Quick answer
Western Australia charges payroll tax at 5.5% once annual wages pass $1 million. The threshold shrinks by $2 for every $13 of wages above $1 million and disappears at $7.5 million, so growing employers lose it gradually. Transfer duty applies to commercial property purchases, and land tax is assessed on the total unimproved value of land you hold. The Small Business Development Corporation gives free advice on 133 140.
Key points
- Payroll tax: 5.5% above a $1m threshold that phases out completely by $7.5m of wages
- No regional payroll tax rate — the same settings apply in Perth and Port Hedland
- Land tax is based on the total unimproved value of all land held by the same owner
- The SBDC offers free business advice, low-cost dispute resolution and workshops statewide
- Payroll tax threshold
- $1m a year
- Payroll tax rate
- 5.5%
- Threshold cuts out
- $7.5m of wages
- Free advice
- SBDC · 133 140
Western Australia is a third of the continent and runs on a different rhythm from the east. Resources, construction and the service businesses that support them set the pace, and the gap between a Perth suburb and a Pilbara mining town is wider than any state border in the east. WA’s business taxes are simple by comparison, with one payroll tax rate statewide, but the lending side takes more local knowledge.
How does WA payroll tax work?
WA’s system is straightforward on the surface: a 5.5% rate on taxable wages, with a $1 million annual threshold. The detail is in how the threshold behaves as you grow.
The threshold reduces by $2 for every $13 of wages above $1 million, and it disappears completely at $7.5 million. So a business paying $2.3 million in wages doesn’t get the full $1 million tax-free: its threshold has already shrunk by $200,000. By $7.5 million, every dollar of wages is taxable.
| Annual Australian wages | Approximate threshold available |
|---|---|
| $1,000,000 or less | No payroll tax payable |
| $2,300,000 | About $800,000 |
| $4,250,000 | About $500,000 |
| $7,500,000 or more | Nil |
Figures are illustrative, using RevenueWA’s published formula. Grouping and interstate wages change the result.
There’s no regional rate in WA, so the same settings apply in Albany, Broome and the CBD. If you’re growing towards the line, the payroll tax threshold checker is a quick way to see where you stand, and our state comparison shows how WA’s phase-out compares with Victoria’s.
How is business property taxed in WA?
Two taxes matter when you buy or hold premises:
- Transfer duty applies to commercial property purchases on the general scale. It’s due around settlement and sits on top of the deposit.
- Land tax is assessed each year on the total unimproved value of all the land held by the same owners. Your home is generally exempt; business premises usually aren’t once the total passes the threshold.
Because land tax adds up all the land an owner holds, a second commercial property can push you into a higher bracket. It’s worth asking your accountant how different ownership structures would be assessed before you buy. Our land tax comparison sets out the approach in each state.
Where can WA business owners get help?
The Small Business Development Corporation (SBDC) is the standout. It’s a State Government agency that provides free advice and low-cost services to small businesses across WA:
- Free business advice by phone on 133 140, covering starting, running and growing a business.
- Dispute resolution services for problems with suppliers, landlords, customers and government agencies.
- Workshops across the state on topics from marketing strategy to financial management.
For grants, the federal business.gov.au grants finder lets you filter for Western Australia and shows state, regional and federal programs together. Regional development commissions in each WA region also run local programs from time to time.
How do lenders view Perth and regional WA?
Perth and Peel are deep markets, and homes and commercial property are widely accepted as security for business loans. The Perth page covers the metro area.
Larger regional centres — Bunbury, Busselton, Geraldton, Albany and Kalgoorlie — are generally acceptable, with valuations done by local valuers who know the market.
Mining and remote towns need more care. Property values in single-industry towns can move sharply with commodity cycles, and some lenders limit how much they’ll advance against them or decline them altogether. Lenders will also look at how long a property might take to sell in a downturn. Our guide on regional property as loan security explains what valuers and credit teams check.
For businesses without property, unsecured and line-of-credit options depend on turnover and bank statements, so a well-run FIFO service business in Karratha can be assessed on the same footing as one in Osborne Park.
What do WA businesses typically borrow for?
- Equipment and vehicles for mining services, civil and transport contracts.
- Working capital while waiting on 30-, 60- or 90-day payment terms from large contractors.
- Payroll tax after a rapid ramp-up in staff for a new contract.
- Premises — buying the workshop rather than renting it.
- ATO debt clearance or refinancing, assessed case by case.
Illustrative example: a Kalgoorlie maintenance contractor wins a two-year site services contract and needs to double its crew. Its wage bill will pass $1 million in the first quarter, and its client pays on 45-day terms. The owner uses the equity in a Perth investment property through a second mortgage to fund wages and new utes, with repayments planned around the contract’s payment schedule.
If a new contract or a big purchase is on the horizon, ask what your business could qualify for now, while there’s time to choose the best structure.
From Perth to the Kimberley, let’s talk
The distance is no barrier. Tell us where you’re based, what the funds are for and whether there’s property to use. It’s a one-minute enquiry with no credit check. We don’t hand your details to a queue of lenders; a real person who understands how WA works looks at your situation and calls you. Fill in the form as accurately as you can so we can line up the right option on the first call.
Frequently asked questions
What is the WA payroll tax threshold?
$1 million a year, with a rate of 5.5% on taxable wages. The threshold reduces by $2 for every $13 of wages above $1 million, so it's gone entirely once your wages reach $7.5 million. These settings have applied since 1 July 2023.
Is there a regional payroll tax discount in WA?
No. Unlike Queensland and Victoria, Western Australia applies the same threshold and rate across the state. Regional businesses may still find help through grants and regional development programs.
Where can I get free business advice in WA?
The Small Business Development Corporation, a State Government agency, provides free advice and low-cost services to small business owners throughout WA. Call 133 140 or visit smallbusiness.wa.gov.au.
Can I borrow against property in the Pilbara or Goldfields?
Sometimes. Mining towns can have volatile property markets, so lenders look closely at valuations and how easily a property would sell. Established homes and commercial buildings in larger centres are easier to use than property in small or single-industry towns.
Can a WA business get an unsecured loan?
Yes. Trading businesses without property can look at unsecured, cash-flow and line-of-credit options, typically $5,000 to $500,000, sized on turnover and bank statements.