Pay-roll tax is a State tax based on the annual pay-roll of employers. The legislation under which pay-roll tax operates is the Pay-roll Tax Act 1971. Booklet copies of the Act may be purchased from the Government Printer. Pay-roll tax should not be confused with employee PAYE Income Tax, collected by the Australian Taxation Office.

Pay-roll tax is chargeable when the total yearly Australian taxable wages of an employer, or those of a group of related employers, exceed the current exemption threshold of $1,000,000. (View exemption thresholds for prior years)

Employers or groups of related employers are pay-roll tax liable if their total Australian taxable wages or those of the group exceed the exemption threshold.

Pay-roll tax registration is required within seven days after the end of the month in which, for the first time, the total weekly Australian taxable wages of the employer exceeds $19,230.

Members of a group of related employers are required to apply for registration within seven days after the end of the month in which they first pay taxable wages as a member of a group.

The current pay-roll tax rate is 4.75%

To calculate the tax payable, subtract the provisional deduction from the Queensland taxable wages and apply the tax rate to the balance. Pay-roll tax can be paid by BPAY, Electronic Funds Transfer (EFT), cheque or cash.

If you employ only in Queensland, you may be able to claim an actual periodic deduction. Refer to the Periodic returns - Actual periodic deductions section of the Pay-roll tax Information Kit for more information.

If you employ in Queensland and at least one other Australian state or territory, you may be able to claim a fixed periodic deduction. Refer to the Periodic returns - Fixed periodic deductions section of the Pay-roll tax Information Kit for more information.