Clients warned on possible car review

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Vehicle-related expenses and even the make and model of the car you drive can attract extra scrutiny from the ATO, an accountant has warned, citing the example of a manufacturing business.

Speaking on the podcast of sister publication, My Business, Alexander Laureti of LMS Advisory revealed that a manufacturing business had its fringe benefits tax (FBT) history reviewed by the Tax Office because of a BMW.

“I did have a phone conversation with an ATO officer not too long ago, and the comment was… [the taxpayer was] in the manufacturing industry, and they had had a number of vehicles actually. The FBT review that came up purely started because the owners of the business had purchased a BMW, a new vehicle, and the business wasn’t registered for FBT,” he explained.

Now there’s nothing sinister or untoward about that; there was a private-use portion that was being claimed, but the ATO didn’t see an FBT tax return being lodged on an annual basis, and they said ‘there’s a BMW in a manufacturing business — why? We’d like to find out more information about this’.

“And a whole questionnaire came out relating to all of the vehicles that were owned for a number of years.”

Mr Laureti urged anyone that has, or is looking to, purchase a luxury vehicle that will be used — either in full or in part — for business purposes to keep detailed records.

“Please make sure that you’re appropriately either registering for FBT or keeping records of your private-use portions, log books, all of the above,” he said.

“Because if you don’t have those records in place and you do come up for ATO review later on, you could get some nasty surprises.”

Brand not only red flag for ATO

It isn’t just the brand of vehicle that can attract the ATO’s attention, Mr Laureti agreed, but also the type of vehicle in question.

“The family car can be such different cars these days, and by the same token, you could take the family around in a four-door ute or you can have your tools of trade on the front seat, you can have all kinds of things that are being carried around. So, the same vehicle could have a different purpose to 50 different owners of [that type] of vehicles,” he said.

“Because the ATO doesn’t know, they will ask the questions, and the problem is that you have got to stop and take the time to answer these questions, and while the ATO is having a look around, what other things might they ask you about?

“Not to say that businesses are out there doing things that are inappropriate on purpose, but everyone just wants to get on with their businesses and not have to stop and be subject to reviews.”

Mr Laureti added: “The great majority of people are doing the right thing, and they’re lodging their tax returns and their compliance all in good faith, and yeah, these reviews are a distraction.”

Source: Article by – Adam Zuchetti (www.accountantsdaily.com.au)

US tax net expansion to hit Aussie clients

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In all the hoopla over the US corporate tax cuts, introduced late in 2017, a change to the way the US Treasury views income earned offshore went almost unnoticed in the world of private clients.

But for American citizens operating businesses in Australia, or Australian companies with a large individual US shareholder, the bite is about to be felt.

The key lies in a sweeping extension of the US tax jurisdiction, which has traditionally covered only the non-business income of corporations owned by US “persons” on an ongoing basis.

In simple terms, any person who is a US citizen is taxed by the US forever, whether they live in the US or not.

People now resident in Australia suddenly discover they need to deal with the problem of being taxed in two countries, either by unwinding or creating structures or dealing with their affairs in a way that means they don’t get double taxed. Frequently, smaller private clients are largely unaware of the vast complexity of the situation they are in.

There are good reasons why the US wants to ensure tax it is owed is collected.

Many of its multinationals operate and generate revenue largely within the nation’s physical borders but have structured their affairs so they are taxed somewhere else.

One way they do this is by holding intangible assets, such as software patents or intellectual property, abroad in low-tax countries.

Part of Trump’s tax cut package included a charge for “global intangible low-taxed income”, known as GILTI for short, which amongst other changes imposes an effective 10.5 per cent tax rate on this income for US domestic corporations.

It was a bid to limit the option for companies like Apple or Google to move IP to areas where corporations pay low tax, and bring at least some of that income back into the US tax net.

But the devil for US citizens lies in GILTI’s detail.

In making the change, the US Congress did not only target international corporations, but also managed to capture the activities of individual taxpayers operating businesses outside the US.

GILTI doesn’t apply just to big companies but to any company overseas in which US citizens have a controlling interest — a controlled foreign corporation, or CFC, as defined by the US.

So, if you are a US person living in Australia, and you set up a company and start running a business, these rules will apply to you.

Your tax exposure then comes down to how the US defines intangible income, and a good example might be to consider a coffee shop.

