Single Touch Payroll

Single Touch Payroll is on its way and will take effect 1 July 2018.  If you are an employer with 20 or more employees, hopefully, you have already started preparing for the reporting change.

What is Single touch Payroll (STP)

STP is a new system of electronically reporting payroll information to the ATO.  Every time you make a payment to your employees, you will electronically report all wage, PAYG

Withholding and superannuation information electronically to the Australian Taxation Office (ATO).

To make sure you are ready come 1 July 2018 do the following

1. do an employee headcount
2. check from what date you need to start reporting, depending on the headcount
3. determine if your software provider has a deferred start date
4. ensure you have arrangements in place to start report from the start date
5. apply for any exemptions and receive confirmation by the start date.

Single Touch Payroll will be expanded to include employers with 19 or less employees from 1 July 2019. This is subject to legislation being passed in parliament.

Preparing for Single Touch Payroll may seem overwhelming.  Our Client Managers, Megan and Chris have created an Information Sheet to help you get started.  

If you have any questions please contact us.

This information is of a general nature only and has been provided without considering your objectives, financial situation or needs. Because of this you should consider whether the information is appropriate considering your objectives, financial situation and needs.

Fringe Benefits Tax (FBT)

Written by - Client Manager - Megan Lipp CPA

As the FBT (Fringe Benefits Tax) year once again draws to a close (31st March 2018), we again remind you of the importance of meeting both your obligations in relation to providing employees with ‘benefits’ and further the importance of completing and lodging a Fringe Benefits Tax return with the Australian Taxation Office. 

Even if you have not done so in the past, now is a good time to review your circumstances for possible Fringe Benefits being provided to your employees, directors and associates. Some of the more common types include: 

• Making vehicles owned or leased by the business available to employees (including directors and associates) for private use 
• Providing loans at reduced interest rates to employees 
• Paying for, or reimbursing, any private expenses incurred by employees 
• Providing employees with living-away-from-home allowance 
• Providing entertainment by way of food, drink or recreation to employees (including any Christmas party) 
• Providing any employees with a salary package (salary sacrifice) arrangement 
• Providing any employees with goods at a lower price than they are normally sold to the public 

Once again the ATO has signalled that there will be an increased focus on FBT this year and that it will use its ever-increasing powers of access to use various data matching programs. This includes data matching with the Road Traffic Authorities, information from taxation return labels completed in lodged tax returns, as well as reviewing any vehicle leasing documents or financing arrangements to detect new vehicle purchases. 

We are this year encouraging all our clients to lodge an FBT return. Why? When you lodge an FBT return or non-lodgement advice, the ATO can only audit your FBT obligations within a three-year deadline. If you don’t lodge, the ATO has no restriction on how many years of FBT obligations it can audit, potentially resulting in large tax liabilities, interest and penalties.  

Please see the attached link for further information on the importance of lodging an FBT return. 

If you would like additional information about FBT contact us on (07)4616 9000 or email info@dcadvisorygroup.com.au.

Key Links 

FBT Fact Sheet

This information is of a general nature only and has been provided without considering your objectives, financial situation or needs. Because of this you should consider whether the information is appropriate considering your objectives, financial situation and needs.