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Payroll Tax Law Changes In SA

By Matthew De Zilwa on 04-Apr-2018


What is Payroll tax?

Since the 1st of July 2009, if an employer (or group of employers) has a wages bill in excess of $600,000 for services rendered by employees anywhere in South Australia, they are required to pay a tax on these wages.

If a wages bill for any employer exceeds $50,000 in any month, they are required to register for this tax with Revenue SA.

What is changing?

Currently, if an employer's wages bill exceeds $600,000, the taxable rate on this bill is 4.95%. From the 1st of July 2018, the tax rate and wage thresholds for payment of these rates are changing, see below to get an idea of how these rate changes might affect your business:


(Source: RevenueSA)

  • Does not exceed $600,000: Nil
  • Exceeds $600,000 but not $1 million: 2.5%
  • Exceeds $1 million but not $1.5 million: variable from 2.5% to 4.95%
  • Exceeds $1.5 million: 4.95%

These changes mean that small to medium enterprises with above $600,000 in annual wage expenses can look forward to a little bit less tax when conducting business activities over the financial year.

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