Payroll tax in Tasmania is collected by the State Revenue Office, not the ATO, and it applies once your wage bill crosses the state threshold. Tasmania uses a two-band structure that is worth understanding, because the rate you pay depends on how far above the threshold your wages sit. Here is what applies for the 2026-27 financial year.
Tasmania has an annual payroll tax threshold of $1,250,000. Once your total Australian taxable wages cross that line, you pay 4% on the portion between $1.25 million and $2 million. On wages above $2 million, the rate rises to 6.1%. So Tasmania effectively has two bands: a lower 4% band for smaller employers over the threshold, and a higher 6.1% band once you are past $2 million.
One quirk worth knowing: if you choose not to claim the tax-free threshold, you pay 6.1% on all your Tasmanian taxable wages for the period. For almost every employer, claiming the threshold is the right move.
Tasmanian taxable wages cover salaries, superannuation, bonuses, commissions, allowances, fringe benefits and many contractor payments. Super is 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 which band your Tasmanian wages fall into? Book a free call and we will work it out with you.
You register with the State Revenue Office once it is clear your wages will exceed the threshold, not only once they have. Once registered, you lodge returns through Tasmanian Revenue Online, generally monthly, with an annual reconciliation after the financial year ends in July. The monthly threshold amount varies with the number of days in the month, so the exact monthly figure shifts slightly through the year.
If you have staff in Tasmania and other states, you apportion your wages and Tasmania's threshold applies only to the Tasmanian 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 building out a team across more than one state. Our payroll tax by state guide compares Tasmania with every other state and territory.
The usual traps apply: assuming payroll tax is federal rather than a State Revenue Office matter, forgetting that super and many contractor payments count as wages, and assuming a second entity resets the threshold when the grouping rules say otherwise. The Tasmania-specific one is overlooking the two-band structure and budgeting on a single rate, when in fact wages above $2 million are taxed at the higher 6.1%.
Tasmanian payroll tax starts at $1.25 million of annual wages, at 4% up to $2 million and 6.1% above that. Super and many contractor payments count as wages, the grouping rules mean related businesses share one threshold, and choosing not to claim the threshold means paying 6.1% on everything. If your wages are near or above $2 million, the band split is the detail to get right.
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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