TAX ALERT - Single Touch Payroll Reporting Rules Extended to Small Business
Lowe Lippmann Chartered Accountants
Introduction
The extension of Single Touch Payroll (STP) to small business entities, which are employers with 19 or fewer employees, has finally passed both houses this week, after amendments were tabled late last year.
This means that employers with 19 or fewer employees will have to report under STP rules from 1 July 2019. Business with 20 or more employees began reporting from 1 July 2018.
The ATO has published a list of 24 companies intending to provide STP solutions, with the list to be updated over time to include information about the products these companies will offer. Suppliers such as MYOB, Xero and Reckon have each put forward STP product proposals.
ATO's new focus for small business The ATO is currently focusing on the following 'specific risk areas', where it is concerned "small businesses are getting it wrong": Contractors omitting income — with a focus on data matching to ensure all income is reported. Quarterly to monthly BAS reporting for GST purposes — The ATO will move around 3,500 small businesses with a history of non-compliance to monthly reporting from 1 April 2025. Small business boost claims — with a focus on encouraging self-amendments to correct errors and omissions. The ATO will also continue its focus on non-commercial business losses, small business capital gains tax ( CGT ) concessions, business income that is not personal income, incorrect claims for 'small business boosts', GST registration and income of taxi, limousine and ride-sourcing services.
Bill passed for Instant Asset Write-Off of $20,000 for 2024-25 There was no mention of the extension of the instant asset write-off ( IAWO ) within the Federal Budget delivered last Tuesday night, leaving many small business taxpayers frustrated and uncertain. However, the Treasury Laws Amendment (Tax Incentives and Integrity) Bill 2025 has now been passed through the Parliament, and it included the extension of the IAWO threshold of $20,000 for assets first used or installed ready for use between 1 July 2024 and 30 June 2025. After the Bill has now been passed by both the House of Representatives and the Senate, it now simply waits to receive Royal assent.
SUMMARY AND FULL COMMENTARY UPDATES
