Speaking about the Single Touch Payroll (STP) system, Minister for Small Business and Assistant Treasurer Kelly O’Dwyer noted that with the new measures in place, Pay As You Go (PAYG) withholdings will now be automatically reported to the ATO via Standard Business Reporting (SBR) software.
Ms O’Dwyer added that reporting of superannuation contributions will 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,” she said.
Ms O’Dwyer revealed that an STP pilot program, with a focus on small businesses, is slated for 2017 to demonstrate the deregulation benefits that the system provides.
“From 1 July 2017, all businesses will be able to commence STP reporting, with the option to make voluntary payments,” she said.
“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."
With the new STP measures in place, continued integration of processes via the myGov platform is an additional way to streamline processes for businesses and individuals, according to Ms O’Dwyer.
“Individuals will have the option of completing their Tax File Number declaration and Superannuation Standard Choice forms using myGov or through their employer’s business management software,” she said.
- Is superannuation still a good option for your clients?
By Chris Morcom
- Practical advice for improving your cyber security
By Rob McAdam, Pure Hacking
- Blockchain: why it’s time for accountants to get on board
By Ben Scull, Thomson Reuters