True Tally Bookkeeping

Payroll

Payroll

FAQ: Payroll and STP compliance for small Victorian businesses

Leave a Comment / Payroll /

Question: What is Single Touch Payroll and who needs to use it? Answer: Single Touch Payroll (STP) is mandatory ATO reporting that sends employee pay, tax, and super information directly to the ATO each pay run. All Australian employers must use STP-enabled software, regardless of business size. It replaced annual payment summaries and ensures real-time compliance with Australian tax obligations. Question: What happens if I lodge my STP late or incorrectly? Answer: Late or incorrect STP lodgement can trigger ATO penalties ranging from $313 to $1,565 per breach. The ATO may also audit your payroll processes, delay employee tax returns, and flag your business for closer scrutiny. Consistent late lodgement builds a compliance history that increases penalty severity over time. Question: Do I need to report casual workers through Single Touch Payroll? Answer: Yes, all employees—casual, part-time, and full-time—must be reported through STP on or before their pay day. This includes workers paid hourly, daily rates, or irregular shifts. True Tally ensures every payroll run for Geelong and Bellarine businesses captures all worker types accurately, preventing ATO compliance issues. Question: How often do small businesses need to lodge STP reports? Answer: STP must be lodged on or before each pay day—whether you pay weekly, fortnightly, or monthly. If you’re a micro employer (1–4 employees), you may qualify for quarterly reporting, but most Victorian small businesses lodge every pay cycle to maintain real-time compliance and avoid penalties. Question: What’s the difference between STP Phase 1 and STP Phase 2? Answer: STP Phase 2 (mandatory from 1 January 2022) requires additional details including employment type, country codes for overseas payments, and disaggregated tax information. It provides the ATO with richer data and affects how you classify employees. Most modern payroll software now supports Phase 2 automatically. Question: Can I do my own payroll or should I outsource it? Answer: You can manage your own payroll if you’re comfortable with STP software, award rates, super guarantee calculations, and ATO compliance deadlines. Many Geelong trades and professional services businesses outsource to True Tally because manual payroll errors are costly, time-consuming, and trigger audits—outsourcing provides accuracy, speed, and peace of mind. Question: What super guarantee rate applies in 2024 and when must it be paid? Answer: The super guarantee rate is 11.5% for 2024–25 (increasing to 12% from 1 July 2025). Super must be paid quarterly by 28 days after quarter-end: 28 October, 28 January, 28 April, and 28 July. Late payment incurs Superannuation Guarantee Charge penalties, which aren’t tax-deductible. Question: How can I fix payroll and STP compliance issues quickly? Answer: Book a free discovery call with True Tally at truetally.com.au/contact. We audit your current payroll setup, identify compliance gaps, rectify STP errors with the ATO, and implement accurate monthly payroll systems. Our Geelong-based team delivers fast turnarounds and ongoing support, so you stay compliant without the stress.

Trades business owner examining workload
GST, Managing a Business, Payroll, Superannuation

