South Australia Payroll Tax changes from 1 January 2019

Legacy KB ID: 5732

Question

How do I handle the legislative amendments to reduce payroll tax that come into effect 1 January 2019? (SOUTH AUSTRALIA ONLY)

From 1 January 2019, businesses with annual taxable wages of up to $1.5 million will not be liable for payroll tax, and those with taxable wages between $1.5 million and $1.7 million will benefit from a reduced payroll tax rate.

As these changes come into effect mid-financial year, the 2018/19 financial year will be split into two return periods.

Period 1: 1 July 2018 to 31 December 2018Period 2: 1 January 2019 to 30 June 2019

For full information on these changes, please visit the RevenueSA page here -https://www.revenuesa.sa.gov.au/taxes-and-duties/payroll-tax

Answer

To accommodate these changes in Reckon Accounts Business, we have prepared a patch file for you to install AFTER you have completed the 2018 year of payroll tax.

This is to be used only for pays from 1 January 2019 onwards.

Please note:Since the payroll tax amount for the $1.5 - $1.7 million bracket is variable and calculated by RevenueSA at the time of lodgement, Reckon Accounts cannot give you an estimated payroll tax amount. This will be automatically calculated through the online return process and a payroll tax calculator from Revenue SA will be available in late December 2018 to calculate your new rate.


DETAILED STEPSTo install this patch file please follow the below instructions.

1. Ensure that your Reckon Accounts Business software is closed.
2. Download the new XML file here - https://downloads.reckon.com.au/auStateTax.xml
3. Copy the above file into your Reckon Accounts Business installation folder. By default this is C:\Program Files (x86)\Intuit\Reckon AccountsXXXX
4. You will receive a message stating this file already exists in this location and if you wish to replace it. Select YES.
5. Open Reckon Accounts Business

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