THE PAYROLL TAX SPECIALISTS
BRISBANE | SYDNEY | MELBOURNE

South Australia Government Proposes Payroll Tax Exemptions

In a move to deliver on one of its election commitments, South Australian Premier, Steven Marshall has introduced legislation to exempt many small businesses from payroll tax.

The legislation covers businesses with a taxable payroll of up to $1.5 million, around 3,200 small businesses, and represents savings to each business of up to $44,500 per annum. In addition, Premier Marshall also announced a ‘phased-in or graduated tax schedule’ for businesses with payrolls of $1.5 million to $1.7 million.

“The change is a significant increase in the current threshold of $600,000 to $1.5 million and will be welcomed by many small businesses who are struggling in the current economic climate,” Peter Tobin of Tobin Partners commented. “Not only does it mean they will be exempt from the tax but these businesses may also receive a flow-on savings in the administrative costs they faced in preparation of the payroll tax returns.”

The change comes into effect from 1 January 2019 and Peter Tobin’s advice to businesses is to review their individual situations in the July-September 2018 quarter to ensure they are structured effectively to receive the full benefit of the change and are fully compliant to meet all the conditions.

“Payroll tax is a complex tax with rates and thresholds differing from state to state and each state having their own set of terms and conditions to comply with,” Peter Tobin said. “We work closely with businesses of all sizes to structure their operations and be fully compliant with their relevant payroll tax legislation.”

At the start of the new financial year and following both State and Federal Budget announcements, it is timely for all businesses to conduct a review in regard to all taxation and other regulatory matters.

To discuss how the South Australian payroll tax changes affect your business, speak with us at Tobin Partners, Lawyers by email or call Peter Tobin 0438 001 809 for a confidential discussion on how to calculate payroll tax for your business.

Related Posts

Send Us A Message