State payroll tax estimate.
Annual payroll tax
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A state tax that only bites once you grow
Payroll tax is one of the few major business taxes in Australia run by the states and territories rather than the ATO. Each jurisdiction levies it on the total wages an employer pays, but only on the amount above an annual threshold. Below the threshold you pay nothing, which is why small employers often never encounter it. Cross the line and tax applies to the excess at the state's rate. This calculator takes your annual total wages and your state, subtracts that state's threshold, and applies the right rate so you can see the liability and where you sit relative to the threshold.
Every state draws the line differently
This is the rare tax where geography changes the bill outright, so the state you operate in genuinely matters. The thresholds and rates built into this tool reflect the major jurisdictions: New South Wales taxes wages above $1.2 million at 5.45 percent, Victoria above $900,000 at 4.85 percent, Queensland above $1.3 million at 4.75 percent, Western Australia above $1 million at 5.5 percent, and South Australia above $1.5 million at 4.95 percent. The differences are large enough that an identical payroll can produce very different tax depending on which side of a border the wages are paid. The calculator handles each state's pairing of threshold and rate for you.
A $2 million payroll in New South Wales
Take a New South Wales business paying $2 million in annual wages. The threshold is $1.2 million, so the taxable amount is the $800,000 above it. At the 5.45 percent rate that gives payroll tax of $43,600. Note the rate never touches the first $1.2 million, only the excess. The table shows the steps, and how the same payroll would look in two other states.
| State | Wages above threshold | Payroll tax on $2M |
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Grouping: the rule that stops the obvious dodge
The most important trap is grouping. Related businesses, those under common control or sharing employees, are grouped together and made to share a single threshold rather than claiming one each. Without this rule a business could split into several entities, each ducking under the threshold, and pay no payroll tax at all. Grouping shuts that door, and it catches more arrangements than people expect, including some labour-hire and franchise structures. If you run multiple companies, assume they may be grouped until you have confirmed otherwise, because getting it wrong can mean an unexpected assessment across the whole group.
What counts as wages, and who should check
This tool is for employers and bookkeepers near or above a state threshold who want a quick read on their exposure. A point that surprises many: the wages base is wider than salaries. It typically includes superannuation contributions, most fringe benefits, bonuses, commissions, and often payments to certain contractors who are really employees in substance. So a business can cross the threshold sooner than its headline salary bill suggests. The calculator uses a flat threshold-then-rate model, which is the right shape for most situations, but some states phase the threshold out or apply a deduction-style scaling for larger payrolls, so treat the result as a solid estimate rather than a lodged figure, and confirm with your state revenue office.
Is superannuation included in payroll tax wages?
In every state, yes. Employer super contributions form part of the taxable wages for payroll tax, so the 12 percent superannuation guarantee you pay on top of salaries counts toward whether you cross the threshold and how much tax applies above it.
Do I register for payroll tax in every state I employ people?
Generally you register and pay in each state or territory where you pay wages, and the thresholds are apportioned between them based on where the wages are paid. A business operating across borders cannot claim a full threshold in every state, so multi-state employers should look at how the shared threshold is split rather than assuming a fresh tax-free amount everywhere.