ACT payroll tax changed more on 1 July 2026 than any other state's. The threshold fell from $2 million to $1.75 million, the rate for most employers dropped from 6.85% to 6.75%, and the surcharges for large employers were folded into a new tiered rate table topping out at 8.75%. The headline was a rate cut. The arithmetic is different: for an employer paying only in the ACT, the lower threshold costs more than the lower rate saves unless its wages are between about $18.9 million and $20 million.
This guide sets out the 2026–27 threshold and rate tiers, how they compare with 2025–26, registration and due dates, what counts as wages, grouping and contractors, the GP exemption and other exemptions, penalties, and worked examples, including one for businesses on the NSW side of the border. For every state side by side, see our guide to payroll tax by state.
ACT payroll tax at a glance (2026–27)
| Item | 2026–27 figure | Source |
|---|---|---|
| Annual threshold | $1,750,000 (was $2,000,000) | ACT Revenue Office; DI2026-151 |
| Monthly threshold | $145,833.33 (was $166,666.66) | ACT Revenue Office |
| General rate, Australia-wide wages over $1.75m up to $20m | 6.75% | DI2026-151 |
| Over $20m up to $50m | 6.85% | DI2026-151 |
| Over $50m up to $100m | 7.35% | DI2026-151 |
| Over $100m up to $150m | 7.85% | DI2026-151 |
| Over $150m | 8.75% | DI2026-151 |
| Eligible universities | Capped at 6.85% | ACT Revenue Office |
| Registration | Within 7 days after the end of the month you exceed the threshold | ACT Revenue Office |
| Monthly returns | 7th of the following month (December: 14 January) | ACT Revenue Office |
| Annual reconciliation | 28 July 2027 for 2026–27 | ACT Revenue Office |
The 2026–27 figures are set by the Taxation Administration (Amounts and Rates—Payroll Tax) Determination 2026 (DI2026-151), notified on 30 June 2026.
What is the ACT payroll tax rate and threshold for 2026–27?
For 2026–27 the ACT threshold is $1.75 million a year ($145,833.33 a month), and the general rate depends on your Australia-wide wages (or your group's): 6.75% up to $20 million, 6.85% to $50 million, 7.35% to $100 million, 7.85% to $150 million and 8.75% above $150 million.
The rate tier is decided by your total Australian wages, then that rate is applied to your ACT taxable wages above your share of the threshold. It isn't a marginal scale like income tax: an employer with $25 million of Australia-wide wages pays 6.85% on all its ACT taxable wages above the threshold, not 6.75% on the first $20 million.
The threshold is apportioned if you pay wages interstate (you get the ACT share) or employ for part of the year. For a group, it's claimed by the designated group employer. Unlike Victoria, Queensland and WA, the ACT threshold doesn't taper away for larger employers.
How do the 2026–27 rates compare with 2025–26?
| Australia-wide wages | 1 Jul to 31 Dec 2025 | 1 Jan to 30 Jun 2026 | From 1 Jul 2026 |
|---|---|---|---|
| Threshold | $2m | $2m | $1.75m |
| Up to $20m | 6.85% | 6.85% | 6.75% |
| Over $20m to $50m | 6.85% | 6.85% | 6.85% |
| Over $50m to $100m | 6.85% + 0.5% surcharge | 6.85% + 0.5% surcharge | 7.35% |
| Over $100m to $150m | 6.85% + 1% surcharge | 6.85% + 1% surcharge | 7.85% |
| Over $150m | 6.85% + 1% surcharge | 8.75% flat | 8.75% |
Watch out: The rate cut only reaches employers and groups with national wages up to $20 million. The ACT Budget kept the existing 6.85% rate for the $20 million to $50 million band, so those employers get the lower threshold without any rate cut.
Will I pay more or less ACT payroll tax in 2026–27?
If you employ only in the ACT, you'll pay more in 2026–27 than in 2025–26 unless your wages are between about $18.9 million and $20 million. Below that, the $250,000 lower threshold costs more than the 0.1% rate cut saves. Above $20 million there's no rate cut at all (the 2026–27 tiers match the old rate plus surcharge), so the lower threshold simply adds tax. Employers who also pay wages interstate feel a smaller change, because they only get a share of the threshold.
| ACT wages (ACT only, not grouped) | 2025–26 (second half rates) | 2026–27 | Change |
|---|---|---|---|
| $1,900,000 | Nil | $10,125 | +$10,125 |
| $3,000,000 | $68,500 | $84,375 | +$15,875 |
| $5,000,000 | $205,500 | $219,375 | +$13,875 |
| $10,000,000 | $548,000 | $556,875 | +$8,875 |
| $25,000,000 | $1,575,500 | $1,592,625 | +$17,125 |
Employers with ACT wages between $1.75 million and $2 million, or groups whose wages sit there, may need to register for the first time in 2026–27.
