Payroll tax changes in South Australia: ECEC services set to save
Small businesses across South Australia, including early childhood education and care (ECEC) services, with a taxable payroll of less than $1.5 million will benefit from a major tax cut exempting them from paying any payroll tax, saving a potential $44,550 a year.
The changes, which came into effect from 1 January 2019, are designed to stimulate the economy and make South Australia a “far more attractive place to invest”, South Australian Premier Steven Marshall said.
“By abolishing payroll tax for all small businesses, we are removing a major economic handbrake for them that will further stimulate the economy by encouraging them to create more jobs and employ more people,” Mr Marshall said.
A further 400 businesses with payrolls between $1.5 million and $1.7 million will receive a reduction in the amount of payroll tax they are required to pay through a phased-in approach, which Mr Marshall said is designed to send a “clear message that South Australia is open for business”.
The Payroll Tax (Exemption for Small Business) Amendment Bill 2018 lifts the annual taxable wages threshold from $600,000 to $1.5 million, with the reform expected to save businesses an estimated $44 million per year.
More information can be found about the changes here.