COVID-19 SA: Business – Payroll Tax Relief

This program aims to provide tax relief South Australian businesses who have been adversely impacted by COVID-19. It forms part the South Australian Government's Jobs Rescue Package which provides immediate financial support and relief to those most affected by the COVID-19 pandemic.

Tax relief measures include:
1. JobKeeper payment (Commonwealth)
- Businesses whose employees qualify for the Federal Government’s JobKeeper support payments are exempt from paying any payroll tax on the wage subsidy.
- If any of the employees qualify for the Federal Government’s JobKeeper support payments between 4 January 2021 and 28 March 2021 the employer will also receive a waiver of the payroll tax payable on all the declared paid wages for the months of January to June 2021 (for the return periods of December 2020 to May 2021).

2. Payroll tax waiver – businesses with Australian grouped wages up to $4 million
- Eligible employers will not be required to pay any payroll tax for the months of April to June 2021 (for the return periods of March 2020 to May 2021).
- The Annual Reconciliations will need to be lodged by all employers (regardless of return cycle) and if there is an amount outstanding after completion of the Annual Reconciliation, this amount will remain payable.
- If the business was registered for payroll tax for the 2018-19 financial year and has completed the 2018-19 Annual Reconciliation, with declared Australian (annualised grouped) wages up to $4 million for 2018-19, or were previously approved for a waiver (as at 7 September 2020) they will automatically receive the waiver.
- If the business was not registered for payroll tax for the 2018-19 financial year or did not complete the 2018-19 Annual Reconciliation
a) They will need to apply to RevenueSA to determine whether they are eligible for a waiver of payroll tax.
b) Once the application is reviewed, RevenueSA will be in contact to advise whether a waiver has been granted.
- All employers must continue to lodge their monthly payroll tax returns to capture wages for the month, even if no payroll tax payment is required to be made.

3. Payroll tax deferral – businesses with Australian grouped wages above $4 million
- Businesses with Australian (annualised grouped) wages above $4 million who are adversely impacted by COVID-19 can elect to defer their payroll tax payments for the March to November 2020 returns periods until 14 January 2021.
- If the employees qualify for the Federal Government’s JobKeeper support payments the business is exempt from paying any payroll tax on the wage subsidy.
- In addition, if any of the employees qualify for the Federal Government’s JobKeeper support payments between 4 January 2021 and 28 March 2021 the business will also receive a waiver of the payroll tax payable on all their declared paid wages for the months of January to June 2021 (for the return periods of December 2020 to May 2021).
- Monthly payroll tax returns must still be lodged to capture wages for each month, with payment deferred to January 2021. This is for reporting purposes only.

This relief does not extend to government organisations.

Please visit the website for more information.