Payroll Tax Australia


Payroll tax in Australia is calculated on employees’ wages. If a business is expecting its payroll to be more than $550,000, it must check the registration requirements for the state in which it is operating. If you run a business, you should understand Australian payroll requirements such as:

  • Wage Payment Periods

You can pay your workers each week, fortnight or month.

  • Single Touch Payroll (STP)

You must report salaries, wages, tax, pay-as-you-go (PAYG) withholding and superannuation data to the Australian Taxation Office (ATO) using STP-enabled software.

  • Payroll Tax

When your payments pass the threshold for your state or territory, your company must pay payroll taxes for wages, salaries, allowances, bonuses and commissions.

All Australian states and territories require employers to carry workers compensation insurance for all employees and pay a statutory amount (9.5 per cent, but it could vary in the future) of a worker’s wages to a Superannuation fund, and report fringe benefits tax.


Our BYO Group team sees building a great working relationship you, the business owner, as a crucial part of your success.


At BYO Group, we offer many bookkeeping services, including payroll tax processing. 

We also have strong working relationships with many tax agents and accountants.


Payroll Tax Calculator

Payroll TaxBusinesses don’t remain static; they grow and need more staff, so when this happens, you need to be able to deal with the ATO’s payroll tax requirements. One of the best ways of handling this is to call BYO Group as we are payroll tax specialists.

Payroll Tax Rates

The following payroll tax rates and thresholds applying in the Australian states and territories:

Victoria (Vic)

  • July 1, 2019 – June 30, 2020: 6
  • Threshold: 50,000 annually, 54,166 monthly
  • Rate: 4.85
  • 2.425 for regional employers

New South Wales (NSW)

  • July 1, 2019 to June 30, 2020: 
  • Threshold: $900,000
  • Rate: 5.4 per cent 

Queensland (Qld)

  • July 1, 2019 – June 30 2020
  • Threshold: $1,300,000
  • Rate:4.75 per cent for employers paying $6.5 million or less in wages
  • 4.95 per cent for employers paying above $6.5 million in wages.

Western Australia (WA)

  • Up to June 30, 2023, payroll tax is calculated on a scale that gradually increases the tax rate to a maximum of 6.5 per cent for employers with annual taxable wages of more than $100 million.

South Australia (SA)

  • A payroll tax liability arises in SA when an employer has a wages bill above: $1 500 000 per annum.
  • Between $1.5 million and $1.7 million benefit from a reduced payroll tax rate.

Northern Territory (NT)

  • July 2019 to June 2020
  • Threshold $1.5 million or $125,000 per month. 
  • Rate 5 per cent

Australian Capital Territory (ACT)

  • July 1, 2016 to current
  • Threshold: Monthly $166,666.66
  • Annual: $2,000,000
  • Rate: 6.85 per cent

Tasmania (Tas)

  • July 1, 2019 to June 30 2020
  • Threshold: $1.25 million to $2 million
  • Rate 4 per cent
  • Above $2 million: 6.1 per cent

If you’re searching for ‘payroll tax calculator’ or ‘payroll services near me or nearby’ then get in touch with us at BYO Group. We’d love to hear from you, so call us on 0402 100 421, drop in to our Hawthorn Vic office, or complete the convenient online form and we’ll get back to you.


The ongoing support from BYO books has just been fantastic. Diane and her team is extremely responsive and reliably intuitive to my needs, demonstrating their commitment to great customer service and their superior knowledge base on bookkeeping issues and how to use Xero to full advantage.

I have no hesitation in recommending Diane and her team at BYO Books to any business needing a responsive and reliable bookkeeping service.

Alison McWhirter Photography

We were using a manual Excel system of record keeping prior to working with BYO Books. Diane made the transition to Xero as seamless as possible without too much stress or work from me.  We now use Receipt Bank and she manages everything remotely. Our records are always up to date and I can request any report I like and she usually sends it within a couple of hours. The service level is excellent and we are always compliant with all tax and employer  obligations. I only wish I had made the change to BYO Books years ago as I now have more time to run my business rather than being the bookkeeper for it.

Pure Distillery Company – Dean Lucas

After many years of unreliable reactive bookkeeping we were thrilled to find Diane McCaffrey and her team at BYO Bookkeeping Services. Diane assisted us in developing a systemised, time efficient and proactive bookkeeping system for our small business. I find Diane and her team to be highly professional and efficient and a true pleasure to work with. And she is a great bookkeeper: diligent and detail oriented, down to the last penny. Diane continues to be an integral part of our success and we truly value and are grateful for our association with her.

Eat Play Thrive – Vicky Kuriel