The calculation to determine the 2025-26 liability is:
- Gross Taxable Victorian Wages – Deduction = Net Victorian Wages
- Net Victorian Wages X payroll tax rate = 2025-26 liability
Example
A full year Victorian only employer with $1,050,000 wages for the period 1 July 2025 to 30 June 2026.
Deduction: $1,000,000
Non regional tax rate: 4.85%
$1,050,000 - $1,000,000 = $50,000 Net Victorian Wages
Net Victorian Wages $50,000 X 4.85% = $2,425 liability