Employers have not been given enough time to prepare for Single Touch Payroll, and the start dates should be pushed back at least one year, says the Tax Institute.
Single Touch Payroll is a new system for employers to report salary & wages, PAYG withholding and superannuation information. Large employers (20 or more employees) are scheduled to start using the system from 1 July 2018, and small employers (19 or fewer employees) are expected to have to start from 1 July 2019.
Expanding Single Touch Payroll to small employers was only announced in August 2017 and requires legislation be passed, on which Treasury has been consulting. The Tax Institute, in a submission on the draft legislation, says employers have not been provided with adequate time to adjust, due to the “enormity of recent superannuation reforms”.