RevenueSA - Pay-roll Tax

A Pay-roll Tax liability arises in South Australia when an employer (or a Group of employers) has a wages bill in excess of $552,000 for services rendered by employees anywhere in Australia if any of those services are rendered or performed in South Australia.

An employer (or a member of a Group of employers) who, in any month, pays wages which are liable to Pay-roll Tax in South Australia must register for Pay-roll Tax when the Australian wages bill of the employer or group exceeds $46,000 in any month.

For ease of administration, RevenueSA recommends such registration when an employer's wages bill consistently exceeds $10,600 per week.

Tax Rates and Wage Thresholds


Period	Rate	Threshold
From 1 July 2008	5.00%	552,000
1 July 2007 to 30 June 2008	5.25%	504,000
1 July 2004 to 30 June 2007	5.50%	504,000
1 July 2002 to 30 June 2004	5.67%	504,000
1 July 2001 to 30 June 2002	5.75%	504,000
1 July 1992 to 30 June 2001	6.00%	504,000

NOTE: From 1 July 2009 the rate will be 4.95% and the threshold will be $600,000.

In general any remuneration attributed to employees is included. Common items are wages, salaries, commissions, bonuses, allowances, directors fees, fringe benefits, payments in kind, eligible termination payments and superannuation contributions.

Additionally, payments for service contracts, to employment agencies, and to other third parties may be deemed to be wages assessable for Pay-roll Tax.

Grouping Provisions within the Pay-roll Tax Act are designed to ensure employers are not able to artificially maintain their wages bill below $552,000 per annum by splitting their businesses into separate employing entities.

Only one employer in a group is able to utilise the allowable deduction entitlement. This employer is known as the Designated Group Employer. Any annual deduction entitlement not taken up by the Designated Group Employer can be transferred to the other group members only at the time of Annual Reconciliation.

As this is a complex area, and cannot be fully covered in a brief document, further information should be sought from RevenueSA if you suspect Grouping Provisions may affect you.

The full annual deduction entitlement of $552,000 is only available to employers (or group of employers) who do not pay wages in another State or Territory.

If wages are paid elsewhere in Australia the deduction entitlement is calculated using wage estimates for a full financial year and applying the formula below:

Total South Australian Wages	x $552,000
Total Australian Wages

Changing Address Details

If you wish to change your address details, please complete the online change of address form

More information

More detailed information is available in the Pay-roll Tax Guide to Legislation (Circular 303).

The Pay-roll Tax Act 1971 can be viewed here.