Hayley Lock and Peter de Sousa look at Single Touch Payroll (STP) reporting measures, introduced by the Australian Taxation Office (ATO), which are now set to be extended to all businesses.
Single Touch Payroll (STP) reporting measures introduced by the Australian Taxation Office (ATO) are now set to be extended to all businesses across Australia.
The passing of amendments to the legislation, the Treasury Laws Amendment (2018 Measures No. 4) Bill 2018 in Parliament earlier this week extended the STP reporting requirements to employers with 19 or fewer employees. From the 1st of July 2019 small businesses, who were previously excluded from reporting, will now be required adhere to the ATO’s STP measures.
This extension is expected to have a large impact on Australia’s 700,000 small businesses. The amendment is set to be the biggest change to an employer’s reporting obligations in Australia since the introduction of GST in 2000. That said, over the course of time it is anticipated that STP reporting will make for more efficient interactions between small businesses and the ATO.
Large employers, those with 20 or more employers, were mandated to start reporting under STP requirements from 1 July 2018. The rollout of STP now includes around 60,000 Australian employers.
To continue reading this article and what the changes mean for employers, log on to KPMG Tax Now.
Register for KPMG Tax Now if you have not already done so.