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Single Touch Payroll

Regulation Impact Statement – Australian Tax Office

As part of the Mid-Year Economic and Fiscal Outlook (MYEFO) 2015-16, The Australian Tax Office (ATO) announced the Single Touch Payroll initiative in support of Government’s commitment in reducing red tape. To meet the existing employer reporting requirements, businesses have to undertake a range of lodgements with ATO and other agencies. The Single Touch Payroll uses compatible business software to introduce real time reporting of tax and superannuation obligations for businesses, which is expected to reduce record keeping requirements and streamline processes associated with recruiting new employees. A Regulation Impact Statement (RIS) was prepared and certified by the ATO, and has been assessed as compliant but not best practice by the Office of Best Practice Regulation (OBPR). The ATO was not best practice, because a RIS for early assessment was not prepared before the then Minister for Small Business and the then Assistant Treasurer announced changes to tax and superannuation reporting obligation through Single Touch Payroll. The OBPR has agreed to the estimated regulatory saving of $55 million per annum.