Western Australia payroll tax, 2026–27
| Annual threshold | $1,000,000 |
| Monthly threshold | $83,333 |
| Rate | 5.5% |
| Threshold phase-out | $2 for every $13 of wages over $1m; nil at $7.5m |
| Monthly returns due | 7th of the next month |
| Annual reconciliation and June return for 2026–27 due | 21 July 2027 |
RevenueWA lists these rates as applying from 1 July 2023; its calculation pages were last updated on 2 June 2026 and their worked examples use 2025–26. The estimator works out the full-year amount; RevenueWA settles any difference from the monthly estimates at the annual reconciliation.
Checked on 22 October 2026 against RevenueWA: calculation · RevenueWA: interstate non-group employer · RevenueWA: returns · RevenueWA: annual reconciliation. Rates can change each 1 July. Check your figures with the revenue office before you lodge.
Two examples
Wages paid only in WA
A business pays $3,000,000 of taxable wages in WA for the full year and none elsewhere. That's $2,000,000 over $1m, so the deductable amount drops by 2/13 of that to $692,308. Tax is 5.5% of $2,307,692: about $126,923 for the year.
Wages paid in WA and Queensland
A business pays $1,800,000 in WA and $600,000 in Queensland, so $2,400,000 in Australia. The deductable amount on that is $784,615, and WA is 75% of the wages, so its share is $588,462. WA tax is 5.5% of $1,211,538: about $66,635. Queensland payroll tax is worked out separately; the estimator above shows both.
These businesses are made up. Each one is a single employer, not part of a group.
WA payroll tax questions
What is the WA payroll tax threshold?
$1,000,000 a year ($83,333 a month), according to RevenueWA. You're not liable if your Australian taxable wages are $1m or less. It's reduced if you pay wages interstate or only paid wages for part of the year.
How does the WA diminishing threshold work?
Between $1m and $7.5m of Australian wages, the deductable amount is $1,000,000 less 2/13 of the wages over $1m. At $7.5m or more there is no deductable amount. If you pay wages interstate, it's multiplied by your WA share of Australian wages.
What is the WA payroll tax rate?
5.5% of taxable wages above the deductable amount.
When are WA payroll tax returns due?
Monthly and quarterly returns are due on the 7th day of the month after the period, and a monthly return must be lodged even when no tax is payable. The June return and the annual reconciliation are due by 21 July, so 21 July 2027 for 2026–27.
Prepare the return from Xero Payroll
Quarterday is in development. It will connect to Xero (read-only) and prepare payroll tax by state for you to check and lodge.