{{ propApi.closeIcon }}
Our industry
Our industry $vuetify.icons.faArrowRight
Housing industry insights Economics Insights Data & forecasts Tailored research and analysis Advocacy & policy Advocacy Policy priorities Position statements Submissions News and inspiration Industry news Member alerts Media releases HOUSING Online
Business support
Business support $vuetify.icons.faArrowRight
Become an apprentice host Hire an apprentice Why host a HIA apprentice? Apprentice partner program Builder & manufacturer program Industry insurance HIA Insurance Services Construction works insurance Home warranty insurance Tradies & tool insurance Member perks Toyota vehicles The Good Guys Commercial Fuel savings See all Planning & safety solutions Building & planning services Safe Work Method Statements (SWMS) Solutions for your business Contracts Online Advertise jobs Trusted support & guidance Contracts & compliance support Industrial relations
Resources & advice
Resources & advice $vuetify.icons.faArrowRight
Building it right Building codes Australian standards Getting it right on site See all Building materials & products Concrete, bricks & walls Getting products approved Use the right products for the job See all Managing your business Dealing with contracts Handling disputes Managing your employees See all Managing your safety Safety rules Working with silica See all Building your business Growing your business Maintaining your business See all Other subjects Getting approval to build Sustainable homes See all
Careers & learning
Careers & learning $vuetify.icons.faArrowRight
A rewarding career Become an apprentice Apprenticeships on offer How do I apply? Frequently asked questions Study with us Find a course to suit you Qualification courses Learning on demand Professional development courses A job in the industry Get your builder's licence Continuing Professional Development (CPD) Further your career Find jobs
HIA community
HIA community $vuetify.icons.faArrowRight
Join HIA Sign me up How do I become a member? What's in it for me? Mates rates Get involved Become an award judge Join a committee Partner with us Our initiatives HIA Building Women GreenSmart Kitchen, bathroom and design hub Get to know us Our members Our people Our partners Support for you Charitable Foundation Mental health program
Awards & events
Awards & events $vuetify.icons.faArrowRight
Awards Awards program People & Business Awards GreenSmart Australian Housing Awards Awards winners Regional Award winners Australian Housing Award winners 2024 Australian Home of the Year Enter online Industry events Events in the next month Economic outlook National Conference Events calendar
HIA shop
HIA shop $vuetify.icons.faArrowRight
Most popular products National Construction Code Vol 1 & 2 Waterproofing wet areas AS 3740:2021 HIA Guide to Waterproofing HIA Guide to NCC Livable Housing Provisions Top categories Building codes & standards Contracts & documents Guides & manuals Safety products Signage For your business Contracts Online Digital Australian Standards Digital Resource Library Forecasts & data
About Contact Newsroom
$vuetify.icons.faTimes
$vuetify.icons.faMapMarker Set my location Use the field below to update your location
Address
Change location
{{propApi.title}}
{{propApi.text}} {{region}} Change location
{{propApi.title}}
{{propApi.successMessage}} {{region}} Change location

$vuetify.icons.faPhone1300 650 620

ATO - single-touch payroll update

The information below provides an update to HIA members about the implementation of the new single-touch payroll system that changes the way employers report taxation information to the Australian Taxation Office.

What is single-touch payroll?

Single-touch payroll (STP) requires that when employers pay employees their salary or wages, superannuation payments and PAYG withholding amounts are automatically reported to the Australian Taxation Office (ATO) as part of payroll processing. 

The STP does not change dates for payments to the ATO. However, employers may choose to pay their PAYG withholding at the same time they pay their staff. This may have cashflow implications.

The STP data will allow the ATO to pre-fill the PAYG amount on your Business Activity Statement.

As part of STP, employers will also no longer be required to submit an annual PAYG report to the ATO and may no longer need to provide payment summaries (Group Certificates) to employees. Employers will be required to lodge a finalisation declaration at the end of each financial year. Once this is completed employees will have access to their payroll information via their myGov account and this information should be pre-populated in their taxation return.

