Do sole traders need to pay ACT payroll tax when threshold met?

Depends on size or structure. Across every industry and every size band, the engine's answer for a sole trader is: depends on size or structure.

Do businesses with 1–5 employees need to pay ACT payroll tax when threshold met?

No (1–5 employees, turnover $100K–$1M).

When is "Pay ACT payroll tax when threshold met" due?

Monthly by the 7th of the following month; annual reconciliation by 28 July.

Who must pay ACT payroll tax when threshold met?

The applicability test for Pay ACT payroll tax when threshold met (ACT Revenue Office), computed across 35 industries, 9 business structures and 6 size bands.

Short answer: Some businesses

Applies when the business has payroll tax ACT. Where the business has payroll maybe ACT, check whether your annual Australian wages (grouped) exceed $1.75M.

What the obligation is

ACT: 6.75% on Australian wages above the $1.75 million tax-free threshold (FY2026-27).

Australian Capital Territory payroll tax under the Payroll Tax Act 2011 (ACT). FY2026-27: tax-free threshold $1.75 million a year (monthly: $145,833.33). 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). Flat tax-free threshold, apportioned by days employed and the ACT share of Australia-wide wages. Returns lodged via the ACT Revenue Office Self Service Portal.

The applicability test

Applies when the business has payroll tax ACT. Where the business has payroll maybe ACT, check whether your annual Australian wages (grouped) exceed $1.75M.

How the regulator frames it: Employers paying Australian wages above the ACT threshold.

What triggers it: Wages above threshold; group nomination.

Threshold: Annual Australian taxable wages (grouped) above $1.75M (FY2026-27)

Jurisdiction: Australian Capital Territory law only. A business with no operations in ACT is outside it, whatever the rest of the test says.

Which industries are in or out

Outcome across the 35 industries Rules Mate maps (35 of 35: depends on size or structure).

The answer is the same in every industry: depends on size or structure. Industry does not change who must comply.

Business structure and size

Structure does not change the answer across all industries: for every structure the answer is "depends on size or structure".

Size band	Answer across all industries, any structure
No employees (turnover $100K–$1M)	No
1–5 employees (turnover $100K–$1M)	No
6–19 employees (turnover $1M–$3M)	Only if a further fact applies
20–99 employees (turnover $3M–$10M)	Only if a further fact applies
100–499 employees (turnover $10M–$100M)	Yes
500+ employees (turnover $100M–$1B)	Yes

Worked examples

Each line is one run of the Rules Mate applicability engine for a single business profile, with the reason the engine gives:

Pty Ltd company in real estate agents with 100–499 employees, turnover $10M–$100M: applies. 100–499 employees — wages far exceed the ACT payroll tax threshold of $1.75M.
Pty Ltd company in real estate agents with 1–5 employees, turnover $100K–$1M: does not apply. Requires payroll tax ACT.
Pty Ltd company in real estate agents with 6–19 employees, turnover $1M–$3M: check whether it applies. applies only if your annual Australian wages (grouped) exceed $1.75M.
Pty Ltd company in real estate agents with no employees, turnover $100K–$1M: does not apply. Requires payroll tax ACT.

When you need to check further

The engine shows this obligation as "check whether this applies" when a business has payroll maybe ACT. It then applies only if your annual Australian wages (grouped) exceed $1.75M. That fact is not something Rules Mate can infer from industry, structure or size.

What you must do, and when

When due: Monthly by the 7th of the following month; annual reconciliation by 28 July.
Frequency: Monthly
Evidence to keep: Monthly returns via ACT Revenue Online, wage records.
Status: Current
Priority: High

Penalty for not complying

Maximum penalty: Tax shortfall + interest + penalty tax.

Audit or assurance level

Self-assessment. Authority: Superannuation Guarantee (Administration) Act 1992 (as amended by Payday Super); ATO 'About Payday Super'.

Frequency: Payday Super: contributions must reach the fund within 7 business days of each payday (from 1 Jul 2026). Payroll tax: monthly or annual state and territory returns.

Who can perform it: The employer self-assesses. No mandated independent audit; the ATO and state revenue offices audit at their discretion, so your payroll records are the evidence.

What usually applies alongside it

Across the 1,890 business profiles Rules Mate evaluates, these obligations apply to most of the businesses this one applies to, and are far more common among them than among businesses generally:

Where it sits in the corpus

Rules Mate tracks 37 published obligations tagged "tax", 6 of them rated critical. For a professional services Pty Ltd company with 6–19 employees operating in every state, 7 of those apply outright. This obligation is rated high priority, and is a monthly obligation.

Regulator, legislation and tools

Regulated by ACT Revenue Office.

ACT Revenue Office: ACT state revenue.

ACT Revenue Office

Free tools that help with this obligation:

Run the compliance journeyAnswer a short questionnaire about your business and get the obligations that apply to you, with the reason each one applies.

Questions

Who must pay ACT payroll tax when threshold met?: Applies when the business has payroll tax ACT. Where the business has payroll maybe ACT, check whether your annual Australian wages (grouped) exceed $1.75M.
Do sole traders need to pay ACT payroll tax when threshold met?: Depends on size or structure. Across every industry and every size band, the engine's answer for a sole trader is: depends on size or structure.
Do businesses with 1–5 employees need to pay ACT payroll tax when threshold met?: No (1–5 employees, turnover $100K–$1M).
When is "Pay ACT payroll tax when threshold met" due?: Monthly by the 7th of the following month; annual reconciliation by 28 July.

Sources

Computed by the Rules Mate applicability engine from the published obligation corpus; facts last checked 3 October 2026. Rules Mate is not a law firm and this is general information, not legal advice. Confirm your position with the regulator source or a qualified adviser before acting.