Taxation Administration – Single Touch Payroll – Exemption for Employers with a Withholding Payer Number

Administered by Department of the Treasury

Legislation au F2019L00437 Not in force Legislative Instrument

Legislation content

Explanatory Statement

 

Taxation Administration – Single Touch Payroll – Exemption for Employers with a Withholding Payer Number

 

 

 

 

General Outline of Instrument

  1. This instrument is made under subsection 389-10(1) of Schedule 1 to the Taxation Administration Act 1953.
  2. This instrument exempts employers who do not have an Australian Business Number (ABN) but instead have a Withholding Payer Number (WPN) from reporting under Single Touch Payroll (STP).
  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.      This instrument commences on the day after its registration on the Federal Register of Legislation.

6.      It applies retrospectively from 1 July 2018 to ensure that affected entities will not be disadvantaged by not having the exemption apply from the beginning of the financial year. 

7.      For the purposes of subsection 12(2) of the Legislation Act 2003 this instrument does not adversely affect the rights or liabilities of any person.  It applies for the 2018‑2019 and 2019‑2020 financial years.

What is this instrument about

8.      Division 389 of Schedule 1 to the Taxation Administration Act 1953 establishes Single Touch Payroll reporting. That Division provides for the reporting of employee payroll and superannuation information by certain employers from 1 July 2018.

9.      Subsection 389-10(1) allows the Commissioner of Taxation to exempt by way of legislative instrument a class of entities from reporting under Single Touch Payroll.

10.  The instrument exempts from STP reporting obligations for the 2018-2019 and 2019-20 financial years any entity that:

  1. pays an amount described in Column 1 of the table in subsection 389‑5(1) of Schedule 1 to the Taxation Administration Act 1953; and
  2. does not have an Australian Business Number; and
  3. has been assigned by the Australian Taxation Office a Withholding Payer Number for the purposes of Pay As You Go Withholding.
  1. This transitional relief from reporting under Single Touch Payroll is limited to the 2018-19 and 2019-20 financial years.  Entities that satisfy the requirements of paragraph 10 above are required to commence reporting payments through Single Touch Payroll from 1 July 2020.
  2. Entities that require more time to commence reporting through Single Touch Payroll will be required to apply to the Australian Tax Office for additional time.

What is the effect of this instrument

13.  An entity to which the instrument applies is exempted from reporting under Single Touch Payroll for the 2018‑2019 and 2019-20 financial years.

14.  This determination applies retrospectively.  It provides certain entities with an exemption from their reporting obligations under Single Touch Payroll until 30 June 2020.  No individual with be detrimentally affected by retrospective application of the instrument.   

15.  An assessment of the compliance cost impact indicates that the impact will be minor for both implementation and on-going compliance costs. The instrument is of a minor or machinery nature.

Consultation

16. The rules specified in this instrument have been developed in consultation with payroll software developers and bodies representing payroll users.

 

 

 

Legislative references:

Acts Interpretation Act 1901

Human Rights (Parliamentary Scrutiny) Act 2011

Legislation Act 2003

Taxation Administration Act 1953

 


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 with a Withholding Payer Number

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 Withholding Payee Number Holders from reporting under Single Touch Payroll for the 2018‑2019 and 2019-20 financial years.

Human rights implications

This legislative instrument does not engage any of the applicable rights or freedoms because it is of a minor or machinery nature. It provides the holder of a Withholding Payer Number an exemption from their reporting obligations under Single Touch Payroll for the 2018‑2019 and 2019-20 financial years.

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 with a Withholding Payer Number legislative instrument, enacted in 2019, addresses the issue of exempting employers with a Withholding Payer Number (WPN) from Single Touch Payroll (STP) reporting obligations for the 2018-2019 and 2019-20 financial years. This exemption applies to entities that pay amounts described in Column 1 of the table in subsection 389-5(1) of Schedule 1 to the Taxation Administration Act 1953, do not have an Australian Business Number, and have been assigned a WPN by the Australian Taxation Office for the purposes of Pay As You Go Withholding. The instrument was introduced by the Parliament of Australia to provide transitional relief to certain entities during the initial implementation of the STP system, ensuring that affected employers are not unduly disadvantaged during this period. The instrument aims to streamline compliance by easing the burden on small businesses and those with a WPN, allowing them to delay STP reporting until 1 July 2020.

Scope and Application

The F2019L00437 instrument, made under the Taxation Administration Act 1953, exempts employers who hold a Withholding Payer Number (WPN) but do not have an Australian Business Number (ABN) from reporting under the Single Touch Payroll (STP) system for the 2018-2019 and 2019-2020 financial years. This exemption applies to entities that pay amounts described in the relevant column of the table in subsection 389-5(1) of the Taxation Administration Act 1953, do not have an ABN, and have been assigned a WPN for the purposes of Pay As You Go Withholding. The exemption is designed to provide transitional relief, ensuring that affected entities are not disadvantaged by the introduction of STP reporting requirements. However, these entities must commence STP reporting from 1 July 2020, with the option to apply for additional time if necessary. The instrument applies retrospectively from 1 July 2018 and does not adversely affect the rights or liabilities of any person, as it is of a minor or machinery nature.

Key Provisions

The key operative sections of the legislation (F2019L00437) provide an exemption from Single Touch Payroll (STP) reporting for employers who do not hold an Australian Business Number (ABN) but instead have a Withholding Payer Number (WPN). This exemption applies for the 2018-2019 and 2019-2020 financial years (sections 10 and 13). The instrument was made under subsection 389-10(1) of Schedule 1 to the Taxation Administration Act 1953 and is a legislative instrument as defined by the Legislation Act 2003. The exemption is intended to provide transitional relief, with these entities required to commence STP reporting from 1 July 2020 (section 10). This Act imposes specific obligations on certain employers. Those who pay amounts described in Column 1 of the table in subsection 389-5(1) of Schedule 1 to the Taxation Administration Act 1953, do not hold an ABN, but have a WPN assigned by the Australian Taxation Office for Pay As You Go (PAYG) withholding purposes, are exempt from STP reporting for the 2018-19 and 2019-20 financial years (section 10). These entities must begin reporting through STP from 1 July 2020, unless they apply to the Australian Taxation Office for an extension. The instrument ensures that these employers will not be disadvantaged by not having the exemption apply from the beginning of the financial year (section 6). There are no explicit offences, penalties, or civil/criminal consequences stated for breach of this legislation. However, failure to comply with the STP reporting requirements after the specified exemption period could potentially lead to administrative penalties or other consequences under the broader Taxation Administration Act 1953. The instrument is of a minor or machinery nature, and its retrospective application does not adversely affect the rights or liabilities of any person (sections 7 and 14).

Legal classification tags

Area of Law
Taxation Law
Instrument
Legislative Instrument
Concepts
Definitions & Interpretation
Repeal & Amendment
Transitional Provisions
Compliance Obligations
Enforcement Powers

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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.