Part-year annual reconciliation

Summary

A part-year reconciliation occurs when the period of reconciliation starts:

  • after 1 July and the employer continues to employ up to 30 June, or
  • 1 July and the employer continues to employ for a period earlier than 30 June, or
  • after 1 July and ceases to employ earlier than 30 June.

A pro-rata deduction applies to part-year reconciliations if the employer is entitled to a deduction. This pro-rata deduction is based on the number of days in the year that the employer employed in Australia.

Basis

The program enables part-year annual reconciliations within the year. This occurs in various circumstances, including when:

  • An employer ceases to employ during the financial year.
  • An employer changes from one group to another during the financial year.
  • An employer leaves or joins a group during the financial year.
  • A group ceases to exist.

More information on how to lodge a return for an additional reconciliation period.

Requirements

Except in the case of a change from one group to another, the part-period Annual Reconciliation and lodgement of a part-period return should occur at the time of the change rather than at the end of the financial year.

If the Reconciliation Period shown on the Review Details page is incorrect, enter the correct reconciliation period(s) by:

  • Entering the correct Victorian Reconciliation Period start or end date using the format dd/mm/yyyy or click the Calendar Icon to the right of the date field to manually select the correct date.
  • If applicable, also change the Interstate Reconciliation Period to reflect your correct Interstate Employment start and end date.
  • If you started employing interstate and there is no Interstate Reconciliation Period, please select Yes to the question 'Did you employ interstate in 2023-2024?' and enter the correct interstate employment dates.
  • Provide comments in the Additional Information section detailing the reason for any changes you have made to the Victorian and Interstate Reconciliation Periods.

Where an employer has changed status during the year, for example from a non-group employer to a group employer or between payroll tax groups, an Annual Reconciliation needs to be completed for each of the employing periods. In order to lodge more than one Annual Reconciliation complete these steps:

  1. On the Review Details page, amend the Reconciliation Periods to the correct employing period as per the steps above.
  2. Complete the Annual Reconciliation, providing wages and reviewing payments for the selected period only.
  3. Lodge the Annual Reconciliation.
  4. Return to the Annual Reconciliation home screen.
  5. Select Create an Additional Annual Reconciliation.
  6. Complete steps 1 to 3 (if more than two Annual Reconciliations are required, complete steps 1-6 as many times as necessary to lodge for all employer status changes).

Assistance

If you need more information on this topic, contact our payroll tax enquiry service on 13 21 61.