Payroll tax thresholds, 2026-27Payroll tax is a state tax, so the payroll tax threshold, the rate and the due dates depend on where your people work. This page puts all eight revenue offices side by side for 2026-27: annual and monthly thresholds, rates, surcharges and regional rates, due dates and grouping, with each office’s own page linked under the tables.
The short answer
There is no single Australian payroll tax threshold. Each state and territory sets its own. For 2026-27 the annual tax-free threshold is $1,000,000 in Victoria and Western Australia, $1,200,000 in New South Wales, $1,250,000 in Tasmania, $1,300,000 in Queensland, $1,500,000 in South Australia, $1,750,000 in the ACT and $2,500,000 in the Northern Territory.
The threshold is tested against your total Australian wages, not the wages paid in one state. An employer paying $900,000 in Victoria and $400,000 in New South Wales has $1.3 million of Australian wages, is over the threshold in both states, and pays tax in each on that state’s share of wages, with the threshold apportioned by the same share. Grouped businesses are tested on the group’s combined wages.
Two changes took effect on 1 July 2026. The ACT threshold fell from $2 million to $1.75 million and the ACT moved to five rate bands. The Northern Territory added a 6.5% rate for employers or groups with Australia-wide wages of $100 million or more. Every other threshold and base rate is unchanged.
Thresholds and rates
The monthly threshold triggers registration. The annual threshold is the deduction claimed in the annual return. Tapers, surcharges and regional rates are in the last column.
| State or territory | Annual threshold | Monthly threshold | Rate | Surcharge, regional rate or taper |
|---|---|---|---|---|
| New South Wales (Revenue NSW) | $1,200,000 | $92,055 (28-day month), $98,630 (30 days), $101,918 (31 days) | 5.45% on wages above the threshold | No surcharge. Threshold apportioned for interstate wages and part-year employers |
| Victoria (SRO Victoria) | $1,000,000 | $83,333 | 4.85%; 1.2125% for regional employers | Deduction phases out between $3 million and $5 million of Australian wages, nil above $5 million. Surcharges of 1% on the Victorian share of wages over $10 million and 2% over $100 million (mental health and wellbeing plus COVID-19 debt surcharge, to 30 June 2033) |
| Queensland (Queensland Revenue Office) | $1,300,000 | $108,333 | 4.75% up to $6.5 million of Australian taxable wages; 4.95% above | Deduction reduces by $1 for every $7 over the threshold, nil at $10.4 million. Regional employers get 1% off (3.75% or 3.95%) to 30 June 2030. Mental health levy of 0.25% on the Queensland share of wages over $10 million, plus 0.5% over $100 million |
| Western Australia (RevenueWA) | $1,000,000 | $83,333 | 5.5% | Diminishing threshold: the deduction drops by $2 for every $13 of wages over $1 million and is nil at $7.5 million |
| South Australia (RevenueSA) | $1,500,000 | $125,000 ($28,846 a week) | Nil up to $1.5 million; variable from 0% to 4.95% between $1.5 million and $1.7 million; 4.95% above $1.7 million | Rate is set on Australia-wide wages before the deduction. Maximum deduction $600,000 a year ($50,000 a month) |
| Tasmania (SRO Tasmania) | $1,250,000 | $1.25 million x days in month / 365: $95,890 (28 days), $102,740 (30 days), $106,164 (31 days) | 4% from $1,250,001 to $2,000,000; 6.1% above $2,000,000 | Two-step rate. An employer not claiming a threshold pays 6.1% on all Tasmanian wages |
| Australian Capital Territory (ACT Revenue Office) | $1,750,000 (was $2,000,000 before 1 July 2026) | $145,833.33 | 6.75% from $1.75 million to $20 million; 6.85% to $50 million; 7.35% to $100 million; 7.85% to $150 million; 8.75% above $150 million | Rate band set by annual Australia-wide wages at group level. No separate surcharge in 2026-27 |
| Northern Territory (Territory Revenue Office) | $2,500,000 | $208,333 | 5.5%; 6.5% from 1 July 2026 for employers or groups with Australia-wide wages of $100 million or more | Deduction settings unchanged for 2026-27. The $100 million test is applied to the group, not the single employer |
Figures as published by each revenue office, read 1 October 2026: Revenue NSW (updated 1 July 2026), SRO Victoria (29 September 2026) with its phase-out and regional employer pages, QRO with its deductions, regional discount and mental health levy pages, RevenueWA (2 June 2026), RevenueSA, SRO Tasmania, ACT Revenue Office and the Territory Revenue Office. Tasmanian monthly figures are our arithmetic from the SRO formula.
