You must register for payroll tax if you employ in Queensland and pay (or are part of a group that pays) more than $25,000 a week in Australian taxable wages.
As an employer, you must register for payroll tax within 7 days after the end of the month in which this weekly amount was exceeded, even if you think that you (or your group) will pay less than $1.3 million in Australian taxable wages in the financial year. Businesses may be grouped and treated as 1 unit for payroll tax if they are related or connected.
The payroll tax rate is:
- 4.75% for employers or groups of employers who pay $6.5 million or less in Australian taxable wages
- 4.95% for employers or groups of employers who pay more than $6.5 million in Australian taxable wages.
From 1 July 2019 to 30 June 2030, regional employers may be entitled to a 1% discount on the rate.
From 1 January 2023, the mental health levy is:
- nil for employers or groups of employers who pay up to $10 million in Australian taxable wages annually
- 0.25% (primary rate) for employers or groups of employers who pay more than $10 million in Australian taxable wages annually
- 0.25% (primary rate) and 0.5% (additional rate) for employers or groups of employers who pay more than $100 million in Australian taxable wages annually.
There are payroll tax exemptions available, including for employee allowances and leave, and for wages paid to apprentices and trainees.
