Payroll tax is a state tax that is calculated on wages paid or payable. Employers (or groups of employers) with Australian wages of $1.5 million or more are required to be registered in South Australia. Australian wages comprise both South Australian wages and all interstate wages. For simple administration, it is recommended that you register if during any one month, your total Australian wages exceed the monthly threshold of $125 000.
In general any remuneration attributed to employees is included in your total Australian wages. Common items are wages, salaries, commissions, bonuses, allowances, directors fees, fringe benefits, payments in kind, eligible termination payments and superannuation contributions.
From 1 January 2019, if your total annual Australian taxable wages are been $1.5 million and $1.7 million, payroll tax will be calculated at a variable rate that is between 0% and 4.95%. If your total annual Australian taxable wages exceed $1.7 million, payroll tax will be calculated at 4.95%.