Taxation Administration - Single Touch Payroll – Exemption for Employers from Reporting Contribution Amounts Paid to a Superannuation Fund

Administered by Department of the Treasury

Legislation au F2019L00121 Not in force Legislative Instrument

Legislation content

Explanatory Statement

 

Taxation Administration – Single Touch Payroll – Exemption for Employers from Reporting Contribution Amounts Paid to a Superannuation Fund

 

 

General Outline of Instrument

  1. This instrument is made under subsection 389-10(2) of Schedule 1 to the Taxation Administration Act 1953 (TAA 1953).
  2. This instrument exempts all employers reporting under Single Touch Payroll from reporting contribution amounts paid by them to a complying superannuation fund or retirement savings account (RSA).
  3. The instrument is a legislative instrument for the purposes of the Legislation Act 2003.
  4. Under subsection 33(3) of the Acts Interpretation Act 1901, where an Act confers a power to make, grant or issue any instrument of a legislative or administrative character (including rules, regulations or by-laws), the power shall be construed as including a power exercisable in the like manner and subject to the like conditions (if any) to repeal, rescind, revoke, amend, or vary any such instrument.

Date of effect

5.      The instrument commences on 1 July 2018.

6.      Subsection 12(1A) of the Legislation Act 2003 provides that a legislative instrument may commence before the instrument is registered.

What is this instrument about

7.      Division 389 of Schedule 1 to the TAA 1953 established Single Touch Payroll reporting.

8.      That Division provides for both mandatory, section 389-5 of Schedule 1 to the TAA 1953, and voluntary, section 389-15 of Schedule 1 to the TAA 1953, reporting of employee payroll and superannuation information by employers.

9.      Employers reporting under Single Touch Payroll are required to report either the cumulative employee ordinary time earnings amount or cumulative employee super liability amount each pay period. This enables an estimate to be made of the superannuation guarantee entitlement for each employee.

10.  The Single Touch Payroll legislation also required employers to report the payments made to superannuation funds or RSAs on behalf of their employees. This requirement was difficult to implement as superannuation payment reporting is not part of the payroll reporting business process for an employer.

11.  Subsection 389-10(1) and (2) allows the Commissioner of Taxation by legislative instrument to exempt a class of entities from reporting certain amounts under Single Touch Payroll.

12.  This instrument exempts an entity from reporting contribution amounts paid to a superannuation fund under Single Touch Payroll under subsection 389-5(1) (Item 3).

13.  From 1 July 2018, superannuation payment recipients were required to report the member contribution amounts made by an entity to a superannuation fund or RSA under the Member Account Transaction Service (MATS) reporting regime.

14.  MATS reporting provides the contribution amounts paid by employers for employees to the ATO when the amounts are received by the superannuation fund or RSA.

15.  MATS reporting is a more accurate way for this information to be provided to the ATO. It provides the Commissioner of Taxation with the information necessary to monitor employer superannuation guarantee payments.

16.  The ATO now receives this information via MATS reporting, there is no need for employers to also report it via Single Touch Payroll reporting.

17.  This instrument ensures there is no double up in the reporting obligation of these amounts for employers.

What is the effect of this instrument

18.  An entity reporting under Single Touch Payroll is exempted from reporting contribution amounts paid to superannuation funds or RSAs.

19.  The instrument is not detrimental to anyone including the Commonwealth.

20.  An assessment of the compliance cost impact indicates that there will be minimal impacts on both implementation and ongoing compliance costs. The impact of the legislative instrument is minor in nature.

Consultation

21.  The rule specified in this instrument has been developed in consultation with payroll software developers, the superannuation industry and bodies representing employers.

22.  The ATO has been consulting with the superannuation industry since December 2016 to co-design the MATS reporting regime.

 

 

 

Legislative references:

Acts Interpretation Act 1901

Taxation Administration Act 1953

Legislation Act 2003

Human Rights (Parliamentary Scrutiny) Act 2011

Statement of Compatibility with Human Rights

 

This Statement is prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.