Who has to register for ACT payroll tax?
You must register with the ACT Revenue Office if your Australian wages, or your group's, exceed the threshold, and the law requires you to apply within 7 days after the end of the month in which you go over it. For 2026–27 that's more than $145,833.33 of Australian taxable wages in a month.
You register through the ACT Revenue Office and lodge in its Self Service Portal. Liability runs from the month you crossed the threshold, so a late registration means back returns.
Not sure if the lower threshold brings you in? Ask us.
When are ACT payroll tax returns due?
Monthly returns are due by the 7th of the following month, except December, which is due by 14 January. The 2026–27 annual reconciliation, including June, is due by 28 July 2027. If a due date falls on a weekend or public holiday, it moves to the next working day.
| Return | 2026–27 due date |
|---|---|
| July to November 2026 | 7th of the following month |
| December 2026 | 14 January 2027 |
| January to May 2027 | 7th of the following month |
| June 2027 and annual reconciliation | 28 July 2027 |
You can apply in writing to lodge less often if you expect your annual ACT payroll tax to be $80,000 or less.
What counts as wages, and how does grouping work in the ACT?
The ACT uses the harmonised definition of wages: salary and wages, super, fringe benefits, directors' fees, termination payments, employee share scheme interests, and payments under relevant contracts and employment agency contracts.
Grouping follows Part 5 of the Payroll Tax Act 2011 (ACT) and works as in NSW and Victoria: related companies, businesses sharing employees, commonly controlled businesses and businesses linked by tracing interests are grouped. Group wages decide both if you're over the threshold and which rate tier applies, so grouping can now push a business into a higher rate as well as removing its threshold. Every member is jointly and severally liable for the group's tax.
Key point: A Canberra business with $15 million of wages grouped with a related interstate business of $10 million is in the $20 million to $50 million tier. It pays 6.85% on its ACT wages, not 6.75%.
Do contractors count for ACT payroll tax?
Often, yes. The ACT's relevant contract provisions are harmonised with NSW and Victoria. Payments to contractors for services are taxable wages unless an exemption applies: services ancillary to goods, services not ordinarily required, services needed for 90 days or less in a year, services the contractor ordinarily provides to the public generally, or contractors who engage others. Employment agency arrangements are also taxed.
The High Court heard the Uber appeal (from NSW) on 8 April 2026 and judgment was reserved as at 23 October 2026. Until it rules, we treat the NSW Court of Appeal decision that Uber was liable as the working position in the ACT as well. Our employee vs contractor guide explains why the payroll tax answer can differ from the Fair Work and ATO answers.
What exemptions apply to ACT payroll tax?
ACT exemptions include GP wages paid by designated medical practices, wages of new starters in eligible training, paid maternity, adoption and primary carer leave, the tax-free part of genuine redundancies and certain workers compensation payments. The full list is in Part 4 of the Payroll Tax Act 2011.
| Item | ACT treatment (2026–27) |
|---|---|
| GPs at designated medical practices | Exempt for exempt services (bulk-billed, DVA and workers compensation services) from 1 July 2025 |
| New starters receiving eligible training | Exempt, subject to the conditions in the Act |
| Approved non-profit group training organisations | Exempt for apprentices and trainees on approved training contracts |
| Paid maternity, adoption and primary carer leave | Exempt, within the limits in the Act |
| Commonwealth Paid Parental Leave | Not wages |
| Genuine redundancy | Tax-free portion exempt |
| Workers compensation | Certain payments exempt |
| Eligible universities | Rate capped at 6.85% (a concession, not an exemption) |
ACT medical practices and GPs
From 1 July 2025, employers that are designated medical practices don't pay payroll tax on wages paid or payable to GPs for exempt services: bulk-billed services, services under Part V of the Veterans' Entitlements Act 1986, and services under the Workers Compensation Act 1951. This replaced the temporary amnesty that ran to 30 June 2025, and it removes the amnesty's 65% minimum bulk-billing requirement. The ACT Government also waived payroll tax liabilities up to 30 June 2023 for practices that hadn't paid tax on GP payments. Wages for nurses, allied health and administration staff stay taxable. See our page for medical practices and health services.
What are the penalties for ACT payroll tax?
Late or unpaid ACT payroll tax attracts interest and can attract penalty tax under the Taxation Administration Act 1999 (ACT), with reductions for voluntary disclosure. The ACT Revenue Office publishes its current interest and penalty tax settings separately. The practical point is the same as in every state: if you should have registered and didn't, quantify the exposure and come forward before the Revenue Office contacts you.
