Payroll tax in Western Australia
This page describes the annual calculation for an employer that pays taxable wages throughout the financial year and is not part of a payroll tax group. Part-year employment and grouping can change the threshold and deduction. Western Australia imposes payroll tax through two Acts: the Pay-roll Tax Assessment Act 2002 (WA) sets the threshold and deduction, and the Pay-roll Tax Act 2002 (WA) sets the rate. The threshold and rate shown are those for 2025-26 and 2026-27.
- By Book Keeping Pros
- Sources checked 15 Oct 2026
Annual threshold amount
$1,000,000
- Rate
- 5.5%
Payroll tax, 2026-27
1 July 2026 to 30 June 2027
| What it is | Value | Where it is set |
|---|---|---|
| Annual threshold amount | $1,000,000 | s 8(1) |
| Upper threshold amount, at or above which there is no deduction | $7,500,000 | s 8(3) |
| Rate | 5.5% | s 5(4) |
Each value is read from the source and provision shown; the sources are listed below. Checked 15 Oct 2026.
Payroll tax, 2025-26
1 July 2025 to 30 June 2026
| What it is | Value | Where it is set |
|---|---|---|
| Annual threshold amount | $1,000,000 | s 8(1) |
| Upper threshold amount, at or above which there is no deduction | $7,500,000 | s 8(3) |
| Rate | 5.5% | s 5(4) |
Each value is read from the source and provision shown; the sources are listed below. Checked 15 Oct 2026.
How it works in Western Australia
- RevenueWA administers payroll tax in Western Australia. No tax is payable for a year in which the employer's total Australian wages are at or below the threshold amount in s 8 of the Assessment Act.
- Above the threshold, the deduction shrinks steadily as Australian wages grow, and there is no deduction at all once they reach the upper threshold shown in the table.
- The Assessment Act works out one deduction for employers paying wages only in Western Australia and another for those paying wages elsewhere too, scaled to the Western Australian part of their total wages.
- Wages above the deduction are taxed at one rate. The tables show no step to a higher rate and no surcharge or levy for Western Australia.
- The rate comes from s 5 of the Pay-roll Tax Act 2002 (WA), which has applied it to wages paid since July 2023.
- The threshold, the upper threshold and the rate are identical in 2025-26 and 2026-27, so the two tables differ only in the period they cover.
General information
Sources
- Pay-roll Tax Assessment Act 2002 (WA), version 04-d0-03
Parliamentary Counsel's Office, Western Australia. Version 04-d0-03, as at 1 July 2019, released 1 July 2019. Checked 15 October 2026.
Sourced from the Western Australian Legislation website (www.legislation.wa.gov.au), licensed under CC BY 4.0 Licence: CC BY 4.0.
- Pay-roll Tax Act 2002 (WA), version 00-d0-02
Parliamentary Counsel's Office, Western Australia. Version 00-d0-02, as at 14 December 2017, released 14 December 2017. Checked 15 October 2026.
Sourced from the Western Australian Legislation website (www.legislation.wa.gov.au), licensed under CC BY 4.0 Licence: CC BY 4.0.
- About payroll tax
RevenueWA (Department of Treasury and Finance, Western Australia). Page last updated 14 April 2026, released 14 April 2026. Checked 15 October 2026.
© State of Western Australia Licence: WA.gov.au terms of use: copyright, State of Western Australia (personal, educational or in-house non-commercial use with attribution).
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