A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
Select the first letter of the word from the list above to navigate to the appropriate section of the glossary.
At the end of each financial year, all taxpayers are required to lodge an Annual Reconciliation by 21 July following the end of the financial year to which the Annual Reconciliation return relates. The Annual Reconciliation should include details of taxable wages and the various components that make up these wages. Details of any interstate wages are also required for both the taxpayer and any other group members to determine the deduction entitlement amount. The Annual Reconciliation may result in either further tax being payable or a refund.
The Annual Reconciliation must be submitted electronically via RevNet at www.revnet.sa.gov.au. All clients registered for payroll tax in South Australia are required to use the payroll tax component of RevNet to complete the Annual Reconciliation, even if they are not a registered RevNet Payroll Tax Payment Facility user. For those who are not registered RevNet users, RevenueSA will provide taxpayers with login details in June of each year, prior to the commencement of the Annual Reconciliation process.
To view a demonstration of how to complete the Annual Reconciliation, including a checklist of the information required, please click here.
AUSkey is a single secure sign-on key for accessing online government services. This will mean a single credential (e.g. user ids, PIN/passwords, digital certificates) for interacting with government rather than maintaining separate credentials for each agency interaction.
To view a list of participating government agencies for AUSkey, click here.
The AUSkey identifies an individual user that is associated to an organisation. The AUSkey consists of a sequence of numbers for the user and the Australian Business Number (ABN) of the organisation. The combination of the two uniquely identifies a user for their organisation.
You are able to logon onto the RevenueSA online system RevNet using your AUSkey.
You will need an AUSkey to lodge forms with RevenueSA through your SBR-enabled software.
For further information and to register for an AUSkey visit the AUSkey website.
Further Information on AUSkey is also available from our AUSkey FAQs.
A bonus is a reward paid to an employee for the services that they have conducted. Whether the bonus originates from the employee reaching a pre-determined objective or is paid in appreciation of the services they have conducted the bonus is paid as a reward for the employee’s services. Accordingly such a payment is liable to payroll tax in South Australia.
Allowances are generally payments that are made to employees for specific work costs that will be incurred. They can also be made to compensate for working in arduous, dirty or dangerous conditions. As allowances are paid as part of the employees agreed employment terms they are taxable for South Australian payroll tax purposes. Generally the full amount of the allowance is taxable.
However, there are two exceptions to this rule, these being travel allowances and accommodation allowances. Both these allowances have an exempt threshold that is only taxable on the allowance in excess of the prescribed rate.
The prescribed rates have been aligned with the rates determined by the Federal Commissioner of Taxation and are reviewed in July each year.
For more information and prescribed exemption rate see Revenue Ruling PTA005 – Exempt Allowances: Motor Vehicle and Accommodation which is available from the RevenueSA website.
Please ensure that you declare the gross value of this component – inclusive of all trainee and apprentice allowances or bonuses. There is a separate field to declare the total eligible exempt trainee/apprentice wages, if applicable for the 2010-11 and 2011-12 financial year.
If your organisation is no longer employing in South Australia OR your groups taxable wages are below the Australia wide wages threshold (currently $600,000 per annum) you may cancel your payroll tax registration. You will also be required to cancel and re-register if you are operating under a new ABN and no longer employ under the old ABN. The RevNet annual reconciliation allows you to submit your final return. The date of cancellation should be the date you have ceased to employ. Your deduction entitlement will be calculated on the wages declared up to the date that you have nominated as your cancellation date.
Once all obligations have been met, a letter confirming cancellation will be issued to your organisation.
A commission is a payment made to an employee based on a percentage of the profits earned by the employer for the services rendered by the employee. As such, a payment is a reward for the employees services, commissions are taxable for South Australian payroll tax purposes.
The Payroll Tax Act 2009 contains provisions that deem all service contractors as being employees of the contracting entity, unless one of the specified exclusion criteria is met. These provisions are aimed at schemes designed to avoid liability for payroll tax by severing the employer/employee relationship.
Contractor Decision Tools
There are two tools that can be used to assist you in determining whether any payments made to contractors are liable for payroll tax:
1. Australian Taxation Office (ATO) Employee/Contractor Decision Tool
2. RevenueSA Relevant Contracts Decision Tool
The tools can be accessed at the following link
http://www.revenuesa.sa.gov.au/payrolltax/contractor_decision_tools.html
In all cases you are encouraged to complete both decision tools.
Once you have answered a series of questions, you will be able to print the decision for your records.
Additional information on contractors
Where the contract does not distinguish between labour and other costs, the Commissioner has determined a specific deduction percentage for particular contract classes, for the non-labour costs component of the contract. Refer to Revenue Ruling PTA018 Contractor Deductions Equipment or Materials.
A contract is excluded as a relevant contract if it satisfies the criteria as per the following published Revenue Rulings on the RevenueSA website:
1. Service is provided by an owner-driver – PTA006
2. Service is for selling insurance
3. Service is door-to-door sales – PTA007
4. Service is required by your business for less than 180 days in a financial year – PTA020
5. Contractors Ordinarily Rendering Services to the Public – PTA021
6. Service is not ordinarily required by your business –PTA022
7. Performed by 2 or more people or engaging others – PTA023
8. Service is provided for less than 90 days in a financial year – PTA035
9. Labour is ancillary to the provision or use of goods - PTA033
For further information regarding the exclusion provisions and deduction percentages see Information Circular No. 5 Contractors which is available from the RevenueSA website.
