iscoverThe government has announced it will delay the implementation of Single Touch Payroll, acknowledging the intended original start date of July 2016 will not be achievable for many businesses.
Single Touch Payroll delayed
11 June 2015
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4 minute read
Small business minister Bruce Billson announced yesterday the government will now undertake further consultation on the issue to iron out the concerns of the business community.
“We want to make sure we get this right because we understand Single Touch Payroll will be a large change for all businesses, especially small business,” Mr Billson said.
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With the initiative, a business’ accounting software will automatically send payroll information to the ATO when employees are paid.
CAANZ and the IPA have both previously expressed concerns about Single Touch Payroll, particularly around the cash-flow implications for businesses. Michael Croker, head of tax at CAANZ, said the main concern is the proposal for PAYG withheld and super to be paid by businesses more frequently.
Mr Billson acknowledged the industry concern and said the government is willing to consult on the issue to achieve the best outcome.
“Having listened carefully to the earlier feedback, the Government acknowledges that a start date of July 2016 will not be achievable for many businesses,” the minister said.
“The Government also recognises the cash-flow implications for business of real time payments, and will therefore only be consulting further on real time reporting and voluntary real time payments as an option.
“The Government will undertake further consultation with the business community as it looks to cut red tape for employers by simplifying tax and superannuation reporting obligations through Single Touch Payroll,” Mr Billson said.
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