STP will roll out for employers with more than 20 employees on 1 July 2018, while employers with 19 or less employees will have start reporting on 1 July 2019.
Earlier, Direct Management director Diane Lucas said the implementation of STP has been hitting roadblocks, with certain software providers yet to finalise their processes despite the looming deadline.
“Implementing STP into an organisation is another thing and I also believe and understand that there are still some software vendors who are yet to finalise their processes for that which is a bit of a challenge for organisations to bring that process into fruition,” said Ms Lucas.
According to the ATO’s draft framework for STP deferrals and exemptions, an employer can apply for a deferral if their payroll solution provider (PSP) will not be ready, or if their digital service provider (DSP) will not be ready by 1 July 2018.
Exemptions can be granted if employers are located in a rural area with no reliable internet connection, or have 20 or more employees for a short period of the income year.
In a release by big four accounting firm PwC, it noted that “some DSPs have already advised that they will not be ready to deliver STP reporting capabilities by 1 July 2018”, and that the onus was on the DSP to communicate with the ATO to apply for deferral on behalf of their employer customers.
Likewise, PwC also noted that “due to the complexities of STP implementation, a PSP may not be able to transition all their clients by the STP mandated start date and may request additional time”, and will be required to provide comprehensive data to the tax office.
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Jotham Lian is the editor of Accountants Daily, the leading source of breaking news, analysis and insight for Australian accounting professionals.
Before joining the team in 2017, Jotham wrote for a range of national mastheads including the Sydney Morning Herald, and Channel NewsAsia.