From 1 July 2018 to 30 June 2023, payroll tax is calculated on a tiered rate scale in which the payroll tax rate gradually increases to a maximum of 6.5% for employers, or groups of employers, with annual Australian taxable wages (ATW) exceeding $100 million.
See the rates and thresholds for the current and previous years, including information about
- changes to the threshold amount since 1 January 2020
- how the diminishing threshold is calculated using the tapering value
- annual tax-free threshold amounts
- annual and monthly upper thresholds at which the tax-free threshold phases out.
- The upper threshold amount is $7,500,000 which equates to a monthly threshold amount of $625,000.
- Once the total Australian taxable wages paid by an employer, or group of employers, are equal to or exceed the upper threshold amount, payroll tax is payable on the employer’s total taxable wages without any deduction.
Thresholds can be apportioned if you don't pay wages for a whole financial year, become a member of a group or stop being a member of a group.
Employer registration status
Show moreAn employer means any person who pays or is liable to pay, any wages. This includes the Crown in right of the State of Western Australia and an employment agent.
An employer or group of employers who pay wages in WA must register for payroll tax if, during any one month, their total Australian taxable wages (ATW) exceed the monthly threshold amount of $70,833. You will be registered as one of the following
- a local non-group employer – wages are paid only in WA and the employer is not a member of a group
- an interstate non-group employer – wages are paid both in WA and at least one other Australian jurisdiction and the employer is not a member of a group
- a local group employer – the employer is grouped with at least one other wage-paying entity and all members of the group pay wages only in WA or
- an interstate group employer – the employer is grouped with at least one other wage-paying entity and pays wages in WA. At least one member of the group pays wages in another Australian state or territory, regardless of whether the other group member also pays wages in WA.
Your registration status will affect your eligibility for the gradual diminishing tax-free threshold and rate of tax (where applicable), the method of calculating payroll tax payable in WA and your reporting and lodgment requirements at annual reconciliation.