Senate committee recommends passage of STP declaration changes
A bill to allow employers to make single-touch payroll declarations for extended periods has been greenlit by the Senate Economics Legislation Committee.
The Senate Economics Legislation Committee has handed down its report on Treasury Laws Amendment (2024 Tax and Other Measures No.1) Bill 2024 [Provisions] after the bill was referred to the committee last month.
The bill contains a raft of different changes including amendments that would allow employers to make a standing declaration to their tax agent.
Under the current scheme, employers are required to report on employee payments to the Commissioner of Taxation and when using a tax agent, are required to make a declaration of accuracy and authority for each lodgment.
The amendments will enable employers to make a standing declaration that would cover multiple lodgements for a period of up to 12 months or until:
- The declaration is withdrawn by the employer, or
- A material change has occurred in the relationship between the employer and the agent or the affairs of the employer’s business since the declaration was made.
The bill also extends the amount of time that small- to medium-sized businesses have to self-amend their tax assessments from two years, as is currently allowed, to four years.
It also makes changes to the foreign resident capital gains withholding payments regime which has been in place since 2016 and requires a 12.5 per cent upfront payment on any CGT liability for asset sales exceeding $750,000.
The amendments will increase the withholding rate from 12.5 per cent to 15 per cent and remove the current $750,000 threshold before which withholding applies.
The bill will also reduce the use of cheques by the Commissioner of Taxation when issuing tax refunds by encouraging the use of electronic banking.
The committee received no submissions during the inquiry and determined there were no substantive issues relating to the provisions in the bill.
It therefore recommended that the bill be passed.
"The committee welcomes measures in Schedule 1 of the bill which would support fairer outcomes in the Australian tax system, by ensuring that foreign investors selling real property assets are subject to the same tax obligations as Australians," the committee said in the report.
"The committee further supports measures contained in Schedule 2 and 3 of the bill which seek to simplify and streamline tax administration processes for small businesses, including by allowing for standing tax declarations and increasing the time that businesses can self-amend tax returns."
The committee said it also supports the measure in Schedule 4 of the bill which will minimise costs for the ATO.
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