For South Australian payroll tax purposes the current maximum deduction entitlement is $600,000. The deduction entitlement that either a Non Grouped Employer (NGE) or a group of companies is entitled to is determined by two factors.
1. The number of days that the NGE/group members employed Australia wide during the financial year.
2. The portion of taxable wages that were paid in South Australia compared to the total Australia wide wages.
Non Grouped Employers
The deduction entitlement for Non Grouped Employers (NGE) is calculated by using the following formula:
Group Employers
The Deduction entitlement for group employers is determined with reference to the total South Australian taxable wages of the group and the total Australian taxable wages of the group.
The Designated Group Employer (DGE) claims the deduction entitlement on behalf of the group.
The group deduction entitlement is calculated by using the following formula:
In circumstances where the whole deduction entitlement is not used by the DGE, The DGE can use their RevNet annual reconciliation to select how to apportion their unused deduction entitlement to their South Australian group members. This deduction entitlement will then be allocated to the Group member(s) to reduce the group member(s) taxable wages. Groups with unused deduction entitlement are encouraged to submit annual reconciliation for the DGE in RevNet first before submitting the Group member’s annual reconciliations.
Please Note: If there has been a status change throughout the financial year, the deduction entitlement is required to be calculated by applying the appropriate formula for each separate status. The full financial years’ deduction entitlement is the sum of each status period's deduction entitlement.
Default notices of assessments are issued due to late or non payment for monthly returns. Tax payable is based on wage estimates for the current financial year and penalty and/or interest may also be applied. If penalty or interest is applied through out the year due to a default notice of assessment it will appear as Penalty (previously applied) or Interest (previously applied) on your annual reconciliation calculation in RevNet. If a remission of penalty or interested is granted in full or partially prior to the commencement of your annual reconciliation then this amount will not be displayed on your reconciliation calculation on RevNet.
DGE - Designated Group Employer
The Designated Group Employer (DGE) is regarded as the head of the group for South Australian payroll tax purposes. Other group members who employ in South Australia are referred to as Grouped Employers (GE).
A group exists where:
i) corporations are related bodies corporate within the meaning of Section 50 of the Corporations Act 2001;
ii) common employees are used between businesses;
iii) the same person has (or the same persons together have), a controlling interest (greater than 50%) in at least two businesses; or
iv) an entity has a direct, indirect or aggregate controlling interest (greater than 50%) in a corporation.
Details relating to the grouping provisions can be found in Information Circular No. 4 Groupings which is available from RevenueSA website.
It is the responsibility of the DGE to provide specific wage and group structural information as part of the Annual Reconciliation process. By providing this information the DGE benefits from receiving the group deduction entitlement.
When lodging the annual reconciliation the system will automatically generate the group member’s details as per RevenueSA’s current records. You will need to add any additional group members or delete members if our records are outdated. Wage details of group members who only pay wages in other States and/or Territories and not in South Australia will also be required.
As a DGE you will be entitled to a deduction entitlement only if you elect to record your group members and their wages.
Device AUSkey is a type of AUSkey that identifies a business rather than an individual. They are issued in the name of servers or IP addresses.
See also AUSkey.
DI (Replaced by DGE)
Previously the DI status code was given to taxpayers who were the designated group employer of a group of companies, where at least one member of the group employed interstate. The DI status taxpayer did not have to necessarily employ interstate as only one related group member was required to employ outside South Australia for the DI status to be relevant. It has now been replaced by DGE, meaning Designated Group Employer. The DI status code is still used in previous annual reconciliations and other historical data.
Directors’ remuneration, such as director fees, superannuation, allowances, fringe benefits and shares and options, is subject to payroll tax. This applies for both working and non-working directors.
DS (Replaced by DGE)
Previously the DS status code was given to taxpayers who were the designated group employer of a group of companies, where all members of the group employ solely in South Australia. It has now been replaced by DGE, meaning Designated Group Employer. The DS status code is still used in previous annual reconciliations and other historical data.
Eligible Exempt Trainees/Apprentice Wages
From 1 July 2010 to 30 June 2012 an exemption for eligible trainees and apprentice wages is available:
Wages paid or payable from 1 July 2010 to 30 June 2012 to an apprentice or trainee in the following circumstances are exempt wages:
(a) by an approved group training organisation;
(b) by an employer if the apprentice or trainee is undertaking training under—
• a school-based training contract; or
• an initial training contract between the employer and the apprentice or trainee; or
• a training contract entered into prior to 1 July 2010 that is current on that date.
It is a requirement that you must declare in your return the total value of eligible trainee and apprentice wages for the period to receive the exemption in your annual reconciliation for 2010-11 and the 2011-12 financial years. For more information refer to Information Circular 21 available from the RevenueSA website.
Your declared wage component splits should include
the gross value of each wage component – inclusive of all trainee and
apprentice wages. The total exempt eligible trainee and apprentice wages
for the period must be declared as a separate component on your return.
The exempt eligible wages are then deducted from your gross South Australian
wages to provide you with your South Australian
taxable wages.
Trainees/Apprentice Wages Exemption abolished 1 July 2012
As part of the 2012-13 Budget, the government announced that from 1 July 2012 the existing payroll tax exemption for the wages of eligible trainees and apprentices will be abolished.
Where an apprentice or trainee has entered into an approved training contract prior to 1 July 2012 that is still current on that date, the exemption ceases to apply from 1 July 2012 for the remainder of the contract period. Refer to Information Circular 43 available from the RevenueSA website.
