Queensland payroll tax: thresholds, rates and QRO lodgement

Queensland’s two-band rate structure

Most states have a single rate above the threshold. Queensland has two: 4.75% on the portion of taxable wages between the $1.3M annual threshold and $6.5M, then 4.95% on everything above $6.5M. The two-band structure means a Queensland employer with $5M in taxable wages pays 4.75% on $3.7M ($175,750), but an employer with $10M pays 4.75% on $5.2M ($247,000) PLUS 4.95% on $3.5M ($173,250), for a total of $420,250. The marginal rate is what matters at the next-hire decision.

The 0.20% rate step at $6.5M is small but compounds with the mental health levy (next section) for large Queensland employers. A Queensland-only group above $10M effectively pays 4.95% + 0.25% mental health levy = 5.20% on the top portion — still the second-lowest large-employer rate of the five major states, after NSW.

Mental health levy and regional discount

Effective 1 January 2023, Queensland added a mental health levy: 0.25% on annual taxable wages above $10M, rising to 0.75% on wages above $100M. Like the rate brackets, the levy is graduated — applied only to the portion above the threshold. The levy applies to the group, not individual entities, and is reported on a separate line of the QRO return.

Regional Queensland employers get a 1% rate discount on both standard bands (3.75% on the $1.3M–$6.5M band, 3.95% above). Eligibility requires more than 50% of taxable Queensland wages being paid to employees whose principal workplace is a regional Queensland postcode (the QRO list excludes Brisbane and Gold Coast metro). The discount is more generous than Victoria's regional concession because it applies year-round and the threshold is lower (50% vs Victoria's 85%).

Monthly returns, annual reconciliation, and QRO Online

QLD payroll-tax employers lodge monthly returns by the 7th of the following month via QRO Online Services. The June return is replaced by the annual reconciliation, due 21 July, covering the full prior financial year. Annual reconciliation trues up wages, applies the two-band rate ladder + regional discount + mental health levy, and produces a refund or balancing payment. Penalty interest applies on late monthly returns; the QRO publishes its assessment criteria openly so anti-avoidance positions are well-known in advance.