If a US person comes to Australia, starts a company and opens up a coffee shop, they might spend $100,000 on equipment, furniture, tables and chairs, before they ever open their doors or serve a latte.

The US laws then look at the income and consider what a fair return might be for the company’s investment in assets.

If the coffee shop made $10,000, for example, the US might say the 10 per cent profit can be attributed to a fair return on the physical assets.

But if it made $20,000, the additional $10,000 in profit would now be seen as income from “intangibles”.

In a practical light this is fiction — it is the same return for effort — but under GILTI, the income judged to be intangible now falls into a special tax category.

The first problem is the owner of the company will now be taxed as if they earned that money directly as an individual, rather than through the company.

The second problem is that, by default, there is also no credit for any tax paid in Australia.

Returning to the coffee shop example, the company might have paid 27.5 per cent tax in Australia on the profit from the business, but the US owner will still have to pay individual tax on the full profits to the US Treasury.

If there is no credit from the US for the tax paid in Australia, then the business will have a genuine double tax problem, because there will certainly be no credit from Australian authorities for tax paid in the US.

In the absence of any planning, the US owner could end up with a 70 per cent tax hit on ordinary income from running a business in Australia.

The changes were introduced in 2017 but only took effect for the 2018 tax year. In other words, the effects are just starting to be felt as 2018 returns are filed over the next few months.

Some good news was finally announced in March this year, as US Treasury confirmed the availability of election to mitigate the effects of the GILTI charge. The section 962 election is designed to ensure that an individual doesn’t pay more tax on earnings of a CFC, than if that corporation was domiciled in the US.

But US taxpayers need to act quickly to ensure the election is made in a timely fashion, and need to be aware of exactly how the election and the new rules apply to them.

Corporations may already be well versed in the new rules, but many individuals and small business owners may not have the resources to stay at the forefront of these technical changes.

Overlooking the planning options could be an expensive mistake to make, and GILTI could even become a disincentive for US citizens to invest outside their borders — which is in part the point of the legislation in the first place.

The takeaway for American citizens — or Australian companies in which a US citizen holds a substantial stake — is that the US Treasury has increased the scope of the activity it considers taxable and is not likely to back down.

It’s time to look at your exposure and take steps so you aren’t left holding the bill.

Source: www.accountantsdaily.com.au

How Much Tax Is Taken Out Of My Super Withdrawals?

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If you’re aged 60 or over, you usually won’t pay any tax on super benefits you withdraw. However, if you’re under 60 your benefits will be taxed.

To understand how much tax you’ll pay, it helps to remember that your super benefits are split into two components:

  • The “tax free” component of your benefits is not taxed when you make a withdrawal, even if you’re under 60. This component is the part of your super balance made up of things like non-concessional (after-tax) contributions.
  • The “taxable” component is taxed. This component reflects things like compulsory superannuation guarantee contributions, salary-sacrifice contributions and personal contributions for which you claimed a tax deduction, as well as investment earnings.

You can’t “cherry pick” which component you would like to fund your withdrawal. This means, for example, that if your accumulation account is 80% taxable and 20% tax-free at a particular point in time, any lump sum you withdraw at that time would also reflect this 80/20 split for tax purposes. Similarly, any pension you start at that time would have this 80/20 split locked in from the commencement day of the pension.

Therefore, the bigger your “taxable” component as a percentage of your account balance, the more tax you’ll pay when you withdraw benefits. The applicable tax rates are as follows:

  • Pensions: the taxable part of your pension payments is taxed at your marginal rate, less a 15% tax offset.
  • Lump sums: the taxable part of a lump sum withdrawal is tax-free up to your “low rate cap” of $205,000 (for 2018–2019; set to increase to $210,000 for 2019–2020). This is a lifetime cap that you gradually utilise each time you withdraw a lump sum. Once you have fully utilised your cap, the remaining taxable part of any lump sum is then taxed at 17% (or your marginal rate, whichever is lower).

Several exceptions apply to these rules. First, if you’re receiving certain “disability superannuation benefits” or accessing super before you’ve reached preservation age (eg on “compassionate” grounds), different tax treatment applies. Second, some people such as members of public sector or government superannuation funds are subject to special rules that mean they will pay some tax even if they’re aged over 60.

Planning ahead

It’s worth talking to your adviser to plan the best strategy for your super withdrawals. For example, if you’re under 60, a lump sum may be more tax effective than a pension because of the “low rate cap” discussed above.