Due dates and grouping
Every state runs the same pattern: periodic returns during the year and an annual return after 30 June that includes June wages. A due date on a weekend or public holiday moves to the next business day. The December return gets an extra week in NSW, Queensland, SA and the ACT.
| State or territory | Monthly return and payment due | Annual return due | Register by | Grouping in one line |
|---|---|---|---|---|
| New South Wales | 7th of the following month; December due 14 January 2027. Monthly if annual liability is over $20,000 | 28 July | Within 7 days after the month Australian wages go over the monthly threshold | Related businesses are one group; one member claims the $1.2 million threshold |
| Victoria | 7th of the following month; no June monthly return | 21 July; no extensions | Once Australian wages exceed the threshold and you pay wages in Victoria | One threshold per group; each member tested separately for the regional rate |
| Queensland | 7 days after the period ends (monthly or half-yearly); December due 14 January 2027 | 21 July | Within 7 days of the end of the first month Australian wages exceed $25,000 a week | Only the designated group employer claims the deduction; the threshold is tested on group wages |
| Western Australia | 7th of the following month. Monthly if liability is $150,000 or more; quarterly if less; annual if under $20,000 | 21 July, with the June return | Within seven days after the end of the month Australian wages exceed $83,333 | Group wages combined for registration and threshold; members jointly liable for the group’s tax |
| South Australia | 7th of the following month; October 2026 due 9 November, December due 14 January 2027 | 28 July | When Australia-wide wages exceed $1.5 million and you pay wages in SA | Every member paying SA wages registers; group Australia-wide wages set the deduction and the rate |
| Tasmania | 7th of the following month | 21 July Annual Adjustment Return, replacing the June return | When Australian wages exceed $1.25 million a year or $24,038 a week in a month | All Tasmanian wage-paying members register; one threshold per group |
| Australian Capital Territory | 7th of the following month; December due 14 January | 28 July | Within 7 days after the end of the month you go over $145,833.33 | One member claims the threshold; others pay the group’s rate on all ACT wages |
| Northern Territory | 21st of the following month (October 2026 due 23 November); annual lodging possible if liability is $20,000 or less | 21 July | In the month after Australian wages first exceed $208,333 | Group wages decide registration, the deduction and, from 1 July 2026, the 6.5% rate |
Sources, read 1 October 2026: Revenue NSW key dates (10 September 2026) and registration; SRO Victoria monthly and annual returns; QRO due dates (5 August 2026) and registration; RevenueWA returns and registration (14 March 2026); RevenueSA monthly returns and registration; SRO Tasmania returns and registration; ACT Revenue Office and grouping; Territory Revenue Office FAQ. Grouping is harmonised nationally: related companies, common control, shared employees and traced controlling interests all form a group, and a group can span states (Revenue NSW).
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Taxable wages
The definition is harmonised across the states and is wider than gross pay, which is why a business that watches only its payroll total can cross the payroll tax threshold without noticing.
Everything paid for work, including overtime, leave paid out and unused rostered days off.
Employer super, including the 12% super guarantee and salary-sacrificed amounts, is taxable in every state.
The grossed-up taxable value of fringe benefits is included. Benefits exempt under the FBT law stay out.
Motor vehicle and accommodation allowances are taxable only above each state's exempt rate. Most other allowances are fully taxable.
Payments under a relevant contract are taxable unless an exemption applies, such as services provided to the public generally.
Directors' remuneration, employment termination payments and the value of shares or options granted to employees all count.
Each office publishes an A to Z list; Revenue NSW, QRO and SRO Victoria are the three most used. Exempt wages, such as paid parental leave and wages to some apprentices and trainees, are on the same pages.
When to register
Registration turns on the monthly threshold, not the annual one. Six checks decide the date.
In most states you must register within 7 days after the end of the first month in which Australian wages exceed the monthly threshold. One month over the line is enough.
A business paying $70,000 a month in Perth and $20,000 in Darwin is over the WA monthly threshold of $83,333.
Related businesses, businesses under common control and businesses that share employees are tested together, even if one member alone is under the threshold.
