Annual Reconciliation - Wages $1.5 million or less

PLEASE NOTE: Changes to the registration threshold and rate of payroll tax occurred from 1 January 2019.

From 1 January 2019, businesses with annual Australian wide wages:

  • $1.5 million or less are no longer liable for payroll tax.
  • between $1.5 million and $1.7 million benefit from a reduced payroll tax rate.

For businesses grouped for payroll tax the $1.5 million threshold relates to the total taxable wages of all group members.

There are no changes for business with wages above $1.7 million.

Please note, business with wages below $1.5 million are still required to lodge a 2018-19 Annual Reconciliation.

How do I lodge my Annual Reconciliation?

You must lodge your Annual Reconciliation online at www.revenuesaonline.sa.gov.au between Monday, 1 July 2019 and Monday, 22 July 2019.

Lodge your annual reconciliation

RevenueSA Online has replaced RevNet, but uses the same username and password credentials.

See the RevenueSA Online page for more details on this online portal.

You can also use our AR checklist to prepare the information you need for your annual reconciliation.

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

You can reset your password in RevenueSA Online.

See the Reset Password help for assistance.

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 2018-19 Annual Reconciliation.

You can also access these from within RevenueSA Online. The help icon on each screen will take you directly to the relevant Help.

What is the deduction entitlement?

For the 2018-19 year, the maximum payroll tax deduction entitlement is $600 000. However this may vary based on group status and Australia wide wages.

You may have heard that the threshold increased to $1.5 million from 1 January 2019, however there was no change to the deduction entitlement. The threshold relates only to when an employer must register for payroll tax. That is, if an employer’s Australia wide wages exceed $1.5 million they must register.

For 2018-19, the deduction will be split over the two periods:

  • 1 July 2018 to 31 December 2018 (period 1)
  • 1 January 2019 to 30 June 2019 (period 2)

The amount of deduction for each period will be determined based on the wages paid in each period.

RevenueSA Online will calculate the applicable payroll tax deduction for each period.


Example

An employer pays 75% of their wages during period 1 (1 July 2018 to 31 December 2018) and 25% of their wages during period 2 (1 January 2019 to 30 June 2019). Assuming the employers receives the maximum deduction entitlement of $600 000, their deduction for 2018-19 would be split as follows:

Period 1$450 000
Period 2$150 000
Total      $600 000

What is the payroll tax threshold?

From 1 January 2019, the threshold increased from $600 000 to $1.5 million.

This means if your Australia wide annual wages are $1.5 million or less, you are no longer liable for payroll tax, from 1 January 2019.

However, you may still be liable for payroll tax up to 31 December 2018.

What is the rate of payroll tax?

Employers with Australia wide annual wages of $1.5 million or less will pay different rates of payroll tax during 2018-19.


1 July 2018 to 31 December 2018 Variable from 2.5% to 4.95%*

1 January 2019 to 30 June 2019

0%

* Reduced rate provided by ex gratia.


Your 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 for each period for each period.

The Tax Payable Calculation screen of your Annual Reconciliation will reflect 4.95% as your payroll tax rate for period 1, however the reduced rate is reflected by the ex gratia relief (see image below). The ex gratia amount is deducted from your payroll tax liability.

Do I still need to lodge an Annual Reconciliation?

Yes, you will still need to lodge your 2018-19 Annual Reconciliation, and provide your wages for the full financial year.

RevenueSA Online will calculate your payroll tax liability for 1 July 2018 to 31 December 2018. (see below).

Do I have to do anything different for the 2018-19 Annual Reconciliation?

For the 2018-19 Annual Reconciliation, after entering your South Australian wage components, you will need to provide your total South Australian wages split into two periods:

  • 1 July 2018 to 31 December 2018 (period 1)
  • 1 January 2019 to 30 June 2019 (period 2)

RevenueSA Online will calculate the payroll tax payable for period 1. If your Australia wide annual wages are $1.5 million or less in 2018-19 there will be no payroll tax payable for period 2.

See the SA Wage Details help for assistance.

What if I made lump sum payments during the year?

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

If these payments relate to the full financial year you can 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.

As the payment relates to the whole financial year, they can declare $2500 in period 1 (1 July 2018 to 31 December 2018) and $2500 in period 2 (1 January 2019 to 30 June 2019).

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.

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.

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 before you commence your Annual Reconciliation to change your status.

Did you cease paying wages in South Australia during 2018-19?

If your organisation ceased employing in South Australia during 2018-19, you will submit your final return in the Annual Reconciliation. When prompted select YES to the question ‘Did you cease paying wages in South Australia during 2018-19?’.

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 paying wages in South Australia) and a reason for the cancellation (from a drop down list).

What do I do if my estimated annual wages for 2019-20 are $1.5 million or less?

If you estimate that your Australia wide wages for 2019-20 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 2019-20.

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.

Will I need to lodge future returns?

If you cancel your registration, and your relevant wages remain below the registration threshold, you will no longer be required to lodge monthly returns or an annual reconciliation in future years.

If you retain your registration you will need to lodge returns, either monthly or annually depending on your return cycle.

We overpaid, how do we get a refund?

If you have overpaid your 2018-19 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.

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 22 July 2019 please contact RevenueSA at payrolltax@sa.gov.au or on (08) 8204 9880 for advice.

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

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 2018-19 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.

Can I amend an annual reconciliation?

You can modify your 2018-19 Annual Reconciliation after it has been submitted by logging into RevenueSA Online and selecting the modify button in the ‘action’ section against the Annual Reconciliation. This will allow you to modify the required data and resubmit.

See the Modify an Annual Reconciliation help for assistance.