Rates and Thresholds

Payroll Tax Rates

From 1 January 2019, businesses with annual taxable wages of up to $1.5 million are no longer liable for payroll tax and those with taxable wages between $1.5 million and $1.7 million benefit from a reduced payroll tax rate.

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 but not $1.7 millionExceeds $1.7 million
from 1 January 2019nilvariable from 0% to 4.95%4.95%
1 July 2017 to 31 December 2018 nil 2.5%*

variable from 2.5% to 4.95%*

4.95%
1 July 2009 to 30 June 2017 nil 4.95%

* Reduced rate provided by ex gratia.

link to calculate your payroll tax rate

A rate table is available to provide an indication of the new payroll tax rates.

Payroll Tax Threshold

You must register for payroll tax once your Australia wide wages exceed the threshold.

Effective Date Maximum Threshold (Per Annum)
from 1 January 2019$1 500 000
1 July 2009 to 31 December 2018 $600 000
1 July 2008 to 30 June 2009 $552 000

Payroll Tax Maximum Deduction

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 Vehicle1
(per km)
Accommodation2
(per night)
1 July 2019 to 30 June 202068c$280.75
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

1. The motor vehicle exempt rate is aligned with the rate determined by the Federal Commissioner of Taxation for the previous financial year (i.e. rate used in 2019-20 is the ATO 2018-19 rate).

2. The accommodation exempt rate is based on the related ATO figure for the current financial year (i.e. rate used in 2019-20 is the ATO 2019-20 rate), and is the total reasonable amount for daily travel allowances using the lowest capital city for the lowest salary band.

Interest and Penalty Tax

See Interest & Penalty Tax page.