Queensland payroll tax is a self-assessed state tax on wages paid to Queensland employees once total Australian taxable wages pass the threshold. The rate is 4.75% for employers or groups paying $6.5 million or less in Australian taxable wages and 4.95% above that, and the threshold is $1.3 million a year. Eligible regional employers get a 1% discount on the rate until 30 June 2030.
Queensland's design has two moving parts, a threshold and a separate deduction that shrinks as wages rise, which is where most of the confusion comes from. Everything below comes from the Queensland Revenue Office's payroll tax pages, and the figures are as of October 2026.
Queensland rates at a glance
| Item | Queensland rule |
|---|---|
| Rate, Australian taxable wages $6.5 million or less | 4.75% |
| Rate, Australian taxable wages over $6.5 million | 4.95% |
| Regional discounted rates | 3.75% and 3.95%, from 1 July 2019 to 30 June 2030 |
| Regional discount cut-off | Not available above $350 million in Australian taxable wages |
| Annual threshold | $1.3 million in Australian taxable wages |
| Deduction range, yearly | $1,300,000 to $10,400,000 |
| Deduction range, monthly | $108,333 to $866,666 |
| Mental health levy | Applies proportionately to Queensland taxable wages above the levy thresholds, on top of payroll tax |
Notice that the threshold and the rate both look at your Australian wages, or your group's, not just Queensland wages. Interstate employers and groups often cross the line sooner than they expect.
How the Queensland deduction shrinks
A deduction may be available if your total annual Australian taxable wages are less than $10.4 million. Above the $1.3 million threshold, the deduction reduces by $1 for every $7 of taxable wages over that amount, reaching zero at $10.4 million. Monthly, the maximum deduction is $108,333, reducing by $1 for every $7 over that, and it's gone when monthly wages reach $866,666.
- Actual periodic deduction: worked out for every periodic return, for employers not in a group who only pay wages in Queensland. QRO Online calculates it for you.
- Fixed periodic deduction: worked out at the start of the financial year, for employers not in a group who pay interstate wages, or for the designated group employer of a group.
- In a group, only the designated group employer can claim the deduction, and it can nominate a group member to receive any excess.
The regional discount, and who it suits
You're a regional employer if your principal place of employment is in regional Queensland and you pay at least 85% of your Queensland taxable wages to regional employees. Your principal place of employment is your registered ABN business address.
Here's the detail that catches seasonal businesses. A regional employee is someone whose principal place of residence is in regional Queensland, and the QRO says transient and temporary accommodation doesn't count. Working holiday makers, PALM scheme workers and others on similar temporary arrangements generally don't keep a principal place of residence there, so a farm or tourism business leaning on them can miss the 85% test.
When you must register in Queensland
You must register within 7 days of the first month in which your Australian wages, or your group's, exceed $25,000 a week. The QRO is clear that you must register even if you expect to pay less than $1.3 million in Australian taxable wages over the financial year.
- Work out your employer status, including whether you're part of a group.
- Have your Queensland and interstate taxable wages to the most recent month ready, plus group member details if relevant.
- Create an individual QRO Online account; you can't set up a generic company account.
- Register, then link your account to the business once the notice of registration arrives.
Groups, part years and nil liability
If you're a member of a group of employers, the $1.3 million threshold is worked out on the group's combined annual Australian taxable wages. If you don't employ for the full financial year, or you've lodged a final return, the threshold is calculated proportionately on the number of days you paid, or were liable to pay, wages in that period.
And registration isn't the same as a bill. With annual Australian taxable wages of $1.3 million or less you may still need to register for payroll tax, even though you may not have a liability.
Lodging and paying
| Return | Due |
|---|---|
| Monthly or half-yearly periodic return | 7 days after the end of the period, for example 9 November 2026 for October 2026 |
| June | No periodic return; June wages go in the annual return |
| Annual return | 21 July each year, so 21 July 2027 for 2026-27 |
| Final return | Within 21 days of a change of status |
If a due date falls on a weekend or public holiday, it moves to the next business day. Late returns attract unpaid tax interest and penalties. For a side-by-side with the state next door, see payroll tax in NSW, and remember payroll tax is separate from the federal superannuation guarantee.
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The verdict
If your Australian wages are heading towards $25,000 a week, register in Queensland even if you think you'll finish the year under $1.3 million. If you're regional, test the 85% rule against where your staff live, not where they work. And if your wages sit between $1.3 million and $10.4 million, the shrinking deduction means your bill grows faster than the headline rate suggests.
Frequently asked questions
What is the payroll tax rate in Queensland?
4.75% for employers or groups paying $6.5 million or less in Australian taxable wages, and 4.95% above that.
What is the Queensland payroll tax threshold?
The threshold is $1.3 million in annual Australian taxable wages, calculated on the group's wages if you're grouped.
When do I need to register for payroll tax in Queensland?
Within 7 days of the first month your Australian wages, or your group's, exceed $25,000 a week, even if you expect to stay under $1.3 million for the year.
What is the regional payroll tax discount in Queensland?
Eligible regional employers get a 1% discount, giving rates of 3.75% and 3.95%, until 30 June 2030. It doesn't apply above $350 million in Australian taxable wages.
When is the Queensland annual payroll tax return due?
By 21 July each year. There's no separate June periodic return.
How does the Queensland payroll tax deduction work?
It reduces by $1 for every $7 of annual Australian taxable wages over $1.3 million and reaches zero at $10.4 million.
