What is the payroll tax threshold in ACT 2026?
The exact payroll tax threshold for the ACT in 2026 has not yet been announced. Currently, for the 2024-25 financial year, the threshold is $1.7 million, with tax payable on wages exceeding this amount.
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How it works in practice
Understanding ACT Payroll Tax
Payroll tax is a state and territory tax levied on employers who pay wages above a certain threshold. In the Australian Capital Territory (ACT), this tax contributes to funding local services and infrastructure. The threshold for payroll tax is reviewed annually by the ACT Government, typically as part of the budget process.
Current Thresholds and Future Projections
For the 2024-25 financial year, the general payroll tax threshold in the ACT is $1.7 million. This means that businesses with annual Australian wages below this amount are generally exempt from paying payroll tax. Wages exceeding the threshold are subject to the applicable tax rate. As 2026 is still some time away, the specific threshold for that year will be formally announced closer to or during the 2025-26 ACT Budget. It's common for thresholds to be adjusted upwards due to inflation or policy changes, but employers should always refer to official government announcements for confirmed figures.
Important exceptions
The payroll tax threshold is subject to annual review and legislative changes by the ACT Government. Businesses with aggregated Australian wages above the general threshold may have different effective thresholds or tax rates based on their specific circumstances, such as being part of a group of employers.
Interstate wages must be considered when calculating total Australian wages for threshold purposes, even if those wages are paid outside the ACT. Specific exemptions apply to certain types of wages or organisations, such as some charities and not-for-profits.
What you should do now
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Monitor the official ACT Revenue Office website for updates on the 2026 payroll tax threshold as they become available.
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Review your business's aggregated Australian wages regularly to assess if you are approaching or exceeding the current and future thresholds.
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Budget for potential payroll tax liabilities, even if the exact 2026 threshold is not yet confirmed, by considering current rates and historical adjustments.
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Consult with a qualified tax advisor or accountant to understand your specific obligations and any potential exemptions or concessions.
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Ensure accurate record-keeping of all wages paid to employees, including any interstate wages, to facilitate correct payroll tax calculations.
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