South Australia has the most unusual payroll tax design in the country. There's no tax at all until your group's Australian wages reach $1.5 million, then the rate climbs from 0% to 4.95% over the next $200,000 of wages. That phase-in band is the steepest part of any state's scale: an extra dollar of wages inside it can cost more than 20 cents in payroll tax. Above $1.7 million the rate settles at 4.95%, with a deduction of up to $600,000.
This guide sets out the 2026–27 scale, how the rate and deduction work together, registration and due dates, what counts as wages, grouping and contractors, the GP bulk-billing exemption and other exemptions, penalties, and worked examples. For the other states, see our guide to payroll tax by state.
SA payroll tax at a glance (2026–27)
| Item | 2026–27 figure | Source |
|---|---|---|
| Nil-rate threshold | Australian taxable wages of $1.5 million or less | RevenueSA |
| Phase-in band | Over $1.5m up to $1.7m: rate rises from 0% to 4.95% | RevenueSA |
| Full rate | 4.95% where Australian taxable wages exceed $1.7m | RevenueSA |
| Deduction | Up to $600,000 a year ($50,000 a month), apportioned for interstate wages and part years | RevenueSA |
| Registration | Australian wages over $1.5m a year (equivalent to $28,846 a week or $125,000 a month) | RevenueSA |
| Monthly returns | Within 7 days after the end of each month | RevenueSA |
| Annual reconciliation | 28 July 2027 for 2026–27 | RevenueSA |
| Surcharges or levies | None | RevenueSA |
| Scale effective from | 1 January 2019, unchanged for 2026–27 | RevenueSA |
RevenueSA's 2026–27 Guide to Legislation (dated 6 July 2026) and its rates and thresholds page confirm the figures above.
What is the SA payroll tax rate and threshold for 2026–27?
For 2026–27 the SA rate is nil where Australian taxable wages are $1.5 million or less, rises from 0% to 4.95% between $1.5 million and $1.7 million, and is 4.95% above $1.7 million. The rate is set by your total Australian wages (or your group's), then applied to your SA wages less your deduction.
| Annual Australian taxable wages | Rate 2026–27 |
|---|---|
| $1,500,000 or less | Nil |
| More than $1,500,000, up to $1,700,000 | Variable, 0% to 4.95% |
| More than $1,700,000 | 4.95% |
How is the phase-in rate worked out?
Inside the band, the rate rises evenly with your wages: it's 4.95% × (Australian wages − $1.5 million) ÷ $200,000. RevenueSA's own examples match this: estimated wages of $1,560,000 give a rate of 1.48%, and $1,600,000 gives 2.47%. The rate is estimated during the year from your expected wages and finalised at the annual reconciliation.
How much is payroll tax in SA at different payroll sizes?
Tax = (SA taxable wages − deduction) × rate. For an employer paying wages only in SA, for the full year, not grouped:
| Australian taxable wages | Rate | Taxable (after $600,000 deduction) | SA payroll tax 2026–27 |
|---|---|---|---|
| $1,500,000 | Nil | — | Nil |
| $1,600,000 | About 2.47% | $1,000,000 | About $24,750 |
| $1,700,000 | 4.95% | $1,100,000 | $54,450 |
| $2,000,000 | 4.95% | $1,400,000 | $69,300 |
| $3,000,000 | 4.95% | $2,400,000 | $118,800 |
| $5,000,000 | 4.95% | $4,400,000 | $217,800 |
| $10,000,000 | 4.95% | $9,400,000 | $465,300 |
Look at the jump from $1.5 million to $1.7 million: $200,000 more wages adds $54,450 of payroll tax, about 27 cents in every dollar. Above $1.7 million the cost of each extra dollar falls back to 4.95 cents, because the deduction doesn't taper away the way Victoria's and WA's thresholds do. Businesses heading into the band should plan for it, especially when a new hire or a second business will push group wages over $1.5 million.
Who has to register for payroll tax in SA?
You must register with RevenueSA once your Australia-wide taxable wages, or your group's, exceed the $1.5 million threshold. RevenueSA gives the equivalent as $28,846 a week or $125,000 a month, and tax is due by the 7th day of the month after the month you first exceed the threshold.
You register and lodge through RevenueSA Online. Have your ABN, wages by month for SA and interstate, and the details of every business you're grouped with.
When are SA payroll tax returns due?