 

Taxation Administration - Single Touch Payroll – Exemption for Employers from Reporting Contribution Amounts Paid to a Superannuation Fund

This Legislative Instrument is compatible with the human rights and freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.

Overview of the Legislative Instrument

The instrument provides an exemption for employers reporting through Single Touch Payroll from reporting contribution amounts paid to superannuation funds.

Human rights implications

This legislative instrument does not engage any of the applicable rights or freedoms because the new instrument is of a minor or machinery nature. The exemption removes the obligation for employers to report contribution amounts paid to a superannuation fund or retirement savings account through Single Touch Payroll.

Conclusion

This legislative instrument is compatible with human rights as it does not raise any human rights issues.

Overview

The Taxation Administration – Single Touch Payroll – Exemption for Employers from Reporting Contribution Amounts Paid to a Superannuation Fund, enacted in 2018, addresses the issue of employers being burdened with the additional reporting requirements of superannuation contributions through the Single Touch Payroll system. This legislative instrument, made under subsection 389-10(2) of Schedule 1 to the Taxation Administration Act 1953, exempts employers from reporting contribution amounts paid to superannuation funds or retirement savings accounts via the Single Touch Payroll system, which was found to be outside the typical payroll reporting process. This instrument aims to reduce the administrative burden on employers while ensuring accurate reporting of superannuation contributions to the Australian Taxation Office through the Member Account Transaction Service reporting regime. The instrument was developed in consultation with relevant stakeholders and is compatible with human rights, as it does not engage any applicable rights or freedoms.

Scope and Application

This legislative instrument, made under the Taxation Administration Act 1953, exempts employers reporting under Single Touch Payroll from the requirement to report contribution amounts paid by them to a complying superannuation fund or retirement savings account. This exemption applies to all employers who are already mandated to report payroll and superannuation information through Single Touch Payroll, a streamlined electronic reporting system designed to enhance accuracy and efficiency in tax compliance for employers and the Australian Taxation Office. The exemption aims to alleviate the burden on employers by removing the necessity of dual reporting of superannuation contributions, as this information is now directly reported to the ATO through the Member Account Transaction Service (MATS) by superannuation funds or RSAs. The instrument, which commenced on 1 July 2018, ensures a more accurate and streamlined reporting process, preventing duplication and reducing compliance costs for employers without impacting the Commonwealth's ability to monitor and enforce superannuation guarantee payments.

Key Provisions

The key provision of this instrument, under subsection 389-10(1) and (2) of Schedule 1 to the Taxation Administration Act 1953 (TAA 1953), allows the Commissioner of Taxation to exempt certain employers from reporting contribution amounts paid to superannuation funds under the Single Touch Payroll (STP) reporting regime. Specifically, the instrument exempts employers reporting under STP from the obligation to report contribution amounts paid to a complying superannuation fund or retirement savings account (RSA) (subsection 389-10(1) (Item 3)). This exemption aims to reduce the compliance burden on employers, who previously had to report these amounts both through STP and under the Member Account Transaction Service (MATS) reporting regime. The obligations imposed by this Act on the parties it governs include the requirement for employers who are reporting under the STP regime to comply with the exemption from reporting contribution amounts to superannuation funds or RSAs. Employers subject to STP must still report other payroll and superannuation information as required, such as the cumulative employee ordinary time earnings or cumulative employee super liability amount each pay period. However, they are exempt from reporting the specific contribution amounts paid to superannuation funds, which are now reported directly by superannuation funds or RSAs through the MATS reporting regime. The instrument does not impose any specific offences, penalties, or civil or criminal consequences for breach, as it is a minor administrative change designed to streamline reporting processes. The exemption is intended to ensure that employers do not face double reporting obligations, thereby reducing administrative burden and potential errors. The impact of this change is considered minimal, with no detrimental effect on compliance costs or the accuracy of information provided to the Australian Taxation Office (ATO).

Legal classification tags

Area of Law
Taxation Law
Instrument
Legislative Instrument
Concepts
Commencement Provisions
Regulatory Standards
Reporting & Disclosure Obligations

Interactions

Authorises

All Versions

Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.