Payroll tax changes for 2026-27

The 2026 determination lowered the threshold from $2,000,000 to $1,750,000 (monthly $145,833.33) and folded the surcharges for larger employers into a single general rate set by total wages: 6.75% up to $20m, 6.85% up to $50m, 7.35% up to $100m, 7.85% up to $150m and 8.75% above.^[3],[4] In 2025-26 the rate was 6.85%, plus 0.5% above $50m and 1% above $100m, with 8.75% from 1 January 2026 for employers above $150m.^[5],[6]

From 1 July 2026 the Payroll Tax Act 2009 charges 6.5% instead of 5.5% when the Australian wages of the employer, or of its group, are $100 million or more for the year. The $2.5 million threshold, the deduction and the 5.5% rate are unchanged for everyone else.^[1],[7]

• NSW: $1,200,000 and 5.45%, as every year since 2022-23.^[8]
• Victoria: $1,000,000 and the 50% phase-out, both from 2025-26; the two surcharges for Australian wages above $10 million continue, the COVID-19 debt surcharge until 30 June 2033.^[9],[10]
• Queensland: unchanged rates; regional discount to 30 June 2030 with an amnesty until 31 December 2026 for certain incorrect claims; the Home Ownership and Other Legislation Amendment Act 2026, assented on 22 October 2026, confirms the Commissioner may exclude a set of persons from a group.^{[11],[12],[13]}
• Western Australia: $1,000,000, 5.5%, diminishing to $7.5m.^[14]
• South Australia: $1,500,000 and up to 4.95%.^[15]
• Tasmania: $1.25m and $2m, 4% and 6.1%.^[16]

Because the ACT rate is chosen by total wages and then applied to all ACT wages above the threshold, one more dollar of wages at a bracket limit changes the tax on everything. An ACT-only employer paying $20,000,000 for the full year pays $1,231,875 at 6.75%; at $20,000,001 the rate is 6.85% and the tax $1,250,125, $18,250 more (our calculation with the formula of the Act).^[3],[6]

Monthly returns use their own brackets on total monthly wages: 6.75% above $145,833.33 up to $1,666,666.66, 6.85% up to $4,166,666.66, 7.35% up to $8,333,333.33, 7.85% up to $12,500,000 and 8.75% above.^[3] The annual return then settles the year on the annual brackets.

Five eligible universities are capped at 6.85%: Australian Catholic University, Charles Sturt University, The Australian National University, The University of New South Wales and University of Canberra. One in the lowest bracket pays 6.75%.^[3],[4]

The deduction is already nil at $7.5 million, so the new rate applies to every NT dollar. An NT-only employer with $120 million of wages pays $7,800,000 at 6.5%, $1,200,000 more than at 5.5% (our calculation). A group whose Australian wages reach $100 million pays 6.5% on its NT wages even if only a small part is paid in the Territory.^[7]

Separate from state payroll tax, the Payday Superannuation Act moved super guarantee contributions from quarterly to every payday from 1 July 2026: the fund must receive them within 7 business days of each payday.^[2] How it works, with a worked example.