Parliament has recently passed the Bill introducing single touch payroll to all businesses from 1 July 2019. Currently this system, which involves electronically reporting all pay run data to the ATO, applies to businesses with more than 19 employees.
The good news is this change should not impact small businesses as much as previously feared. Small businesses which utilise contemporary cloud based accounting software were already going to be compliant with this change but the worry was for small employers using manual or outdated accounting systems. However the ATO has worked with software developers and have published a list of low cost software options (usually around $10 per month) which employers can utilise to do their single touch payroll instead of having to purchase more expensive compliant accounting software. There is also speculation that the ATO will release guidelines in conjunction with this Bill allowing employers the choice to have their tax or BAS agent lodge this information quarterly through their electronic portals. If you would like to know more, please do not hesitate to contact us.