Single Touch Payroll – Get it right!
Alan Law • August 13, 2020
Single Touch Payroll (STP)
It’s a compulsory requirement by the ATO to report wages payment through Single Touch Payroll (STP). ACP Accountants, your local Sydney business accountants are here to help if you are struggling with your accounting and taxation affairs.
Reporting through Single Touch Payroll (STP) requires changes to your end-of-financial-year (EOFY) processes. You'll no longer need to provide payment summaries to your employees or lodge a payment summary annual report for information you've already reported and finalised through Single Touch Payroll (STP).
Once you finalise, your employees' income statements will display as Finalized or Tax Ready in their ATO online account. They can download this information via myGov, or if they engage registered tax agent like ACP Accountants Pty Ltd, we can download this information and it can be ready to use in the tax returns.
Employer must make a finalisation declaration for each employee after the last payment for the financial year. For the 2019–20 financial year the finalisation declaration deadline is:
- 31 July if you employ 19 or fewer employees
- 14 July for businesses with 20 or more employees.
It's important to remember that:
- When finalising your 2019–20 STP information, make sure you set the date to 30 June 2020. Otherwise, iff you don't change the date, the update will apply incorrectly to the 2020–21 financial year.
- You should use an Update event if you finalised after 30 June 2020.
- The pay period start and end dates of your employee need to be in the same financial year as the pay/update date.
If you have further questions, please contact your software provider or your accountant. ACP Accountants, your local Sydney CBD accountants are here to help. Please contact us today.
The 2026 Federal Budget has reignited discussions around two of Australia's most significant property investment tax concessions: negative gearing and the capital gains tax (CGT) discount . While no immediate legislative changes have been enacted, investors should remain informed as these concessions continue to attract attention from policymakers and economists. What is Negative Gearing? Negative gearing occurs when the expenses associated with an investment property, such as loan interest, maintenance, and other holding costs, exceed the rental income generated. The resulting loss can generally be claimed as a tax deduction against other taxable income. This strategy has long been used by property investors to help reduce their overall tax liability while building long-term wealth. What is the Capital Gains Tax Discount? Currently, individuals and trusts may be eligible for a 50% CGT discount when selling assets that have been held for more than 12 months. This concession reduces the taxable portion of any capital gain and can significantly impact after-tax investment returns. Potential Impact on Property Investors Should future reforms be introduced, they could affect: Property investment strategies Investment property cash flow Long-term wealth creation plans Asset disposal and timing decisions Retirement planning outcomes Investors with existing portfolios may wish to review their structures and ensure they are prepared for any future changes. What Should Investors Do Now? At this stage, there is no need for immediate action based solely on speculation. However, it is an excellent opportunity to: Review your investment portfolio Assess the tax efficiency of your current structures Consider future acquisition and disposal strategies Seek professional advice before making significant investment decisions How ACP Accountants Can Help Our team regularly monitors tax legislation and government policy developments to help clients stay informed and prepared. If you own investment properties or are considering investing in property, we can review your current tax position and provide tailored advice to help you achieve your financial goals. For further information or to arrange a consultation, contact ACP Accountants today.
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