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Payroll Update and Key Dates to Remember

30th June (Friday)   31st July (Monday)   Superannuation Guarantee Contribution (SGC) Changes

Last day to have payments received by super funds via electronic payment for the Superannuation paid to be Tax Deductible in the 2017 financial year.  

Tip - different super clearing houses and super funds take varying times for payments to be received. Please be aware of processing times of associated funds and clearing 
houses. Contact your accountant at Brentnalls SA for any needed assistance. 

 

The 2017-18 remuneration return and 2016-17 reconciliation statement are due by the  31st July for all payers.

During the month of June you will receive a letter advising your username and password for online access to complete your reconciliation via the website.

www.rtwsa.com

The table below lists common remuneration items that need to be included in your annual reconciliations.

   
The SGC rate will  remain at 9.5%.
14th July (Friday)   14th August (Monday)   Reporting employees' extra super

PAYG Payment Summaries must be issued to employees.

 

Payment Summaries must be sent to the Tax Office or lodged online using an ATO portal service. 

 

You must include all reportable employer super contributions you make for an employee on their payment summary.  Any one with a reportable employer super  contribution amount must be issued with a payment summary.

Reportable employer super contributions are those contributions you make for an  employee where these include:

- Salary sacrifice Superannuation

- Additional amounts paid to an employee's super fund (for example an annual bonus paid to super).

- An employee negotiating for increased superannuation contributions as part of their salary package (for example under individual employee and package contracts).

Compulsory employer superannuation payments such as superannuation guarantee are not reportable employer superannuation contributions.

21st July (Friday)   28th August (Monday)  

Payroll Tax remittance is due for June and Reconciliation for the 2017 year.

Revenue SA requires all Payroll Tax Annual Reconciliations to be completed via the  internet.  Use your login and password at Revenue SA's Website (RevNet) to complete your annual return.

www.revnet.sa.gov.au

If you have forgotten your password, it can be reset at the above address also.


 

Taxable payment reporting due to the ATO for businesses who are in the construction industry.

 
28th July (Friday)    

Superannuation: last date to pay required Superannuation Contributions for 2017 to avoid paying Super Guarantee Charge (this charge incurs penalties and amounts paid are not tax deductible).  If using a super clearing house, we recommend that payment is made earlier.

     

On 6 June 2017, Fair Work Australia ("FWA") handed down its Annual Wage Review¹ under the Fair Work Act 2009 (Cth) ("Act"). This increase is effective from the first full pay period on or after 1 July 2017.

Increases to Modern Award and Transitional Instruments

FWA has adopted a uniform percentage increase of 3.3%, with weekly wages being rounded to the nearest 10 cents. This increase will be applied to each Award level as applicable, rather than a flat dollar amount increase. 

This increase will apply to: 

  • Modern Awards ("Award");
  • Transitional APCSs (pay scales);
  • State Reference Transitional Awards; and
  • Division 2B State enterprise awards.

National Minimum Wage

The national minimum wage will be increased to $18.29 per hour, or $694.90 per week. This rate has been calculated on the basis of a 38 hour week for a full-time employee. This is an increase of $22.20 per week.

Casual Loading

The standard casual loading in Awards remains at 25%. However, transitioning to this amount from a lower casual loading will continue to apply where applicable. The casual loading for Award/Agreement Free Employees will remain at 25%.

Transitional Provisions

Most Awards require transitioning from 1 July each year in accordance with the transitional provisions of the Award. Please note the effective date for the purpose of transition is different to that of the adjustment to the minimum wage. 

The date of transitional change is a lawful entitlement and the employer is technically obliged to pay from that date regardless of the inconvenience that it may create. From a practical perspective, employers may consider making a sole adjustment incorporating both the wage increase and any transitional change effective from the same date. We recommend if an employer chooses this option that it applies the earlier date being 1 July 2017.

Effect of Decision

Most Awards allow absorption of the Award's monetary obligations into over award payments. If this is the case, you may be able to absorb the increase into any over award payments. We recommend that you seek advice before making a decision to absorb the increase.  

The increase may also affect employers covered by enterprise agreements or transitional agreements that are expressly linked to an Award or where the minimum rate of pay in the agreement falls below the equivalent minimum rate in the Award. Again, we recommend that you seek advice about your obligations. 

Working Holiday Makers (Backpacker Tax)

From 1 January 2017, tax rates for working holiday makers who hold 417 and 462 visas were changed. To check whether one of you employees holds one of these visas, with their permission, you can visit border.gov.au/vevo and use the Visa Entitlement Verification Online Service.

If you employ a working holiday maker in Australia you will need to:

  • Register with the ATO to withhold at the working holiday maker tax rate
  • Withhold tax at 15% on income up to $37,000 and apply foreign resident tax rates on income above this amount
  • Issue two payment summaries this year. One for the period 1 July 2016 to 31 December 2016. The Second from 1 January 2017 to 30 June 2017  

For assistance with any of the above, please contact your Brentnalls SA team member.

If you would like to print this information please click here for PDF format

Disclaimer: The information provided in this information sheet does not constitute advice. The information is of a general nature only and does not take into account your individual financial situation. It should not be used, relied upon, or treated as a substitute for specific professional advice. We recommend that you contact Brentnalls SA before making any decision to discuss your particular requirements or circumstances.
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