New payroll tax rate for large employers from 1 July 2026

From 1 July 2026, the Payroll Tax Act 2009 will be amended to introduce a new payroll tax rate of 6.5% for employers, and member of payroll tax groups, with Australia-wide wages of $100 million or more.

The general payroll tax rate of 5.5%, the $2.5 million tax-free threshold and existing deduction settings will continue to apply for employers below the $100 million threshold. For grouped employers, the higher rate is determined by reference to the group’s combined Australia-wide wages.

For more information, read Payroll tax changes from 1 July 2026 and 2026-27 Budget measures new payroll tax rate for large employers DOCX (69.1 KB).