Question 1

What's the true annual cost of an Australian employee in 2026?

Accepted Answer

On top of gross wages, expect roughly 14-22% in on-costs: 12% superannuation guarantee, 1-4% workers' compensation (varies by industry and state — office ~0.6%, trades ~4%), 11.5% leave accrual for permanent employees (4 weeks annual + 10 days personal). Payroll tax adds 4.75-6.85% above the state threshold (NSW $1.2M, Vic $700k, etc.). Total realistic on-cost: 14% for casuals, 22% for permanents in higher-risk industries.

Question 2

When does payroll tax kick in?

Accepted Answer

Payroll tax is a state-administered tax on annual wages above the state threshold. For 2026-27: NSW $1.2M (5.45%), Victoria $1M (4.85%), Queensland $1.3M (4.75%), Western Australia $1M (5.5%), South Australia $1.5M (4.95%), Tasmania $1.25M (4.0%), ACT $1.75M (6.75%), Northern Territory $2.5M (5.5%). These are headline figures — grouping rules, regional rates and tiered rates can change what you actually pay. For a single-state employer with ~14-25 employees on average pay, payroll tax becomes a material expense.

Question 3

How do I budget for payroll tax across multiple states?

Accepted Answer

Group employers (related companies) must aggregate wages across all related entities for payroll tax purposes — each state has its own rules but the principle is the same. For multi-state operations, register in each state where you have employees and apportion wages accordingly. The threshold-by-state model means smaller multi-state operations pay LESS payroll tax than a single-state operation of the same size (because each state's threshold gives a tax-free allowance).

Question 4

Is the workforce cost forecaster accurate for my business?

Accepted Answer

This tool uses industry-average workers' compensation premium rates and standard NES/SG/state payroll tax rates. Actual workers' compensation premiums vary based on your claims history (experience rating) and specific industry classification. For exact figures, use your state insurer's premium estimator. For everything else (wages, super, leave accrual, payroll tax), the calculations match the legal framework as at 2025-26.

Role	Wages	Super	WC	Leave	Group total
Manager × 1	$104,000	$12,480	$624	$11,960	$129,064
Customer service × 4	$249,600	$29,952	$1,498	$28,704	$309,754
Casual support × 6	$280,800	$33,696	$3,650	$0	$318,146

Workforce Cost Forecaster

Roles

Annual cost breakdown

Per-role breakdown

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