Australian Capital Territory Increases Payroll Tax Rate

Amendments to the Australian Capital Territory’s Payroll Tax Act 2011 that increase the tax rate for the largest employers Jan. 1, which is halfway through the 2025-26 financial year, were notified as passed by the territory’s government Dec. 15.

The territory’s Payroll Tax Amendment Act 2025 increases the tax rate to 8.75%, up from 7.85%, from Jan. 1 to June 30, 2026, when an employer pays more than A$150 million (US$99,094,500) in total wages in Australia.

The increase does not apply to universities that have a campus in the ACT, the act said.

Further changes to payroll tax rates and ...