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Australian Revenue Offices

Last updated on: 02/08/2022

Rates and thresholds

Payroll tax is owed on any wages of your total taxable Australia-wide wages that exceeds a threshold amount.

Payroll tax rates and thresholds vary between the states and territories.

Maximum annual deduction entitlements also vary between the states and territories.

For further information on 2022/23 rates, thresholds and deduction entitlements for each revenue office, click on the links in the table below.

State/Territory

Rates

Thresholds

Maximum Annual Deduction Entitlement*

Australian Capital Territory

6.85%

Annual $2 000 000

Monthly $166 666.66

Same as annual threshold

New South Wales

5.45%

Annual $1 200 000

Same as annual threshold

Northern Territory

5.5%

Annual $1 500 000

Monthly $125 000

Weekly $28 846

Same as annual threshold

Queensland (Qld)

4.75% $6 500 000 or less

4.95% more than $6 500 000

Annual $1 300 000

Monthly $108 333

Weekly $25 000

Same as annual threshold

South Australia

0% to 4.95% Exceeds $1 500 000 but not $1 700 000

4.95% Exceeds $1 700 000

Annual $1 500 000

Monthly $125 000

Weekly $28 846

$600 000

Tasmania

4% $1 250 001 - $2 000 000

6.1% $2 000 001 or more

Annual $1 250 000

Weekly $24 038

Same as annual threshold

Victoria

4.85%

1.2125% for regional employers

Annual $700 000

Monthly $58 333

Same as annual threshold

Western Australia

5.5% - 6.5%

Annual $1 000 000

Monthly $83 333

Same as annual threshold

*If you employ for part of the financial year or in more than one state or territory, your deduction/threshold entitlement may be reduced. In some states and territories the deduction/threshold entitlement may reduce as wages paid increase.

Harmonisation protocol

Australian state and territory governments enacted legislation aligning payroll tax provisions in the following key areas:

  • timing of lodgement of returns;
  • motor vehicle allowances;
  • accommodation allowances;
  • a range of fringe benefits;
  • work performed outside a jurisdiction;
  • employee share acquisition schemes;
  • superannuation contributions for non-working directors; and
  • grouping of businesses.

Since 2007, six of the Australian states and territories have enacted harmonised payroll tax legislation with Queensland amending their existing legislation by introducing aligned provisions in the key areas. Western Australia has enacted similar aligned provisions within their payroll tax legislation from
1st July 2012. Refer to the 2010 Harmonisation Joint Protocol.

Australian states and territories have also committed to greater administrative consistency. As a result:

  • Payroll tax revenue rulings / Public rulings / Circulars have been harmonised and published. Access to these publications is under Revenue rulings below.
  • Where an employer operates in more than one Australian state and territory, the relevant revenue offices will consult one another and share relevant taxpayer information in determining private rulings and objections matters.
  • For the purposes of administering state and territory taxation laws, information is exchanged with other revenue offices, the Australian Taxation Office (ATO) and other government agencies to assist in the proper identification and accurate assessment of taxation liabilities.

In this regard the sharing of information with other revenue offices and the ATO across all taxation laws administered by the state or territory is carried out in accordance with the relevant Taxation Administration Act (TAA) enacted by the respective state or territory and under Schedule 1, Division 355-65 of the Commonwealth Taxation Administration Act 1953.

To obtain more specific payroll tax information and contact details for each revenue office, click on the links at the bottom of the homepage.

Educational library

The state and territory revenue offices provide a number of education programs aimed at making it easier for you to comply with your payroll tax obligations and to also maximise entitlement to any exemptions, grants or concessions that may be applicable.

For information on payroll tax webinars, seminars, videos and other educational activities in your state or territory, visit their revenue office website.

To view educational videos and scripts on the key areas of harmonised payroll tax, click on the following links:

 

Understanding the basics, allowances, FBT, exemptions and rebates
 
Remote video URL


 

Contractor provisions and employment agents
 
Remote video URL

 
Groupings
 
Remote video URL


Lodging your monthly return
 
Remote video URL


 

Lodging your annual return
 
Remote video URL
The annual return must be lodged by the 21st July each year, except in the ACT,
New South Wales and South Australia, where it must be lodged by 28th July.

 

Revenue rulings

All states and territories have agreed to a range of revenue rulings concerning administrative provisions in the key areas of harmonised payroll tax administration. A listing of the rulings in alphabetical order, prefaced by the applicable ruling number, is provided below along with an indication of the states and territories who have adopted them.

Revenue Rulings Table

State and territory rulings and legislation
Definitions and acronyms

Some of the terms and acronyms used on this site are described in the alphabetical list linked below. These apply to the harmonised areas within Australian states and territories (unless indicated). They are provided for general information only.

To view a description, select the letter your term or acronym begins with and then scroll through the listed definitions. For a more definitive definition, please refer to the indicated legislation or the payroll tax legislation applicable in the state or territory you are interested in.

If a term is not listed please email us: payrolltax.feedback@treasury.tas.gov.au

Definitions and acronyms list