Payroll tax regional discount in Victoria
Victoria's table records a payroll tax rate of its own for a regional employer, together with the minimum share of taxable wages paid to regional employees, measured for a month and for a financial year. A regional employee is a person whose work in Victoria is performed mainly in regional Victoria.
- By Book Keeping Pros
- Sources checked 15 Oct 2026
The rules in Victoria
| What it is | Value | When it applies | Where it is set |
|---|---|---|---|
| Payroll tax rate for a regional employer | 1.2125% | From 1 July 2021 | Sch 1 cl 1, definition of R, para (h)(i) |
| Minimum share of a month's taxable wages paid to regional employees | 85% | As published on 1 May 2026 | s 3A(2)(a): monthly regional wages share |
| Minimum share of a financial year's taxable wages paid to regional employees | 85% | As published on 1 May 2026 | s 3A(2)(b): annual rate reduction threshold |
| Who counts as a regional employee | A person whose work in Victoria is performed mainly in regional Victoria | As published on 1 May 2026 | s 3B: meaning of regional employee |
Each rule is read from the source and provision shown; the sources are listed below. Checked 15 Oct 2026.
What it means for your books
- The share is worked out from taxable wages, so the books need each employee's wages tagged as regional or not, giving a regional total for each month.
- Whether someone is a regional employee depends on where their work in Victoria is mainly performed. A record of each employee's usual work location, and the date it changes, is what that tagging rests on.
- The table sets the share for the month and for the financial year, so the monthly regional totals need to add up to a yearly figure that can be set against the annual share.
- Whether the business is a regional employer for a month or a year is for your accountant or State Revenue Office Victoria to confirm, using the wage figures the books provide.
General information
Sources
- Payroll Tax Act 2007 (Vic), Authorised Version No. 041
Office of the Chief Parliamentary Counsel Victoria. Authorised Version No. 041, as at 1 May 2026, released 1 May 2026. Checked 15 October 2026.
© State of Victoria (Government Printer) Licence: Victorian Legislation copyright notice: copyright, State of Victoria.
- Payroll tax
State Revenue Office Victoria. Page updated 24 August 2026 (last_update_date metadata), released 24 August 2026. Checked 15 October 2026.
© State of Victoria (State Revenue Office), licensed under CC BY 4.0 Licence: CC BY 4.0.
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