A failure to lodge the approved form will attract an administrative penalty.

This system is being implemented gradually and not all employers are yet required to use the system. It is important, however, that all employers make themselves aware of the STP system as they will have to use it in the near future.

When does it start?

As of 1 July 2017, any employer regardless of size can voluntarily use STP. Your payroll system may be STP compatible and you could elect to use the system now. The ATO may be contacting employers soon to encourage them to start using STP voluntarily.

From 1 July 2018, STP became compulsory for ‘substantial employers’ with more than 20 employees. There is a process to apply for deferral if there are good reasons why you cannot start STP reporting.

The number of employees you had on 1 April 2018 will determine if you have 20 or more employees for commencement purposes. This is a head count of employees, not a count of full-time equivalent employees.

From 1 July 2019, employers with 19 or fewer employees will also be required to use STP. The process for applying for a deferral should also apply to these employers.

There may be special arrangements for micro employers (1–4 employees) that allow them to have their registered tax agent report quarterly to the ATO on behalf of the micro employer.

What do you need to do next?

Employers with 20 or more staff must ensure their payroll system is STP enabled. This may involve additional cost to change to an ATO compatible software-based payroll system. If you have not yet started using STP you must seek urgent assistance or apply for a deferral if you have not already done so.

Employers with 19 or fewer employees should now start preparing to use STP. It is recommended that members check with their payroll system provider and their accountant to determine whether they are ready to use the STP system and make arrangements to prepare for STP.

The Australian government has announced that employers will not be forced to purchase payroll software with STP compatibility. Instead, software developers have been invited to develop software that may be used by employers for STP at a cost of $10 or less per month.

The ATO has published a list of software providers that intend to provide software for this purpose.

Deferral process

There is a process for applying for a deferral of commencing STP. The ATO website lists some reasons as being factors that will be considered by the ATO.

  • are unable to get ready by your software provider's deferred start date
  • are transitioning to a new STP-enabled solution
  • are using a customised payroll solution and you need time to configure and test your updated product
  • have complex payroll arrangements and need additional time to transition to STP
  • have entered administration or liquidation
  • have been impacted by a natural disaster
  • are affected by other circumstances which are out of your control. 

Further information about this process is available on the ATO website. You should get advice from your accountant or payroll service provider before making any application for a deferral. 

To find out more, contact HIA's Contracts and Compliance team

Email us

Share with your network:
More articles on:
{{ tag.label }} {{ tag.label }} $vuetify.icons.faTimes
Find the latest expert advice, guides and much more!

Contracts Online 


 

The industry’s go-to digital platform. 

No matter the size of the job, a watertight building contract is critical to protect your business, and the current climate presents a great opportunity to go digital with your contracts.

Take me there

Business support


 

Supporting building professionals with custom built services and products.

  • Contracts and compliance support
  • Contracts Online
  • Host an apprentice
  • Insurance Services
  • Savings for members and much more!

Explore Business support

2022 National Construction Code - Volume One

Product comes in an A4 binder and will be mailed to you once it's purchased online. Volume One of the National Construction Code (NCC) relates to commercial buildings – Class 2 to Class 9. The code details technical provisions for...

2022 National Construction Code - Volume Two

Product comes in an A4 binder and will be mailed to you once it's purchased online. Volume Two of the National Construction Code (NCC) relates to residential buildings – Class 1 and Class 10. The code details technical provisions ...

2022 National Construction Code - Volumes One and Two

Product comes in an A4 binder and will be mailed to you once it's purchased online. This pack contains Volume One (commercial buildings – Class 2 to Class 9) and Volume Two (residential buildings – Class 1 and Class 10) of the Nat...

HIA Guide to NCC Livable Housing Provisions

This resource provides practical examples of applying the new requirements and explains common solutions and methods that may assist building practitioners to meet the new requirements for house and apartment designs.

HIA Guide to Waterproofing

Guidance provided by HIA on the changes to waterproofing of wet areas requirements and what they mean for common solutions and compliance.