BACKGROUND

In the State Budget handed down on 7 June 2007, the Government announced taxation measures in relation to pay-roll tax and land tax.

The Statutes Amendment (Budget 2007) Act 2007 that gives effect to these measures was assented to by His Excellency the Governor, today, 9 August 2007.

(RevenueSA Circular No 278 and 279 issued on the 7 June 2007 and 14 June 2007 respectively outline the proposed budget changes).

PAY-ROLL TAX

The pay-roll tax measures in the Amending Act were:

• From 1 July 2007:

•  A reduction in the pay-roll tax rate from 5.5% to 5.25% for wages paid or payable on or after this date.

• From 1 July 2008:

•  A further reduction in the pay-roll tax rate from 5.25% to 5.0% for wages paid or payable on or after this date.

Any overpayments of pay-roll tax as a result of employers who have already lodged their July 2007 return using the old rate of 5.5% will be adjusted as part of the Annual Reconciliation process as per RevenueSA Circular 278.

LAND TAX

Details of the land tax measures which apply from the 2008-2009 land tax assessment year can be found in Circular 279.

 FURTHER INFORMATION

Location

RevenueSA
State Administraion Centre
200 Victoria Square East
ADELAIDE SA 5000

Telephone

(08) 8204 9880 (PRT)
(08) 8204 9870 (LT)

Website

www.revenuesa.sa.gov.au

Postal

Commisioner of State Taxation
RevenueSA
GPO Box 1353
ADELAIDE SA 5001

Facsimile

(08) 8226 3805 (PRT)
(08) 8207 2100 (LT)

E-mail

payrolltax@saugov.sa.gov.au

landtax@saugov.sa.gov.au

 9/8/2007

COMMISSIONER OF STATE TAXATION