If your employees qualify for the Federal Government’s JobKeeper support payments you are exempt from paying any payroll tax on the wage subsidy.

Please note: if any of your employees qualify for the Federal Government’s JobKeeper support payments between 4 January 2021 and 28 March 2021 you will also receive a waiver of the payroll tax payable on all your declared paid wages for the months of January to June 2021 (for the return periods of December 2020 to May 2021).

See the Employers with group Australia wages above $4 million page for more details

Are JobKeeper payments subject to payroll tax?

No, these payments are not subject to payroll tax.

The amount payable does not need to be included in the total salaries and wages declared in your monthly return.

However, your business will need to report the JobKeeper payment amounts separately in RevenueSA Online.

Are JobKeeper payments included in my taxable wages?

No they are not included. JobKeeper payments paid to an employee are classed as exempt wages.

Is the entire JobKeeper subsidy exempt from payroll tax?

The JobKeeper wage subsidy is exempt from payroll tax.

The JobKeeper payments are recorded in your return for reporting purposes only and don’t form part of your taxable wages.

March 2020 to November 2020 Returns

Any payments made in addition to the JobKeeper amount are liable for payroll tax.

For example, if a business pays an employee $200 + the full JobKeeper payment each fortnight, the $200 is declared as wages and the JobKeeper payment is exempt from payroll tax.

December 2020 to May 2021 Returns

If any of your employees qualify for the Federal Government’s JobKeeper support payments between 4 January 2021 and 28 March 2021 you will also receive a waiver of the payroll tax payable on all your declared paid wages for the months of January to June 2021 (for the return periods of December 2020 to May 2021).

See the Employers with group Australia wages above $4 million page for more details

What if my employees’ normal earnings are less than the amount of the JobKeeper payment?

If you are eligible to receive the JobKeeper payment for that employee, the amount received via the JobKeeper initiative is exempt.

How do I reflect the JobKeeper payments in my monthly return?

If your normal monthly wage bill is $30,000, but you have received $10,000 in JobKeeper payments, you should report $20,000 of regular wages in your monthly return as normal, and report the $10,000 JobKeeper payments only in the JobKeeper field – not as part of your wages.

The JobKeeper payments are recorded in your return for reporting purposes only and don’t form part of your taxable wages.

The amount of the JobKeeper payment I received covers a longer period than the period of the monthly return. Do I have to average out the JobKeeper payment?

No. For payroll tax, JobKeeper payments are exempt wages.

For RevenueSA’s purposes this means that the JobKeeper amount you report in the relevant field of your monthly return is not included in payroll.

You do not need to average the JobKeeper out as we do not use the JobKeeper information for your monthly payroll tax.