n
A Billnto establish a new reporting framework, Single Touch Payroll (STP), has beennintroduced in Parliament. Under the proposed changes in the Bill, “substantialnemployers” would be required to automatically provide payroll andnsuperannuation information to the Commissioner of Taxation at the time theninformation is created. A number of related amendments aim to streamlinenemployers’ payroll and superannuation choice processes by allowing the ATO tonpre-fill and validate employee information.
n
Entitiesnwith 20 or more employees (substantial employers) would be required to reportnthe following information to the Commissioner of Taxation:
n
• withholdingnamounts and associated withholding payments on or before the day by which thenamounts were required to be withheld;
n
• salarynor wages and ordinary time earnings information on or before the day on whichnthe amount was paid; and
n
• superannuationncontribution information on or before the day on which the contribution wasnpaid.
n
Thenchanges are proposed to apply from the first quarter beginning on or after thenday the Bill receives Royal Assent.
n
Inngeneral, STP reporting will commence on 1 July 2018 for substantialnemployers and the related amendments will apply more broadly fromn1 January 2017. In some cases, the Commissioner may defer these startndates by legislative instrument.
n
TIP:nThe ATO has issued a consultation paper, published on its website, which seeksncomments on the ATO’s proposed administration of STP reporting.
n
n
Important: Clients should not act solely on the basis of the material contained in Update. Items herein are general comments only and do not constitute or convey advice per se. Also, changes in legislation may occur quickly. We therefore recommend that our formal advice be sought before acting in any of the areas. This update is issued as a helpful guide to clients and for their private information.
