Rebates for Payroll Tax

The rebate scheme below was scheduled to run until 2019-20, however in the 2017-18 State Budget, new payroll tax rates were introduced which in effect provide small businesses with the benefit of a reduced payroll tax rate as returns are lodged.

South Australia Small Business Payroll Tax Rebate

The small business payroll tax rebate operates from 2013-14 to 2016-17 and is provided to eligible employers with a taxable Australian payroll of less than or equal to $1.2 million.

The rebate payment is paid in the first half of the 2013-14 to 2017-18 financial years, based on eligible employers' taxable payrolls in the respective prior year's annual reconciliation.

Employers do not need to apply for the rebate, RevenueSA will assess employer's eligibility for the rebate. Employers are not eligible for the rebate payment until finalisation (including payment of any underpayments made during the year) of their relevant annual payroll tax reconciliation process. Employers who are members of a group are not  able to have their rebate determined until their Designated Group Employer's annual payroll tax reconciliation has been finalised.

Once the rebate payments have been made, eligible employers with a taxable Australian payroll of up to $1 million effectively only pay payroll tax at a level equivalent to 2.45 percentage points lower than the statutory rate of 4.95%.

Rebate payments phase out for eligible employers with a taxable payroll of between $1 million and $1.2 million.

The rebate payment for eligible employers who have taxable wages below $1.2 million is determined in accordance with the difference in rates shown in the table below.

Annual Taxable Payroll
($)
Statutory Tax Rate
(%)
Rebate Rate
(percentage points)
600 000 to 1 000 0004.952.45
1 000 001 to 1 050 0004.951.95
1 050 001 to 1 100 0004.951.45
1 100 001 to 1 150 0004.950.95
1 150 001 to 1 200 0004.950.45
Above 1 200 0004.95-

Further information in relation to the administration of the rebate is contained in Revenue Ruling PTASA002 [V3].