Budget Savings (Omnibus) Act 2016 (55 of 2016)

Schedule 23 Single touch payroll reporting

Part 1 Reporting by employers

Division 1 Main amendments

Taxation Administration Act 1953

1 After Division 388 in Schedule 1

Insert:

Division 389 - Reporting by employers

Guide to Division 389

389-1 What this Division is about

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.

Table of sections

389-5 Required reporting by substantial employers

389-10 Exemptions

389-15 Voluntary reporting by employers

389-20 Effect on reporting requirements under Subdivision 16-C

389-25 Grace periods for correcting false or misleading notifications

389-5 Required reporting by substantial employers

(1) If:

(a) there is an amount of a kind referred to in column 1 of an item in the following table that arises as a result of conduct of an entity (such as payment of an amount or provision of a benefit); and

(b) the entity has been a *substantial employer at any time on or after 1 April 2018 (whether or not the entity is currently a substantial employer);

the entity must notify the Commissioner of the amount on or before the day referred to in column 2 of that item.

Amounts to be notified to the Commissioner
Item	Column 1 The following must be notified …	Column 2 … on or before this day
1	The following amounts: (a) an amount the entity must withhold under Subdivision 12-B (other than section 12-55 or 12-60), paragraph 12-85(b), section 12-90, paragraph 12-110(1)(ca) or (cb) or section 12-319A; (b) the *withholding payment from which the amount referred to in paragraph (a) is required to be withheld	the day by which the amount is required to be withheld (regardless of whether it is withheld) (see section 16-5).
2	An amount (other than an amount covered by item 1) paid by the entity that constitutes: (a) the salary or wages (within the meaning of the Superannuation Guarantee (Administration) Act 1992) of a person who is the entity's employee (within the meaning of that Act but disregarding subsection 12(3) of that Act); or (b) the ordinary time earnings (within the meaning of that Act) of such an employee	the day on which the amount is paid.
3	An amount paid by the entity that: (a) is a contribution to a complying superannuation fund or an RSA, in respect of an individual's employment (within the meaning of the Superannuation Guarantee (Administration) Act 1992) by the entity, that: (i) is made by the entity; or (ii) is taken, under section 79A of that Act to have been made on behalf of the entity; and (b) has the effect of reducing the charge percentage for the entity (as specified in subsection 19(2) of that Act) for a *quarter	the day on which the contribution is paid.

Amounts to be notified to the Commissioner

Item

Column 1

The following must be notified …

Column 2

… on or before this day

The following amounts:

(a) an amount the entity must withhold under Subdivision 12-B (other than section 12-55 or 12-60), paragraph 12-85(b), section 12-90, paragraph 12-110(1)(ca) or (cb) or section 12-319A;

(b) the *withholding payment from which the amount referred to in paragraph (a) is required to be withheld

the day by which the amount is required to be withheld (regardless of whether it is withheld) (see section 16-5).

An amount (other than an amount covered by item 1) paid by the entity that constitutes:

(a) the salary or wages (within the meaning of the Superannuation Guarantee (Administration) Act 1992) of a person who is the entity's employee (within the meaning of that Act but disregarding subsection 12(3) of that Act); or

(b) the ordinary time earnings (within the meaning of that Act) of such an employee

the day on which the amount is paid.

An amount paid by the entity that:

(a) is a contribution to a *complying superannuation fund or an *RSA, in respect of an individual's employment (within the meaning of the Superannuation Guarantee (Administration) Act 1992) by the entity, that:

(i) is made by the entity; or

(ii) is taken, under section 79A of that Act to have been made on behalf of the entity; and

(b) has the effect of reducing the charge percentage for the entity (as specified in subsection 19(2) of that Act) for a *quarter

the day on which the contribution is paid.

Note: Section 286-75 provides an administrative penalty for breach of this section.

(2) The notification must be in the *approved form. However, the approved form must not require information about an amount unless it is:

(a) the amount to be notified under subsection (1); or

(b) an amount of a kind determined by the Commissioner under subsection (3).

(3) The Commissioner may, by legislative instrument, determine kinds of amounts for the purposes of paragraph (2)(b).

(4) In applying item 1 of the table in subsection (1), a requirement to withhold a nil amount is to be treated as a requirement to withhold an amount.

(5) This section does not apply to an entity to the extent (if any) that the entity is covered by an exemption under section 389-10 for the income year in which the entity's conduct occurs.

(6) An entity is a substantial employer at a particular time if, on the most recent 1 April occurring before that time:

(a) 20 or more individuals were employees of the entity; or

(b) if the entity was a member of a *wholly-owned group on that 1 April - the total number of employees of all of the members of the group was 20 or more.

