Quick answer
Queensland payroll tax starts at $1.3 million in yearly Australian wages, or $108,333 in a month. The rate is 4.75% (4.95% once wages pass $6.5 million), and regional employers who qualify pay 1% less until 30 June 2030. The catch is a shrinking deduction: a business with $1.4 million in wages is taxed on about $114,000, not $100,000.
Key points
- The threshold is $1.3m a year, or $108,333 a month, and groups combine their wages before testing it
- Rates are 4.75% on payrolls to $6.5m and 4.95% above; qualifying regional employers pay 1% less until 30 June 2030
- Above $1.3m the deduction melts away and is gone at $10.4m, so each extra wage dollar in that band is taxed at about 5.4%, not 4.75%
- Registration is due a week after the first month your wages pass the line, even if you expect to end the year under it
- June has no return of its own (it rolls into the annual one due 21 July), and December's isn't due until 14 January
Queensland lets you pay up to $1.3 million a year in Australian taxable wages before payroll tax bites, which the Queensland Revenue Office (QRO) expresses as a $108,333 monthly deduction. Beyond it the rate is 4.75% (4.95% once wages pass $6.5 million), and qualifying regional employers pay 1% less until 30 June 2030. The part most owners miss is the taper: your allowance wears away as you hire, so the bill runs higher than the headline maths suggests.
What are the current Queensland payroll tax settings?
Here’s what QRO’s rates, deductions and regional discount pages show:
| Item | Current setting |
|---|---|
| Threshold | $1.3m a year, all Australian wages |
| Monthly deduction | $108,333 |
| Standard rate (wages $6.5m or less) | 4.75% |
| Standard rate (wages above $6.5m) | 4.95% |
| Regional discount | 1% off the rate, until 30 June 2030 |
| Deduction taper | $1 lost for every $7 above $1.3m; nil at $10.4m |
Plenty of 8 to 12 person Queensland businesses never register. That can change fast with a second site or a run of new apprentices. The all-states comparison is on our payroll tax thresholds page, and the Queensland hub has the rest of the state’s tax picture. Wages are counted across Australia, so a Brisbane business with interstate staff tests the whole payroll against the threshold.
Why is the bill bigger than “rate times the excess”?
Don’t read $1.3 million as a flat tax-free amount. Past that mark QRO claws the deduction back at one dollar per seven dollars of extra wages, until nothing is left at $10.4 million. That arrangement has been in place since 1 January 2023.
In practice, taxable wages equal 8/7 of the amount over $1.3 million. Each extra wage dollar in that band carries tax of about 5.4 cents at the standard rate, not 4.75 cents. A $100,000 pay rise across the team costs roughly $5,430 in payroll tax on top of the wages and super themselves.
Illustrative example: a fabrication shop in Wacol pays $1.4 million in wages.
- Wages over $1.3m: $100,000
- Deduction lost: about $14,286, leaving $1,285,714
- Taxable wages: about $114,286
- Annual bill at 4.75%: about $5,430, or roughly $450 a month
Small to start with, but it’s a permanent line in the budget, and it arrives in the same week as other deadlines.
What will a regional employer’s first bill look like?
The regional discount takes 1% off the rate, so 3.75% for payrolls up to $6.5 million. Two tests apply together. First, the address on your ABN has to sit in one of seven named regions: Cairns, Central Queensland, the Darling Downs and Maranoa, Mackay with Isaac and the Whitsundays, the Outback, Townsville or Wide Bay. Second, at least 85% of what you pay in Queensland must go to people who live in regional Queensland. Temporary digs don’t count, and QRO says working holiday makers and PALM scheme workers generally won’t qualify, though it looks at each case on its facts.
Illustrative example: a Toowoomba agricultural-equipment dealer pays $1.9 million in wages, nearly all to staff living in the Darling Downs.
- Wages over $1.3m: $600,000
- Deduction lost: about $85,714, leaving about $1,214,286
- Taxable wages: about $685,714
- Bill at 3.75%: about $25,714
- Bill at 4.75% (without the discount): about $32,571
The discount is worth about $6,860 a year to this business. Claim it by selecting the regional employer option in QRO Online when you lodge, and the lower rate applies automatically. Eligibility is re-tested with every return. Claim it all year, slip below 85% by the annual return, and the standard rate is applied instead. Our regional payroll tax discount guide covers the 85% test in detail, and the Toowoomba and Darling Downs page has the local picture.
What about a Gold Coast employer?
Don’t assume “regional” means anywhere outside Brisbane. The Gold Coast isn’t on QRO’s list of regional areas, so a business there pays the standard rate.
Illustrative example: a Burleigh Heads building-services firm pays $2.1 million in wages.
- Wages over $1.3m: $800,000
- Deduction lost: about $114,286, leaving about $1,185,714
- Taxable wages: about $914,286
- Annual bill at 4.75%: about $43,430, or around $3,620 a month
That’s the cost of a new hire or two every year, so it’s worth building into pricing. The Gold Coast page covers that market’s lending side.
If a growing payroll is about to squeeze your cash, check your options early. The enquiry takes about a minute, and it doesn’t touch your credit file.
When do you have to register?
Per QRO, you’ve a week after the end of the first month in which wages (yours or your group’s) top the line. Expecting to land under $1.3 million for the full year doesn’t excuse you. One month above $108,333 sets the clock running. Wages cast a wide net: bonuses, allowances, employer super and some contractor payments can all count, so work through our registration checklist. The payroll tax checker gives a quick read on where you stand.
