Annual Reconciliation

At the end of each financial year, all taxpayers are required to lodge an annual reconciliation following the end of the financial year to which the annual reconciliation return relates.

The 2019-20 annual reconciliation must be lodged between from Monday, 13 July 2020 to Friday, 14 August 2020.

The annual reconciliation should include details of taxable wages and the various components that make up those wages. Details of any interstate wages are also required for both the taxpayer and any other group members to determine the correct deduction entitlement. The annual reconciliation may result in either further tax being payable or a refund.

The annual reconciliation checklist can be used to prepare the information you need for your annual reconciliation. The annual reconciliation must be submitted electronically via RevenueSA Online at www.revenuesaonline.sa.gov.au.

Lodge your annual reconciliation

Further information regarding the 2019-20 annual reconciliation can be accessed by clicking on the links below.

Register for a payroll tax annual reconciliation webinar

Are your contact details correct?

While completing your annual reconciliation, it’s a good time to check that the contact details and organisation name on RevenueSA Online are correct.

If they are not, please update the information to ensure any correspondence is sent to the correct address.

See the Update Details help for assistance.

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Do I have to do anything different for the 2019-20 annual reconciliation?

After entering your South Australian wage components for the 2019-20 annual reconciliation, you will need to provide your total South Australian wages split into two periods:

  • 1 July 2019 to 29 February 2020 (period 1)
  • 1 March 2020 to 30 June 2020 (period 2)

Wages paid during period 2 may be eligible for a COVID-19 payroll tax relief waiver or deferral.

Eligibility for a waiver or deferral will be based on the Australia Wide (annualised grouped) wages declared in the 2018-19 annual reconciliation lodged by your organisation. Specifically:

  • If your organisation’s Australia wide (annualised grouped) wages are up to $4 million, your organisation will be eligible for a waiver of Payroll Tax.
  • If your organisation’s Australia wide (annualised grouped) wages are above $4 million, your organisation can request a deferral of Payroll Tax during the annual reconciliation if you have been adversely impacted by COVID-19.

If your organisation has been receiving JobKeeper payments, these will need to be declared as part of the annual reconciliation for reporting purposes only. JobKeeper payments are exempt from Payroll Tax and will not affect your liability.

See the payroll tax COVID-19 relief page for further information.

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I’ve forgotten my password, how do I reset?

You can reset your password in RevenueSA Online.

See the Reset Password help for assistance.

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I have been asked to convert my username, what do I need to do?

When accessing RevenueSA Online to complete the annual reconciliation, you may be asked to convert your username to an email address.

If a user does not have a username that is an email address, the following screen will appear when you have successfully logged in:

image of update user screen in RevenueSA Online

An email will be sent to the nominated email address. You will need to follow the instructions in the email to confirm the changes and then login to RevenueSA Online using your new username.

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How do I use RevenueSA Online to complete my annual reconciliation?

Help guides are available to assist you in using RevenueSA Online to complete your 2019-20 annual reconciliation. You can access these by clicking on the ‘help’ button in RevenueSA Online which will take you directly to the relevant Help.

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Did you cease paying wages in South Australia during 2019-20?

If your organisation ceased employing in South Australia during 2019-20 and will not be continuing to trade or pay wages in South Australia in 2020-21 onwards, you will be required to submit your final return in the annual reconciliation.

When prompted select YES to the question ‘Did you cease paying wages in South Australia during 2019-20?’
You will be asked if you want to cancel your registration and you will be required to enter a date of cancellation (the date you ceased to trade or pay wages in South Australia) and a reason for the cancellation (from a drop down list).

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Has your status changed?

Each employer is allocated a status which indicates if they are part of a group or a single employer. Statuses are:

Non Group Employer (NGE) An organisation that is not grouped with any other organisation.
Designated Group Employer (DGE) The nominated member of a payroll tax group entitled to claim the group’s payroll tax deduction entitlement.
Grouped Employer (GE)

Member of a payroll tax group. Not entitled to claim a payroll tax deduction.

As part of your annual reconciliation, you will be asked to confirm if your status code is correct. Please select:

  • YES if your status code is correct.
  • NO if your status code is not correct.

If it is not correct you will be able to amend your status code.

See the Status help for assistance.

If you are a Nominated Single Lodger (NSL) you cannot change your status as part of the annual reconciliation lodgement. Please contact RevenueSA at payrolltax@sa.gov.au before you commence your annual reconciliation to change your status.

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What is the deduction entitlement?

The maximum payroll tax deduction entitlement is $600 000. However this may vary based on group status and Australia wide wages.

RevenueSA Online will calculate the applicable payroll tax deduction.

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Are you part of a group?

If your organisation is part of a group, the Designated Group Employer (DGE) is required to lodge first before other group members. This allows the DGE to distribute any unused deduction entitlement to group member/s. When the group member subsequently lodges, the remaining deduction will be allocated resulting in the correct tax being calculated.

It is also important for the DGE to lodge first as this will determine what COVID-19 payroll tax relief the group members may be eligible for, a waiver or deferral.

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What is the rate of payroll tax?

