CONTINUEThis site uses cookies. By continuing to browse this site you are agreeing to our use of cookies. Find out more.
  1. Front Page
  2. News By Topic
  3. Australia Implements Single Touch Payroll

Australia Implements Single Touch Payroll

by Mary Swire,, Hong Kong

21 December 2015

The Australian Government has said that business reporting of tax and superannuation will be simplified with the implementation of a new Single Touch Payroll (STP) system.

Assistant Treasurer Kelly O'Dwyer said that under STP, Pay As You Go (PAYG) withholdings information will be automatically reported to the Australian Taxation Office (ATO) through Standard Business Reporting (SBR) software. This information is currently reported manually by employers. Employers will also have the option to pay their PAYG withholding at the same time they pay their staff.

Information on employers' superannuation contributions will be sent automatically to the ATO when payments are made to superannuation funds.

O'Dwyer said that the ATO will conduct 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 July 1, 2017, all businesses will be able to commence STP reporting, with the option to make voluntary payments. The ATO will transition employers with 20 or more employees to STP. From July 1, 2018, these businesses will be required to use STP-enabled software for reporting to the ATO. The Government will decide when to roll out STO reporting for employers with less than 20 employers after the pilot is commenced, O'Dwyer added.

To assist with the transition, the Government will provide a AUD100 (USD71.82) non-refundable tax offset for SBR-enabled software to businesses with a turnover of less than AUD2m. The offset will apply from July 1, 2017, and will be available for software purchases or subscriptions made in the 2017-18 financial year.

TAGS: tax | small business | business | pensions | revenue guidance | employees | Australia | ministry of finance | tax authority | regulation | individual income tax

To see today's news, click here.


Tax-News Reviews

Cyprus Review

A review and forecast of Cyprus's international business, legal and investment climate.

Visit Cyprus Review »

Malta Review

A review and forecast of Malta's international business, legal and investment climate.

Visit Malta Review »

Jersey Review

A review and forecast of Jersey's international business, legal and investment climate.

Visit Jersey Review »

Budget Review

A review of the latest budget news and government financial statements from around the world.

Visit Budget Review »

Stay Updated

Please enter your email address to join the mailing list. View previous newsletters.

By subscribing to our newsletter service, you agree to our Terms and Conditions and Privacy Policy.

To manage your mailing list preferences, please click here »