Updated 31 August 2026
Figures verified 31 August 2026 against the RevenueSA Rates and Thresholds page (updated 8 July 2026) and the RevenueSA payroll tax rate table. Threshold $1,500,000 Australia-wide, variable rate between $1,500,000 and $1,700,000, 4.95% at or above $1,700,000, maximum deduction $600,000 per annum prorated by the SA share of Australian wages. RevenueSA Online calculates the definitive liability. Runs entirely in your browser. General information only, not advice.
Three numbers drive the whole calculation, and two of them are set by wages paid anywhere in Australia, not just in SA.
The threshold. No payroll tax while Australia-wide wages, or group Australia-wide wages, sit at or under $1.5 million. That is the highest general threshold of any state.
The rate. Between $1.5 million and $1.7 million of Australia-wide wages the rate phases in from 0% to 4.95% on a straight line, so a business at $1.6 million pays roughly half rate. From $1.7 million the full 4.95% applies. The rate is picked by the Australia-wide total even if only some wages are in SA.
The deduction. Liable employers deduct up to $600,000 from SA wages before applying the rate, about $50,000 a month. Pay wages interstate and the deduction is prorated: $600,000 multiplied by SA wages over Australian wages. Missing the proration is the most common error we see in self-prepared returns.
An Adelaide business pays $1,600,000 of wages, all in SA. The rate is 4.95% times ($1,600,000 less $1,500,000) over $200,000, which is 2.475%. Tax is ($1,600,000 less the $600,000 deduction) times 2.475%, which is $24,750. The same wages split $1,000,000 SA and $600,000 interstate keep the 2.475% rate, but the deduction falls to $375,000 and SA tax is $15,469, with the interstate wages tested separately under that state's rules.
Taxable wages are wider than the payroll report. They include gross salary and wages, director fees, commissions and bonuses, most allowances above the exempt rates, employer superannuation including salary sacrifice, the grossed-up value of fringe benefits, and payments to contractors who are deemed employees under the relevant contract provisions. Workers compensation payments are out. Motor vehicle and accommodation allowances are exempt up to the published rates, which for 2026-27 are 88 cents per kilometre and $328.85 per night.
RevenueSA data matches against ATO contractor reporting. A contractor engaged mainly for labour, working exclusively for you, can be deemed an employee for payroll tax even with an ABN and a clean GST position. If contractor payments would push the group over $1.5 million, get the classification reviewed before an investigation does it for you.
Related entities are grouped where there is common control, shared employees, or the same persons hold a controlling interest. A trading company at $900,000 of wages and a related labour entity at $800,000 are each comfortably under the threshold alone, and $200,000 over it together. The group shares one threshold and one deduction, the rate is set by combined Australia-wide wages, and registration is required even though neither entity crosses the line by itself.
Groups nominate a designated group employer to claim the deduction. Getting the DGE nomination and the split right matters because every member is jointly liable for the group's payroll tax. If your structure has more than one employing entity, this is worth an hour with your business accountant before RevenueSA writes first.
| Jurisdiction | General threshold | General rate |
|---|---|---|
| SA | $1,500,000 | Variable to 4.95% at $1,700,000 |
| NSW | $1,200,000 | Higher than SA's general rate, flat above threshold |
| VIC | Lower than SA | Comparable metro rate, plus surcharges for large payrolls |
| QLD | $1,300,000 | Lower headline rate, deduction phases out |
The practical point for multi-state employers: payroll tax follows where the work is performed, not where the entity is registered or the employee lives. An SA company with two remote staff in Victoria has Victorian wages, a lower Victorian threshold to test, and a prorated SA deduction. Each state's current-year figures should be checked at the time of lodgement because they move most budget cycles.
We handle registration, grouping assessments, DGE nominations and the annual reconciliation, and we check contractor exposure before RevenueSA does. Based on Hindmarsh Square, working with employers across SA and interstate.
Talk to National AccountsOnce Australia-wide wages, yours or your group's, exceed the threshold. Registration is required once Australia-wide wages exceed $1,500,000 a year, equivalent to $125,000 a month or $28,846 a week. Registration and liability are separate questions, so registering does not itself create tax below the threshold.
Yes. Employer superannuation contributions, both the superannuation guarantee and salary sacrifice amounts, are taxable wages in every state including SA.
Only if they are not grouped. Common control, shared staff or the same controlling shareholders group the entities, and the threshold then applies once to the combined wages. This is the single most common way SA employers end up with back-tax and interest.
Sometimes. Payments under contracts mainly for labour can be deemed wages even where the contractor has an ABN. The relevant-contract rules have exemptions, including for contractors serving the public generally, and the analysis is contract by contract.
Monthly returns through RevenueSA Online, generally due on the seventh day of the following month or the next business day, with an annual reconciliation after 30 June. Interest and penalty tax apply to late payment.
General information only. It does not consider your circumstances and is not tax, legal or financial advice. Rates and thresholds verified 31 August 2026 against RevenueSA and subject to change. Liability limited by a scheme approved under Professional Standards Legislation.
