Payroll tax FAQs: Annual reconciliation

Do I need to lodge my June return separately?

Yes. You must lodge your June return before you can use the End of Year (EOY) Lodgment function.

By 21 July, you must:

• lodge and pay your June return
• lodge your interstate taxable wages for the closing financial year and
• submit your estimated taxable wages for the oncoming year (if applicable).

Why can’t I access the End of Year Lodgment function?

If you’re a member of a group, you can’t use the EOY lodgment function unless you’re the Designated Group Employer (DGE).

If you’re the DGE and any members of your group have outstanding returns, you will receive the following popup message when clicking on the End of Year Lodgment button:

“You or members of your group have outstanding returns for the period which must be submitted via the Lodge or Modify Return function before proceeding.”

Please ensure all group members lodge their returns so you can proceed.

How do I adjust my lodged returns?

You can modify your returns or wages using the Modify Return function until 14 August (midnight).

See information about modifying returns after 14 August.

How do I correctly declare Fringe Benefits?

You must declare the taxable value of fringe benefits in your payroll tax returns.

If you have been using the estimated method to declare the value of fringe benefits and you need to make an adjustment, please declare the actual value of fringe benefits by selecting the Modify Return function and adjusting the FBT amount for each month.

See information about declaring and calculating fringe benefits.

Do I need to use both the EOY Lodgment function and the ATW function?

If you lodge your Australian Taxable Wages (ATW) and Estimated Taxable Wages (ETW) using those specific functions, you don’t also need to use the End of Year Lodgment function.

Why is there no liability after completing the EOY Lodgment process?

If you’re registered to lodge and pay returns on an annual frequency, your liability for the financial year will be finalised after we complete annual reconciliation.

Please check your account balance in Revenue Online after 7 September to see any liability raised during the annual reconciliation process.

Why haven’t I received a deductable amount?

Employers or groups of employers whose annual Australian taxable wages are between the annual threshold of $1 million and the upper threshold of $7.5 million, are eligible to receive a deductable amount.

If you are a non-group employer or a Designated Group Employer (DGE) of a group and you or your group paid more than $7.5 million in wages in Australia for the applicable period, then you have exceeded the upper threshold and will not be eligible to receive the deductable amount.

For payroll tax groups, only the DGE of the group will receive the deductable amount against their returns.

After reconciliation, any unused portion of the deductable amount will be distributed evenly across the remaining ordinary members of the group.

How is the deductable amount calculated?

A tapering value formula is used to calculate the gradual reduction in the deductable amount which employers are eligible to receive against their WA taxable wages.  See information about how this is calculated.

Why is there an additional debit amount on my account?

There may be an additional debit amount on your account after reconciliation even if you have paid your June return.

The deductable amount that was used to calculate your liability during the closing financial year (including your June return) was based on the estimated taxable wages you provided to us at the start of the period. During annual reconciliation, the actual deductable amount and total liability for the financial year is calculated based on your actual taxable wages.

In some cases, the debit or credit amount raised during annual reconciliation is due to the difference between the estimated and the actual deductable amounts.

The debit amount could also be a result of your or your group’s Australian Taxable Wages (ATW) not being provided during the EOY lodgment process.

If the ATW are not lodged by the due date, no deductable amount will be calculated during reconciliation. This means a liability will be payable for the financial year.  If this is the case, please contact us with your or your group’s ATW so an officer can submit this on your behalf and complete a reassessment.

Where can I view a breakdown of how my liability was calculated? 

We will complete the annual reconciliation process in mid-August.  Any calculations and adjustments, and the due date for paying liabilities, will appear on the Assessment Advice issued after 7 September.  Access your Assessment Advice from the left-hand menu in Revenue Online.

When is the reconciliation debt on my account due for payment? 

Debit amounts raised through annual reconciliation will be due for payment by 7 October.

If there are any delays with completing the reconciliation of your account, the due date for payment will be displayed on your Assessment Advice. 

In most cases, the due date for payment will be on the 7th of the month following the Assessment Advice displaying the debit.