However, to access a lump sum before age 65 you must meet a relevant condition of release such as “retirement”, whereas you only need to reach your preservation age in order to access a transition to retirement income stream (TRIS).

Your adviser can also help you explore the possible tax benefit of starting a full account-based pension (ABP). Unlike a TRIS, an ABP requires that you’ve met a relevant condition of release such as retirement, but the advantage is that it attracts a partial or possibly a full exemption from income tax on investment earnings inside the fund. So, as you can see, the decision to access your benefits is best made with professional advice that takes into account a range of factors including:

  • your age;
  • employment status and income;
  • lifestyle/cashflow needs;
  • tax efficiency of running a pension;
  • eligibility for the Aged Pension; and
  • special planning required if you hold more than $1.6 million in super (the current limit on the amount you can hold in full pensions like ABPs).

Need to access your super?

Talk to us today and we’ll help you navigate through the tax rules to get the most out of your retirement savings.

 

ATO fires warning ahead of tax time

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The ATO has released a wide range of case studies of taxpayers cheating the tax system as it signals its hard-line stance ahead of tax time 2019.

The first case involves 56-year-old Peter Garven, who was sentenced in the Sydney District Court to three years and three months’ jail time for fraudulently obtaining and attempting to obtain more than $200,000 from the ATO.

As the sole director of Peter Garven Consulting and Garven Resources, between October 2002 and July 2004, Mr Garven lodged three income tax returns where he fraudulently obtained $102,504 in refunds and attempted to obtain a further $41,758.

Mr Garven claimed to have received salary and wages of more than $150,000 from the University of New South Wales, despite the university having no record of any payments to Mr Garven.

In addition, between August 2002 and July 2004, Mr Garven fraudulently obtained $51,684 in GST refunds on behalf of his two entities, Peter Garven Consulting and Garven Resources.

In 2004, Mr Garven acknowledged that his claims were false and said he would lodge amendments. The ATO never received the amended returns, which triggered audit action.

Following this, Mr Garven failed to appear in court for his trial in March 2009, with a warrant for his arrest issued shortly after. He went into hiding and was registered on the missing persons list. In 2017, he was arrested on a warrant by the NSW Police in the Watagan Mountains.

Mr Garven has also been ordered to repay $154,188.96.

Fraudulent BAS leads to jail sentence

A wholesale distribution company director has also been sentenced to four years and six months’ jail time for fraudulently obtaining and attempting to obtain nearly $600,000.

David Irvine lodged 39 BAS between January 2012 and March 2015. By reporting fake export sales, he reduced the company’s GST payment obligations and fraudulently obtained $480,680 in refunds he wasn’t entitled to.

Mr Irvine also failed to report any income on his personal tax returns for the 2009 to 2011 financial years, resulting in a tax shortfall of $116,056.

Sole trader gets home detention

Linda Taylor was sentenced in the South Australia District Court to two years and nine months to be served on home detention after being convicted of GST fraud made in BAS lodged between April 2013 and September 2015.

Ms Taylor, a sole trader of a home styling business trading as Signature Styling Design Innovation, lodged 32 monthly BAS with the ATO, fraudulently obtaining $138,076 in GST refunds.

The audit found Ms Taylor claimed a total of $2,023,646 in capital and non-capital purchases in her BAS, with her overall reported sales during the same period inclusive of GST being $259,977. To support these claims, Ms Taylor supplied false documents to the ATO.

The court found these claims to be entirely fraudulent. Signature Styling was not entitled to GST refunds that had been claimed and received.

The audit found Ms Taylor used the money obtained to fund private expenses like school and vet fees, meals at restaurants and hotels, as well as significant spending on hair and beauty services, clothing, shoes and accessories.

She has also been ordered to perform 150 hours of community service and pay reparations of $137,936.

Source: www.accountantsdaily.com.au

CGT Strategy highlighted with work test exemption

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In December last year, the government finalised the regulations for the work test exemption measure which enables individuals aged 65 to 74 to make voluntary contributions to superannuation for an additional 12-month period from the end of the financial year in which they last met the work test.

In order to be eligible, they have to have a total superannuation balance of less than $ 300,000. According to the ATO website, the regulations will take effect from 1 July this year.

Advisers Digest director Peter Johnson said one of the ways the exemption could be beneficial for SMSF clients is where they want to sell a significant asset and contribute the proceeds from the disposal of that asset into their super fund.

