Metropolitan employers

The tax-free annual threshold for 1 July 2021 to 30 June 2022 is $700,000, with a monthly threshold of $58,333.

The annual threshold is adjusted if you are not an employer for a full financial year.

The payroll tax rate is 4.85% except for regional Victorian employers.

Regional Victorian employers

For 2021-22, the rate of payroll tax for regional Victorian employers is 1.2125%. There is also a special payroll tax rate for businesses in bushfire affected local government areas.

From 1 July 2019, you are a regional Victorian employer if you are paying at least 85% of your wages to regional employees. For wages paid before 1 July 2019, you must also satisfy the business location test.