Payroll Tax in Victoria
Victoria charges payroll tax at 4.85% on wages above $900,000. Victoria has the lowest threshold in Australia at $900,000.
Threshold
$900,000
Rate
4.85%
FY Period
2025–26
Payroll Tax by Wage Level — VIC
| Total Wages | Payroll Tax | Effective Rate |
|---|---|---|
| $500K | Exempt | 0% |
| $750K | Exempt | 0% |
| $1M | $4,850 | 0.48% |
| $1.2M | $14,550 | 1.21% |
| $1.3M | $19,400 | 1.49% |
| $1.5M | $29,100 | 1.94% |
| $1.8M | $41,225 | 2.36% |
| $2M | $53,350 | 2.67% |
| $2.5M | $77,600 | 3.10% |
| $3M | $101,850 | 3.40% |
| $4M | $150,350 | 3.76% |
| $5M | $198,850 | 3.98% |
| $7.5M | $320,100 | 4.27% |
| $10M | $441,350 | 4.41% |
How VIC Compares — on $2M Total Wages
| State | Threshold | Rate | Tax on $2M |
|---|---|---|---|
| ACT | $2,000,000 | 6.85% | $0 |
| SA | $1,500,000 | 4.95% | $24,750 |
| NT | $1,500,000 | 5.5% | $27,500 |
| TAS | $1,250,000 | 4.0% | $30,000 |
| QLD | $1,300,000 | 4.75% | $33,250 |
| NSW | $1,200,000 | 5.5% | $44,000 |
| VIC ← you are here | $900,000 | 4.85% | $53,350 |
| WA | $1,000,000 | 5.5% | $55,000 |
Key Facts — Victoria Payroll Tax
Who needs to register? Any employer (or group of employers) with total Australian wages exceeding $900,000 in VIC must register for payroll tax with State Revenue Office Victoria.
What counts as wages? Salary, wages, commissions, bonuses, allowances, superannuation contributions, fringe benefits, and contractor payments (in some cases) are all included in the payroll tax calculation.
When is it due? Payroll tax is lodged and paid monthly (by the 7th of the following month). An annual reconciliation is required by 28 July each year.
Register here: State Revenue Office Victoria — Payroll Tax →