Menu

Payroll Update and Key Dates to Remember

30th June
Last day to have payments received by super funds via electronic payment for the Superannuation paid to be Tax Deductible in the 2018 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. 

1st July
Single Touch Payroll (STP) reporting becomes compulsory for  employers with 20 or more employees. Employers with 19 or less employees will have to be compliant from 1 July 2019.

14th July 
PAYG Payment Summaries must be issued to employees.

23rd July 
Payroll Tax remittance is due for June and Reconciliation for the 2018 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

 

30th July
Superannuation: last date to pay June 2018 quarter Superannuation Contributions 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. 

31st July
Return to Work SA 2018-19 remuneration return and 2017-18 reconciliation statement are due by the  31st of July for all employers. 

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.

14th August
PAYG Payment Summaries must be lodged with the Tax by paper or online using an ATO portal service.  

28th August 
Taxable payment reporting due to the ATO for businesses who are in the construction industry.

 

Superannuation Guarantee Contribution (SGC) Changes?
The SGC rate will  remain at 9.5%.

Reporting employees' extra super
You must include all reportable employer super contributions you make for an employee on their payment summary. Anyone with a reportable employer super contribution amount must be issued with a payment summary.

Reportable employer super contributions 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.

Remuneration

Superannuation

Workcover

Payroll Tax

Salary and Wages Payments

Yes

Yes

Yes

Sick Leave

Yes

Yes

Yes

Overtime

No

Yes

Yes

Commissions

Yes

Yes

Yes

Annual and Long Service Leave Taken

Yes

Yes

Yes

Accrued Annual and Long Service Leave paid on Termination

No

No

Yes

Employer and Sacrificed Superannuation

No

Yes

Yes

Allowance by way of unconditional extra payment (e.g. first aid, site, dirt)

Yes

Yes

Yes

Expense allowance expected to be fully expended

*Yes/No

*Yes/No

*Yes/No

Shift Loadings

Yes

Yes

Yes

Performance Bonus

Yes

Yes

Yes

Christmas Bonus

Yes

Yes

Yes

Parental Leave

No

No

No

Work Reimbursements

No

No

No

Lump Sum Payments on Termination e.g. Eligible Termination Payments, payment in lieu of notice, redundancy pay

Payment in lieu of notice – Yes
Redundancy Payment - No

No

ETP's – Yes
(5% of pre 83)
(100% of post 83)

Tax Free Portion of Redundancy Pay - No

*Note that there are a number of different allowances which may or may not accrue superannuation and also be included in the remuneration calculations for workers compensation and payroll tax. Please speak to your Brentnalls SA team member if unsure of any treatments. 


Fair Work Australia Annual Wage Review

On 1 June 2018, 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 2018. 

Increases to Modern Award and Transitional Instruments

FWA has adopted a uniform percentage increase of 3.5%, 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 $18.93 per hour, or $719.20 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 $24.30 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 2018.

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. 

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.
Industry Focus

We have a deep understanding of the issues facing small to medium enterprises but we recognise that to be trusted business advisors we also need to understand the industry you work in.

You need to be confident that your advisors are up to speed on the issues and challenges that you face.

Read more >>
Resources

Please click on one of the following links to access additional resources: 

News Articles
Newsletters
Tax Facts
Key Dates
Internet Links
Fact Sheets
Checklists

Our Location

255 Port Road, PO Box 174
Hindmarsh SA 5007 
View location map

P: (08) 8241 8444
F: (08) 8241 8488
E: admin@brentnalls-sa.com.au

 Brentnalls SA on LinkedIn Brentnalls SA on Facebook