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 2022-23 annual reconciliation must be lodged between Monday 19 June 2023 and Friday 28 July 2023.
The annual reconciliation should include details of:
- South Australian taxable wages and the various components that make up those wages
- interstate wages if you also employ outside of South Australia.
If you are part of a group, it is important for the Designated Group Employer (DGE) to lodge the annual reconciliation first before other group members as this will allow the:
- Designated Group Employer (DGE) to distribute any unused deduction entitlement to the other group member(s)
- correct tax rate to be applied
- 2022-23 annual reconciliation to be finalised faster, as the need for any reassessments or requests for refunds due to an unallocated deduction being transferred is reduced.
The Designated Group Employer (DGE) should also declare the South Australian and interstate wages for 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 2022-23 can be used to prepare the information you need for your 2022-23 annual reconciliation.
What's different for the 2022-23 financial year?
Apprentices and Trainee Wages
Wages paid to apprentices and trainees are taxable and must be included in the payroll tax calculations where the relevant training contract commenced:
- on or after 1 July 2022
- on or before 9 November 2020.
Wages paid to apprentices and trainees who commenced a relevant training contract between 10 November 2020 and 30 June 2022 (inclusive), will receive relief equivalent to a 12 month payroll tax exemption.
These wages are not included in payroll tax calculations but need to be declared in the 2022-23 annual reconciliation return for reporting purposes only.
Apprentices and trainees where the training contract commenced between 10 November 2020 and 30 June 2022
Wages paid to apprentices and trainees where the training contract commenced on or after 1 July 2022 are taxable and need to be included in your Total SA Wages figure on the SA Wages screen (PDF395KB).
Apprentices and trainees where the training contract commenced between 10 November 2020 and 30 June 2022
The 2020-21 State Budget announcement provided payroll tax relief on the first 12 months of wages paid to new apprentices and trainees who commenced a relevant training contract between 10 November 2020 and 30 June 2021 (inclusive). These wages should not be included in your Total SA Wages figure on the SA Wages screen (PDF395KB).
You will be asked to declare if wages were paid to a new apprentice or trainee engaged in a relevant training contract under the Training and Skills Development Act 2008 and who commenced the apprenticeship/traineeship between 10 November 2020 and 30 June 2022.
If you select YES, you will need to enter the amount of wages paid to eligible apprentices/trainees between 1 July 2022 to 30 June 2023.
By selecting YES, you are declaring that the requirements for payroll tax relief have been met.
You may be subject of an audit by RevenueSA and are required to retain evidence (for example, the training contract) that supports the validity of the excluded wages for a minimum of 5 years.
Apprentices and Trainees where the training contract commenced on or before 9 November 2020
Wages paid to apprentices and trainees where the training contract commenced on or before 9 November 2020 are taxable and need to be included in your Total SA Wages figure on the SA Wages screen (PDF395KB).
Information to assist you with the 2022-23 annual reconciliation
If your organisation ceased employing in South Australia during 2022-23 and will not be continuing to trade or pay wages in South Australia in 2023-24 onwards, this annual reconciliation will be your final return.
When prompted select YES to the question ‘Did you cease paying wages in South Australia during 2022-23?’
You will be asked if you want to cancel the registration for your organisation. If you select ‘yes’ you will need to enter a date of cancellation (the date your organisation ceased paying wages in South Australia) and select a reason for the cancellation (from a drop down list).
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.
If you estimate that your organisation's Australian wide taxable wages for 2023-24 will be $1.5 million or less, you will be asked at the end of the annual reconciliation (at the wage estimates screen (PDF 188KB) if you would like to cancel your organisation’s payroll tax registration. You have the option to cancel the registration or remain registered:
- To cancel select cancel registration.
- To remain registered select continue with registration.
It’s your choice whether to remain registered or cancel. If your organisation's Australian wide taxable wages are close to the threshold (currently $1.5 million), or they fluctuate year to year, you may prefer to retain the registration in case your organisation exceeds the threshold in 2023-24.
If you choose to remain registered and you would like to change the return cycle for your organisation to annual or monthly please email your request to payrolltax@sa.gov.au.
| Information Required | Non Grouped Employer (NGE) | Designated Group Employer (DGE) | Grouped Employer (GE) |
|---|---|---|---|
| Your current mailing address and email contact | Yes | Yes | Yes |
| If your status changed during the year the period for which each status applied | Yes | Yes | Yes |
| If you had a split status the taxable wages for each status period will be required | Yes | Yes | Yes |
| The South Australian taxable wages paid by your organisation broken into: salaries/wages, bonuses/allowances, fringe benefits, commissions, directors fees, contractor payments, superannuation, shares and options and other (where applicable) | Yes | Yes | Yes |
If your organisation paid wages to new apprentices and trainees who commenced a relevant contract under the Training and Skills Development Act 2008 and who commenced the apprenticeship/traineeship between 10 November 2020 and 30 June 2022 (inclusive), your organisation will receive payroll tax relief on the first 12 months of wages paid to these new apprentices and trainees. You will require the amount of wages paid to eligible apprentices and trainees for the period:
The value is requested for reporting purposes only. | Yes | Yes | Yes |
| The total taxable wage paid by your organisation in states and/or territories other than South Australia | Yes | Yes | Yes |
| The name of your Designated Group Employer their and their ABN | No | Yes | Yes |
The names and ABN of group members that employed during the period that each status code applied and the taxable wages of each group member for that period broken into:
| No | Yes | No |
An estimate of taxable wages to be paid by your organisation for the next financial year broken into:
NOT REQUIRED IF CANCELLING | Yes | Yes | Yes |
An estimate of taxable wages to be paid by all group members for the next financial year broken into:
NOT REQUIRED IF CANCELLING | No | Yes | No |
Once commenced, the annual reconciliation can be suspended and completed at a later date.
The July 2023 monthly return can be lodged via RevenueSA Online from 31 July 2023 and must be lodged by 7 August 2023. We recommend you complete the 2022-23 annual reconciliation before the July return to ensure the estimated rate and deduction entitlement is calculated for the 2023-24 monthly returns.
Contact Us
When contacting us please provide your South Australian Taxpayer Number (if known), ABN, and organisation name.
| payrolltax@sa.gov.au | |
| phone | (08) 8226 3750, select option 5 |
| fax | (08) 8226 3805 |
| post | GPO Box 2418, Adelaide, SA 5001 |
You can reach us during business hours: 8:30am - 5:00pm (South Australian time), Monday to Friday (excluding public holidays).
Do you want to provide feedback or lodge a complaint?
You can do so via our feedback and complaints page.