Worked examples: ACT payroll tax for 2026–27
Hypothetical, rounded, 2026–27 rates.
Example 1: a Canberra IT consultancy. Say a company pays $3,000,000 of taxable wages (wages plus super), all in the ACT, and isn't grouped. Rate tier: 6.75%. Tax = ($3,000,000 − $1,750,000) × 6.75% = $84,375. On 2025–26 settings, the same payroll would have cost ($3,000,000 − $2,000,000) × 6.85% = $68,500 a year.
Example 2: a national group with a Canberra office. Say a group pays $25,000,000 of Australian wages, $5,000,000 of it in the ACT. Rate tier: 6.85%. ACT threshold = $1,750,000 × $5m ÷ $25m = $350,000. ACT tax = ($5,000,000 − $350,000) × 6.85% = $318,525.
Example 3: a Queanbeyan builder with Canberra jobs. Say a NSW-registered building company pays $2,400,000 of wages: $1,400,000 for work its crews perform on Canberra sites and $1,000,000 for work in NSW. It's over both the ACT threshold ($1.75 million) and the NSW threshold ($1.2 million) on its Australian wages, so it registers in both.
- ACT: threshold $1,750,000 × 1.4/2.4 = $1,020,833; tax = ($1,400,000 − $1,020,833) × 6.75% = about $25,600
- NSW: threshold $1,200,000 × 1.0/2.4 = $500,000; tax = ($1,000,000 − $500,000) × 5.45% = $27,250
Total about $52,850. Cross-border employers in the Canberra region often register only where the office is and miss the other side. Where an employee's services are performed in the month is what counts.
How BPAG helps with ACT payroll tax
We check whether the lower threshold brings you in, which rate tier your group falls into, how to split wages between the ACT and NSW, and whether your contractor arrangements are caught. Our ACT state taxes agent works through ACT payroll tax, the 2026–27 determination and concessions in detail, and our state taxes agent handles the NSW side; a qualified accountant reviews every calculation before it's lodged or relied on.
We work with Canberra-region businesses from our Bungendore office and remotely. Our state taxes service covers payroll tax, land tax and duty, and our payroll and Payday Super service keeps wage records right for both jurisdictions. For our guide to the NSW rules, see payroll tax NSW.
What to send us
- Payroll reports for the last 12 months (and earlier years if you may have been liable) for every entity in your group
- Where each employee's services were performed each month (ACT, NSW or elsewhere)
- Contractor and labour hire agreements, with what each contractor does
- Training contracts for apprentices and trainees
- Your ACT Revenue Office client details and any letters or assessments
- For medical practices: your designated medical practice details, GP agreements and billing reports
Frequently asked questions
Is there still an ACT payroll tax surcharge?
Not for 2026–27. The 0.5% and 1% surcharges that applied to large employers in 2025–26 were replaced from 1 July 2026 by a single tiered rate table. There is no separate surcharge in the 2026–27 determination (DI2026-151); the ACT Budget kept the existing 6.85% rate for employers with national wages between $20 million and $50 million.
Can I lodge ACT payroll tax annually?
You can apply in writing to the Commissioner for ACT Revenue to change your lodgement period. The Commissioner will consider it for employers who expect their annual ACT payroll tax to be $80,000 or less, or whose circumstances otherwise justify it.
Do ACT universities get a different payroll tax rate?
Yes. Eligible universities with an ACT campus have their rate capped at 6.85%, regardless of their Australia-wide wages. The ACT Revenue Office lists this cap with the 2026–27 rates.
I'm based in Queanbeyan or Bungendore with staff working in Canberra. Which payroll tax applies?
Generally, wages are taxed in the state or territory where the employee's services are performed in the month. Staff working in the ACT can bring ACT payroll tax into play even if your business is registered in NSW, and both jurisdictions apportion their threshold by the share of your Australian wages paid there.
Where do I lodge ACT payroll tax returns?
Returns are lodged and paid through the ACT Revenue Office's Self Service Portal. Lodge every month once registered, then include June in the annual reconciliation return due 28 July.
What does the 2026–27 rate table mean for an employer with $25 million of wages?
An employer or group with Australia-wide wages between $20 million and $50 million pays the general rate of 6.85% on ACT taxable wages above its share of the $1.75 million threshold. There's no separate surcharge on top for 2026–27.
Official sources
General information only, current as at 23 October 2026. It is not personal tax, legal or financial product advice and doesn't take your circumstances into account. Talk to us before you act. Where a recommendation needs a licensed financial adviser or a solicitor, we work alongside them.