The minister for small business Kelly O’Dwyer has announced the implementation of a tax offset incentive for those who choose to be part of the pilot of the new Single Touch Payroll (STP) system.
This new process is intended to be part of a simplified business payroll solution, automatically reporting Pay As You Go (PAYG) withholdings to the Australian Taxation Office (ATO) as well as superannuation contributions. Used through Standard Business Reporting software, common in small business accounting, this new system is further evidence of the desire for continued technological integration and simplification between the ATO and small businesses.
To encourage rapid uptake and field testing of STP, the federal government is providing a $100 tax offset for any business with an annual turnover of less than $2 million that takes up the system upon availability.
A holistic service beyond payroll
However, payroll and superannuation are not the only areas intended to be streamlined by the new process. Fresh employees hired by a business will also have their standard new employment forms more easily accessible and transferable under the new scheme.
“Individuals will have the option of completing their Tax File Number (TFN) declaration and Superannuation Standard Choice forms using myGov or through their employer’s business management software,” said Ms O’Dwyer. Evidently, the government is pushing for a holistic service that covers more than just money matters.
The pilot is intended to begin in the first half of 2017, to be made compulsory on July 1, 2018 for businesses with 20 or more employees.
Small businesses may find it prudent to speak to a registered tax professional for advice on applying for this new scheme and tax benefit. Always ahead of the game technologically, DBS Accountants can provide expert advice on business as well as personal tax, ranging from specialised medical accounting to SMSF services.