This summary is based on the results in the OECD Taxing wages 2026 report. It focuses on two of the eight household types examined in the report. The summary presents effective tax rates on labour in Australia and compares these with rates in other OECD member countries.

This report makes the case for a sustained commitment to better regulation and harmonisation across Australia. It recommends a new seamless national economy agreement between the Federal Government and states and territories, identifying nine priority areas for reform and key steps to ensure success.

This report provides details of taxes paid on wages in OECD countries with cross-country comparison. It focuses on the decomposition of personal income taxes and the role of tax reliefs. It finds that post-tax incomes increased in almost three-quarters of OECD countries in 2024, as real wages recovered and labour taxes increased slightly.

This report questions whether payroll taxes affect firm growth by examining a recent cut in South Australia’s payroll tax rate for small businesses. The tax cut may have been counterproductive because it introduced a sharp increase in tax rates for firms with payrolls between $1.5m and $1.7m which made it less attractive for firms to...

This paper studies the effects of increases in payroll tax thresholds on wages, employment and capital expenditure in Australia. The estimates within provide no evidence in favor of the hypothesis that a lower payroll tax burden increases wages, employment or capital expenditure.