Payroll tax in the Northern Territory is collected by the Territory Revenue Office, not the ATO, and it applies once your wage bill crosses the territory threshold. The NT changed its settings on 1 July 2026, and the headline is good news for most NT employers: the threshold went up, not down. Here is what applies for the 2026-27 financial year.
From 1 July 2026, the Northern Territory raised its annual payroll tax threshold from $1.5 million to $2,500,000, the highest threshold of any state or territory in Australia. The rate is a flat 5.5% on wages above the threshold, and the NT uses a hard cut-in, so you pay nothing below $2.5 million and 5.5% on the amount above it.
The practical effect of that high threshold is that many small and medium NT businesses pay no payroll tax at all. It is a genuine advantage of operating in the Territory, and it means the threshold is only a live concern once your wage bill is well into the millions.
From 1 July 2026 the NT also introduced a higher rate of 6.5% for employers, and members of payroll tax groups, with Australia-wide wages of $100 million or more. The standard 5.5% rate continues to apply to everyone else. Like the surcharges in other jurisdictions, this only affects very large national businesses, so it is background for almost every small and medium employer.
NT taxable wages include salaries, superannuation, bonuses, commissions, allowances, fringe benefits and many contractor payments. Super forms part of the base, so it sits alongside the rest of your payroll obligations rather than being separate from them, and contractor payments can count even when the worker invoices you.
Not sure whether your NT wages are anywhere near the new threshold? Book a free call and we will check it with you.
You register with the Territory Revenue Office once it is clear your wages will exceed the threshold. Once registered, you lodge returns through the NT's online system, generally monthly, with an annual reconciliation after the financial year ends in July. Because the threshold is now so high, many NT employers who previously had to register may find they fall below it.
If you have staff in the NT and other states, you apportion your wages and the NT threshold applies only to the Territory share. The harmonised grouping rules apply, so related or commonly controlled businesses are grouped and share a single threshold. This matters as soon as you are growing a team across more than one jurisdiction. Our payroll tax by state guide compares the NT with every other state and territory.
From 1 July 2026 the Northern Territory threshold is $2.5 million, the highest in Australia, at a flat 5.5%, with a 6.5% rate for very large national employers above $100 million. The high threshold means many NT businesses pay nothing, super and many contractor payments count as wages, and the grouping rules mean related businesses share one threshold. If your wage bill is climbing toward $2.5 million, that is when it becomes a live issue.
We handle payroll tax registration and lodgement as part of our fixed-fee packages, with every question answered within 24 hours. Book your free call here.
Figures are current for the 2026-27 financial year and were checked in September 2026. This article is general information only and does not take your circumstances into account. Please seek advice tailored to your situation before acting.
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