Pay Victorian payroll tax when threshold met
VIC: 4.85% rate on Australian wages above the $1,000,000 tax-free threshold (from 1 July 2025).
Who must comply
Employers paying Australian wages above the Vic threshold (taking into account grouping).
What triggers it
Wages above the monthly/annual threshold; grouping.
When due
Monthly returns by 7th of following month; annual reconciliation by 21 July.
Evidence required
Monthly returns via SRO Vic, wage records, group nomination documents.
Max penalty
Tax shortfall + interest + penalty tax up to 75% for serious non-compliance
Summary
Victoria imposes payroll tax under the Payroll Tax Act 2007 (Vic). From 1 July 2025 the annual tax-free threshold is $1,000,000 ($83,333 monthly), 4.85% standard rate (1.2125% regional employer rate; mental health and wellbeing surcharge applies for wages >$10M). Group employer rules aggregate wages across related entities. Returns lodged monthly via SRO online.
Enforced by
Source legislation
Topics
Related obligations
- QLDPay Queensland payroll tax when threshold metQLD: 4.75% rate on Australian wages above the $1.3M tax-free threshold (FY26).
- NSWPay NSW payroll tax when threshold metNSW: 5.45% rate on Australian wages above the $1.2M tax-free threshold (FY26).
- WAPay Western Australian payroll tax when threshold metWA: 5.5% rate on Australian wages above the $1M tax-free threshold (FY26), with diminishing deduction up to $7.5M.
- SAPay South Australian payroll tax when threshold metSA: 4.95% rate on Australian wages above the $1.5M tax-free threshold (FY26).
- TASPay Tasmanian payroll tax when threshold metTAS: 4.0% / 6.1% on Australian wages above the $1.25M tax-free threshold (FY26).
- NTPay Northern Territory payroll tax when threshold metNT: 5.5% rate on Australian wages above the $2.5M tax-free threshold (from 1 July 2024).
Frequently asked questions
- Who must comply with Victorian payroll tax when threshold met?
- Employers paying Australian wages above the Vic threshold (taking into account grouping).
- What triggers Victorian payroll tax when threshold met?
- Wages above the monthly/annual threshold; grouping.
- When is Victorian payroll tax when threshold met due?
- Monthly returns by 7th of following month; annual reconciliation by 21 July.
- What is the maximum penalty for Victorian payroll tax when threshold met?
- Tax shortfall + interest + penalty tax up to 75% for serious non-compliance
- What evidence is required for Victorian payroll tax when threshold met?
- Monthly returns via SRO Vic, wage records, group nomination documents.
Source: https://sro.vic.gov.au/payroll-tax. Rules Mate is not a law firm. Always verify against the live regulator source before acting.