The Single Touch Payroll flight plan
The Budget Savings (Omnibus) Bill 2016 was enacted on 16 September 2016 – making Single Touch Payroll (STP) a legislative requirement in Australia. STP will lead to transparency in payroll reporting and level the playing field to ensure that all employers are meeting their employer taxation obligations. Advantages include, Auto reporting, Activity statement compliance efficiencies, and Validated new hire data.
This legislation along with other Federal Government initiatives such as MyGov and SuperStream, are momentous leaps forward in the Australian Government’s Digital by Default agenda. Not since the introduction of PAYG in 2000 have we seen a piece of legislation with this level of impact for all employers and employees. The ATO’s direction is that every employer is going to need an STP solution.