What is the payroll tax threshold in TAS 2026?

Answer

The payroll tax threshold for Tasmania in 2026 has not yet been announced. For the 2024-25 financial year, it is $1.25 million, and it is reviewed annually, typically updated closer to the new financial year.

State Revenue Office of Tasmania
Last Updated:May 5, 2026

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How it works in practice

Understanding Payroll Tax in Tasmania

Payroll tax is a state-based tax on wages paid by employers. In Tasmania, if the total taxable wages paid by an employer (or group of employers) exceed a certain annual threshold, they are liable to pay payroll tax to the State Revenue Office (SRO).

The Annual Threshold

The threshold is the amount of wages an employer can pay before they become liable for payroll tax. This figure is reviewed and adjusted annually by the Tasmanian Government, often announced in the state budget or by the SRO. The specific threshold for the 2026 financial year (1 July 2025 to 30 June 2026) will be determined and published by the SRO closer to that period, usually in mid-2025.

Why Thresholds Change

Thresholds are typically adjusted to reflect economic conditions, inflation, or government policy changes, aiming to reduce the tax burden on smaller businesses while ensuring adequate revenue for the state. Employers should always refer to the official SRO Tasmania website for the most current and accurate information.

Important exceptions

The payroll tax threshold is subject to annual review and legislative changes by the Tasmanian Government, meaning the 2026 figure is not yet fixed and may differ from previous years.

Different rules and calculations apply to 'grouped employers' (businesses that are related or associated), who share a single threshold across the entire group. Exemptions may also apply for certain types of wages or organisations.

What you should do now

  1. Regularly check the State Revenue Office of Tasmania website for official announcements regarding the 2026 payroll tax threshold as the new financial year approaches.

  2. Understand the current payroll tax rates and how to calculate your taxable wages according to Tasmanian legislation.

  3. If you operate as part of a group of businesses, clarify how the shared threshold and grouping provisions apply to your total wage bill.

  4. Maintain accurate and up-to-date records of all wages paid to employees to ensure compliance with payroll tax obligations.

  5. Consult with a qualified tax advisor or accountant to ensure your business correctly applies the payroll tax laws and thresholds.

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