389-10 Exemptions

Exempting classes of entities

(1) The Commissioner may, by legislative instrument, exempt a class of entities from section 389-5 for one or more income years.

(2) The exemption may be limited to the extent specified in the instrument.

Exempting particular entities

(3) The Commissioner may, on application by an entity (an exemption application ) or on the Commissioner's own initiative, exempt the entity from section 389-5 for one or more income years.

(4) The exemption may be limited to the extent specified in the notice under paragraph (5)(a).

(5) The Commissioner must notify the entity in writing if:

(a) the Commissioner exempts the entity under subsection (3); or

(b) refuses an exemption application by the entity.

(6) The Commissioner is taken to have refused an exemption application if the Commissioner fails to notify the entity in writing of the Commissioner's decision on the application within 60 days after the application is made.

(7) The entity may object, in the manner set out in Part IVC, against:

(a) a decision of the Commissioner to refuse an exemption application; or

(b) a decision of the Commissioner to limit the extent of an exemption under subsection (4).

389-15 Voluntary reporting by employers

Section 389-5 amounts

(1) An entity that is not, and has not at any time on or after 1 April 2018 been, a *substantial employer may notify the Commissioner of an amount that it would be required to notify under section 389-5 if it were a substantial employer.

(2) The notification:

(a) must be given on or before the day on or before which the entity would be required to notify under section 389-5 if it were a *substantial employer; and

(b) must be in the form approved for the purposes of subsection (2) of that section.

Other amounts

(3) If:

(a) an amount arises as a result of conduct of an entity (such as payment of an amount or provision of a benefit); and

(b) the amount is an amount of a kind referred to in column 1 of an item in the following table;

the entity may notify the Commissioner of the amount on or before the day referred to in column 2 of that item.

Amounts to be notified to the Commissioner
Item	Column 1 This amount may be notified …	Column 2 … on or before this day
1	A reportable employer superannuation contribution made by the entity in respect of a financial year for the benefit of an employee of the entity	14 July in the next *financial year.
2	A *reportable fringe benefits amount that an employee of the entity has for an income year in respect of the employee's employment with the entity	14 July in the *financial year most closely corresponding to the next income year.

Amounts to be notified to the Commissioner

Item

Column 1

This amount may be notified …

Column 2

… on or before this day

A *reportable employer superannuation contribution made by the entity in respect of a *financial year for the benefit of an employee of the entity

14 July in the next *financial year.

A *reportable fringe benefits amount that an employee of the entity has for an income year in respect of the employee's employment with the entity

14 July in the *financial year most closely corresponding to the next income year.

(4) The notification must be in the *approved form.

Note: The approved form may require information about other amounts, in addition to the amount to be notified: see paragraph 388-50(1)(c).

389-20 Effect on reporting requirements under Subdivision 16-C

(1) An entity is not required to comply with a requirement of:

(a) section 16-150 (Commissioner must be notified of amounts); or

(b) section 16-153 (annual reports - other payments); or

(d) section 16-160 (part-year payment summary); or

(e) section 16-165 (payment summaries for superannuation lump sums and payments for termination of employment); or

(f) section 16-175 in relation to compliance with any requirements under section 16-155, 16-160 or 16-165;

to give a notice, report or statement to the extent that it would relate to an amount that the entity has notified under section 389-5 or 389-15.

(2) However, paragraphs (1)(b), (c) and (e) do not apply, in relation to requirement to give a notice, report or statement relating to payments made in a *financial year, unless, within 14 days after the end of the financial year, the entity makes a declaration to the Commissioner that:

(a) states that the entity has notified under section 389-5 or 389-15 all the information that the entity would otherwise be required to give under sections 16-153, 16-155 and 16-165 relating to payments made in the financial year; and

(b) is in the *approved form.

389-25 Grace periods for correcting false or misleading notifications

When notifications can be corrected

(1) An entity that has made a statement (a withholding statement ) under section 389-5 notifying an amount under item 1 or 2 of the table in subsection 389-5(1) (and no other item in that table) may correct the statement:

(a) within the period determined by the Commissioner under subsection (2); or

(b) if paragraph (a) does not apply but the entity is covered by a determination under subsection (5) - within the period specified in that determination.

Note: Correcting the statement can protect the person from liability for a false or misleading withholding statement: see subsections 8K(2A), 8N(2) and 284-75(8).

Determinations for particular entities

(2) The Commissioner may determine the period within which the entity may correct a withholding statement.

(3) The Commissioner must give the entity written notice of the determination.

(4) The entity may object, in the manner set out in Part IVC, against a decision of the Commissioner determining a period under subsection (2) relating to the entity.

Determinations for classes of entities

(5) The Commissioner may, by legislative instrument, determine the period within which entities included in a class of entities specified in the determination may correct a withholding statement.

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