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Taxes in Australia

Compulsory Superannuation Contribution

Note that all Australian employers must contribute to the employee’s superannuation fund (Australia's version of a retirement pension).

The Australian Super guarantee (SG) is the minimum amount employers must pay to avoid incurring a super guarantee charge. As of July 1st 2023, the super guarantee is set at 11% of an employee’s ordinary time earnings, but this figure is scheduled to increase progressively up to 12% by July 1, 2027.

Victoria

$650,000 - is the annual threshold triggering payroll tax

4.85 %

state payroll tax

2.425 %

for regional areas

1.2125 %

for regional bushfire affected areas

New South Wales
4.85 %

state payroll tax

$1.2 million - is the annual threshold triggering payroll tax

Queensland
4.75 %

for employers with $6.5 million or less in Australian taxable wages

4.95 %

for employers with more than $6.5 million in Australian taxable wages

$1.3 million - is the annual threshold triggering payroll tax

Regional employers may be entitled to a 1% discount on the rate until 30 June 2023

Northern Territory
5.5 %

state payroll tax

$1.5 million - is the annual threshold triggering income tax

South Australia

Variable up to 4.95% - for between $1.5 million to $1.7 million in Australian taxable wages

4.95 %

state payroll tax where Australian taxable wages exceeds $1.7 million

$1.5 million - is the annual threshold triggering income tax

Western Australia

Until July 1, 2023, payroll tax in WA is calculated on a tiered rate scale that gradually increases the tax rate to a maximum of 6.5% for employers with annual Australian taxable wages of more than $1 million.

Tasmania
4 %

state payroll tax for between $1.25 million to $2 million in Australian taxable wages

6.1 %

state payroll tax for over $2 million in Australian taxable wages

$1.25 million - is the annual threshold triggering income tax

Australian Capital Territory
6.85 %

state payroll tax

2 million - is the annual threshold triggering payroll tax

Employee income taxes

Employee income tax rates are standardised Australia-wide.

0 %

Income up to AUD 18,200

19 %

AUD 18,200-AUD 45,000

32.5 %

AUD 45,000-AUD 120,000

37 %

AUD 120,000-AUD 180,000

45 %

AUD 180,000 and over