Employer Superannuation Payments
"Superannuation benefits" means: -
Paid or payable:
• to a superannuation fund within the meaning of the Superannuation Industry (Supervision) Act 1993 (Cwlth);
• as a superannuation guarantee charge within the meaning of the Superannuation Guarantee (Administration) Act 1992 (Cwlth);
• to or as a form of superannuation, provident or retirement fund or scheme, including to the Superannuation Holding Accounts Special Account within the meaning of the Small Superannuation Accounts Act 1995 (Cwlth), and to a retirement savings account within the meaning of the Retirement Savings Accounts Act 1997 (Cwlth);
Please note that taxable superannuation benefits will include:
• superannuation contribution paid or payable in respect of a company director (including a non-employee director), or in respect of a person taken to be an employee under the contractor provisions in Division 7 of the Payroll Tax Act 2009;
• non-monetary contributions to a superannuation fund on behalf of an employee, a contractor deemed to be an employee or director. The value of these contributions is to be worked out in accordance with Section 43 of the Payroll Tax Act 2009;
• payments made as part of a pre-income tax salary packaging arrangement are to also to be included as taxable wages for South Australian payroll tax;
Please ensure that you declare the gross value of this component – inclusive of all trainee and apprentice superannuation. There is a separate field to declare the total eligible exempt trainee/apprentice wages, if applicable for the 2010-11 and 2011-12 financial year.
The term 'Employer's Wages' refers to the South Australian and/or Interstate wages paid or payable by your organisation.
In the case of Group Employer's the term ‘Employer's Wages' refers to the South Australian and/or Interstate wages paid or payable by the organisation as a separate entity to the other group member organisations.
As part of the Annual Reconciliation process each individual organisation is required to provide estimated wage details for the new financial year. You will be required to provide estimated South Australian wages and estimated Interstate wages for your organisation. If your organisation is the Designated Group Employer (DGE) you will also be required to provide estimated South Australian wages and estimated Interstate wages on behalf of the members of the group.
The estimated wages are used as a basis for calculating the estimated deduction entitlement for your organisation or the group for the new financial year. The estimated deduction entitlement is then to be used in the calculation of payroll tax for each periodic return lodged.
For South Australian payroll tax purposes the maximum
estimated deduction entitlement is $600,000. The estimated deduction entitlement
that either a Non Grouped Employer (NGE) or a group
of companies is allocated is determined by the portion of taxable wages
that were paid in South Australia compared to their total Australia wide
wages.
Estimated Deduction Non Grouped employers
The estimated deduction entitlement for a NGE is calculated by using the following formula:
Estimated Deduction Group employers
The estimated deduction entitlement for group employers is determined with reference to the total South Australian taxable wages of the group and the total Australian taxable wages of the group.
The DGE is allocated the estimated deduction entitlement on behalf of the group.
At the end of the financial year once the actual deduction entitlement is calculated RevenueSA will either apportion any unused deduction entitlement to other group members or refund any unused deduction entitlement to the DGE once the Annual Reconciliation is completed for all members of the group, upon application by the DGE.
The group estimated deduction entitlement is calculated by using the following formula:
Structural changes affecting the individual organisations grouping status and/or, the organisation/group ceasing or beginning to pays wages in more than one State and/or Territory will alter the estimated deduction entitlement. Accordingly, such structural changes should be reported to RevenueSA in writing or through the annual reconciliation.
Wages paid by certain employers are exempt from payroll tax as provided under Part 4 and Schedule 2 of the Act.
An exemption will generally apply to wages paid by the following types of organisations:
• from 1 July 2009, non-profit organisations having as their sole or dominant purpose a charitable purpose (Note: prior to 1 July 2009, non-profit organisations were required to have wholly charitable purposes);
• religious or public benevolent institutions;
• public hospitals;
• non-profit private hospitals;
• non-profit schools or colleges for wages paid to persons providing education at or below (but not above) the secondary level of education;
• non-profit child care centres and kindergartens;
• municipalities, other than wages paid or payable in connection with specified business activities
• non-profit health services providers; and
• a motion picture production company, if meets eligibility criteria.
It is important to note that generally, only wages paid to persons performing services that relate directly to the objects of the body are exempt.
In all cases, except applications by motion picture production companies, employers must apply, in writing, to the Commissioner. The applicant must provide full details relating to the operations of the organisation, as well as a copy of the Constitution of the organisation.
For details on the types of organisations that may be exempt see the Payroll Tax Guide to Legislation which is available from the RevenueSA website.
Employers who are exporters of value added goods or services may claim a rebate of payroll tax payable on the wages of employees engaged in generating eligible export earnings.
Prior to 30 June 2011 The rebate was equal to 20% of the proportion of total payroll tax paid in South Australia which is attributable to South Australian export earnings in the rebate period.
For financial years 2011-2012 and 2012-2013 The rebate is equal to 10% of the proportion of total payroll tax paid in South Australia which is attributable to South Australian export earnings in the rebate period.
Details as of the eligibility criteria can be found in Revenue Ruling PTASA001 Exporters Rebate which is available from the RevenueSA website.
Applications for the Exporters Payroll Tax Rebate Scheme are required to be submitted bi-annually. The first application period is 1 July to 31 December and the second application period is 1 January to 30 June.
Exporters Payroll Tax Rebate Scheme Application forms are available from the RevenueSA website.
The definition of wages for payroll tax purposes includes any fringe benefits as defined in the Fringe Benefits Tax Assessment Act 1986 (Cwlth)(FBT Act).
