Powered by MOMENTUM MEDIA
accountants daily logo

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.

Closely held payees granted further STP exemption to 2021: ATO

Tax

Employers with closely held payees will be now granted a further one-year exemption from Single Touch Payroll reporting until 1 July 2021.

by Jotham Lian2 minute read
ATO

The ATO has now moved to extend the STP reporting exemption for closely held payees to 1 July 2021, in light of the ongoing COVID-19 crisis.

The exemption will be applied automatically by the Tax Office.

Closely held payees had previously been granted an exemption from STP reporting to 1 July 2020.

The ATO’s definition of a closely held payee is one who is directly related to the entity from which they receive payments, including family members of a family business, directors or shareholders of a company, or beneficiaries of a trust.

The Tax Office notes that all other arm’s-length employees must be reporting through STP on or before each payday, unless they are eligible for the micro employer reporting concession which allows registered tax or BAS agents to report on their behalf on a quarterly basis until 30 June 2021.

Once STP for closely held payees commences on 1 July 2021, they will be required to report a “reasonable estimate” on a quarterly basis, in line with the due date of lodgement of the BAS.

The ongoing quarterly reporting concession due date will include any concession that the registered tax and BAS agent gets for lodgement.

Closely held payees granted further STP exemption to 2021: ATO
image intro
accountantsdaily logo

Jotham Lian

Jotham Lian

AUTHOR

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.

You can email Jotham at: This email address is being protected from spambots. You need JavaScript enabled to view it. 

accountants daily logo Newsletter

Receive breaking news directly to your inbox each day.

SUBSCRIBE NOW