The client may have an asset they wish to sell that is subject to capital gains. If they sell the asset they are going to have a capital gain, and if they want to contribute the sale proceeds to super, they will have to realise that gain in the same year as they are still working.

Under the work test exemption, however, they may be able to sell the asset and then still contribute the money to super in their first year of retirement, he said.

For a couple, he said, each spouse will be able to contribute $ 100,000 in non-concessional contributions and $ 25,000 in concessional contributions.

The government also made an amendment to the regulations which allows members to trigger the bring forward rules under the exemption, which was restricted under the original draft legislation.

The work test exemption could also be useful for those receiving an employment termination payment in July and will be retiring afterwards, he said.

Source: www.smsfadviser.com

Getting Your Small Business Ready For STP Reporting

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From 1 July 2019, Single Touch Payroll (STP) reporting will become mandatory for all employers. Small businesses (i.e. those with fewer than 20 employees) have previously been exempt, but will now need to take action to ensure they’re ready. These small businesses have a three-month transition period between 1 July and 30 September to get their STP reporting fully operational.

STP is an electronic reporting system that requires employers to submit payroll information such as salaries, wages, allowances, PAYG withholding and superannuation contributions to the ATO directly through their payroll software (or third-party service provider) when they pay their employees. The government says that STP reporting will improve the ATO’s ability to monitor tax and super compliance, and to take action when required.

How does it work?

You’ll still pay your staff according to your regular pay cycle (e.g. monthly or fortnightly), but with the added requirement of submitting payroll information electronically to the ATO each cycle.

Many businesses will take care of this in-house with payroll software that can connect to the ATO. Alternatively, you can arrange for a registered tax or BAS agent to report on your behalf.

You’ll still give your staff a payslip each pay cycle, but you’ll no longer need to prepare payment summaries at the end of the financial year because your staff will be able to access all of their STP payroll information through the ATO website in order to prepare their tax returns.

If your business has “closely held payees” such as family members who are not paid a regular salary or wage, talk to your adviser about flexible STP reporting arrangements that may be available to you.

Simple software solutions

There are many software providers in the market offering STP-compliant software that meets the ATO’s electronic data requirements. If your business already has payroll software, check with your provider whether it has been made STP-compliant and whether you need to download or purchase an upgrade.

If you don’t have existing software or you want to find a new solution, you should refer to the ATO’s website for help finding a provider. As well as publishing a list of all commercially available STP software solutions that it has approved, the ATO has a separate list of “low-cost” and “no-cost” STP solutions that have been designed for “micro” businesses with four or fewer employees. These have been created by third-party software developers and these solutions:

  • cost $10 or less per month (and some are even free);
  • are designed to take only minutes to complete each pay period;
  • don’t require the employer to maintain the software; and
  • include formats like mobile apps, web-based portals, desktop software and other simple solutions.

The ATO is continually updating the list as new products are released.

Need more time?

Small businesses can start reporting any time from 1 July 2019 to 30 September 2019. If you need more time to get ready, you can apply online for a deferred start date through the ATO’s business portal. You can also apply for an exemption from STP reporting for one or more financial years if you operate in an area with poor or no internet.

Get STP-ready

Don’t wait until the last minute – talk to us to get started now. No matter how small or large your business is, we can help you find the right solution to match your STP reporting needs and ensure you’re ready for the deadline.

 

What Does “Retirement” Mean For Super Access Purposes?

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Recently, AMP reported that its superannuation support team has seen a surge in questions about the rules for accessing super. It says people are especially unaware about the retirement rules that apply in the 60-to-64 age range. Here, we break down the requirements by age group and clarify what you must do to “retire” and access your benefits.

Under preservation age

Before you’ve reached your preservation age, you can’t access super on any “retirement” grounds. Your preservation age depends on your date of birth, as shown below:

Date of birth Preservation age
Before 1 July 1960 55
1 July 1960 – 30 June 1961 56
1 July 1961 – 30 June 1962 57
1 July 1962 – 30 June 1963 58
1 July 1963 – 30 June 1964 59
From 1 July 1964 60

 

If you need to access your super before preservation age, speak to your adviser about whether you might qualify on other grounds such as severe financial hardship, compassionate grounds, terminal medical condition or permanent or temporary incapacity.