Therefore, as a general rule, benefits that are taxable under the FBT Act are also taxable under the Act and must be declared as wages for payroll tax purposes. The only exception to this general rule is a tax-exempt body entertainment fringe benefit as defined in the FBT Act. Although tax-exempt body fringe benefits are subject to FBT, they are specifically exempt for payroll tax purposes.
If a benefit is exempt under the FBT Act (e.g. a laptop computer) it is also exempt from payroll tax. In addition, if a fringe benefit has a nil taxable value for FBT purposes (e.g. the taxable value is reduced to nil under the “otherwise deductible” rule), it also has a nil taxable value for payroll tax purposes.
Records used to substantiate FBT claims made to the ATO are also acceptable for payroll tax.
The taxable amount of fringe benefits for payroll tax purposes is determined by grossing up the fringe benefit using only the lower (Type 2) gross-up rate available in the FBT Act.
Employers are required to declare in their monthly returns the actual value of fringe benefits provided in each month. However, for administrative ease, past and present payroll tax legislation allows employers to formally elect to adopt an alternative method, whereby the amounts declared are based on the FBT returns submitted to the ATO.
Where such an election is made, employers must include in each monthly payroll tax return from July to May, one-twelfth of the taxable value (for payroll tax purposes) of fringe benefits using the FBT return for the year ending 31 March immediately preceding the start of each financial year. The annual reconciliation for each financial year will include the taxable value (for payroll tax purposes) of fringe benefits declared in the FBT return ending 31 March immediately before the annual reconciliation.
Where an employer had made an election to adopt the alternative method of declaring fringe benefits under the old Act, the election remains in force and the employer is not required to make a further election under the Act.
Once an election is made, an employer will not be permitted to revert to declaring the actual value of fringe benefits in monthly payroll tax returns, unless the Commissioner gives approval in writing.
An employer must not use a combination of methods.
For additional information see Revenue Ruling PTA003 Fringe Benefits which is available from the RevenueSA website.
Please ensure that you declare the gross value of this component – inclusive of all trainee and apprentice fringe benefits. There is a separate field to declare the total eligible exempt trainee/apprentice wages, if applicable for the 2010-11 and 2011-12 financial year.
Grouped Employer (GE) is the status used for all group members (excluding the DGE) who are grouped through the grouping provisions of the Payroll Tax Act 2009.
A group exists where:
i) corporations are related bodies corporate within the meaning of Section 50 of the Corporations Act 2001;
ii) common employees are used between businesses;
iii) the same person has (or the same persons together have), a controlling interest (greater than 50%) in at least two businesses; or
iv) an entity has a direct, indirect or aggregate controlling interest (greater than 50%) in a corporation.
Details relating to the grouping provisions can be found in Information Circular No. 4 Groupings which is available from RevenueSA website.
GI (Replaced by GE)
Previously the GI status code was given to taxpayers who were a member of a group of companies, where at least one member of the group employed interstate. The GI status taxpayer did not have to necessarily employ interstate as only one related group member was required to employ outside SA for the GI status to be relevant. It has now been replaced by GE, meaning Grouped Employer. The GI status code is still used in previous annual reconciliations and other historical data.
Group member is the term used for all organisations grouped through the grouping provisions of the Payroll Tax Act 2009.
A group exists where:
i) corporations are related bodies corporate within the meaning of Section 50 of the Corporations Act 2001;
ii) common employees are used between businesses;
iii) the same person has (or the same persons together have), a controlling interest (greater than 50%) in at least two businesses; or
iv) an entity has a direct, indirect or aggregate controlling interest (greater than 50%) in a corporation.
Details relating to the grouping provisions can be found in Information Circular No. 4 Groupings which is available from RevenueSA website.
Grouping Provisions within the Payroll Tax Act 2009 are designed to ensure employers are not able to artificially maintain their wages bill below $600,000 per annum by splitting their businesses into separate employing entities.
Only one employer in a group is able to utilise the allowable deduction entitlement. This employer is known as the Designated Group Employer. Any annual deduction entitlement not taken up by the Designated Group Employer can be transferred to the other group members only at the time of Annual Reconciliation.
As this is a complex area, and cannot be fully covered in a brief document, further information should be sought from RevenueSA if you suspect Grouping Provisions may affect you.
For further information, please refer to Information Circular No. 4 Groupings.
GS (Replaced by GE)
Previously the GS status code was given to taxpayers who were a member of a group of companies, where all members of the group employ solely in South Australia. It has now been replaced by GE, meaning Grouped Employer. The GS status code is still used in previous annual reconciliations and other historical data.
Interest (applied to this assessment)
The annual reconciliation calculation screen on RevNet will calculate Interest (applied to this assessment). RevNet will calculate penalty on any unpaid payroll tax liability as at the date you calculate your annual reconciliation via RevNet. Interest (applied to this assessment) is only applicable if the lodgement is after the original due date (21 July). Interest (applied to this assessment) may also be calculated if you are submitting a modified annual reconciliation after the original due date and there is unpaid tax due. Please note that the interest calculated on RevNet is based on information you supply and is not an official Commissioner assessment. For more information on the application of interest please refer to Revenue Ruling PTA036.
If you have been issued default notice(s) of assessment throughout the financial year you may have incurred penalties &/or interest for late lodgement or late payment for monthly returns. This penalty and interest will be reported as Penalty (previously applied) or Interest (previously applied) on the reconciliation calculation screen.
If a full or partial remission of penalty or interest has been granted prior to the commencement of your annual reconciliation then this amount will not be displayed on the reconciliation calculation screen.