Monthly returns are due within 7 days after the end of each month, and the annual reconciliation is due on 28 July. If a due date falls on a weekend or public holiday, it moves to the next business day. You lodge a return every month even if no tax is payable.
| Return | 2026–27 due date |
|---|---|
| Monthly (July 2026 to May 2027) | 7th of the following month, or the next business day |
| Annual reconciliation (includes June 2027) | 28 July 2027 |
The annual reconciliation recalculates the year using your actual Australian wages, which fixes your actual rate (if you're in the phase-in band) and your deduction. Interest and penalty tax can apply if it's lodged late.
What counts as wages, and how does grouping work in SA?
SA uses the harmonised definition of wages: salary, wages, bonuses and commissions, super, fringe benefits, directors' fees, termination payments, employee share scheme interests, and payments to contractors and employment agents that are deemed to be wages.
Businesses are grouped where corporations are related under section 50 of the Corporations Act, where employees are shared or used between businesses, where there are common controlling interests, or where an entity controls a corporation. Group members combine their Australian wages to set the rate and threshold. Only the designated group employer claims the deduction (other members can only use any unused deduction identified at reconciliation), and every member is jointly and severally liable for the group's tax.
Key point: Grouping is what turns two businesses that each sit comfortably under $1.5 million into a group in the phase-in band or above it. Family companies and family trusts controlled by the same people are the usual case.
Do contractors count for SA payroll tax?
Often, yes. SA's contractor provisions (Part 3, Division 7 of the Payroll Tax Act 2009) are harmonised with NSW, Victoria and Queensland. RevenueSA's guide says payments are generally taxable where the contractor provides essentially labour services and works exclusively or primarily for one principal, unless an exemption applies. For contractors who supply materials and equipment as well as labour, RevenueSA allows set non-labour percentage deductions (Revenue Ruling PTA018). Employment agency arrangements are also taxable.
The High Court heard the Uber appeal (from NSW) on 8 April 2026, and judgment was still reserved as at 23 October 2026. Because SA's provisions are harmonised, we treat the NSW Court of Appeal decision, which found Uber liable, as the working position in SA until the High Court rules. Platform, delivery and labour-only contractor models should be provisioned for, not assumed exempt.
Our employee vs contractor guide explains how this differs from the Fair Work and ATO tests. Unsure about your arrangements? Ask us.
What exemptions apply to SA payroll tax?
SA exempts GP wages for bulk-billed services (from 1 July 2024), parental and adoption leave up to 14 weeks, workers compensation and several other items. Apprentice and trainee wages are taxable for training contracts that began on or after 1 July 2022.
| Item | SA treatment (2026–27) |
|---|---|
| GP wages for bulk-billed services | Exempt in proportion to the share of the practice's GP services that are bulk billed (employee and contractor GPs) |
| Apprentices and trainees, contract started on or after 1 July 2022 | Taxable (RevenueSA's 2026–27 guide lists apprentice and trainee wages as taxable) |
| Apprentices and trainees, contract started 10 November 2020 to 30 June 2022 | Got relief equivalent to a 12-month exemption (now expired for all contracts) |
| Maternity and adoption leave | Exempt up to 14 weeks full-time pay (or the part-time equivalent) |
| Commonwealth Paid Parental Leave | Not wages |
| Workers compensation | Exempt |
| Genuine redundancy | Income-tax-free portion exempt |
| Defence force payments, volunteer emergency workers | Exempt |
| Construction industry long service leave contributions | Exempt |
| Charities, religious and public benevolent institutions, non-profit schools, hospitals, child care and kindergartens | Employer exemptions, subject to conditions |
| Motor vehicle allowance | Exempt up to $0.88 per km (2026–27) |
| Accommodation allowance | Exempt up to $328.85 per night (2026–27) |
The SA GP bulk-billing exemption
RevenueSA's ruling PTASA004 explains the exemption, made under the Payroll Tax Regulations 2025. The exempt percentage is:
Bulk-billed GP services ÷ total GP services × 100, applied to the wages paid to the practice's GPs (employees and contractors).
So a practice whose GPs billed 10,000 items in a year, 8,000 of them bulk billed, has 80% of its GP wages exempt. Nurses, reception and other staff aren't covered, some services are excluded from both sides of the calculation, and services funded by government programs where patients pay nothing aren't counted as bulk billed. For 2018–19 to 2023–24, unpaid tax on contractor GP wages is exempt only for practices approved for the earlier amnesty (registration closed 30 November 2023); practices that didn't apply remain liable for those years. See our page for medical practices and health services.
What are the penalties for SA payroll tax?
