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$1.5m threshold, sliding to 4.95% RevenueSA
Payroll Tax — South Australia
South Australia's rate slides from 0% up to 4.95% as Australian taxable wages rise from $1,500,000 to $1,700,000 — it is not a single rate above a threshold.
| What | SA |
|---|---|
| Annual threshold | $1,500,000 |
| Rate | 0% to 4.95% |
| Paid to | RevenueSA |
| Wages | Rate |
|---|---|
| Up to $1,500,000 | 0% |
| Over $1,500,000 but not $1,700,000 | 0% to 4.95% (sliding) |
| Over $1,700,000 | 4.95% |
What you need to know
- Annual threshold: $1,500,000. Monthly threshold: $125,000.
- The rate is not a flat 4.95% above the threshold — it shades in from 0% to 4.95% between $1,500,000 and $1,700,000 of Australian taxable wages.
- Above $1,700,000 the full 4.95% applies.
- South Australia also publishes a $600,000 deduction entitlement, which is a separate concession from the threshold.
- Registration can be required even when your wages are under the threshold, because wages can cross it during the year.
Why payroll tax surprises businesses
Payroll tax is a state tax on wages, and it is the tax most likely to catch a growing business by surprise for three reasons:
- The threshold is tested on Australia-wide wages, not just wages paid in that state. A business with staff in three states counts all of them.
- Groups share one threshold. Related entities are treated as one employer, so they do not each get their own tax-free amount.
- Registration and liability are separate. In several states you must register even when your wages are under the threshold and you owe nothing.
Frequently asked questions
What is the payroll tax threshold in South Australia?
$1,500,000 a year in Australian taxable wages, or $125,000 a month.
What is the SA payroll tax rate?
It slides from 0% to 4.95% between $1,500,000 and $1,700,000, then stays at 4.95%. If a business says the SA rate is 4.95% full stop, it is describing only the top of the range.
Is there a deduction as well?
Yes — South Australia has a $600,000 deduction entitlement, which sits alongside the threshold rather than replacing it.
What wages count towards the threshold?
Australian taxable wages — not just the wages you pay in South Australia. That is the rule in most states and it is the one that catches multi-state employers.
Compare the other states
| State | Threshold | Rate |
|---|---|---|
| New South Wales | $1,200,000 | 5.45% |
| Victoria | $1,000,000 | 4.85% |
| Queensland | $1,300,000 | 4.75% / 4.95% |
| Western Australia | $1,000,000 | 5.5% |
| South Australia | $1,500,000 | 0% to 4.95% |
| Australian Capital Territory | $1,750,000 | 6.75% to 8.75% |
| Tasmania | $1,250,000 | 4% / 6.1% |
| Northern Territory | $2,500,000 | 5.5% / 6.5% |
Related
- Land tax calculator — the state tax on property instead of wages
- Company tax rates
- Take-home pay calculator
- Centrelink payment rates
From RevenueSA, checked 12 October 2026. General information only — not tax advice.