Payroll Tax
Who is Liable for Payroll Tax?
Registration
Tax Rates and Wage Thresholds
What Payments are Considered Wages?
Groups
Employment Outside South Australia
Changing Address Details
Payroll Tax Harmonisation
More Information
Who is Liable for Payroll Tax?
A payroll tax liability arises in South Australia when an employer (or a Group of employers) has a wages bill in excess of $600 000 for services rendered by employees anywhere in Australia if any of those services are rendered or performed in South Australia.
See Revenue Ruling PTA001:South Australian Payroll Tax Liability for Wages Paid by an Employer for futher information.
An employer (or a member of a Group of employers) who, in any month, pays wages which are liable to payroll tax in South Australia must register for payroll tax when the Australian wages bill of the employer or group exceeds $50 000 in any month.
For ease of administration, RevenueSA recommends such registration when an employer's wages bill consistently exceeds $12 500 per week.
To register for Payroll Tax click here.
| Period | Rate |
Threshold |
|---|---|---|
| 1 July 2009 | 4.95% | $600 000 |
| 1 July 2008 to 30 June 2009 | 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% |
$456 000 |
What payments are considered ‘wages'?
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 payroll tax.
For further information, please refer to the General Information Circular.
Grouping Provisions within the Payroll Tax Act 2009 are designed to ensure employers are not able to artificially maintain their wages bill below $600 000 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.
For further information, please refer to the Grouping Information Circular.
Employment Outside South Australia
The full annual deduction entitlement of $600 000 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 $600 000 |
Total Australian Wages |
More detailed information is available in the following Information Circulars:
General
Historical Rates
Groupings
Contractors'
Employment Agency
Rebates
The Payroll Tax Act 2009 can be viewed here.
This page was last reviewed 1 July, 2009
