What is the payroll tax threshold in WA 2026?
The payroll tax threshold for Western Australia in 2026 has not yet been officially announced. It is typically determined and published closer to the relevant financial year, but is currently $1 million per annum for 2024-25.
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How it works in practice
Understanding Payroll Tax Thresholds in WA
Payroll tax is a state-based tax levied on employers whose total Australian wages exceed a specific threshold. Each state and territory in Australia sets its own threshold and rates. For Western Australia (WA), the exact payroll tax threshold for the 2026 financial year (1 July 2025 - 30 June 2026) has not yet been legislated or announced.
Historically, these thresholds are subject to annual review and are typically published by the WA Department of Finance (Office of State Revenue) closer to the commencement of the new financial year. For context, the current annual payroll tax threshold in WA for 2024-25 is $1 million. Businesses must keep track of their total wages paid to determine if they meet or exceed this threshold, triggering payroll tax obligations.
Employers operating in WA should regularly monitor official government announcements from the WA Department of Finance for the most up-to-date information regarding the 2026 payroll tax thresholds and any associated rates or legislative changes.
Important exceptions
The payroll tax threshold changes annually, so the 2026 figure will differ from previous years and is subject to state budget decisions. Different rates of payroll tax apply once the threshold is exceeded, and these can also vary. Certain wages, such as those paid to apprentices or trainees, might be exempt. Additionally, if an employer is part of a group of related businesses, the grouping provisions may apply, meaning the threshold is shared across the entire group, potentially bringing more businesses into the payroll tax net sooner.
What you should do now
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Monitor the official WA Department of Finance (Office of State Revenue) website for announcements regarding the 2026 payroll tax threshold.
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Understand how to calculate your total Australian wages, as this determines your payroll tax liability.
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Assess if your business's aggregated wages are likely to exceed the current or projected threshold for the 2025-26 financial year.
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If your wages are near or above the threshold, consider registering for payroll tax with the WA Department of Finance to ensure compliance.
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Seek professional advice from a tax accountant or financial advisor if you are unsure about your payroll tax obligations or calculations.
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