Treasurer Chris Steel MLA introduced a bill to amend the Payroll Tax Act 2011 to apply a new payroll tax rate of 8.75 per cent for employers who pay annual Australia-wide wages of more than $150 million from 1 January 2026.
The Payroll Tax Amendment Bill 2025 was introduced to offset revenue after the ACT Government’s proposed ‘health levy’ was reduced following budget negotiations with the ACT Greens.
Thomas raised concerns that the Government’s revenue calculations did not factor in predictable behaviour changes from businesses, such as increasing costs or scaling back staffing to fall below the new tax threshold, as occurred in South Australia following a change to its payroll tax threshold. However, he preferred the proposed payroll tax change over the originally-planned $250 health levy that would have been borne by every Canberran household.
The bill passed with the support of ACT Labor, the ACT Greens, independent MLA Fiona Carrick and Thomas. It was opposed by the Canberra Liberals.