Table of Contents

VIC State Payroll Tax Rate update for 2024-25

Overview

On the 27th of June 2024, State Revenue Office - Victoria published the changes to the Payroll Tax Threshold:

  • From 1 July 2024, the payroll tax rate for Victoria remains at 4.85%.
  • However, the payroll tax threshold is lifted from $700,000 to $900,000.
REFERENCE
State Revenue Office VICTORIA — Payroll tax current rates | State Revenue Office (sro.vic.gov.au)
The thresholds and percentages vary between states and are often adjusted each year. Please refer to your State’s Office of State Revenue website for notices of changes.


What does it mean for you?

Impacted products and versions

The new payroll tax rate was announced after the Reckon Accounts 2024 release. Therefore, the State Payroll Tax Report within the Reckon Accounts Business Range still reflects the previous Threshold amount, resulting in incorrect calculations for Payroll Tax Liability for VIC (Victoria).

Affected versions:

  • Reckon Accounts Plus 2024 R1
  • Reckon Accounts Premier 2024 R1
  • Reckon Accounts Enterprise 2024 R1
  • Reckon Accounts Hosted 2024 R1


Steps to add the correct rates

Desktop users

Apply the update to your Reckon Accounts installation to accurately calculate the payroll tax liability on taxable wages paid after 01 July 2024.

  1. Close Reckon Accounts
  2. Download the updated auStateTax.xml
    1. Right-click on the link name
    2. Select the Save link as...
    3. Choose a download folder location
    4. Then, copy the downloaded XML file

  3. Navigate to the installation folder
Default path: C:\Program Files (x86)\Intuit\Reckon Accounts 20xx
  1. Find and rename the existing file from auStateTax.xml to auStateTax.xml.OLD
  2. Paste the downloaded XML file into the same directory
  3. Reopen Reckon Accounts and produce the State Payroll Tax Report

Multi-user installations (other than Terminal Services users) must carry out these steps on every computer that has Reckon Accounts installed.

Hosted users

We will be releasing the update on the next scheduled release. Meanwhile, you will have to export the report and manually edit it for the correct tax.

  1. Go to Reports menu > Employees & Payroll > State Payroll Tax Detail/Summary
  2. Click on Export and select a new workbook
  3. Click on Export then enter a File name and Save it on the My Live (Q Drive)
  4. Click on the Floating Toolbar and select Download File
  5. Save the workbook file on your computer
  6. Open it locally to update the Threshold to $900,000.

  1. The newly calculated Payroll Tax Liability would be the correct amount for the VIC state.


Need more help?

Ask the Reckon Community at: https://community.reckon.com/categories/reckonapi

How did we do?

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