Preservation age to age 59

Once you’ve reached preservation age you can potentially access your benefits on “retirement” grounds, but if you’re under 60 you must have the intention of permanently retiring. Specifically, two things need to occur:

  • an arrangement under which you were gainfully employed must come to an end (eg you leave a job); and
  • the trustee of your super fund must be reasonably satisfied that you intend never to again become gainfully employed (either on a full-time or part-time basis).

For these purposes, “part-time” gainful employment means at least 10 hours a week. This means you can “retire” even if you intend to work a small amount each week.

If you don’t meet the retirement test, but need to access some of your benefits, consider starting a “transition to retirement income stream” (TRIS). The only eligibility requirement is that you’ve reached preservation age. However, you’ll be limited to withdrawing a maximum of 10% of your account balance each financial year, and you won’t qualify for an income tax exemption on pension asset earnings. Once you’ve met a release ground such as retirement or reaching age 65, these restrictions will no longer apply.

Age 60 to 64

Once you reach age 60, you can potentially access your super without permanently retiring (although you can, of course, retire permanently if you choose.)

All that’s required is that an arrangement under which you were gainfully employed comes to an end (eg you leave a job) after you reached age 60.

That means it’s okay to start another job, or if you were previously working two jobs, it’s sufficient that you leave only one of them. In these cases, you can access a full pension (with an income tax exemption on pension asset earnings, and no 10% maximum annual withdrawal limit) or a lump sum.

Importantly, the Australian Prudential Regulation Authority (APRA) recognises that this is a valid way to access your super, but says that in its view, any future superannuation benefits you then accrue from an ongoing or new job wouldn’t be accessible. To access those benefits, you’d need to meet a further release ground (eg reaching 65 years or “retiring” again).

Age 65 and over

Once you reach age 65, all of your superannuation benefits become accessible. There’s no need to meet any “retirement” or other release grounds.

Need to access your super?

Contact our office and we can guide you through the requirements for “retirement” and other release grounds.

 

ATO tweaks ABN application process

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The tax office has amended its Australian business number application process to ensure applicants are entitled to an ABN, giving it greater visibility over an applicant’s history.

According to an ATO spokesperson, the tax office has implemented changes to the ABN application process to make it easier for applicants to determine that they are entitled to an ABN.

Specifically, the ATO has restructured and simplified the ‘Important Information’ page to make it easier for applicants to understand; developed nudge messaging for minors—i.e. under 14 years of age—to ensure they are using the correct entity type; and highlighted the penalty disclaimer on the ‘Declaration’ page, alerting applicants that penalties can apply for making false or misleading statements in their application.

The tax office has also re-ordered the application so they know who is applying and have all the information about the business before they receive an entitlement decision.

“This change enables us to make a more informed decision and to identify those applicants who are applying multiple times so we can provide them, or their tax practitioners, with better support,” said the ATO spokesperson.

The government also recently announced changes for ABN holders that will see them required to lodge an income tax return from 1 July 2021, and confirm the accuracy of their details on the ABR annually from 1 July 2022.

ABN holders are currently able to retain their ABN regardless of whether they are meeting their income tax return lodgment obligation or the obligation to update their ABN details.

Source: www.accountantsdaily.com.au

 

SMSF Benchmark Report – Class

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Class provides detailed analysis of newly established SMSFs, delivering revealing insights on key characteristics and trends.

Background-

The Class SMSF Benchmark Report, released for March 2019, is a statistical analysis of approximately 170,000 Self Managed Super Funds administered on Class Super, representing around 28% of the estimated number of SMSFs in Australia today. The quarterly Report is compiled using a selection of de-identified data extracted from across the Class Super user base.

This quarter’s special feature casts a spotlight on the characteristics and trends of newly established SMSFs, including the average number of members, establishment age, fund balances and asset allocations.

The analysis for the feature was based on a significant data set of 26,100 funds comprising 46,943 members, which were newly established on Class within a 5-year period from 2014 to 2018.

Some of the revealing insights include:

  • Over 72% of SMSFs are established as two-member funds from the outset, making it important to consider overall fund balance when determining the viability of setting up an SMSF
  • Males have a 42% higher average balance than females when funds are established, which compares with a significantly lower gap of 21% overall across all SMSFs
  • The average establishment age for newly established funds is 48.9, with a small difference occurring between gender.

