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Total taxable wages paid to SA employees for the financial year. Includes salaries, wages, commissions, bonuses, and superannuation.

2025-26 SA Payroll Tax

Rate: 4.95%
Threshold: $1,500,000
Max deduction: $600,000

A shade-in rate applies for wages between $1.5M and $1.7M.

Enter your total SA wages to calculate payroll tax.

Payroll tax applies to businesses with annual Australian wages over $1.5 million.

SA payroll tax rates 2025-26

South Australia applies a payroll tax rate of 4.95% with a tax-free threshold of $1,500,000 and a maximum deduction capped at $600,000.

Item 2025-26
Payroll tax rate 4.95%
Tax-free threshold $1,500,000
Maximum deduction $600,000
Shade-in range $1.5M – $1.7M

Shade-in provision

SA uses a shade-in provision for businesses with national wages between $1.5 million and $1.7 million. Within this range, the tax rate gradually increases from 0% to the full 4.95%, rather than applying the full rate immediately.

Shade-in formula

Rate = 4.95% × (Wages − $1,500,000) ÷ $200,000

National wages Applicable rate
≤ $1,500,000 0%
$1,550,000 1.24%
$1,600,000 2.48%
$1,650,000 3.71%
≥ $1,700,000 4.95%

Once national wages exceed $1.7 million, the full 4.95% rate applies to all taxable wages above the deduction amount.

Calculation example

Example: $2,000,000 in SA wages

For a business with $2,000,000 in total Australian wages (all in SA):

  • Step 1: Above $1.7M, full 4.95% rate applies
  • Step 2: Calculate taxable wages
    $2,000,000 − $600,000 = $1,400,000
  • Step 3: Calculate tax
    $1,400,000 × 4.95% = $69,300

What wages are taxable?

SA payroll tax applies to taxable wages paid to employees. This includes:

  • Salaries and wages
  • Commissions and bonuses
  • Superannuation contributions
  • Allowances (with some exemptions)
  • Fringe benefits (grossed-up taxable value)
  • Certain contractor payments
  • Directors' fees
  • Termination payments (some components)

Interstate wages

If your business pays wages in multiple states, your SA deduction is calculated proportionally based on your SA wages as a share of total Australian wages.

Example: Interstate employer

A business pays $1,000,000 in SA wages and $3,000,000 in total Australian wages.

  • SA deduction: $600,000 × ($1,000,000 ÷ $3,000,000) = $200,000
  • SA taxable wages: $1,000,000 − $200,000 = $800,000
  • SA tax: $800,000 × 4.95% = $39,600

Lodgement and payment

SA requires monthly lodgement for all registered employers. Returns and payments are managed through RevenueSA's online portal.

Return type Due date
Monthly returns 7th of following month
Annual reconciliation Required annually

Lodge through RevenueSA's online portal. If the 7th falls on a weekend or public holiday, lodgement and payment are due on the next business day.

Frequently asked questions

What is the SA payroll tax rate for 2025-26?

The SA payroll tax rate is 4.95% for 2025-26. A shade-in provision applies for businesses with national wages between $1.5 million and $1.7 million, where the rate gradually increases from 0% to 4.95%.

What is the SA payroll tax threshold?

The SA payroll tax threshold is $1,500,000 for 2025-26. However, the maximum deduction is capped at $600,000. Businesses only pay payroll tax on wages exceeding the deduction amount.

How does the SA shade-in provision work?

For businesses with national wages between $1.5M and $1.7M, the tax rate gradually increases from 0% to 4.95%. The formula is: rate = 4.95% × (wages − $1,500,000) ÷ $200,000. Above $1.7M, the full 4.95% rate applies.

When are SA payroll tax returns due?

SA payroll tax returns are due by the 7th of each following month. Annual reconciliation returns are also required. Lodge through RevenueSA's online portal.

What is the maximum deduction for SA payroll tax?

The maximum SA payroll tax deduction is $600,000 for 2025-26. This is less than the $1.5M threshold, meaning businesses pay tax on wages above $600,000 (not $1.5M) once they exceed the threshold.

SA Payroll Tax Guides

See payroll tax on common wage totals and compare nearby thresholds.

Open SA payroll tax guide
Next step: Generators

Move from payroll tax estimates into branding-ready payroll paperwork

Once you understand the state payroll tax exposure, move into the branding-ready document set for payslips, timesheets, expense claims, and cleaner supporting payroll records.

Open payroll document hub