30 Jan 15
On Single Touch Payroll
MEMBER 6 writes:
"Cutting red tape is admirable. However the ATO designing electronic transaction systems and making them compulsory is actually creating more red tape.
The ATO should follow Apple’s lead and just provide the specifications and let the market place design the software. It did this with the tax return lodgment system. Single Touch Payroll when implemented will be just as obsolete as Super Stream by the time it operates. It will then take another ten years to implement changes. Ten years seems to be the Government time frame for fixing badly conceived policy like excess contributions penalties.
All the major super funds have already implemented their electronic communications with employers and members, but now have to change due to Super Stream. As for SMSFs, this is irrelevant, as all they need to do is provide their banking details, as their accountants can do the rest.
I would point out that one of the objectives of Single Touch Payroll is to bring forward the payment of PAYG withholding to occur at the same time that the payroll payment is made. I personally would support this. However, business will need to find more capital to fund this and will no longer be able to depend on the lender of last resort, the ATO. The debt owing to the ATO will then halve from its current 6 to 10 billion in doubtful debts. If you do this for GST then there will never be any money owing to the ATO."