Taxation Administration – Single Touch Payroll – Exemption for Insolvency Practitioners and Employers subject to their appointment

Administered by Department of the Treasury

Legislation au F2019L00440 Not in force Legislative Instrument

Legislation content

Explanatory Statement

 

Taxation Administration – Single Touch Payroll – Exemption for Insolvency Practitioners and Employers subject to their appointment

 

 

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 insolvency practitioners from reporting under Single Touch Payroll for the 2018-2019 financial year in respect of the employers they are administering.
  3. This instrument also exempts from reporting under Single Touch Payroll for the 2018-2019 financial year those employers subject to the appointment of an insolvency practitioner, in relation to payments they make after the commencement of the appointment of the insolvency practitioner.
  4. The instrument is a legislative instrument for the purposes of the Legislation Act 2003.
  5. 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 financial year.

What is this instrument about

6.      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 entities.

7.      There may be instances where the business of an employer that is required to report through Single Touch Payroll during the 2018-2019 financial year comes under the control of an insolvency practitioner.

8.      This can include:

  1. control of the business by the insolvency practitioner on behalf of an entity (such as a liquidator appointed over a company), or
  2. control of the business by an insolvency practitioner in their own right (such as a trustee in bankruptcy that continues the business of a bankrupt).
  1. 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.
  2. This instrument exempts insolvency practitioners from mandatory reporting through Single Touch Payroll for the 2018-2019 financial year in respect of the employers they administer.
  3. This instrument also exempts from reporting under Single Touch Payroll for the 2018-2019 financial year employers which are subject to the appointment of an insolvency practitioner, in relation to payments the employers make after the commencement of the appointment of the insolvency practitioner.

What is the effect of this instrument

12.  The effect of this instrument is to provide additional time for insolvency practitioners to prepare for reporting under Single Touch Payroll in relation to employers that they administer by exempting them from that reporting for the whole 2018-2019 financial year.

13.  This instrument also exempts employers administered by insolvency practitioners in relation to payments they make after the commencement of the appointment of the insolvency practitioner. Any payments made by employers before an insolvency practitioner is appointed are not covered by this exemption, and should be reported in accordance with Single Touch Payroll obligations.

14.  However, insolvency practitioners and employers which are subject to the appointment of an insolvency practitioner may still choose voluntarily to report under Single Touch Payroll in accordance with Division 389 notwithstanding their exemption.

15.  This instrument does not exempt insolvency practitioners from Single Touch Payroll reporting obligations they may have in their capacity as an employer of their own staff.

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

Bankruptcy Act 1966

Corporations Act 2001

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 Insolvency Practitioners and Employers subject to their appointment

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

This instrument exempts insolvency practitioners from mandatory reporting through Single Touch Payroll for the 2018-2019 financial year in respect of the entities they administer.

It also exempts from reporting under Single Touch Payroll for the 2018-2019 financial year employers which are subject to the appointment of an insolvency practitioner.

 

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. The exemption gives insolvency practitioners the freedom to choose whether they report amounts through Single Touch Payroll in relation to the employers they administer for the 2018‑2019 financial year.

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 Insolvency Practitioners and Employers Subject to their Appointment instrument, enacted in 2019, was designed to address the difficulties faced by insolvency practitioners and employers under their control in complying with Single Touch Payroll (STP) reporting obligations during the 2018-2019 financial year. This legislative instrument, made under the authority of subsection 389-10(1) of Schedule 1 to the Taxation Administration Act 1953, was introduced by the Australian Government and aims to provide relief to insolvency practitioners and affected employers by exempting them from STP reporting for that financial year. The exemption is intended to offer additional time for insolvency practitioners to prepare for STP reporting in relation to employers they administer, while also providing clarity for employers who have come under the control of an insolvency practitioner regarding their STP reporting obligations post-appointment. Importantly, this exemption does not affect the rights or liabilities of any person and applies retrospectively from 1 July 2018 to ensure that affected entities are not disadvantaged.

Scope and Application

The instrument F2019L00440, made under the Taxation Administration Act 1953, provides a specific exemption from Single Touch Payroll (STP) reporting for the 2018-2019 financial year for insolvency practitioners and employers under their appointment. The exemption applies to insolvency practitioners who are administering employers, thereby relieving them of the STP reporting obligations for the financial year. This also extends to employers subject to the appointment of an insolvency practitioner, specifically in relation to payments made after the commencement of the appointment. The exemption is intended to alleviate the burden on insolvency practitioners and affected employers during the initial rollout of the STP system, ensuring they are not disadvantaged by the new requirements. However, this exemption is limited to the 2018-2019 financial year and does not affect any STP reporting obligations that insolvency practitioners may have in their capacity as employers of their own staff. The instrument does not alter the rights or liabilities of any person, as per subsection 12(2) of the Legislation Act 2003, and it does not adversely impact human rights, as confirmed by the Statement of Compatibility with Human Rights under the Human Rights (Parliamentary Scrutiny) Act 2011.

Key Provisions

The main operative sections of this instrument (sections 5 and 6) establish an exemption from Single Touch Payroll (STP) reporting for the 2018-2019 financial year for insolvency practitioners in relation to employers they administer, as well as for employers subject to the appointment of an insolvency practitioner in relation to payments made after the commencement of the appointment. This exemption provides additional time for these entities to prepare for STP reporting and allows them to focus on the administration and management of the affected employers during the financial year. The obligations and requirements imposed by this Act are primarily on insolvency practitioners and employers who fall under the scope of the exemption. Insolvency practitioners must ensure they comply with the exemption provisions, which means they do not need to report through STP for the 2018-2019 financial year for the employers they administer. However, they may still choose to report voluntarily. Employers subject to the appointment of an insolvency practitioner are exempt from STP reporting for payments made after the commencement of the appointment, but they must report payments made before the appointment in accordance with STP obligations. The instrument does not explicitly state any offences, penalties, or civil/criminal consequences for breach. However, it is important to note that the exemption is not intended to relieve insolvency practitioners or employers from their other reporting obligations under the Taxation Administration Act 1953 or other relevant legislation. Failure to comply with these obligations could result in penalties or other consequences under the relevant legislation. Additionally, if an insolvency practitioner or employer chooses to report through STP voluntarily, they must still comply with the STP requirements, and failure to do so could result in penalties or other consequences under the Taxation Administration Act 1953.

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Commencement Provisions
Exemptions & Exclusions
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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.