Wages paid by certain employers are exempt from payroll tax as provided under Part 4 and Schedule 2 of thePayroll Tax Act 2009. An exemption will generally apply to wages paid by the following types of organisations:
The above list of exempt employers is not exhaustive.
Employers, who believe that they are exempt from payroll tax, should apply to RevenueSA (except applications by motion picture production companies) for a decision on their exempt status. Full details relating to the operations of the organisation, as well as a copy of the Constitution of the organisation must be provided.
To apply to RevenueSA for an exemption, the form Application for Exemption from Payroll Tax needs to be completed providing full details relating to the operations of the organisation, as well as a copy of the Constitution of the organisation where one exists.
Further information is available in the Payroll Tax Guide to Legislation.
As part of the 2012-13 State Budget, the Government announced that the payroll tax exemption for the wages of eligible apprentices and trainees would be abolished from 1 July 2012. For further information please see Information Circular No: 43.
Between 1 July 2010 and 30 June 2012, wages paid or payable to an apprentice or trainee are exempt in the following circumstances:
Information Circular No: 21 explains the application of the exemption for wages paid to apprentices and trainees and clarifies the elements of the exemption.