Payroll Tax in Western Australia

Western Australia charges payroll tax at 5.5% on wages above $1,000,000. WA has a tiered rate: 5.5% for wages up to $100M, 6.5% above $100M.

Threshold
$1,000,000
Rate
5.5%
FY Period
2025–26

Payroll Tax by Wage Level — WA

Total WagesPayroll TaxEffective Rate
$500K Exempt 0%
$750K Exempt 0%
$1M Exempt 0%
$1.2M $11,000 0.92%
$1.3M $16,500 1.27%
$1.5M $27,500 1.83%
$1.8M $41,250 2.36%
$2M $55,000 2.75%
$2.5M $82,500 3.30%
$3M $110,000 3.67%
$4M $165,000 4.12%
$5M $220,000 4.40%
$7.5M $357,500 4.77%
$10M $495,000 4.95%

How WA Compares — on $2M Total Wages

StateThresholdRateTax 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 $900,000 4.85% $53,350
WA ← you are here $1,000,000 5.5% $55,000

Key Facts — Western Australia Payroll Tax

Who needs to register? Any employer (or group of employers) with total Australian wages exceeding $1,000,000 in WA must register for payroll tax with Department of Finance WA.

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: Department of Finance WA — Payroll Tax →

Calculate Your Payroll Tax → True Cost of Employee →