I want to opt out of STP, are there any exemptions?

 

How can you avoid being part of Single Touch Payroll?  There are a couple of ways:

  1. You don’t have any employees.  You don’t need to worry about STP.
  2. If you are a Director of a small business but not an employee – you are exempt.
  3. There is a deferral until 1 July 2019 for closely held employees, at which point you will be able to report quarterly for these types of employees. Closely held employees are defined by the ATO as “one who is not at arm’s length. This means they are directly related to the entity from which they receive payments for example:
    • family members of a family business
    • directors or shareholders of a company
    • beneficiaries of a trust”
  4. If you run your business in an area with no internet service – you can ask for an exemption for one or more financial years.  (your Accountant or BAS agent can apply for this exemption for you).

If you think there may be reason for you to seek an exemption, it’s best to talk to your Accountant or BAS agent for further information.

The ATO also has more information about exemptions from Single Touch Payroll available here.

If you are specifically looking for more information about the deferral that applies to closely held employees you can find the ATO fact sheet here.

But please keep in mind that many of these exemptions were only for 2018/19 year, so from 1st July 2019 they may not apply.

If you really can’t avoid STP any longer, we can help guide you through the process quickly and painlessly. Ask us about a free demo of Xero payroll and see if it could be the solution you’re looking for.