Payroll Tax for Contractors - A changing world

What is payroll tax?

• State and Territory based tax.

• Victoria imposes payroll tax on wages over $900,000:

  • 4.85%

  • 1.2125% for regional Victorian employers

  • Threshold phases out between $3 million and $5 million

  • Extra 1% total surcharges for national payroll above $10 million or 2% over $100 million.

• Threshold reduces to reflect Victorian % of total Australian wages.

• Top rate in other Australian jurisdictions include 5.45% in New South Wales and can be up to 7.35% (in ACT).

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