Victoria payroll tax (FY26)
Administered by SRO Vic under state payroll tax law. Standard rate 4.85% on Australian taxable wages above the $1 million threshold.
$1 million
Annual threshold
4.85%
Standard rate
Monthly
Returns
Rate + thresholds in detail
- Annual tax-free threshold: $1 million of Australian taxable wages.
- Monthly threshold: $83,333.
- Standard rate: 4.85%.
- Additional levies / structure: +1.2125% surcharge for wages >$10M; mental health + wellbeing surcharge for wages >$10M (~0.5%). Tax-free threshold phases out for wages between $3M and $5M (phase-out rate 50%); no threshold above $5M.
Returns + reconciliation
- Return cadence: Monthly by 7th of following month.
- Annual reconciliation: Annual reconciliation 21 July.
Grouping
Grouping rules aggregate wages across related entities.
Recent change
Tax-free threshold rose from $900,000 to $1 million ($83,333/month) on 1 July 2025, with the phase-out deduction rate increasing to 50%.
Sources
Compare to other states: NSW ($1.2 million) · QLD ($1.3 million) · WA ($1 million) · SA ($1.5 million) · TAS ($1.25 million) · NT ($2.5 million) · ACT ($1.75 million)