If you have commenced your annual reconciliation, a request for remissions of penalty &/or interest (previously applied) can only be considered after you have submitted your annual reconciliation on RevNet and paid the applicable duty. Please email payrolltax@sa.gov.au with a written request for remission detailing your Taxpayer number or ABN Number and provide an explanation as to why your organisation is entitled to a remission for each applicable default notice of assessment Your request will be assessed and a correspondence confirming the outcome of the remission application will be issued to your organisation. An extension of payment on the penalty &/or interest (previously applied) component of the RevNet assessment is provided until your organisation receives confirmation of the remission request outcome.
For more information on the application of penalty and/or interest please refer to Revenue Ruling PTA036.
An intermediary is a third party (e.g. accountant, lawyer) that acts as an agent on behalf of a principle.
RevenueSA will allow an intermediary to act on behalf of taxpayers, subject to authorisation by the taxpayer. This will allow the authorised Intermediary to use their own AUSkey credential when lodging on your behalf.
An intermediary application form including relevant Terms and Conditions, is available at: www.revenuesa.sa.gov.au/forms/prt_intermed.pdf
The term 'Interstate Wages' refers to any wages deemed taxable in another jurisdiction other than South Australia for payroll tax purposes in that particular jurisdiction.
The wages to be declared as interstate wages is the sum of all wages paid in all other jurisdiction that would be taxable pursuant to the Payroll Tax Act 2009.
Where total Australian wide wages do not exceed the payroll tax threshold of another state or territory and therefore they are not liable for payroll tax in these jurisdictions, these wages are still to be declared in South Australia.
E.g. Company ABC Pty Ltd employs in only South Australia and Queensland. The payroll tax threshold for 2011-12 in South Australia is $600,000 and Queensland is $1,000,000. ABC Pty Ltd's wages for the 2011-12 financial year are $500,000 in South Australia and $250,000 in Queensland, giving them a total of $750,000 in Australian wide wages. As their total Australian wide wages exceed $600,000 they are liable for payroll tax in South Australia, however as they are under the Queensland threshold of $1,000,000 they are not liable for payroll tax in Queensland. When reporting their taxable wages in South Australia, ABC Pty Ltd must declare $500,000 wages for South Australia and $250,000 for interstate wages. This allows RevenueSA to correctly calculate ABC Pty Ltd's deduction entitlement for the 2011-12 financial year in proportion to their Australia wide wages.
Legislative changes to enable the new nexus arrangements were passed by Parliament on 24 June 2010. The new provisions are uniform across jurisdictions and have retrospective effect from 1 July 2009.
These changes only affect wages for workers providing their services in more than one State in a month. Where a worker provides their services wholly in one State, as is the case for the majority of workers, payroll tax will continue to be paid to the State where those services are performed.
Under the new provisions, payroll tax is to be paid to the jurisdiction where the worker resides, rather than where they are paid (location of BSB), as was previously the case.
Where the worker does not reside in Australia, tax is to be paid to the jurisdiction where the registered Australian Business Number (ABN) address of the employer is located.
For further guidance on the application of the nexus
provisions, please refer to Revenue Ruling PTA039
which is available from the RevenueSA website.
Another term used for Australian State or Territory.
NGE - Non Grouped Employer
Taxpayers who are not grouped through the grouping provisions of the Payroll Tax Act 2009 are a Non Grouped Employer (NGE).
A group exists where:
i) corporations are related bodies corporate within the meaning of Section 50 of the Corporations Act 2001;
ii) common employees are used between businesses;
iii) the same person has (or the same persons together have), a controlling interest (greater than 50%) in at least two businesses; or
iv) an entity has a direct, indirect or aggregate controlling interest (greater than 50%) in a corporation.
Details relating to the grouping provisions can be found in Information Circular No. 4 Groupings which is available from RevenueSA website.
If the NGE only pays wages in South Australia they are entitled to claim the maximum deduction entitlement for the financial year. The only circumstances where a NGE who pays wages only in SA will not be entitled to claim the maximum deduction entitlement is when the taxpayer did not employ for the entire year. In these circumstances the deduction entitlement is calculated on a proportional basis depending on the number of days that the organisation employed.
If the NGE pays wages in South Australia and in another State and/or Territories, they are entitled to a portion of the deduction entitlement. This portion is based on the percentage of the Australia wide wages the employer paid in each jurisdiction.
However, when a NGE that employs solely in South Australia begins to employ in other States and/or Territories or vice a versa the deduction entitlement is calculated for the whole financial year.
The term 'Other Group Member's Wages' refers to the South Australian and/or Interstate wages paid or payable by all other group members that employ in Australia apart from the Designated Group Employer (DGE).
Employees working in another country for six months or less
Where an employee is working in another country or countries for a period of six months or less, a payroll tax liability arises in South Australia if the wages are paid or payable in South Australia.
Employees working in another country for more than six months
If an employee is working in another country or countries for a continuous period of more than six months, then the wages paid or payable to that employee for the whole period will be exempt from payroll tax. In these circumstances, the six month period need not be within the same financial year, but must be a continuous period.
Should an employee that is working in another country return to Australia it will not be considered to be a break in continuity of their overseas employment if the employee returns to Australia under the following circumstances:
for a holiday; or
to perform work exclusively related to the overseas assignment for a period of less than one month.
In either case, the employee must immediately return to that country or another country to continue their overseas employment.
