Extension to Single Touch Payroll Legislation a Win Win for Australian Small Business
The extension of Single Touch Payroll (STP) reporting legislation to include all employers was recently passed by Parliament. This means that from 1 July 2019 all Australian businesses, regardless of size, will be required to comply with STP reporting; this brings an estimated 700,000 businesses into the fold.
Accounting software that offers STP enables employers to provide employee tax and superannuation information to the ATO each time a payroll is processed.
These changes will not be new for all small businesses; according to the ATO, approximately 15,000 small businesses with less than 20 employees adopted the STP systems in 2018. However, Oxygen Private Clients encourages all its small business clients with fewer than 20 employees, to proactively acknowledge this new legislation and remove the risks of non-compliance.
Don't have STP capability? Fear not. A range of products are expected to be hitting the market around about now. Obviously aware of placing additional financial strain on small and micro businesses, the ATO has requested software developers to provide low-cost STP solutions capped at, or below, $10 per month. The ATO even have a list to help you compare and select from the options available https://www.ato.gov.au/business/single-touch-payroll/in-detail/low-cost-single-touch-payroll-solutions/.
The new STP legislation is about more than reporting and software capability. Australian business productivity is also expected to spike. The new reporting format of employees' tax and superannuation information will strip an estimated one million hours in time previously spent calculating and sending obligatory information to the ATO each and every time employees are paid. That's a million hours you'll never get back; the time saved by STP will amount to an estimated $1.3 billion economic dividend.
To discuss STP compliance for your small business, or for further information regarding the new STP legislation contact Bella Cavedon, Oxygen Private Clients, 03 9977 2600.
DISCLAIMER: The information contained in or referred to in this Blog Post is general in nature, subject to change, and should not be taken as advice for your individual or your group's circumstances. It is for information only and does not take into account any person or group's specific circumstances, objectives, financial situation or requirements. It does not constitute taxation, legal or financial advice. Oxygen Private Clients recommends you seek specific professional advice before making any decision or taking any action.