The Australian Tax Office (ATO) is making a big splash with a major change to the way that they will receive payroll and superannuation data from employers. In the future, it will be via Single Touch Payroll (STP). This is due to launch on 1 July 2018. It will be a significant change for businesses across Australia. All employers will need to understand and navigate their new and ongoing obligations to the ATO.
Well, primarily, the move signifies an effort by the ATO to make the Australian tax system smarter, more automated and more efficient.
For employers like you, once the changes are understood and applied, there are several advantages under the new system:
For employees, in terms of visibility of pay, tax and super, life just got easier.
The ATO’s myGov portal will be updated with an employee’s total year to date salary. It will display PAYG withholding amounts and super guarantee contributions as they accumulate. This means that, via their myGov account, employees will have access to more information in a more timely manner. Furthermore, new employees can complete TFN Declarations and Super Choice nominations online for a more streamlined digital process.
In terms of the ATO, we live in the age of “big data”, as a result, the ATO is predicted to receive 100’s of millions of pay events per annum. All via the STP gateway, therefore, this massive data set will have far greater relevancy and currency than ever before. One of the main benefits is to assist the ATO in monitoring employers struggling to meet their PAYG withholding and super obligations and to implement early intervention processes for those falling behind.
Read more on getting ready for Single Touch Payroll (STP) via the related articles below.
Contact us if you would like to discuss STP compliant payroll software or, if all of this looks like too much trouble, talk to us about outsourcing your payroll – an easy solution for ensuring ongoing compliance with evolving legislation.