Services performed offshore
Where an employee is working outside all Australian jurisdictions, but not in another country, the wages are taxable in the Australian jurisdiction in which the wages are paid or payable. The exemption available for employees working in another country or countries would not apply in this circumstance.
For further guidance on the application of the nexus provisions, please refer to Revenue Ruling PTA039 which is available from the RevenueSA website.
The term 'Payments in Kind' refers to any non-monetary payment of goods and/or services rewarded to an employee for services rendered in their capacity as an employee.
The full monetary value of the goods and/or services, are to be declared as taxable wages.
Please ensure that you declare the gross value of this component, inclusive of all trainee and apprentice payments in kind. There is a separate field to declare the total eligible exempt trainee/apprentice wages, if applicable for the 2010-11 and 2011-12 financial year.
Penalty (applied to this assessment)
The annual reconciliation calculation screen on RevNet will calculate Penalty (applied to this assessment). RevNet will calculate penalty on any unpaid payroll tax liability as at the date you calculate your annual reconciliation via RevNet. Penalty (applied to this assessment) is only applicable if the lodgement is after the original due date (21 July). Penalty (applied to this assessment) may also be calculated if you are submitting a modified annual reconciliation after the original due date and there is unpaid tax due. Please note that the penalty calculated on RevNet is based on information you supply and is not an official Commissioner assessment.
For more information on the application of penalty please refer to Revenue Ruling PTA036.
If you have been issued default notice(s) of assessment throughout the financial year you may have incurred penalties and/or interest for late lodgement or late payment for monthly returns. This penalty and interest will be reported as Penalty (previously applied) or Interest (previously applied) on the reconciliation calculation screen.
If a full or partial remission of penalty or interested has been granted prior to the commencement of your annual reconciliation then this amount will not be displayed on the reconciliation calculation screen.
If you have commenced your annual reconciliation, a request for remissions of penalty and/or interest (previously applied) can only be considered after you have submitted your annual reconciliation on RevNet and paid the applicable duty. Please email payrolltax@sa.gov.au with a written request for remission detailing your Taxpayer number or ABN Number and provide an explanation as to why your organisation is entitled to a remission for each applicable default notice of assessment your request will be assessed and correspondence confirming the outcome of the remission application will be issued to your organisation. An extension of payment on the penalty and/or interest (previously applied) component of the RevNet assessment is provided until your organisation receives confirmation of the remission request outcome.
For more information on the application of penalty and/or interest please refer to Revenue Ruling PTA036.
Renewable Energy Projects Rebate
The rebate is equal to 100% of the total payroll tax paid in South Australia that is attributable to the labour associated with direct, on-site construction of new, large scale wind and solar energy projects that begin construction on or after 1 July 2010.
For more details see Information Circular No. 9 Rebates for Renewable Energy Project which is available from the RevenueSA website.
Taxable wages and salaries are the gross wages and salaries paid including any Pay-As-You-Go (PAYG) withholding amounts or other deductions made by an employer on behalf of an employee. Taxable wages include such payments as overtime pay, penalty payments, sick pay, holiday pay and leave loadings.
‘Wages’ do not have to be paid directly by an employer to an employee in order to be taxable. Payments to a person other than an employee, or payments by a person other than the employer, are subject to tax where the payments are made in relation to an employee’s services. For example, an entertainment allowance paid to an employee’s spouse is taxable as it is a payment to a third party in relation to the employee’s services.
There are exempt components of some wage types. For details on the eligibility criteria for these wage type exemptions refer to the Payroll Tax Guide to Legislation which is available from the RevenueSA website. The exempt components relate to:
• Worker Cover compensation;
• Defence force payments;
• Redundancy payments – income tax free component;
• Volunteer emergency workers;
• Community development employment project;
• Construction industry long service leave contribution; and
• Maternity and adoption leave.
There is no exemption in respect of payments made to an employee who is on jury duty.
Payroll tax is not payable on the Goods and Services Tax (GST) component that may arise in payments to employees or deemed employees.
Please ensure that you declare the gross value of this component – inclusive of all trainee and apprentice wages. There is a separate field to declare the total eligible exempt trainee/apprentice wages, if applicable for the 2010-11 and 2011-12 financial year.
(SBR) Standard Business Reporting
Standard Business Reporting (SBR) is an Australian Government initiative to reduce the business-to-government reporting burden.
It offers South Australian payroll taxpayers a quicker and simpler way to meet payroll tax obligations with RevenueSA by using SBR enabled software.
SBR enabled software allows you to automatically create and send us selected forms online directly from your financial, accounting or payroll tax software.
Further information can be found here.
Financial management software that allows you to lodge particular payroll tax forms through the SBR channel.
If you would like to lodge any of the two payroll tax forms through your software, (Payroll Tax Monthly Returns and Payroll Tax Annual Reconciliation) you will need to check with your Financial Management software provider to see if they are enabling that particular form. Alternatively check the product register on the SBR website under “About SBR” > “SBR Enabled products”> “RevenueSA”.
Shares or options issued under employee share acquisition schemes as liable wages. Under these provisions, the grant of a share or option to an employee, a director (including for the appointment of a director), or deemed employee, now constitute wages.
The granting of a share or option, which is classified as a fringe benefit under the FBT Act is not treated as a fringe benefit, but rather as wages for payroll tax purposes.
SI (Replaced by NGE)
Previously the SI status code was given to taxpayers who were a non grouped employer who employs in South Australia and interstate. It has now been replaced by NGE, meaning Non Grouped Employer. The SI status code is still used in previous annual reconciliations and other historical data.
