The Budget Savings (Omnibus) Bill 2016 received Royal Assent in September 2016 and the changes will streamline the way employers report some tax and superannuation information to the Australian Taxation Office (ATO).
When employers pay their staff, the employees’ salary or wages and PAYG withholding amounts will be automatically reported to the ATO.
Employers will also have the option to pay their PAYG withholding at the same time they pay their staff.
There will also be some changes to how superannuation is reported to the ATO. There will be no changes to the way employers pay their superannuation. However, when those payments are made to their employees’ funds, the information will be automatically reported to the ATO.
The ATO will be helping businesses to transition to Single Touch Payroll. These are the important dates:
- Employers with 20 employees or more will be able to report through Single Touch Payroll from 1 July 2017. However, they will be required to report from 1 July 2018.
- Employers with 19 employees or less will be able to report through Single Touch Payroll from 1 July 2017. However, it is not a requirement at this stage.
The ATO has provided the following resources explaining the changes to:
- provide information on how Single Touch Payroll will work,
- explain what employers need to know right now, and
- detail the legal basis for Single Touch Payroll.
If you need further information the ATO’s Single Touch Payroll Team can be contacted at [email protected].