The Australian Taxation Office recently introduced new tax reporting laws that mandated that small business owners across Australia switch to a new Single Touch Payroll (STP) system, which they considered a ‘once in a generation change’.
Software expert Simon Foster explained that the STP systems allows for wages and tax information is passed to the ATO every time a pay run, which means that its always on the clock, and can be tracked, both by the ATO, and the employees of the businesses.
He says that it should make businesses more efficient, and cut down on red tape, to the benefit of Small Business Accounting in Norwest and across the country. However, he admits that those without cloud accounting will have to get new systems, and they have to get them before the deadline rolls around.
Which is what Small Business Accounting in Norwest and across the country had issues with. A lot of small business owners, with migrant business owners in particular, having issues with the new STP system.
Nicole Ha, an immigrant, is a restaurant owner who runs her family’s Vietnamese restaurant in St. Leonards, Sydney with the assistance of two of her eldest girls.
Ms. Ha acquired the business back in 2010, and regularly uses Microsoft Excel in order to handle the wages and taxes for 10 employees.
When a local outlet asked her on the STP system, she describes at confusing. She admits that they barely had time to start, to prepare for the changes, as they’re a busy small business, with little time to adjust for such sudden changes.
Small Business Ombudsman Kate Carnell echoed that sentiment, saying that many small business owner-operators just weren’t ready for the changes that came into effect on the first of July. She says that they believe that about 50% of small business owners had no idea that the STP system was being rolled out.
Single Touch Payroll software is available from major suppliers via the ATO website, for no more than $10, with embedded cybersecurity measures, as verified by the ATO.
Small businesses have until September 30 to implement changes, but the ATO advises that owners don’t wait until the last minute, with ATO Assistant Commissioner John Shepherd saying that the call is to give people time to make plans and talk to them, until everything is properly handled.