Employers who pay more than $150 million in total wages per year must use a new calculation method for payroll tax during the 2025-2026 financial year.

The payroll tax rate for these high-wage employers is 7.85% from 1 July 2025 to 31 December 2025; it rises to 8.75% from 1 January 2026 to 30 June 2026.

Different formulas determine the tax amount depending on whether the employer is an individual entity or part of a group.

The Australian National University, University of Canberra, University of New South Wales, Charles Sturt University, and Australian Catholic University are exempt from these high-wage payroll tax rules.