Assistant Treasurer, Josh Frydenberg, has announced simpler tax and superannuation reporting obligations through Single Touch Payroll. It builds on of a series of measures announced in mid-2014 designed to take the red tape out of business reporting.
Under Single Touch Payroll, a number of activities will be streamlined from a reporting perspective, including:
- Automatically reporting payroll information to the ATO when an employee is paid.
- Eliminating the need to report employer-related Pay As You Go Withholding in their activity statements and year-end employee payment summaries.
- Streamlined Tax File Number declarations and Super Choice forms by providing digital services to make on boarding of new employees easier.
The Government has been steadily moving towards standard business reporting and leveraging the expanding capabilities of accounting software to do so.
Single Touch Payroll will be available from July 2016, and the ATO and Treasury will be consulting with the business community about transition arrangements and a phased start date for different sized employers.
One thing to be mindful of is that the ever-increasing ATO access to your records means that they should reflect the real-time status of any strategies you have in place.
This article is provided for information purposes only and correct at the time of publication. It should not be used in place of advice from your accountant. Please contact us on 02 9957 4033 to discuss your specific circumstances.