Single Touch Payroll
The Budget Savings (Omnibus) Bill 2016 received Royal Assent on Friday 16 September 2016.
The proposed changes will streamline the way employers report some tax and superannuation information to us.
When employers pay their staff, the employees’ salary or wages and PAYG withholding amounts will be automatically reported to us.
Employers will also have the option to pay their PAYG withholding at the same time they pay their staff.
There will also be some changes to how superannuation is reported to us. There will be no changes to the way employers pay their superannuation. However, when those payments are made to their employees’ funds, the information will be automatically reported to us.
We will be helping businesses to transition to Single Touch Payroll. These are the important dates:
- Employers with 20 employees or more will be able to report to us through Single Touch Payroll from 1 July 2017. However, they will be required to report from 1 July 2018.
- Employers with 19 employees or less will be able to report to us through Single Touch Payroll from 1 July 2017. However, it is not a requirement at this stage. We will be running a pilot with small businesses soon. This will help us understand their needs, and explore the benefits of Single Touch Payroll for small business.
In addition, employees will also have access to pre-filled forms including tax file number declaration and super choice when they start a new job. This would be through their myGovExternal Link account.
Changes made to reporting of PAYG withholding obligations and superannuation contributions.