Rates and Thresholds

Payroll Tax Rates

The Government has announced amendments to the Payroll Tax Act 2009 to reduce payroll tax for small businesses.

With these amendments, from 1 January 2019, businesses with annual taxable wages of up to $1.5 million will be exempt from payroll tax and those with wages between $1.5 million and $1.7 million will benefit from a reduced payroll tax rate. The legislative amendments to implement the above measures are contained in the Payroll Tax (Exemption for Small Business) Bill 2018 (the “Bill”), which was introduced into Parliament on 20 June 2018.

This rate table will be updated once the Bill comes into force as an Act.

Effective Date Annual Australian Taxable Payroll
Does not exceed
$600 000
Exceeds $600 000
but not $1 million
Exceeds $1 million
but not $1.5 million
Exceeds $1.5 million
from 1 July 2017nil2.5%variable from 2.5% to 4.95%4.95%(1)
1 July 2009 to 30 June 2017 nil4.95%(1)
1 July 2008 to 30 June 2009nil5%(2)

(1) Prescribed in the Payroll Tax Act 2009   (2) Prescribed in the Pay-roll Tax Act 1971

Variable PRT Calculator

Calculate your rate here for 2017-2018

Enter total Australian wages (if you are part of a group, please enter your group's total Australian wages) for the full financial year*



*NOTE: the rate is based on annualised wages. e.g. If you employ for only 150 days in the year and the wages paid during that period is $630 000, your annualised wages total would be calculated as follows:
$630 000/150 multiplied by 365 or 366 days. Your annualised wages would therefore be $1 533 000.

Payroll Tax Maximum Deductions (Threshold)

Payroll tax maximum deduction amounts are prescribed in the Payroll Tax Act 2009.

Effective Date Maximum Deduction
Per Annum Per Month
from 1 July 2009     $600 000 $50 000
1 July 2008 to 30 June 2009(1) $552 000 $46 000

(1) Prescribed in the Pay-roll Tax Act 1971

Motor Vehicle & Accommodation Allowance Rate

Motor vehicle and accommodation allowances are not taxable to the extent that each of these does not exceed the exempt rate as listed in the table below

Effective Date Allowable Deduction
Motor Vehicle
(per km)
Accommodation
(per night)
1 July 2018 to 30 June 201966c$278.05
1 July 2017 to 30 June 2018 66c$266.70
1 July 2016 to 30 June 2017 66c $257.95
1 July 2015 to 30 June 2016 77c $255.45
1 July 2014 to 30 June 2015 77c $253.25
1 July 2013 to 30 June 2014 75c $250.85
1 July 2012 to 30 June 2013 75c $248.25
1 July 2011 to 30 June 2012 75c $238.10
1 July 2010 to 30 June 2011 75c $227.35
1 July 2009 to 30 June 2010 75c $223.80
1 July 2008 to 30 June 2009 70c $218.30

Interest and Penalty

See Interest & Penalty page.