What is the payroll tax threshold in QLD 2026?
The exact payroll tax threshold for Queensland in 2026 is not yet announced. It is typically determined closer to the financial year by the Queensland Government. The current annual payroll tax threshold in Queensland is $1.3 million.
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How it works in practice
Understanding Queensland Payroll Tax
Payroll tax is a state-based tax levied on employers in Queensland whose total Australian wages exceed a certain threshold. It is applied to wages paid or payable to employees, including salaries, superannuation contributions, bonuses, and certain fringe benefits. The purpose of payroll tax is to contribute to state revenue, which funds public services.
Current Thresholds and Future Uncertainty
As of the current financial year, the annual payroll tax threshold in Queensland is $1.3 million. This means employers whose total Australian wages fall below this amount are generally not required to pay payroll tax. However, the threshold for future years, such as 2026, is subject to annual state budget announcements and legislative changes. Governments periodically review and adjust these figures based on economic conditions and policy objectives. Therefore, the precise threshold for 2026 will be confirmed closer to that time.
Important exceptions
The payroll tax threshold applies to total Australian wages, meaning wages paid across all Australian states and territories must be aggregated to determine if the threshold is met, even if a business only has a small presence in Queensland. Different rates of tax apply depending on the total wage bill and whether the employer is grouped with other entities. Grouped employers are treated as a single entity for threshold purposes, meaning their combined wages are assessed against the threshold. Additionally, certain types of wages or benefits may be exempt from payroll tax, and specific industry concessions might apply, further impacting an employer's liability.
What you should do now
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Confirm your total Australian wages annually to determine if they exceed the current or future Queensland threshold.
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Monitor the Queensland Government's Office of State Revenue (OSR) website for official announcements regarding the 2026 payroll tax threshold.
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Seek professional advice from an accountant or tax advisor if you are part of a group of employers, as complex grouping provisions apply.
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Ensure accurate record-keeping of all wages paid to employees to facilitate correct payroll tax calculations.
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Register for payroll tax with the OSR Queensland if your total Australian wages are expected to exceed the relevant threshold.
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