• Payroll Tax Rate Change

    From 1 July 2018, payroll tax is calculated on a tiered rate scale that gradually increases from 5.5 per cent to 6.5 per cent for employers, or groups of employers, with Australian taxable wages exceeding $100 million. The tiered rate scale is to be in effect until June 2023.

    The tiered rate scale was announced as part of the 2017/18 State Budget. In December 2017, legislative changes introduced the progressive scale to come into effect from the start of the 2018/19 financial year.

    The tiered scale will affect the rate of payroll tax applied to the proportion of an employer’s or group of employers’ WA taxable wages that relate to their Australian taxable wages such that:

    • for an employer or group of employers paying taxable wages of $100 million or less – the rate applied to that part of their WA taxable wages will remain at the current 5.5 per cent.
    • for an employer or group of employers paying taxable wages of between $100 million and $1.5 billion – the rate applied to that part of their WA taxable wages will be increased to 6 per cent.
    • for an employer or group of employers paying taxable wages of $1.5 billion or more – the rate applied to that part of their WA taxable wages will be increased to 6.5 per cent.

    For more information, see the Calculation of Payroll Tax web page and the relevant calculation fact sheets.

    Published date: 29 June 2018