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Revenue SA payroll tax: What changes were made from 1 January 2019?

By | March 5, 2019

Good news – Since 1 January 2019, Revenue SA has relaxed annual wage thresholds for payroll tax in South Australia. Altitude Advisory’s Business Adviser, Manna Abraham explores this topic below.

 

 

Businesses with annual taxable Australia wide wages of up to $1.5 million will not be liable for payroll tax in South Australia, and those with taxable wages between $1.5 million and $1.7 million will benefit from a reduced payroll tax rate.

For businesses grouped for payroll tax, the $1.5 million threshold relates to the total of all group members’ taxable wages.

For businesses with taxable Australia wide wages exceeding $1.5 million, the payroll tax will be payable on taxable wages less any deduction entitlement up to a maximum of $600,000.

However, the payroll tax rate for businesses with an annual wage bill exceeding $1.7 million will remain the same.

If you have advised Revenue SA that your estimated Australia wide wages, or group wages, for the 2018-19 financial year are under $1.5 million, Revenue SA will convert you to an annual cycle, so you will not be required to lodge returns for the January 2019 to May 2019 return periods.

Payroll tax rate change summary:

Annual taxable Australia wide wages (business/group)
< $600,000
> $600,000 and $1 million
> $1 million but < $1.5 million
> $1.5 millions but < $1.7 million
>$1.7 million
01/07/2018 – 31/12/2018
0%
2.5%
Variable 2.5% to 4.95%
4.95%
4.95%
01/01/2019 – 30/06/2019
0%
0%
0%
Variable 0% to 4.95%
4.95%
Effective 01/07/2019
0%
0%
0%
Variable 0% to 4.95%
4.95%

 

Payroll tax: Annual wage thresholds in other states

The annual wage threshold for Australian taxable wages is $1.5 Million for SA effective 1 Jan 2019. However, you may be liable for payroll tax in other states if you operate a business in other states and your annual Australia wide wage bill exceeds the thresholds relevant for each state as listed below:

Annual Australian Wage Threshold
Payroll tax rate
Northern Territory
$1,500,000
5.5%
Victoria
$650,000
4.85% or 2.425% for regional employees
New South Wales
$750,000
5.45%
Western Australia
$850,000
Variable 5.5% and upwards
Queensland
$1,100,000
4.75%

Did you know?

  • Wages include in general, wages, salaries, commissions, bonuses, allowances, directors’ fees, fringe benefits, payments in kind, eligible termination payments and superannuation contributions for payroll tax purposes.
  • Additionally, payments for service contracts, to employment agencies, and to other third parties may be deemed to be wages assessable for payroll tax
  • Wages paid by certain employers such as non-profit organisations, public hospitals, religious or public benevolent institutions are exempt from payroll tax.

For a payroll tax review or to find out more, please contact Altitude Advisory on (08) 8172 1444 or email to enquiries@www.altitudeadvisory.com.au and we will assist you with any queries you may have.

Written by Manna Abraham
Altitude Advisory
Business Adviser

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