Payroll tax is a state and territory tax that is calculated on wages paid. Employers (or groups of employers) with Australian wages of $1.75 million or more are required to be registered in the Australian Capital Territory. Australian wages comprise both Australian Capital Territory wages and all interstate wages. You must apply to register within 7 days after the month you go over the monthly threshold of $145,833.33.
Your payroll tax rate for the 2026-27 financial year depends on your annual Australia-wide wages:
- more than $1.75 million but not more than $20 million - 6.75%
- more than $20 million but not more than $50 million - 6.85%
- more than $50 million but not more than $100 million - 7.35%
- more than $100 million but not more than $150 million - 7.85%
- more than $150 million - 8.75%.
In general, any remuneration attributed to employees is included in your total Australian wages. Common items are wages, salaries, commissions, bonuses, allowances, directors fees, fringe benefits, payments in kind, eligible termination payments and superannuation contributions.
