What is the payroll tax threshold in NSW 2026?
The payroll tax threshold for NSW in 2026 has not yet been officially announced. It is typically determined and published by Revenue NSW closer to the relevant financial year. Businesses should monitor official updates.
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How it works in practice
Understanding Payroll Tax in NSW
Payroll tax is a state-based tax levied on the wages paid by employers. In New South Wales, businesses are required to pay payroll tax if their total Australian wages exceed a certain threshold. This threshold is reviewed and adjusted periodically, usually annually, by Revenue NSW. The purpose of payroll tax is to generate revenue for the state government to fund public services.
Current Thresholds and Future Announcements
While the threshold for 2026 is not yet available, for the 2024-25 financial year, the NSW payroll tax threshold is $1.2 million. The threshold for subsequent years, including 2026, is subject to future government announcements and legislative changes. Businesses are advised to refer to the official Revenue NSW website for the most up-to-date and accurate information as it becomes available.
Important exceptions
The payroll tax threshold can change each financial year, so the 2026 figure will differ from current amounts. Different aggregation rules apply to grouped businesses, meaning related entities are treated as a single employer, and their combined wages are assessed against the threshold. Additionally, specific types of wages, such as certain fringe benefits or superannuation contributions, may be included or excluded from the calculation, impacting a business's total taxable wages.
What you should do now
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Monitor the official Revenue NSW website regularly for announcements regarding the 2026 payroll tax threshold as it approaches.
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Consult with a qualified tax advisor or accountant to understand how future changes may impact your business's specific payroll obligations.
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Accurately track all wages and taxable benefits paid to employees to ensure readiness for payroll tax assessments.
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Understand the aggregation rules if your business is part of a group, as this affects the overall threshold application.
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Register with Revenue NSW for payroll tax if your business anticipates exceeding the current or future thresholds.
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