Tag Archives: Taxation Law

Single Touch Payroll & Super compliance

Single Touch Payroll (STP) is a government initiative in Australia that requires employers to report their employees’ payroll information to the Australian Taxation Office (ATO) every time they pay their employees. The reporting is done through the employer’s payroll system, which sends the data directly to the ATO.

STP was introduced to simplify the process of reporting payroll information to the ATO and to ensure that employers are meeting their tax and superannuation obligations. The ATO uses the information reported through STP to calculate the correct amount of tax and superannuation that should be paid by employers.

Superannuation compliance in Australia refers to an employer’s obligation to contribute a portion of their employees’ earnings to a superannuation fund. The current rate of contribution is 10% of an employee’s ordinary time earnings. Employers are also required to report and pay their employees’ superannuation contributions on time to avoid penalties.

STP reporting includes information about superannuation contributions, so employers who are compliant with STP are also meeting their superannuation compliance obligations. STP reporting makes it easier for employers to manage their payroll reporting and ensure they are meeting their tax and superannuation obligations.

Tax Law

Australian Taxation Law Overview

Australian federal and state governments. The law is primarily governed by the federal tax act, the Income Tax Assessment Act 1936 and the Income Tax Assessment Act 1997. The Australian Taxation Office (ATO) is responsible for administering the tax law and collecting taxes on behalf of the federal government.

The federal government has the power to impose income tax, goods and services tax (GST), capital gains tax (CGT), and other taxes, while the state governments have the power to impose payroll tax, stamp duty, and land tax.

In Australia, individuals are taxed on their taxable income, which includes most forms of income such as salary and wages, business income, investment income, and foreign source income. Companies are taxed on their taxable income, which is the company’s profit after deducting expenses.

It’s important for individuals and businesses to understand and comply with their tax obligations, as non-compliance can result in fines and other penalties. The ATO provides information and guidance on tax obligations, and individuals and businesses can seek professional advice from tax lawyers or accountants to ensure they are meeting their obligations.

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