Last day to have payments received by super funds via electronic payment for the Superannuation paid to be Tax Deductible in the 2020 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. We suggest paying this by the 20th of June if possible.
The cents per kilometre deduction rate for motor vehicle expenses will increase from 68 cents to 72 cents.
Single Touch Payroll (STP) finalisation or PAYG Payment Summaries must be issued to employees (except for closely held payees).
Payroll Tax remittance is due for June and Reconciliation for the 2020 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.
If you have forgotten your password, it can be reset at the above address also.
Last date to pay required Superannuation Contributions for 2020 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.
PAYG Payment Summaries must be provided to the ATO if not reporting via STP.
Taxable payment reporting (TPAR) due to the ATO for businesses who are in the following industries:
- Building and construction
- Cleaning services
- Courier services
- Road Freight services
- Information Technology (IT) services
- Security, Investigation, or Surveillance services
The 2019-20 reconciliation statement is due by the 15th of September 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.
The SGC rate will remain at 9.5% for the 2021 financial year.
You must include all reportable employer super contributions you make for an employee on their 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); and
- 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.
The table below compares the requirements for Salary/Wages, Superannuation, Return to Work SA & Payroll Tax
Please refer to the below link if you require any additional information in relation to the above.
* 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.
On 19 June 2020, the Fair Work Commission ("FWC") handed down its annual wage review decision for 2019-2020. The new national minimum wage will be $753.80 per week for full time workers or $19.84 per hour, which is effective from the first full pay period starting on or after 1 July 2020.
The 1.75% increase will apply to workers who have their pay set by the national minimum wage or modern award. The national minimum wage applies to employees who aren't covered by an award or agreement.
Employers and employees covered by a registered agreement, should check to see if the increase affects them.
The current casual loadings in the modern awards and for award/agreement free employees will remain at 25%.
There will be further changes to modern minimum wages in certain awards from 1 November 2020 and 1 February 2021. Check the FairWork Ombudsman website for more details. https://www.fairwork.gov.au/pay
The Full Court of the Federal Court has further examined the definition of casual employment in a case between Workpac (labour-hire) and prior employee Mr Rossato. Previously, Mr Rossato was a casual employee of Workpac, employed on rolling contracts over 3.5 years. He was paid a flat rate, with a casual loading of 25% on top, which is a usual practice to make up for not being paid benefits such as annual leave.
Workpac did not pay Mr Rossato any leave entitlements or public holidays. Once Mr Rossato's employment completed, he claimed payment in respect of these entitlements. Workpac sought a declaration that Mr Rossato was a casual employee and therefore not entitled as this would be 'double-dipping'. The Court found that Mr Rossato's employment was not a casual employee. It was deemed to be 'regular, predictable and certain', he was given his roster far in advance and had been given over six consecutive written employment contracts.
Workpac asserted that casual loading should then be paid back. However, the Court found that Workpac was not entitled to be repaid and confirmed that an employer could not compensate by paying an employee a casual loading or any other form of a higher rate of pay.
This decision will not automatically apply to all casual workers, as casual work is usually deemed to be irregular, temporary or uncertain. However, this case could prompt employees who fit the category of regular, systematic, and predictable to question their benefits against ongoing employment.
Industrial Relations Minister Christian Porter has indicated that the government will consider legislation to address these concerns, most likely by defining casual work in the Fair Work Act. It has been recommended that employers review the wording in their casual employment contracts and to seek advice about their employment obligations.
How can Brentnalls SA help?
If you have any concerns or would like further information, please speak to your Brentnalls SA team member or contact our office to discuss further.
If you would like to print this information please click here for PDF format.
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.