Small businesses won’t be receiving $100 towards payroll software as part of Single Touch Payroll, the Government has announced.
In late 2015 Minster Kelly O’Dwyer announced that small businesses would receive a tax offset to help pay for the cost of Standard Business Reporting software, which is required for Single Touch Payroll reporting.
“To assist with the transition the Government will provide businesses, with a turnover of less than $2 million, a $100 non-refundable tax offset for SBR enabled software,”said Minister O’Dwyer at the time.
Per the announcement this was meant to apply to software purchases or subscriptions made in the 2017/18 financial year.
However this tax offset has now been quietly dropped in the 2017/18 Mid-Year Economic and Fiscal Outlook.
“The Government will not proceed with a $100 non-refundable tax offset for eligible small businesses with expenditure on Standard Business Reporting enabled software,” says the MYEFO report.
This reversal of policy is estimated to save $35 million.
“Consultation with stakeholders identified that the most effective way to support the early adoption of Single Touch Payroll reporting by small business is through education and support services.”
The Single Touch Payroll small business pilot program found that 50.9% of participants thought the $100 tax offset would have no influence on their decision to purchase payroll software. Some commented that $100 doesn’t go far in buying business software.
In 2017 Minister O’Dwyer announced that small businesses would have to use Single Touch Payroll from 1 July 2019. Large employers – 20 or more employees – were already scheduled to have to start reporting using STP from 1 July 2018.