Your payroll tax rate is calculated on your Australia wide annual wages (or group wages), i.e. your wages before the deduction entitlement is subtracted.

RevenueSA Online will calculate the correct rate and payroll tax payable. The South Australian payroll tax rates from 1 January 2019 are:

Annual Australia-wide wagesRate
does not exceed $1.5 million Nil
exceeds $1.5 million but not $1.7 million Variable from 0% to 4.95%
exceeds $1.7 million 4.95%

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What if made lump sum payments during the year?

Employers sometimes make lump sum payments. This can include superannuation top ups, fringe benefits and bonuses.

As a result of COVID-19 payroll tax relief being provided to eligible employers, if these payments relate to the full financial year you will need to split them across the two periods.

For example, an employer pays an employee a $5000 bonus in recognition of their work through the financial year. The payment is made in June. The payment relates to the whole financial year, therefore the payment would be declared as follows:

Period 1: 1 July 2019 to 29 February 2020

$5000 x 244 (number of days from 1 July to 29 Feb) / 366 (number of days in the year) = $3333

Period 2: 1 March 2020 to 30 June 2020

$5000 x 122 (number of days from 1 March to 30 June) / 366 (number of days in the year) = $1667

Total declared = $3333 (Period 1) + $1667 (Period 2) = $5000

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What are your estimated annual wages for 2020-21?

In your annual reconciliation you are asked to provide an estimate of the wages you expect to pay in 2020-21. These are an estimate only and are used to estimate the applicable payroll tax rate payable on your monthly returns.

If at the end of the financial year your wages are higher or lower than you estimated, the annual reconciliation will adjust the applicable payroll tax rate and recalculate your payroll tax liability. If during the financial year there is a significant change in wages (increase or decrease), you are encouraged to contact RevenueSA at payrolltax@sa.gov.au. We will be able to adjust your estimated wages which could result in a change in the applicable rate of payroll tax rate.

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What do I do if my estimated annual wages for 2020-21 are $1.5 million or less?

If you estimate that your Australia wide wages for 2020-21 will be $1.5 million or less you will be prompted towards the end of your annual reconciliation (at the wage estimates screen) to cancel your registration. You have the option to cancel your registration or remain registered:

  • To cancel select cancel registration.
  • To remain registered select continue with registration.

It’s your choice if you remain registered or cancel. If your wages are close to the threshold (currently $1.5 million), or they fluctuate year to year, you may prefer to retain your registration in case you exceed the threshold in 2020-21.

If you remain registered and would like to change your return cycle to annual or monthly please email your request to payrolltax@sa.gov.au.

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We overpaid, how do we get a refund?

If you have overpaid your 2019-20 payroll tax, you will be prompted to enter your bank account details during the annual reconciliation. A refund will be paid to you via direct credit.

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What do I do if I am unable to lodge my annual reconciliation by the due date?

If you cannot finalise your annual reconciliation by 14 August 2020 please contact RevenueSA at payrolltax@sa.gov.au, or on (08) 8226 3750 – select option 5.

Late lodgement of the annual reconciliation may result in interest and/or penalty tax being applied.

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What if I'm unable to pay my payroll tax?

Payment options may be available if you are unable to meet your deferred payroll tax due to COVID-19. Further information will be available in due course. If you have concerns about paying your payroll tax liability, please contact RevenueSA at payrolltax@sa.gov.au, or on (08) 8226 3750 – select option 5 to discuss options available.

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Why does my annual reconciliation summary contain outstanding tax, interest and/or penalty tax?

Details of any outstanding tax from previous year(s) and/or interest and penalty tax applied from monthly default assessments issued during 2019-20 will be summarised in the Annual Reconciliation.

All requests for remissions of default interest and penalty tax must be emailed to payrolltax@sa.gov.au.

Remission can only be considered after your annual reconciliation has been submitted on RevenueSA Online.

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Can I amend an annual reconciliation?

You can modify your 2019-20 annual reconciliation after it has been submitted by logging into RevenueSA Online and selecting the modify button in the ‘action’ column against the annual reconciliation. This will allow you to modify the required data and resubmit.

See the Modify an Annual Reconciliation help for assistance.

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When can I lodge my July 2020 return?

The July 2020 monthly return will be open on RevenueSA Online from 22 July 2020 and must be lodged by 14 August 2020. We recommend you complete the 2020-21 annual reconciliation before the July return to ensure the estimated rate and deduction entitlement is calculated for the 2020-21 monthly returns.

Reminder: Eligible employers who have applied for the COVID-19 payroll tax waiver/deferral must continue to lodge their monthly payroll tax returns to capture wages for the month, even if no payroll tax payment is required to be made.

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2018-19 annual reconciliation

For information on the 2018-19 Annual Reconciliation, please select the one of the following that best reflects your Australia wide annual wages for 2018-19:

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Enquiries

Taxation Services – Payroll Tax
GPO Box 1353
ADELAIDE  SA  5001

Email: payrolltax@sa.gov.au

When emailing, please include your South Australian Taxpayer Number (if known), ABN, and organisation name.

Phone: (08) 8226 3750 – select option 5.

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