POWERED BY MOMENTUM MEDIA
ATO dismisses false assertions on STP
The Australian Taxation Office (ATO) has sought to hit back at Industry Super Australia (ISA) claims alleging that employees will be denied appropriate choice as a result of the implementation of Single Touch Payroll (STP) arrangements.
Less than 24 hours after a statement issued by ISA chief executive, David Whiteley, the ATO acknowledged the commentary and issued a point by point denial of his and other assertions regarding the new system.
“As the government agency leading the implementation and administration of the Single Touch Payroll, the ATO would like to clarify some misleading assertions made in this commentary,” the ATO said before outlining each assertion and then responding:
- Assertion: New employees may be ‘pressed’ to use the online employee commencement form to choose a super fund.
Incorrect. The online service is optional. Employees can choose to use existing paper processes to provide their Tax File Number declaration and choice of super fund. This is confirmed in the Explanatory Memorandum to the Budget Savings (Omnibus) Bill 2016.
- Assertion: The changes to employee commencement processes have come without Parliamentary scrutiny.
Incorrect. The ATO implements government policy and develops implementation arrangements based on the law. The Budget Savings (Omnibus) Act 2016 was passed by Parliament on 16 September 2016. The Explanatory Memorandum states there would be no change to an employee’s ability to make a choice of super fund and no change to an employer’s responsibility to provide information as required about super choice.
- Assertion: New employees could be pushed into nominating a super fund without enough information, and without the reassurance of a default safety net.
Incorrect. Current safeguards still apply regarding default super funds. Where no choice is made, entitlements are paid to the employer’s default fund. New employees starting their first job can choose the employer’s default fund through the online form. Other super accounts are not displayed until the member has separately opened a new account with a fund.
- Assertion: Employee commencement forms fail to allow for account consolidation.
Incorrect. Once an employee has successfully entered the information to be sent to their new employer, they are prompted to view and consolidate any existing accounts.
- Assertion: Single Touch Payroll will be mandatory for businesses with 20 or more employees from 1 July 2018.
Correct. However, the online employee commencement forms are optional for both the employer and the employee.
- Assertion: The streamlined employee commencement process is designed to register and track business hiring new employees.
Incorrect. The ATO is seeking to provide a more streamlined experience for employers and employees. It is not about ‘tracking’ businesses.
Recommended for you
Governor Michele Bullock took a more hawkish stance on Tuesday, raising concerns over Donald Trump’s escalating tariffs, which sent economists in different directions with their predictions.
Equity Trustees has announced the appointment of Jocelyn Furlan to the Superannuation Limited (ETSL) and HTFS Nominees Pty Ltd (HTFS) boards, which have oversight of one of the companies’ fastest growing trustee services.
Following growing criticism of the superannuation industry’s influence on capital markets and its increasing exposure to private assets, as well as regulators’ concerns about potential risks to financial stability, ASFA has released new research pushing back on these narratives.
A US-based infrastructure specialist has welcomed the $93 billion fund as a cornerstone investor.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
Global X GlobalX FANG+ ETF
33.51 3 y p.a(%)
2
Spire Oaktree Opportunities XI Second Close
32.68 3 y p.a(%)
3
DomaCom Lot 21 Chellaston Road Munno Para West SA 5115 Australia
31.62 3 y p.a(%)
4
Spire Oaktree Opportunities XI First Close USD
31.36 3 y p.a(%)
5
Fidante Credit Suisse Global Private Equity
29.60 3 y p.a(%)
