Victoria payroll tax (FY2026-27)
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%.
- Rate tiers, threshold mechanics and surcharges: 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).
Returns + reconciliation
- Return cadence: Monthly by the 7th of the following month.
- Annual reconciliation: Annual reconciliation by 21 July.
Grouping
Grouping rules aggregate wages across related entities; the phase-out and surcharge tests use group Australian wages.
Recent change
Tax-free threshold rose from $900,000 to $1 million ($83,333/month) on 1 July 2025; the phase-out rate is 50% from 2025-26 (45% in 2024-25).
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)