South Australian payroll tax for 2026-27 is nil on Australian wages up to $1.5 million, a variable rate between $1.5 million and $1.7 million, and 4.95% above $1.7 million. Employers also get a deduction of up to $600,000, so tax is charged on wages after that deduction.
Published: November 2026
SA works differently from every other state. Elsewhere the threshold shrinks as you grow. In SA the deduction stays and the rate climbs. If you want both numbers tracked for you, see our Adelaide bookkeeping services.
Payroll tax is a state tax on wages, administered in South Australia by RevenueSA. It is self-assessed and lodged through RevenueSA Online.
Taxable wages include salary, super, bonuses, commissions, allowances, fringe benefits and some contractor payments. See our guide to payroll tax on contractors.
These rates have applied since 1 January 2019. Compare other states in our state-by-state payroll tax thresholds and rates guide.
SA employers need to keep two figures separate:
RevenueSA sets your rate using your Australia-wide annual wages before the deduction is taken off. Then it applies that rate to your wages after the deduction.
Between $1.5 million and $1.7 million of wages, the rate rises from 0% to 4.95%. The rate moves in a straight line across the $200,000 band:
Rate = (wages less $1,500,000) divided by $200,000, multiplied by 4.95%.
Worked example 3: $2,000,000 in SA wages.
Rate: 4.95%, because wages exceed $1.7 million.
Taxable: $2,000,000 less $600,000 = $1,400,000.
$1,400,000 x 4.95% = $69,300 for the year.
The band is short and steep. Moving from $1.5 million to $1.7 million of wages takes the bill from nil to $54,450 ($1,100,000 x 4.95%). If your wages are heading into that band, forecast the year before you get there. Our payroll tax threshold calculator will run the numbers, and RevenueSA has its own rate calculator.
The full $600,000 is available to an employer who pays wages only in South Australia for the whole year and is not in a group. It reduces if you:
Because the rate is set on Australia-wide wages, an employer with most of its payroll interstate can be on the full 4.95% in SA with only a small SA deduction.
Businesses are grouped where there is common ownership, common control or shared employees. For a group, the $1.5 million threshold is tested on the combined taxable wages of all members. Two related businesses each paying $900,000 are over the threshold together even though neither is alone. Our payroll tax grouping guide explains the tests and the exclusions.
Registered employers generally lodge monthly, with returns due on the 7th of the following month, and complete an annual reconciliation by 28 July.
During the year, RevenueSA Online uses an estimated rate based on the annual wages you declare. If your wages sit in the $1.5 million to $1.7 million band, the true rate is only known at the reconciliation. A business whose wages run ahead of its estimate will owe a balance in July. Update the estimate when your payroll changes.
Registration, monthly returns and the reconciliation are part of our outsourced payroll services.
What is the payroll tax threshold in South Australia for 2026-27?
$1.5 million in Australia-wide annual taxable wages. At or below that, no payroll tax is payable.
What is the SA payroll tax rate?
4.95% once wages exceed $1.7 million. Between $1.5 million and $1.7 million the rate is variable, from 0% to 4.95%.
What is the SA payroll tax deduction?
Up to $600,000 a year. It is reduced for interstate wages, part-year employers and groups.
When is the SA annual reconciliation due?
28 July each year.
Do interstate wages affect SA payroll tax?
Yes. The threshold and the rate are based on Australia-wide wages, and the $600,000 deduction is apportioned to the SA share.
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We review and check this guide periodically. At the time of writing (November 2026), all information was current. Scale Suite is a registered BAS Agent, not a licensed tax advisor or financial advisor. This content is general information only and does not constitute professional tax, financial, or legal advice. Some details may change over time.
Scale Suite is a Sydney-based provider of outsourced finance and HR services for Australian SMEs. We deliver bookkeeping, financial reporting, payroll processing, fractional CFO support, recruitment, employee onboarding, people and culture support, and fractional HR oversight, all as a fully embedded team that works inside your business.
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