A South Australian Group exists when organisations are related through the grouping provisions of the Payroll Tax Act 2009 who pay wages solely in South Australia.
Group member is the term used for all organisations grouped through the grouping provisions of the Payroll Tax Act 2009.
A group exists where:
i) corporations are related bodies corporate within the meaning of Section 50 of the Corporations Act 2001;
ii) common employees are used between businesses;
iii) the same person has (or the same persons together have), a controlling interest (greater than 50%) in at least two businesses; or
iv) an entity has a direct, indirect or aggregate controlling interest (greater than 50%) in a corporation.
Details relating to the grouping provisions can be found in Information Circular No. 4 Groupings which is available from RevenueSA website.
South Australian Taxable Wages
Generally any monetary payment or payment in kind to an employee for services rendered in their capacity as an employee will be included as a component of taxable wages.
For South Australian payroll tax purposes taxable wages are broken into the following components and include all salaries and wages, commissions, bonuses and allowances, directors fees, fringe benefits, shares and options, contractor payments, termination payments and employer superannuation payments.
Where the employee provides their services wholly in one jurisdiction payroll tax will be paid to the jurisdiction where those services are performed.
In circumstances where employees provide their services in South Australia and in another jurisdiction or overseas during a month, whether the wages are to be included as South Australian taxable wages can be determined by using the nexus provisions. For further guidance on the application of the nexus provisions, please refer to Revenue Ruling PTA039 which is available from the RevenueSA website.
Checklist of Taxable Items
The following checklist provides guidance on the South Australian payroll tax treatment of certain items based on the legislation in effect at the time of publication. It may be subject to future change.
Remuneration Item |
Taxable or Exempt |
Accommodation |
Fringe benefit |
Accommodation allowances |
Taxable under certain conditions |
Adoption leave (from 1 July 2008) |
Exempt wages under certain conditions |
Allowances |
Taxable under certain conditions |
Annual leave |
Taxable |
Apprentices wages (from 1 July 2010 to 30 June 2012) |
Exempt wages under certain conditions |
Apprentice wages (from 1 July 2012) |
Taxable |
Back pay |
Taxable |
Benefits |
Fringe benefit |
Board & quarters |
Fringe benefit |
Building Industry Redundancy Scheme Trust contributions |
Not Taxable |
Bona fide redundancy payments (tax-free component) |
Not taxable |
Bonuses |
Taxable |
Car allowance |
Taxable |
Car parking |
Fringe benefit |
Clothing allowance |
Taxable |
Commissions |
Taxable |
Construction industry long service leave contributions |
Not taxable |
Consultants fees |
Taxable under certain conditions |
Contractor payments |
Taxable under certain conditions |
Debt waivers |
Fringe benefit |
Defence force payments |
Exempt |
Directors fees |
Taxable |
Dirt allowances |
Taxable |
Discounted staff purchases |
Fringe benefit |
Dividends |
Not taxable |
Education expenses |
Fringe Benefit |
Employment agency personnel |
Taxable under certain conditions |
Entertainment allowances |
Fringe Benefit |
Entertainment allowances - tax exempt body |
Exempt wages |
Footwear allowances |
Taxable |
Fringe Benefit Tax |
Taxable |
Gratuitous payments |
Not taxable |
Gross wages |
Taxable |
Health insurance |
Fringe benefit |
Holiday pay |
Taxable |
Housing |
Fringe benefit |
In lieu of notice |
Taxable |
Leave loading |
Taxable |
Living away from home allowances |
Fringe benefit |
Loans (Interest free/low interest) |
Fringe benefit |
Long service leave |
Taxable |
Make up pay |
Taxable |
Maternity leave (from 1 July 2008) |
Exempt wages under certain conditions |
Meals |
Fringe benefit |
Meal allowances |
Taxable |
Motor vehicles |
Fringe benefit |
Motor vehicle allowances |
Taxable under certain conditions |
Options |
Taxable |
Overtime |
Taxable |
Overtime meal allowances |
Taxable |
Paternity Leave |
Taxable |
Partners drawings |
Not taxable |
Piece-work payments |
Taxable |
Prizes |
Fringe benefit |
Professional advice |
Fringe benefit |
Redundancy payments |
Taxable under certain conditions |
Relocation expenses |
Fringe benefit |
Reimbursements (business expenses) |
Fringe benefit |
Rental subsidy allowances |
Fringe benefit |
School fees |
Fringe benefit |
Share Schemes |
Taxable |
Shift allowances |
Taxable |
Sick pay |
Taxable |
Site allowances |
Taxable |
Staff discounts |
Fringe benefit |
Subcontractors |
Taxable under certain conditions |
Subsidised wages - Government Grants |
Taxable |
Subscriptions |
Fringe benefit |
Superannuation benefits (employer) |
Taxable |
Taxi fares |
Fringe benefit |
Telephone account payments |
Fringe benefit |
Termination-Accrued annual leave and long service leave |
Taxable |
Termination payment-Employment termination payments |
Taxable |
Termination Payment-Bona fide redundancy payments (income tax free component) |
Exempt |
Termination Payment-Bona fide redundancy payments in excess of tax free component |
Taxable |
Tool allowances |
Taxable |
Trainee wages (from 1 July 2010 to 30 June 2012) |
Exempt wages under certain conditions |
Trainee wages (from 1 July 2012) |
Taxable |
Uniform allowances |
Taxable |
Volunteer emergency workers (from 1 July 2008) |
Exempt wages under certain conditions |
Workers compensation payments |
Not taxable |
SS (Replaced by NGE)
Previously the SS status code was given to taxpayers who were a non grouped employer who employs solely in South Australia. It has now been replaced by NGE, meaning Non Grouped Employer. The SS status code is still used in previous annual reconciliations and other historical data.
