This year, small businesses are going to hear a lot about Single Touch Payroll (STP). Announced late last year by the Australian Minister for Small Business, STP is a system the Australian Tax Office (ATO) hopes will streamline business tax and superannuation reporting, saving time, money and reducing risk for small businesses.
Australian small business employers currently manually reporting on Pay-As-You-Go (PAYG) withholdings and super obligations to the Australian Taxation Office, will be able to automatically report to the ATO through Standard Business Reporting (SBR) software. However, the requirement for reporting super contributions to funds under SuperStream will not change with the introduction of Single Touch Payroll.
The key components of STP are as follows:
- Employers can automatically report on payroll (PAYG) and super information to the ATO through SBR but the requirements for SuperStream will not change
- Employers will be able to make payment for payroll obligations at the same time as reporting obligations
- Pilot will commence in 2017 and from 1 July 2017, all businesses will be able to commence using single touch payroll
- Employers with greater than 20 employees will have to start transitioning from 1 July 2017
- Employers with less than 20 employees will be required to use STP from 1 July 2018.
- Businesses with less than $2M in turnover will be given a $100 non-refundable tax offset for SBR enabled software. This off set will be available for the 2017/ 2018 Financial Year.
What does this mean for you?
Great news if you’re already using MYOB online accounting software. MYOB is working with the ATO on the development requirements and accounting system processes, saving MYOB clients’ time, money and reducing employer obligations risk.
Not using online accounting software?
If you’re not using MYOB online accounting software, you can take a free 30 day trial of MYOB Essentials. It’s packed with payroll features and tax updates, ensuring you’re always up-to-date. Paying super and staying on top of ATO SuperStream requirements is a breeze.