Penalty tax is 25% of the shortfall, or 75% for a deliberate default, reduced by 80% if you disclose voluntarily before an audit or 20% if you disclose during one. Obstructing an audit can increase the penalty by 20%. Interest is charged at a market rate plus a statutory 8%, accruing daily.
| Situation | Penalty tax |
|---|---|
| Deliberate default | 75% |
| Any other default | 25% |
| Voluntary disclosure while not under audit | Penalty reduced by 80% |
| Voluntary disclosure during an audit | Penalty reduced by 20% |
| Obstruction during an audit | Penalty increased by 20% |
The Commissioner can remit penalty tax and interest. If you've missed registering, the arithmetic favours disclosing before RevenueSA finds it.
Worked example: two Adelaide businesses, one family
Hypothetical, rounded, 2026–27 rates.
Say a couple owns a company that runs an Adelaide plumbing business with $1,150,000 of taxable wages (wages plus super), and their family trust runs a bathroom showroom with $500,000. Both pay wages only in SA.
Separately: each is under $1.5 million, so neither pays anything.
Grouped (common control): Australian wages = $1,650,000, inside the phase-in band.
- Rate: 4.95% × ($1,650,000 − $1,500,000) ÷ $200,000 = about 3.71%
- Deduction: $600,000, claimed by the designated group employer
- Tax: ($1,650,000 − $600,000) × 3.71% = about $39,000 for the year
If the showroom then hires two more staff and group wages reach $1,800,000, the rate becomes 4.95% and the tax is ($1,800,000 − $600,000) × 4.95% = $59,400. The extra $150,000 of wages costs about $20,400 in payroll tax on top of the wages themselves. That doesn't mean don't hire, but the cost belongs in the decision, and the group needs to be registered from the month it crosses the line.
How BPAG helps with SA payroll tax
We work out where you sit on the scale, map your group, test your contractors, apply the GP exemption correctly for medical practices, and prepare your monthly returns and annual reconciliation. Our South Australian state taxes agent works through SA payroll tax, grouping and exemptions in detail, and a qualified accountant reviews every calculation before anything is lodged or relied on.
We work with SA businesses from our Adelaide office in Black Forest and remotely. Our state taxes service covers payroll tax with land tax and stamp duty, and our payroll and Payday Super service prepares the payroll tax figures as part of each pay run.
What to send us
- Payroll reports for the last 12 months (and earlier years if you may have been liable) for every entity you, your spouse or your family trusts control
- A list of your entities with their shareholders, directors and trust beneficiaries
- The state where each employee works
- Contractor and labour hire agreements, with what each contractor supplies (labour only, or materials and equipment too)
- Apprentice and trainee training contracts with their start dates
- For GP practices: Medicare billing reports splitting bulk-billed and other GP services, and GP pay records
- Any RevenueSA letters, assessments or registration details
Frequently asked questions
Is there a mental health levy or surcharge on SA payroll tax?
No. South Australia has no payroll tax surcharge or levy for 2026–27. The top rate is 4.95% for employers and groups with Australian taxable wages above $1.7 million, however large the payroll.
Did the 2026–27 SA Budget change payroll tax?
No. The SA Budget handed down on 4 June 2026 contained no payroll tax measures (RevenueSA lists only stamp duty relief measures), and RevenueSA's rates for 2026–27 are the same as they have been since 1 January 2019: nil to $1.5 million, a phase-in to $1.7 million and 4.95% above that.
Do I need to register in SA if my SA wages are under $1.5 million?
Possibly. Registration depends on your total Australian wages, including those of businesses you're grouped with. If those exceed $1.5 million a year (about $28,846 a week or $125,000 a month), you need to register even if your SA wages alone are small.
How are motor vehicle and accommodation allowances treated in SA?
They're exempt up to set rates and taxable above them. RevenueSA's 2026–27 guide gives an exempt motor vehicle rate of $0.88 per kilometre and an accommodation allowance of $328.85 per night. Keep kilometre records, because without them the whole allowance is wages.
What interest does RevenueSA charge on late payroll tax?
Interest is made up of a market rate, set from the Reserve Bank's 90-day bill rate, plus a statutory rate of 8% a year. It accrues daily on unpaid amounts. The Commissioner can remit interest in some circumstances.
Are payroll tax payments deductible for income tax?
Yes. SA payroll tax paid by a business is generally deductible for income tax as a business expense. Treat penalties and interest separately and check them with your accountant before claiming.
Official sources
General information only, current as at 23 October 2026. It is not personal tax, legal or financial product advice and doesn't take your circumstances into account. Talk to us before you act. Where a recommendation needs a licensed financial adviser or a solicitor, we work alongside them.