logo
Receive the latest mybusiness news
SUBSCRIBE TO OUR NEWSLETTER
Copyright © 2020 MOMENTUMMEDIA

Permanent quarterly STP reporting floated

Jotham Lian
Jotham Lian
14 October 2019 1 minute readShare

There might be hope for microbusinesses to rely on the Single Touch Payroll quarterly reporting concession on an “enduring basis”, with an industry body currently in discussions with the ATO.

Speaking to My Business sister publication Accountants Daily, Institute of Certified Bookkeepers executive chair Matthew Addison (pictured) said that there are currently discussions with the ATO to make the Single Touch Payroll (STP) quarterly reporting concession permanent for micro employers.

Micro employers – those with between one and four employees – are currently able to utilise their registered tax or BAS agent to lodge their STP report on their behalf on a quarterly basis up till 30 June 2021.

Advertisement
Advertisement

“We believe that quarterly reporting for the micros needs to be an enduring feature of Single Touch Payroll reporting,” said Mr Addison.

“What is emerging or even becoming evident is a lot of those very small employers, they do the right thing, but they really don’t run their payroll through software.”

 

According to Mr Addison, forcing them onto payroll software could elicit “an extreme outcome”.

“They are doing quarterly activity statements, so let them [continue] doing quarterly reporting for their one employee; otherwise they are going to say, ‘I’m not going to put software in to keep employing this person – I’ll sack them and do the job myself’,” he said.

“That’s an extreme outcome, but we’re hearing a little bit of it. So we are an advocate of that quarterly reporting regime enduring as an option for the micros that are not computerised.”

Mr Addison said discussions with the Tax Office are ongoing, with several developments in the concessional reporting space demonstrating that the ATO has the “appetite” to adopt new concessionary measures.

SPONSORED CONTENT

 

“If you look at the last six months, they brought it in for closely held [employees], they brought it in for this two-year transition phase for micro businesses that work through an agent, and now they’ve brought it in for a couple of industries,” said Mr Addison.

“So I believe the ATO are taking a realistic approach that it is a very feasible option for businesses and to achieve the outcomes of Single Touch Payroll.

“[The ATO] are still getting the reporting; they’re still getting the information. It just happens to be quarterly.”

STP is now in force for businesses of all sizes, with 460,000 businesses now reporting, and just over 40,000 covered by a deferral, exemption or concessional reporting arrangement.

Permanent quarterly STP reporting floated
mybusiness logo
Jotham Lian
Jotham Lian

Jotham Lian is the news editor of Accountants Daily, the leading source of breaking news, analysis and insight for Australian accounting professionals. With a focus on breaking news and exclusive analysis, Jotham keeps Accountants Daily readers up to date with company moves, tax updates and essential business and client strategy. 

Before joining the team in 2017, Jotham wrote for a range of national mastheads including The Sydney Morning Herald and Channel NewsAsia.

You can email Jotham at: [email protected] 

Leave a Comment

Why we’ll keep delivering for our communities in the face of COVID-19

alex

As Australia tries to keep pace with a rapidly changing business and social landscape in the wake of COVID-19, Momentum Media is leading the way delivering essential content to our communities, writes Alex Whitlock, director of MyBusiness.

Read more

Latest poll

Should the government make further amendments to JobKeeper?