On July 1, 2019 all businesses who have employees on payroll will be required to report their wages to the ATO each time they are paid. This new process is known as “Single Touch Payroll” (STP).
What does this mean for you?
Everyone will now need to report electronically using an ‘STP’ compliant software provider starting from the first payslip after July 1, 2019. **
You may also need to register for an Auskey (a link to the Auskey registration is provided in Additional Notes)
**There is a small concession for businesses with 1-4 employees need only report each quarter, but this still requires a subscription to a provider as above. This is also only valid until July 1, 2021 so it is unavoidable.
Why is this being introduced?
A short list to a long and complicated answer:
Identify Superannuation payment shortfalls
Real time reported earnings with Centrelink and other agencies to help reconcile benefits earlier
Eliminate the need for PAYG Summaries (Group Certificat...
If you run a business, you have no doubt heard the term 'single touch payroll' by now. Like most people you have put off looking into it or just assumed it didn't apply to you. I'm here to let you know, that it does apply to you and you do need to care. Sorry about that.
What is it?
Long story short. Your expected by now in the year 2018 to be using some sort of electronic payroll solution for your employees. Sorry guys, no more pink group certificates. Be it MYOB, Xero, Quickbooks ect. Don't worry though, its all automatic through your software but it does require you speak with them about setting up the feature.
Who needs to report?
From 1st July 2018, any business with 20+ employees are expected to report to the ATO their PAYG withholding and superannuation every time you pay your employees.
From the 1st of July 2019, everybody is expected to use STP. Regardless of the size of your business.
October is fast becoming the month of government back-flips. It started with Mike Baird reversing his decision to ban greyhound racing in NSW, now the federal government has done a back-flip on the non-concessional superannuation lifetime cap of $500,000. Lets go over the changes.
The government has decided to scale back the non-concessional contribution per year to $100,000 instead of $180,000.
Those who choose to use the bring forward rules will be able to contribute in a year a total of $300,000. A sharp drop from $580,000 under the previous rules.
Non-concessional contributions are those made from after-tax dollars.
These type of contributions to super will also be only available to those with a balance under 1.6 million and will start to take effect from July 1 2017.
You should always be sure to seek advice when making any choices of this nature, this article is general in nature and does not take into account your circumstances.
This is my first ever blog post of any kind so I thought to simply talk about what I think is relevant and important. I feel that in this point in time the most relevant thing I can think of is the transition to retirement.