Unemployment hits record low, but less people looking for work
While the unemployment figure dropped to 3.9 per cent, only 4,000 new jobs were created and 7,000 people gave up...READ MORE
The Institute of Public Accountants has criticised the rollout of Single Touch Payroll to small businesses, citing an additional “financial outlay” burden on these companies.
Yesterday, the government confirmed that STP would be locked in for small businesses with less than 20 employees, as part of its wider crackdown on superannuation guarantee obligations non-compliance.
Employers with more than 20 employees will transition to STP from 1 July 2018.
While acknowledging the increased transparency and visibility that STP provides, IPA chief executive Andrew Conway has expressed caution over the “significant ramifications” that mandatory reporting would carry.
Mr Conway has demanded that the government holds off its plans pending a full cost benefit analysis following a pilot programme to review its impact on SMEs.
“Comments that infer that STP will reduce the regulatory burden are misguided. Small businesses already face considerable compliance issues; STP will just add to the load with mandatory pay-period based reporting,” Mr Conway said.
“For larger employers, the compliance costs associated with STP can be streamlined within their existing processes with minimal additional compliance costs; this is not the case for small or micro-employers.
“The digitisation of small business is a priority for their future business growth and competitiveness; that means a financial outlay which many may struggle to meet.”
Mr Conway has also urged the government to detail incentives for small business to transition to STP.
“Many businesses not geared to make the transition will need to further engage with their trusted advisers; their accountants and bookkeepers to help meet their compliance needs,” said Mr Conway.