Queensland asks employers over $25,000 a week to register even if annual wages will stay under $1.3 million. NSW requires nil returns once registered.
Start or stop employing mid-year and the annual threshold is apportioned by days. Six months in NSW gives about $604,932, not $1.2 million.
Each state gives you a share of its threshold equal to that state's share of your Australian wages, claimed in each annual return.
Getting started
One dedicated accountant, working in your Xero, MYOB, QuickBooks or Reckon payroll, prepares the figures and the reconciliation. You or your registered agent lodge in the state portal.
Each employee is tagged to the state they work in, and super, fringe benefits, allowances and contractor payments are coded so the taxable wages report is right at month end.
Taxable wages for each state, the threshold share and the tax payable are calculated after the month's final pay run and sent to you with the workpaper before the 7th.
FreeMyCloud is not a registered tax or BAS agent and does not lodge. You, or your registered agent, enter the figures in the state portal and pay.
Before 21 July the year is reconciled to the payroll ledger, the super ledger and the FBT return, with the interstate and part-year apportionments worked out, so the annual return takes one sitting.
Related pages
Frequently asked questions
$1,200,000 a year, with a monthly threshold of $92,055, $98,630 or $101,918 depending on the days in the month, at 5.45% on wages above the threshold. Monthly returns are due on the 7th (14 January for December) and the annual return on 28 July (Revenue NSW, updated 1 July 2026).
$1,000,000 a year, or $83,333 a month, at 4.85%. Regional employers who pay at least 85% of their Victorian wages to regional employees pay 1.2125%. The deduction phases out between $3 million and $5 million of Australian wages, and a national payroll over $10 million attracts a 1% surcharge on the Victorian share, rising to 2% over $100 million (SRO Victoria, updated 29 September 2026).
$1.3 million a year in Australian taxable wages. The rate is 4.75% at or under $6.5 million and 4.95% above, with a 1% regional discount to 30 June 2030. The deduction reduces by $1 for every $7 over the threshold and is nil at $10.4 million. A mental health levy of 0.25% applies to the Queensland share of wages over $10 million, plus 0.5% over $100 million (Queensland Revenue Office).
$1,000,000 a year, or $83,333 a month, at 5.5%. The threshold diminishes between $1 million and $7.5 million, by $2 for every $13 of wages over $1 million, and is nil at $7.5 million or more. Monthly returns are due on the 7th and the annual reconciliation on 21 July (RevenueWA, updated 2 June 2026).
Across Australia. Every state tests your total Australian wages, or your group's, against its threshold. If you are over, you pay tax in each state where you employ, on that state's wages, with a share of each state's threshold equal to that state's share of your total wages.
The ACT threshold fell from $2 million to $1.75 million ($145,833.33 a month) with five rate bands from 6.75% to 8.75% (ACT Revenue Office). The Northern Territory added a 6.5% rate for employers or groups with Australia-wide wages of $100 million or more; the $2.5 million threshold and 5.5% rate stay for everyone else (Territory Revenue Office). No other state changed its threshold or base rate.
Monthly returns and payments are due on the 7th of the following month in NSW, Victoria, Queensland, WA, SA, Tasmania and the ACT, and on the 21st in the Northern Territory. The December return is due 14 January in NSW, Queensland, SA and the ACT. The annual return or reconciliation is due 21 July in Victoria, Queensland, WA, Tasmania and the NT, and 28 July in NSW, SA and the ACT.
Yes. Employer super, including the 12% super guarantee and salary-sacrificed super, is taxable wages in every state and territory. Under payday super the contribution is due within 7 business days of each payday, so the month's super figure is known before the payroll tax return is prepared (see our payday super guide).
No. FreeMyCloud is not a registered tax or BAS agent and does not lodge any return. Your dedicated accountant prepares the monthly taxable wages by state, the threshold apportionment, the tax payable and the annual reconciliation workpapers. You, or your registered agent, lodge and pay in the state portal. The Tax Practitioners Board keeps a public register of agents.
This page is general information about Australian payroll tax thresholds, rates and due dates, current as at 1 October 2026. It is not tax, financial or legal advice. FreeMyCloud is not a registered tax or BAS agent and does not lodge on your behalf. Thresholds, rates and dates change; check the revenue office pages linked above and confirm your own position with your registered tax or BAS agent.
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