Queensland payroll tax for 2026-27 is 4.75% for employers paying $6.5 million or less in Australian taxable wages and 4.95% above that, with a $1.3 million threshold. The threshold is not a flat exemption. It reduces by $1 for every $7 of wages above $1.3 million and is gone at $10.4 million.
Published: November 2026
Queensland also has the lowest registration trigger of the mainland states. You must register once wages pass $25,000 in a week, even if you will never owe any tax that year. If you want someone watching that trigger for you, see our Brisbane bookkeeping services.
Payroll tax is a state tax on wages, administered in Queensland by the Queensland Revenue Office (QRO). It is self-assessed. You register, lodge and pay through QRO Online.
Taxable wages include salary, super, bonuses, commissions, allowances, fringe benefits and some contractor payments. See our guide to payroll tax on contractors for how contractor payments are treated.
For the other states, see our state-by-state payroll tax thresholds and rates guide.
The QRO requires you to register within 7 days after the end of the month in which you pay more than $25,000 a week in Australian taxable wages, or become a member of a group that together pays more than that.
$25,000 a week is $1.3 million a year. One large week is enough, so a bonus run or a redundancy payment can trigger registration in a business that otherwise sits well under the threshold. You must register even if you expect to pay less than $1.3 million for the year. Registering does not mean you will pay tax. Missing the registration is the avoidable mistake.
If you are part of a group, the threshold is tested on the group's combined wages. Our payroll tax grouping guide covers how groups are formed.
The $1.3 million figure is a deduction from your taxable wages. Once your annual Australian taxable wages go above $1.3 million, the deduction reduces by $1 for every $7 over that amount. It reaches zero when wages reach $10.4 million.
For a Queensland-only employer:
Worked example 1: $2,000,000 in wages.
Reduction: ($2,000,000 less $1,300,000) divided by 7 = $100,000.
Deduction: $1,300,000 less $100,000 = $1,200,000.
Taxable: $2,000,000 less $1,200,000 = $800,000.
$800,000 x 4.75% = $38,000 for the year.
Worked example 2: $5,000,000 in wages.
Reduction: ($5,000,000 less $1,300,000) divided by 7 = $528,571.
Deduction: $1,300,000 less $528,571 = $771,429.
Taxable: $5,000,000 less $771,429 = $4,228,571.
$4,228,571 x 4.75% = $200,857 for the year.
Use our payroll tax threshold calculator or the QRO's periodic liability calculator to run your own figures.
The rate is set by your total Australian taxable wages. At $6.5 million or less you pay 4.75%. Above $6.5 million you pay 4.95%, and the higher rate applies to all of your taxable wages, not just the part above $6.5 million.
That creates a step. At exactly $6,500,000 in wages:
Deduction: $1,300,000 less ($5,200,000 divided by 7) = $557,143.
Taxable: $5,942,857.
At 4.75%: $282,286.
One dollar higher, the same taxable wages are charged at 4.95%, which is about $294,171. Crossing $6.5 million adds roughly $11,900 a year before any extra wages are counted. If your forecast lands close to $6.5 million, it is worth knowing which side of the line a late bonus or new hire will put you on.
Eligible regional employers get a 1% discount on the rate until 30 June 2030, which gives rates of 3.75% and 3.95%. To qualify, an employer's principal place of employment needs to be in regional Queensland and at least 85% of its taxable wages need to be paid to regional employees. The discount is not available to employers paying more than $350 million in Australian taxable wages.
On the $2,000,000 example above, a qualifying regional employer pays $800,000 x 3.75% = $30,000 instead of $38,000.
The mental health levy is charged on top of payroll tax. It applies proportionately to Queensland taxable wages above the levy thresholds:
Example: a Queensland-only employer with $12,000,000 in wages pays the levy on the $2,000,000 above the first threshold. $2,000,000 x 0.25% = $5,000.
Like the payroll tax deduction, the levy thresholds are shared across a group and apportioned for interstate wages.
Wages paid to eligible apprentices and trainees are generally exempt from Queensland payroll tax. On top of the exemption, employers can claim a rebate that reduces the tax on their other wages. The rebate is 50% and has been extended to cover wages paid up to 30 June 2027.
The QRO works it out as 50% of the exempt apprentice and trainee wages, multiplied by your payroll tax rate. On $50,000 of apprentice wages in a month, that is $50,000 x 50% x 4.75% = $1,187.50 off that month's liability. It is calculated automatically when the apprentice wages are entered in the return, which means it is lost if those wages are coded with ordinary wages.
Most employers lodge monthly through QRO Online, with each return due 7 days after the end of the month. The annual return is due by 21 July and replaces a separate June return. It reconciles the year: actual wages, the final deduction after the taper, the rate that applied, the mental health levy and any rebate.
Because the deduction and the rate both depend on full-year wages, monthly returns are estimates. Employers whose wages grow during the year often owe a top-up in July. A monthly review of year-to-date wages against the taper removes the surprise.
That review is part of our outsourced payroll services, along with registration, periodic returns and the annual return.
What is the payroll tax threshold in Queensland for 2026-27?
$1.3 million in annual Australian taxable wages. The deduction reduces by $1 for every $7 above that and is nil at $10.4 million.
What is the Queensland payroll tax rate?
4.75% if you pay $6.5 million or less in Australian taxable wages, and 4.95% if you pay more.
When do I have to register for payroll tax in Queensland?
Within 7 days after the end of the month in which your Australian taxable wages, or your group's, exceed $25,000 a week.
Do I have to register if I will be under $1.3 million for the year?
Yes, if you passed $25,000 in any week. You may have no tax to pay, but you still need to register and lodge.
Who gets the regional payroll tax discount in Queensland?
Employers whose principal place of employment is in regional Queensland and who pay at least 85% of taxable wages to regional employees. It runs until 30 June 2030.
What is the Queensland mental health levy?
An extra charge on larger employers: 0.25% on Queensland taxable wages above $10 million, and a further 0.5% above $100 million.
Is the apprentice and trainee rebate still available?
Yes. The 50% rebate has been extended to wages paid up to 30 June 2027.
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We review and check this guide periodically. At the time of writing (November 2026), all information was current. Scale Suite is a registered BAS Agent, not a licensed tax advisor or financial advisor. This content is general information only and does not constitute professional tax, financial, or legal advice. Some details may change over time.
Scale Suite is a Sydney-based provider of outsourced finance and HR services for Australian SMEs. We deliver bookkeeping, financial reporting, payroll processing, fractional CFO support, recruitment, employee onboarding, people and culture support, and fractional HR oversight, all as a fully embedded team that works inside your business.
Employment Hero Gold Partner, CA-qualified, and Xero Certified, we replace fragmented finance and HR processes with one responsive, senior-level function at a fraction of the cost of full-time hires. We serve growing businesses across Sydney, Melbourne, Brisbane, Adelaide, and Perth, with packages starting from $1,500 per month and no lock-in contracts.
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