Related businesses share one threshold. If you own two companies that together pay $1.2 million, you’ll want to know that before the second hire, not after.
What are the Queensland lodgement dates?
Each monthly return, and the payment with it, falls due a week after the month closes. If that lands on a weekend or public holiday you get the next business day. From QRO’s due-dates page:
| Return | Due |
|---|---|
| October 2026 | 9 November 2026 |
| November 2026 | 7 December 2026 |
| December 2026 | 14 January 2027 |
| January 2027 | 8 February 2027 |
| February 2027 | 8 March 2027 |
| Annual return 2026–27 (includes June) | 21 July 2027 |
Two traps to watch. The December return gives you until 14 January, so don’t diarise the 7th out of habit. And June has no return of its own: those wages are folded into the annual return, so a cash squeeze in June really shows up in July. This is the cash-flow point to plan for, because the annual return and payment fall due while you’re also dealing with new-financial-year costs.
What does late cost?
Skip a return and QRO can assess you by default, carrying penalty tax of 75% of the payroll tax, sitting on top of the bill itself. In some cases it climbs higher; in others it’s remitted. Interest on unpaid tax also ticks over daily from the morning after the due date until the balance is cleared.
Groups carry shared risk: when one member leaves its tax unpaid, the others can be pursued for it, including a company that employed nobody that month. If cash is the problem, lodge on time and speak to QRO about paying, rather than letting both slide.
Is there anything else for large employers?
Big payrolls also face a separate mental health levy, calculated on Queensland wages over its own thresholds. QRO sets the figures out on its levy pages. A business on a few million in wages is unlikely to meet it, but if you’re heading toward a very large payroll, look before you budget.
What should you do before you cross the line?
- Run a monthly wage tally, super included. The warning light is $108,333.
- Look at who you’re related to. Companies under common control pool one threshold.
- Check where your people live. The 85% regional test follows home addresses, not the depot’s.
- Work the taper into forecasts. Multiply the excess by 8/7 before applying the rate.
- Park cash for tax each payday in a separate account.
- Mark 14 January and 21 July in the calendar, not just the 7th of the month.
- Recheck each July, and any time you add a site or win a large contract.
How should you price payroll tax into a quote?
Think per wage dollar. In the taper band each additional dollar of wages carries about 5.4 cents of tax at the standard rate and about 4.3 cents at the regional rate. Load that onto the hourly labour cost for fixed-price jobs and multi-year contracts, where the price can’t be revisited once the first return lands.
When might finance help?
Growth tends to need cash before it earns it. Owners use funding to carry wages for new hires while a client pays in arrears, to cushion a few early returns, to fit out a second premises or to ride out a slow season. Unsecured and line-of-credit options for trading businesses typically run from $5,000 to $500,000, sized on turnover and bank statements. Where property can be offered as security, lending runs from $20,000 to $5,000,000.
Outgrowing the threshold? Let’s line up the cash before the first return.
Hiring, opening another site or chasing a big contract? Tell us where the business sits today. Enquiring takes about 60 seconds and there’s no credit check at this stage, so asking won’t touch your credit file. Your details don’t get sprayed across a pile of lenders: one team reads them, and a real person with a feel for Queensland trading calls you about your situation. Please fill the form in accurately, with real turnover and wage numbers, so we can match the right option first time.
Frequently asked questions
How high is Queensland's payroll tax threshold?
$1.3 million a year in Australian taxable wages, per the Queensland Revenue Office (QRO). Groups pool every member's wages before testing, and a part-year threshold is cut back day by day.
Which payroll tax rate will I pay in Queensland?
Two rates apply: 4.75% on payrolls of up to $6.5 million, and 4.95% for bigger ones. Country employers who pass the regional tests can knock 1% off, which gives 3.75% and 3.95%.
Why is my Queensland payroll tax bill higher than rate times the wages over the threshold?
As wages grow, the deduction wears away. Every $7 above $1.3 million removes $1 of it, until it's gone at $10.4 million. On a $1.4 million payroll that leaves a deduction near $1,285,714 and roughly $114,286 taxable.
When do I have to register for payroll tax in Queensland?
Seven days after the end of the first month your wages, or your group's, go over the threshold. A forecast of finishing the year below $1.3 million doesn't remove the duty to register.
What are the lodgement dates for Queensland returns?
A monthly return and its payment fall due a week after the month ends, rolling to the next business day if that's a weekend or public holiday. The October 2026 return is due 9 November, November's on 7 December, and December's on 14 January 2027. The 2026–27 annual return, which covers June, is due 21 July 2027.
What happens if I lodge or pay late?
Where no return is lodged and QRO assesses you by default, penalty tax of 75% of the payroll tax can be added to the liability, and interest accrues on anything unpaid from the day after it was due. Every member of a group can be liable if one member doesn't pay.
Is there a separate mental health levy?
Yes. QRO adds a mental health levy for large employers, worked out on Queensland wages over its own thresholds. Smaller payrolls don't reach it, and the current thresholds and rates are on QRO's levy pages.
Can a business loan help with a payroll tax bill?
It can help with timing, such as carrying wages for new staff before a contract pays, or covering a quiet month. Whether it fits depends on your turnover, trading history and what the money is for.