Payroll Tax on $1,000,000 in Australian Capital Territory (2026-27)
Payroll Tax Breakdown
| Total wages | $1,000,000 |
| Adjusted threshold | $1,750,000.00 |
| Taxable wages | $0.00 |
| Base payroll tax | $0.00 |
| Surcharges | $0.00 |
| Total annual payroll tax | $0.00 |
| Effective rate | 0% |
Assumes all Australian wages are paid in ACT and no regional discounts apply. Thresholds can be apportioned when wages are paid across multiple states.
Compare Nearby Wage Levels in ACT
| Total Wages | Payroll Tax | Effective Rate |
|---|---|---|
| $1,000,000 | $0.00 | 0% |
| $2,000,000 | $16,875.00 | 0.844% |
Compare Payroll Tax Across States
Payroll tax at this wage level
At wages under $1.5 million, you fall below the threshold in many states — ACT ($1.75M), SA ($1.5M), QLD ($1.3M), TAS ($1.25M), NSW ($1.2M), VIC ($1M) and WA ($1M) all have thresholds in this range. For a single-state employer at this level, payroll tax may be zero or minimal. The biggest risk is inadvertently crossing the threshold through hiring or wage increases mid-year.
Registration threshold
You must register for payroll tax once your total Australian wages exceed (or are expected to exceed) the state threshold within a financial year. Registration is required within 7 days. Failing to register and pay can result in penalties and interest backdated to when the liability first arose.
Watch for threshold crossing mid-year
If you hire staff or increase wages partway through the year, you may cross the threshold for the full year — not just from the date of crossing. Payroll tax is calculated on annual wages, so a December hire can mean payroll tax applies from the preceding July.
Typical businesses: Small businesses with 5-15 employees, sole traders with a few staff, early-stage startups, and small professional practices.
Payroll Tax in Australian Capital Territory
From 1 July 2026 the ACT threshold is $1.75 million (cut from $2 million) and a tiered general rate replaced the old flat 6.85% + surcharge model. The rate is 6.75% up to $20 million of Australia-wide wages, then 6.85% (>$20M), 7.35% (>$50M), 7.85% (>$100M) and 8.75% (>$150M). Eligible universities are capped at 6.85%.
How to calculate payroll tax on $1,000,000 in ACT
- Start with total annual wages of $1,000,000 in Australian Capital Territory.
- Apply the adjusted threshold ($1,750,000.00) to identify taxable wages.
- Calculate base payroll tax and then add any applicable surcharges for ACT.
- Confirm the annual payroll tax result ($0.00) and compare against nearby wage levels or other states.
ACT Payroll Tax Calculator
Need a precise payroll tax calculation for Australian Capital Territory? Use the ACT calculator for interstate wages, regional rates, and surcharge tiers.