Single Touch Payroll, A Requirement by the ATO
On 28 December 2014, the Minister for Small Business, Bruce Billson MP, and the Assistant Treasurer, Josh Frydenberg MP, announced that the government will cut red tape for employers by simplifying tax and superannuation reporting obligations through Single Touch Payroll.
Under Single Touch Payroll, employers will be required to electronically report payroll and super information to the ATO when employees are paid, using Standard Business Reporting-enabled software.
In addition, Single Touch Payroll will streamline tax file number (TFN) declarations and Super Choice forms by providing a digital channel to simplify the process of bringing on new employees. It could also cut red tape by notifying super funds and government agencies, such as the Department of Human Services (DHS), when an employee ceases employment.
Single Touch Payroll will be available from July 2016. To meet their obligations under Single Touch Payroll, employers would be required to use, and if necessary acquire, appropriate payroll software.