A small win for South Aussie small businesses!
A permanent reduction in South Australia’s payroll tax rate for smaller employers has been released in the State Budget .
What does this mean for you?
A savings of between $2,082 and $9,800 a year if your payroll is between $600,000 and $1.5 million. Up until 2013-14, businesses with payroll < $1.5 million were subject to a 4.95% payroll tax rate however the government has returned almost half of this at an attempt to combat South Australia’s high unemployment rate.
- For payrolls up to $1M, the rate will now be 2.5%.
- Between $1M and $1.5M the rate will tier up to 4.95% (please refer to the table below).
Payroll tax is a disincentive for us business owners to grow and invest in our teams, and therefore our business as a whole.
In our opinion, payroll tax puts additional and unnecessary strain on the cashflow requirements of small business owners (as if our BAS and tax obligations aren’t enough!).
Although this is a win for businesses with payroll < $1.5 million, it is only a win for businesses with payroll < $1.5million, there is no alleviation for larger sized businesses.
Click here to view the Complete State Budget Overview