The Taxation Administration – Single Touch Payroll – Exemption for Employers Having a Seasonal Workforce was registered on Tue 5.6.2018. Made under s 389-10(1) of Sch 1 to the TAA, it provides for the ATO to exempt employers with a seasonal workforce from reporting under STP if they have 20 or more employees on 1 April in any year, but:
- they had fewer than 20 employees for 10 of the preceding 12 months;
- they reasonably expect to have fewer than 20 employees for 10 of the following 12 months; and
- they are not part of a wholly-owned group for the purposes of s 389-5(6) of Sch 1 to the TAA.
DATE OF EFFECT: The instrument commences on 6 June 2018.
Operation of the ‘One Touch’ Reporting system (in Div 389 of the TAA1)
Overview – s389-1 of the TAA1, sets out the objectives of the Div 389 ‘One Touch’ reporting system as follows:
Employers may notify to the Commissioner certain amounts that are the subject of notification or reporting obligations under other provisions of the taxation law. Substantial employers must (unless they are exempted) notify most of those amounts to the Commissioner under this Division.
In many cases this Division has the effect of bringing forward the due dates for notification or reporting under the other provisions, but notifying under this Division may reduce an employer ‘ s obligations to notify or report under the other provisions.
Section 389-5 sets out the obligation of the of ‘substantial employers’ to make specified reports under this system.
Section 389-10 sets out the Commissioner’s power to issue exemptions from this system, by legislative instrument (such as this one).
Section 389-15 allows other employers to voluntarily report under this system.
11.6.18 FJM
[Federal Reg of Legtn: Determination, EM; LTN 106, 5/6/18; Tax Month – June 2018]
Study Questions (answers available)
- Was the effect of this determination to exempt substantial employers from having to make reports, to the Commissioner, under the ‘One Touch’ reporting system?
- Was the effect of this exemption to stop employers having to advance the reporting of this high volume of employees, in a short period?
- Is the test for ‘seasonal’ workers that the employer had less than 20 employees for 10 of the preceding 12 months and expect less than 20 in 10 of the next 12 months?
- Is the effect of the ‘One Touch’ system to allow taxpayers to defer the date on which they have to report and pay the various stipulated matters and amounts?
