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Payroll tax South Australia

Payroll Tax South Australia (SA) - Tax Rates SA

Payroll tax is a state tax that businesses need to pay based on how much they pay their employees. It's a self-assessment, meaning that as an employer, you need to provide accurate information when you lodge your payroll tax return. 

Payroll tax threshold in South Australia

Every state's revenue office sets its own payroll tax rates and thresholds. Payroll Tax in South Australia (SA) is set to a variable rate from 0% up to 4.95%. As of August 2022, the weekly threshold for taxable wages is $28,846. 

If your paid wages exceed this threshold, you will need to register for payroll tax. RevenueSA typically recommends registering for payroll tax when you consistently exceed the monthly threshold of $125,000. If your total wages are below $1.5m, you do not need to pay payroll tax. Employer businesses are taxed at a rate of up to 4.95% if wages are over $1.5m and less than $1.7m. 

This is based on taxable wages paid to South Australian residents and includes wages, superannuation, allowances, and fringe benefits.

Read more: Learn about payroll tax in New South Wales, Australian Capital Territory, and Queensland.

How to register for SA payroll tax 

If your total taxable wages exceed the SA threshold, you need to register for payroll tax. There are two steps to the registration process. Firstly, you’ll need to register as a user of RevenueSA online. Following this, you’ll need to register your company for payroll tax. This will provide you with the ability to lodge and pay your returns. 

Once you are a registered RevenueSA online user, you will receive an email with all relevant information. You should then complete your registration within 28 days.

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Payroll tax due dates 

According to RevenueSA, you have until day 7 of each month to lodge and pay your monthly tax return (i.e. January returns are due on 7 February). If the due date falls on a public holiday or a weekend, the due date will move to the following business day. For an annual payroll return, you have until 28 July to lodge. 

Calculating SA payroll tax 

You can calculate your payroll taxes in SA by following the formula below. The formula varies based on interstate wages and group memberships.

Gross wages - Deductions = Net Taxable Wages x SA Tax Rate = Payroll Tax Payable

The rate is based on the total wages. If the employer is a member of a group of employers, the payroll tax threshold is calculated using the group's total wages. The tax rate is not finalised in SA until the annual reconciliation has ended. Employers can use estimates to lodge and pay their monthly payroll tax returns throughout the year.

Grouping of employers

A group of employers is a group of connected businesses treated as a ‘group’ for payroll tax purposes. They are similarly owned or operated, share common employees, related bodies corporate, or are part of an entity that has a controlling interest. 

Grouping does not allow companies to split their wages or reduce payroll tax liability across entities. Even if one member exceeds the threshold, all members must register and pay payroll tax. It also means that all members are liable for any debts incurred by another member. If one member defaults on their payroll tax, that debt can be recovered from one or all other members. 

QuickBooks can help with payroll tax 

QuickBooks cloud payroll software powered by Employment Hero offers multiple payroll solutions such as efficient automated paydays, payroll tax calculations, automated award identification and much more. Our payroll software is also ATO compliant and Single Touch Payroll compatible, this way you can focus on making your business thrive.

QuickBooks’ suite of products can also cater to your accounting and tax needs. Start with a 30-day free trial to see everything that QuickBooks has to offer. 

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