchanged from 1 July 2026). Territory Revenue Office |
Regional or concessional rate Reduced rate for employers based in designated regional areas, where available. | — Revenue NSW | 1.2125% regional employer rate SRO Vic | 1% rate discount for eligible regional employers (to 30 June 2030) QRO | — RevenueWA | — RevenueSA | — SRO Tas | — ACT Revenue Office | — Territory Revenue Office |
Surcharges / mental health levy Additional surcharges that apply above stated payroll levels. | — Revenue NSW | Above $10M Australian wages: mental health and wellbeing surcharge 0.5% + COVID-19 debt surcharge 0.5%; above $100M a further 0.5% each (2% total). SRO Vic | Mental health levy: 0.25% of Queensland wages above $10M (Australian wages >$10M); additional 0.5% above $100M. QRO | — RevenueWA | — RevenueSA | — SRO Tas | — ACT Revenue Office | — Territory Revenue Office |
Grouping rules Whether related entities share a single threshold and how the rules attach. | Yes — single shared threshold; designated group employer (DGE) lodges Payroll Tax Act 2007 (NSW) | Yes — single shared threshold; DGE lodges for the group Payroll Tax Act 2007 (Vic) | Yes — single shared threshold; mental health levy aggregated at group level Payroll Tax Act 1971 (Qld) | Yes — diminishing-deduction threshold shared across group Pay-roll Tax Assessment Act 2002 (WA) | Yes — single shared threshold; DGE lodges Payroll Tax Act 2009 (SA) | Yes — single shared threshold per group Payroll Tax Act 2008 (Tas) | Yes — single shared threshold per group Payroll Tax Act 2011 (ACT) | Yes — single shared threshold per group Payroll Tax Act 2009 (NT) |
Annual reconciliation due Date employers lodge the annual return that reconciles monthly payments. | 28 July Revenue NSW | 21 July SRO Vic | 21 July QRO | 21 July RevenueWA | 21 July RevenueSA | 21 July SRO Tas | 28 July ACT Revenue Office | 21 July Territory Revenue Office |
Administering revenue office Where employers register, lodge and pay. | Revenue NSW Revenue NSW | State Revenue Office Victoria SRO Vic | Queensland Revenue Office QRO | RevenueWA (Dept of Treasury and Finance) RevenueWA | RevenueSA RevenueSA | State Revenue Office Tasmania SRO Tas | ACT Revenue Office ACT Revenue Office | Territory Revenue Office Territory Revenue Office |
Every cell links to the cited source. Rules Mate links and summarises — it does not reproduce statutory text. Confirm with the cited regulator before relying on any cell.
Frequently asked
Is there a single Australian payroll tax?
No. Payroll tax is administered by each state and territory under its own Act. There is no Commonwealth payroll tax. An employer with staff in multiple jurisdictions will register, lodge and pay in each state where its wages exceed the apportioned threshold.
Which state has the highest payroll tax rate?
For most employers the ACT's 6.75% general rate (Australia-wide wages up to $20M) is the highest headline rate, and ACT rates step up to 8.75% above $150M. Victoria layers surcharges above $10M (up to 2% extra above $100M) on its 4.85% rate, and the NT charges 6.5% from 1 July 2026 where Australia-wide wages are $100M or more.
Which state has the highest tax-free threshold?
The Northern Territory, at $2.5 million from 1 July 2025. The lowest are Victoria and Western Australia at $1 million — and both shrink the threshold as wages grow (Victoria phases it out between $3M and $5M; WA tapers it to nil at $7.5M).
How does grouping affect the threshold?
Every Australian payroll tax regime groups related entities and applies one threshold across the group, not one threshold per entity. The grouping tests look at common control, common employees and tracing through trusts. The Designated Group Employer (DGE) typically lodges and the threshold is shared.
What is the mental health levy and where does it apply?
Victoria (mental health and wellbeing surcharge, alongside a COVID-19 debt surcharge) and Queensland (mental health levy) impose surcharges on employers with Australian wages above $10M, with a higher tier above $100M. NSW, SA, WA, Tasmania, the ACT and NT do not impose an equivalent levy; the ACT and NT instead step up their rates for large employers.
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