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Streamlining business reporting with a Single Touch Payroll

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Kelly O'Dwyer Minister for Small Business Assistant Treasurer

21 December 2015


The Minister for Small Business and Assistant Treasurer, the Hon Kelly O’Dwyer MP, today announced business reporting of tax and superannuation will be simplified with the implementation of Single Touch Payroll (STP).

“Employers currently manually report Pay As You Go (PAYG) withholdings to the ATO,” Minister O’Dwyer said. “Under the new STP this information will be automatically reported to the ATO through Standard Business Reporting (SBR) software.

“Reporting of superannuation contributions will also be automatically sent to the ATO when payments are made to super funds.

“Employers will also have the option to pay their PAYG withholding at the same time they pay their staff.

“The Turnbull Government is also introducing streamlined processes for individuals commencing employment. Individuals will have the option of completing their Tax File Number (TFN) declaration and Superannuation Standard Choice forms using myGov or through their employer’s business management software.

“The ATO will be conducting a pilot in the first half of 2017 to demonstrate the deregulation benefits for businesses, with a focus on small businesses, to make sure we get it right.

“From 1 July 2017, all businesses will be able to commence STP reporting, with the option to make voluntary payments. In addition, the ATO will transition employers with 20 or more employees to STP. From 1 July 2018, employers with 20 or more employees will be required to use STP enabled software for reporting to the ATO.

“The Government will make a decision on timing for rolling out STP reporting for employers with less than 20 employees after the pilot is completed.

“To assist with the transition the Government will provide businesses, with a turnover of less than $2 million, a $100 non-refundable tax offset for SBR enabled software,” Minister O’Dwyer said.

This offset will apply from 1 July 2017 and will be available for software purchases or subscriptions made in the 2017-18 financial year.