If you are registered for payroll tax, and undergo a change of status during a financial year, you must lodge a final return with us within 21 days so we can finalise your payroll tax before your annual return is due.
A ‘change of status’ is the first day after you stop paying wages:
- if you do not intend to pay wages for the rest of the year or next financial year
- as a member of a group
- as the designated group employer for a group
- under an appointment of an administrator, liquidator, receiver or manager for your business assets.
When one of these events takes place, you must:
- lodge a final return for taxable wages you paid in the period up to your change of status
- work out whether you have paid the correct amount of payroll tax for that period
- pay any tax shortfall for that period when you submit your final return.
You can lodge your final return online for the period up to your change of status (the final period) that starts on the latest of the following in the financial year:
- 1 July
- the first day you have to register for payroll tax
- the date of any other preceding change of status.
Paying your final liability
You must pay any tax shortfall (final liability) when you submit your final return. If you are entitled to a payroll tax refund we will process it when we receive your final return.
If your payment is late, unpaid tax interest will accrue. You may also be liable for penalty tax if you do not lodge your final return.
Lodging an annual return for the same year
After your change of status, if you continue to pay taxable wages in the same financial year, you must still lodge an annual return at the end of the financial year. Wages or tax paid or payable for the final period will not be taken into account in the annual return.
If you do not pay taxable wages for the remainder of the financial year, the final return will take the place of the annual return.
