exPert Advice
From 1 July 2018,
businesses that employ
more than 20 people will
be required to align with
the Australian tax office’s
(A to’s) single touch
Payroll reporting (st Pr)
requirements.
The change means the ATO will be collecting
payroll data in real time. As an employee
receives a payslip, that information, including
tax and superannuation payments, will also be
electronically transmitted to the ATO at the
same time.
It’s a change that will have particular
implications for the way a large number of
franchises manage their payroll requirements.
The threshold for mandatory participation
includes businesses with 20 employees of any
sort, not just full time staff. Franchises are
often above this level due to the nature of
their workforce, one that is made up of casual
and part-time workers. Thankfully, the change
is something franchises can start to prepare
for now starting with a review of their current
payroll system and processes.Why this change is so important
The move to STPR sets a new standard for
payroll reporting in Australia. Most businesses
will be used to form filling at the end of the
month, quarter or year, but now the ATO will
have access to real-time transactional data.
This then means their compliance activities
will be completed in real time, which we think
will begin to change the way they engage with
taxpayers when issues do arise.
The change could also affect the way
this information is shared between other
agencies, as it aligns with the ATO’s current
information sharing agreement. This means,
for example, the ATO will potentially be able
to share real-time payroll data with an agencya new
stanDarD for
austraLia
THE MOVE TO SINGLE TOUCH PAYROLL
REPORTING (STPR) SETS A NEW STANDARD
FOR PAYROLL REPORTING IN AUSTRALIA.