Pay Victorian payroll tax when threshold met
VIC: 4.85% on Australian wages above the $1 million tax-free threshold (FY2026-27).
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 by the 7th of the 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
Who must comply with this? The applicability test by industry, business structure and size.
Summary
Victoria payroll tax under the Payroll Tax Act 2007 (Vic). FY2026-27: tax-free threshold $1 million a year (monthly: $83,333). 4.85% standard rate; eligible regional employers pay 1.2125%. Full threshold below $3M of Australian wages; between $3M and $5M it phases out at 50% of wages over $3M; no threshold above $5M. 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). Group employer rules aggregate wages across related entities. Returns lodged monthly via SRO online.
Enforced by
Source legislation
Topics
Related
- NSWPay NSW payroll tax when threshold metNSW: 5.45% on Australian wages above the $1.2 million tax-free threshold (FY2026-27).
- QLDPay Queensland payroll tax when threshold metQLD: 4.75% on Australian wages above the $1.3 million tax-free threshold (FY2026-27).
- ACTPay ACT payroll tax when threshold metACT: 6.75% on Australian wages above the $1.75 million tax-free threshold (FY2026-27).
- SAPay South Australian payroll tax when threshold metSA: 4.95% on Australian wages above the $1.5 million tax-free threshold (FY2026-27).
- NTPay Northern Territory payroll tax when threshold metNT: 5.5% on Australian wages above the $2.5 million tax-free threshold (FY2026-27).
- TASPay Tasmanian payroll tax when threshold metTAS: 4% / 6.1% on Australian wages above the $1.25 million tax-free threshold (FY2026-27).
Reading
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 by the 7th of the 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://www.sro.vic.gov.au/businesses-and-organisations/payroll-tax/thresholds-and-grouping/threshold-and-phase-out-rate. Rules Mate is not a law firm. Always verify against the live regulator source before acting.