A New Way of Reporting Tax and Super to the ATO

This is information that will be of interest to people who are self-managing or share-managing and hiring their own workers.

Single Touch Payroll (STP) is a new way of reporting tax and super information to the Australian Taxation Office (ATO). Generally, if Employers are using a payroll or accounting software, that offers STP reporting, their employees’ tax and super information will be sent to the ATO each payroll run. The information is sent to the ATO either directly from the software, or through a third party, depending on the arrangement.
There will be a number of options available for Employers who do not already use payroll software, such as No-cost and low-cost Single Touch Payroll solutions.
Please go to https://www.ato.gov.au/business/single-touch-payroll/ for more information on Single Touch Payroll and on the no-cost and low-cost options.

Please note, however, that WAiS, through KPMG, who have spoken with the ATO (Single Touch Payroll section), have had advice that there is an exemption for people with WPNs for the financial year 2019/2020. In other words, you do not have to report through STP for this financial year. If you choose to report using STP, during this financial year, you can only do this through a registered agent.

WPN holders will need to start reporting using STP for the 2020/2021 financial year (from 1 July 2020).

The ATO website has not been updated yet with this information, but we have been informed they will do so before the end of this financial year and the legislative instrument confirming the exemption is publically available as attached or here . The ATO are, apparently, also intending to write to WPN holders, but in the absence of a timeframe for this, we wanted to provide you with this update at this time.

If you have any queries, please contact Su-Hsien Lee, WAiS.