In South Australia an organisations payroll tax liability is calculated depending on two aspects of the organisations structure. The relevant aspects of the organisations structure are: -
The individual organisations grouping status. For example whether the organisation is a Grouped Employer (GE) or a Non Grouped Employer (NGE); and
Whether the organisation pays wages in more than one State and/or Territory or has members in the same group of companies that pay wages in States and/or Territories other than South Australia.
A group exists where:
i) corporations are related bodies corporate within the meaning of Section 50 of the Corporations Act 2001;
ii) common employees are used between businesses;
iii) the same person has (or the same persons together have), a controlling interest (greater than 50%) in at least two businesses; or
iv) an entity has a direct,
indirect or aggregate controlling interest (greater than 50%) in a corporation.
Details relating to the grouping provisions can be found in Information Circular No. 4 Groupings which is available from RevenueSA website.
Currently in South Australia there are three status codes that can apply to a taxpayers registration. These status codes are listed below with a brief explanation of each. For further details click the underlined status code.
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During a financial year an organisation's structure may change. For example, if the organisation ownership changes through a purchase by another organisation.
RevenueSA is not always made aware that an organisation may have undergone structural change and therefore as part of the Annual Reconciliation process RevenueSA requests that taxpayers review their current structure and if required, advise of any changes which may have occurred to their structure.
Amending your structure ensures that RevenueSA can calculate your organisation’s South Australian payroll tax liability with accuracy. During the financial year it is possible for an organisation to have more than one structural change.
Trainee and Apprentice Wages Rebate Scheme
The Payroll Tax Trainee Wages Rebate Scheme will only be available on wages paid or payable up to 30 June 2010. The Scheme provides an 80% rebate of the payroll tax payable upon the taxable wages of trainees/apprentices where the trainees/apprentices employment is consistent with the eligibility criteria.
For more information about the eligibility criteria of the Trainee Rebate scheme please refer to Information Circular No. 7 Rebates. Application forms are also available from the RevenueSA website.
From 1 July 2010 to 30 June 2012 an exemption for eligible trainees and apprentice wages was available. Please see Eligible Exempt Trainee/Apprentice Wages.
Payroll tax applies to an employment termination payment (formerly eligible termination payment) (“ETP”), as defined in section 82-130 of the Income Tax Assessment Act, when paid by an employer as a result of an employee's termination.
The amount subject to payroll tax is the whole of the ETP paid by the employer (whether paid to the employee or to a roll-over fund), less any component, which is exempt income when received by the employee. ETP’s paid by employers may include payments for:
• unused sick leave or rostered days off;
• ex gratia payments or 'golden handshakes';
• payment in lieu of notice or service contract payouts;
• compensation for loss of job or wrongful dismissal; or
• bona fide redundancy or early retirement payments in excess of the income tax free limit. (The income tax free components of such payments do not form part of an ETP and are, therefore, not subject to payroll tax).
More information in relation to termination payments can be found in Revenue Ruling PTA004 Termination Payments.
Please ensure that you declare the gross value of this component – inclusive of all trainee and apprentice termination payments. There is a separate field to declare the total eligible exempt trainee/apprentice wages, if applicable for the 2010-11 and 2011-12 financial year.
For South Australian payroll tax purposes the current maximum deduction entitlement is $600,000
The Designated Group Employer (DGE) claims the deduction entitlement on behalf of the group.
In circumstances where the whole deduction entitlement is not used by the DGE, the DGE can use their RevNet annual reconciliation to select how to apportion their unused deduction entitlement to their South Australian group members. This deduction entitlement will then be allocated to the Group members to reduce the group member(s) taxable wages. Groups with unused deduction entitlement are encouraged to submit annual reconciliation for the DGE in RevNet first before submitting the Group member’s annual reconciliations.
Taxable wages and salaries are the gross wages and salaries paid including any Pay-As-You-Go (PAYG) withholding amounts or other deductions made by an employer on behalf of an employee. Taxable wages include such payments as overtime pay, penalty payments, sick pay, holiday pay and leave loadings.
‘Wages’ do not have to be paid directly by an employer to an employee in order to be taxable. Payments to a person other than an employee, or payments by a person other than the employer, are subject to tax where the payments are made in relation to an employee’s services. For example, an entertainment allowance paid to an employee’s spouse is taxable as it is a payment to a third party in relation to the employee’s services.
There are exempt components of some wage types. For details on the eligibility criteria for these wage type exemptions refer to Payroll Tax Guide to Legislation which is available from the RevenueSA website. The exempt components relate to:
• Worker Cover compensation;
• Defence force payments;
• Redundancy payments – income tax free component;
• Volunteer emergency workers;
• Community development employment project;
• Construction industry long service leave contribution; and
• Maternity and adoption leave.
There is no exemption in respect of payments made to an employee who is on jury duty.
Payroll tax is not payable on the Goods and Services Tax (GST) component that may arise in payments to employees or deemed employees.
Please ensure that you declare the gross value of this component – inclusive of all trainee and apprentice wages. There is a separate field to declare the total eligible exempt trainee/apprentice wages, if applicable for the 2010-11 and 2011-12 financial year.
Refer to South Australian Taxable wages for a Checklist of Taxable items.