What is the Current (2025-2026) Payroll Tax Threshold in Queensland?
- johnry8
- Sep 11
- 2 min read
As your business grows, there comes a point where payroll tax may come into play. Many owners think of payroll tax as something that only applies to big companies, but in Queensland the rules can affect medium sized businesses too.
Understanding the payroll tax threshold matters because it helps you:
Plan as your team expands
Avoid unexpected tax bills and penalties
Stay on the right side of Queensland Revenue Office requirements
The truth is, even if you are not there yet, it is important to know the numbers so you can plan with confidence.
The 2025-2026 Threshold in Queensland
The payroll tax threshold in Queensland is 1.3 million dollars in annual Australian taxable wages.
This means:
If your total wages for the year are 1.3 million dollars or less, you generally do not need to pay payroll tax
If your total wages are more than 1.3 million dollars, you will need to register and lodge payroll tax returns
It is also worth noting that wages do not just mean salaries. They also include allowances, superannuation, certain contractor payments, and even some benefits provided to employees.
If you run more than one business under the same control, the wages of all those businesses may be grouped together when working out whether you have crossed the threshold.
What Happens When You Cross the Threshold
If your wages go above the threshold:
You will need to register for payroll tax within seven days
Payroll tax will be applied to the portion of your wages above the threshold
The rate depends on the total wages you pay, with different rates applying to regional employers and larger businesses
Failing to register or lodge returns on time can lead to penalties and interest, which is why staying ahead of the rules is so important.
Common Pitfalls Businesses Face
Here are some of the mistakes we often see:
Forgetting to include allowances, super or contractor payments when calculating wages
Not realising that multiple businesses under the same ownership may be grouped together
Waiting too long to register and then being hit with fines
Best Practices for Peace of Mind
Check your payroll figures regularly so you know if you are getting close to the threshold
Keep accurate records of wages, super and contractor payments
Use reliable accounting software to help track payroll tax obligations
Speak with a tax professional to make sure you are not paying more than you should or missing something important
Do you know if your business is getting close to the Queensland payroll tax threshold?