Glenn Day, acting CEO at Class comments: “The Class SMSF Benchmark Report has become a key reference document for the industry, providing timely data and insights to support SMSF accountants, administrators and advisers.

“The insights on average total fund balances in this quarter’s feature were particularly interesting, in light of recent debate around how much money is needed to set up an SMSF.”

The Benchmark Report can be downloaded here.

Single Touch Payroll – Do it Once, do it Right

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IN BRIEF

  • The new Australian Single Touch payroll system is coming into effect in 2019, making way for a more efficient and secure system of payroll filing.
  • While the impact for businesses already using online accounting software will be minimal, those employing desktop software or spreadsheets will notice the difference.

Australia’s Single Touch Payroll (STP) mandate comes into effect on 1 July 2019, affecting the nation’s 749,000 businesses with under 20 employees. This follows last year’s requirement for businesses with 20 or more employees to use STP from 1 July 2018.

If a business is already using online accounting software the impact is minimal. However, for businesses using desktop accounting software or spreadsheets, the payroll mandates will likely force them to move to the cloud.

One of the biggest triggers of this migration is MYOB’s decision to not update its popular MYOB AccountRight Classic (version 19) for STP. (MYOB’s AccountRight 2018 and later versions do support STP.) There are several hundred thousand businesses using MYOB’s desktop software, according to MYOB.

“Desktop software is going to be very hard to keep compliant because you need to keep connecting to the portal to convey the information,” says Peter Thorp CA, director of the Australian Bookkeepers Network and director of PT Partners, an accounting firm based in Springwood, south of Brisbane.

“You need to upload the file manually, it’s just not going to work. That’s why the online programs are promoted as the way to go,” Thorp says.

A good percentage of a firm’s customer base could turn up this year asking for help migrating to cloud accounting software. However, there are some good reasons as to why firms may not experience this.

“I think they’re going to go through their bookkeeper rather than their accountant,” Thorp says.

Who decides – bookkeeper or accountant?

Kelly Chard CA is a director of GrowthMD, a practice in Brisbane’s Chermside that provides accounting services to medical and dental practices across Australia.

Even though most of her clients use cloud accounting software, she knows plenty of other medical centres that will need to change. “Many have traditional bookkeepers using MYOB desktop software for the past 20 years and they are scared of changing,” she says.

Chard recognises that doctors’ bookkeepers will strongly influence the choice of software. “It would be easy to say, ‘Let’s just move you to MYOB cloud version’, and the bookkeeper might be happy because it tends to look the same. But it may not be the best solution.”

Some small to medium enterprises remaining on desktop accounting software may have been waiting for the cloud to catch up. MYOB’s M-Powered Services for payments is only now coming to its cloud software under the name MYOB PayBy.

The cloud version of MYOB AccountRight recently added multi-currency, but while importers are supported today, exporters will need to wait a couple more months.

AccountRight Classic also has a more capable inventory than Xero or standard versions of QuickBooks Online. Inventory-heavy businesses wanting to move to these two programs may need to buy a dedicated inventory app that integrates into the cloud accounting software.

Chard recommends Xero to most of her clients and encourages them to look at other tools, such as expense management apps Receipt Bank and Hubdoc.

The payroll migration is likely to redistribute market share among the major accounting software companies. Xero and Intuit are eyeing the trove of several hundred thousand MYOB desktop users and anticipating that a good chunk will move away from MYOB.

But rather than redrawing boundaries, STP and Payday Filing may be an opportunity to expand the market for accounting software. “Think about all those businesses that still use spreadsheets,” says Trent Innes, managing director of Xero Australia.

MYOB’s general manager – product, David Weickhardt, agrees. “There are a lot of small businesses that are using very manual processes. Our biggest competitors are Microsoft Excel and Word.”

What if a client wants to stay on desktop?

It is possible to ignore the push to the cloud and keep using desktop accounting software.

A business can lodge its payroll information manually through the Australian Taxation Office’s (ATO) website. However, these manual methods increase the chance of error and are far less efficient than the automated process common to online accounting software.

An alternative is to use an online payroll software just to lodge your payroll details.

MYOB has launched a standalone payroll program for micro-businesses that is compliant with Single Touch Payroll (STP). The program is in effect the automated payroll module from MYOB Essentials and costs A$10 a month for four employees or less.

Xero announced an identical standalone solution for up to four employees at about A$10 a month. The payroll product integrates with Xero’s ledger and GST cashbook.