• Payroll tax is usually calculated monthly and must therefore be calculated for each new month.
• To calculate your payroll tax for the month you need to:

• add up the gross taxable wages in the state or territory in which you are paying the tax

• for example the total taxable wages paid or payable to employees in Victoria for the month;

• subtract any approved deduction from the gross taxable wage value if applicable; and
• multiply the remaining amount by the applicable tax rate in your state or territory.

• The equation is as follows:

• (gross taxable state or territory wages – deduction) x tax rate = payroll tax liability.

• The applicable tax rate in Australia differs between each state and territory. Currently the tax rate is:
  • Australian Capital Territory: 6.85%;
  • New South Wales: 5.45%;
  • Northern Territory: 5.50%;
  • Queensland: 4.75%;
  • South Australia: 4.95%;
  • Tasmania: 6.10%;
  • Victoria: 4.85%; and
  • Western Australia: 5.50%

This tax rate is subject to change. You should ensure you double check which rate applies