The aim of this electronic reporting initiative is to cut red tape for Australian businesses by making tax and super reporting simpler.
While government is still consulting with business and industry bodies such as the IPA, it’s expected that employers with withholding greater than $100,000 will be encouraged to adopt Single Touch Payroll from 1 July 2016 and will be required by law to do so from July 2017. Employers with withholding less than $100,000 will have an additional year to adopt the new system, although they will be permitted to make the transition from July 2016.
While the IPA welcomes government initiatives that will reduce red tape and increase business productivity, Single Touch Payroll may actually increase costs and administration time for micro and small businesses that don’t have access to cloud-based software and a reliable internet connection.
To find out more about the IPA’s position on Single Touch Payroll, visit https://www.publicaccountants.org.au/resources/news-and-media/mediareleases/single-touch-payroll-not-rightfor-every-user