ATO’s Free Super Clearing House to Close, Small Businesses Urged to Prepare

Leave a Comment / GST, Managing a Business, Payroll, Superannuation /

The Australian Taxation Office (ATO) is set to close its Small Business Superannuation Clearing House (SBSCH) on July 1, 2026. This move, part of the government’s ‘Payday Super’ reforms, will require employers to pay superannuation contributions concurrently with salary and wages. The closure aims to streamline super payments and improve compliance, pushing businesses towards integrated payroll software or commercial clearing house providers. Key Takeaways The ATO’s Small Business Superannuation Clearing House (SBSCH) will close on July 1, 2026. New employer registrations for the SBSCH will cease on October 1, 2025. The closure is linked to the ‘Payday Super’ reforms, mandating super payments with salary and wages from July 1, 2026. Small businesses must transition to alternative payment solutions before the closure. Why the Change? The closure of the SBSCH is a strategic shift driven by the government’s ‘Payday Super’ initiative. This reform mandates that employers pay superannuation contributions at the same time they pay their employees’ salaries and wages. The objective is to enhance compliance and ensure employees receive their super entitlements more promptly. Instead of relying on the ATO’s clearing house, the government encourages businesses to adopt modern payroll software or commercial clearing house services that integrate directly with Single Touch Payroll (STP). These systems facilitate automatic super contribution flows with each payroll cycle, aligning with the new ‘Payday Super’ requirements. Important Dates to Remember October 1, 2025: New employer registrations for the SBSCH will be closed. Businesses not already using the service will be unable to sign up. June 30, 2026: The final day the SBSCH will be operational for existing users. July 1, 2026: The SBSCH will be completely switched off. All employers must have an alternative system in place by this date. Potential Risks for Employers The closure of the SBSCH presents several challenges for small businesses: Missed Deadlines: Superannuation is considered paid only when it reaches the employee’s fund. Failure to implement a new system by July 2026 could lead to missed ‘Payday Super’ deadlines and incur the Superannuation Guarantee Charge (SGC). Increased Administrative Burden: Without a replacement system, some businesses might revert to manual payments to individual employee funds, which is unsustainable under the new rules requiring contributions with every payroll. Cash Flow Strain: The shift from quarterly super payments to real-time contributions with each pay run could create short-term cash flow difficulties for businesses without adequate financial forecasting. Alternative Solutions Several viable alternatives are available for businesses to manage their superannuation obligations post-SBSCH: Payroll Software with Integrated Clearing Houses: Platforms like Xero, MYOB, and QuickBooks offer built-in superannuation payment services designed to work seamlessly with STP, automating contributions during payroll processing. Third-Party Clearing Houses: Private providers offer clearing house services, often with fees, but provide enhanced reporting, tracking, and support to ease the transition. Industry Super Fund Services: Some industry super funds offer their own clearing house facilities, which can be suitable for businesses with employees primarily in one fund. Small business owners are strongly advised to proactively explore these options, test their cash flow under the new real-time contribution model, and implement their chosen system well in advance of the SBSCH closure to ensure a smooth transition and maintain compliance. Sources Small Businesses left exposed as ATO shuts down Small Business Super Clearing House, Australian Bookkeepers Network. The Small Business Superannuation Clearing House is closing, Australian Taxation Office. ATO is shutting down the free super clearing house for SMEs. What you should do, SmartCompany.

Accounting, Payroll

Fair Work Commission abolishes junior pay rates for young adult employees

Leave a Comment / Accounting, Payroll /

Young adults working in retail, fast food and pharmacies are set to receive a pay rise, after a decision by the Fair Work Commission described as “up there with the introduction of equal pay for women in the 1970s”. The commission moved to abolish junior pay rates for young adult employees while maintaining them for minors, but the staged changes won’t come into effect until December. Hearing from more than 80 witnesses across the three industries, it determined that employees aged 18 to 20 should no longer be subject to “discounted” junior rates. Terri Butler, deputy president of the Fair Work Commission, said in making the decision, it considered whether there was any difference in the value of work performed by junior employees and other employees in the same classifications under the same awards. “We have been particularly interested in the extent to which junior rates serve or do not serve the interests of children and young people,” she said. “Young teenagers who are trying to get their first job usually wanting to balance work with secondary education, can benefit from being able to accept discount rates compared with older people doing the same job.” Terri Butler is the deputy president of the Fair Work Commission. (AAP: Darren England) It decided not to vary the rates for employees who are still minors under 16. “They are in a position of particular vulnerability and greater labour market disadvantage,” Ms Butler said. “We consider that, among the other matters we’ve taken into account, there are strong fairness reasons for allowing them to continue to accept discount rates, to get their start in the workplace, gaining valuable experience.” Under the changes, it is estimated around half a million workers will be eligible for the pay rise, according to ABS data.  The ruling addresses an application to vary junior rates under the General Retail Industry Award, the Fast Food Industry Award, and the Pharmacy Industry Award. There will be a phase-in period of up to four years and the first wage adjustments are scheduled to begin in December.  ‘Landmark decision‘ “Junior pay rates” applied to people below the age of 21, meaning 18-year-olds were paid 70 per cent of the award rate, 80 per cent for 19-year-olds and 90 per cent for 20-year-olds.  Under the commission’s ruling, the rate for 18-year-olds will increase by 5 per cent each year until 2029, bringing it in line with an adult wage. Larger businesses previously claimed the case would have a “totemic” impact to the structure of employment. Big employers like McDonald’s and Coles are often stepping stones to full-time employment, with Woolworths alone providing about one in eight Australians with their first job. Woolworths alone provides about one in eight Australians with their first job. (ABC News: Simon Tucci) Advocates have argued youth should be paid adult ages because you can enlist in armed forces at 17, and can vote, drive, drink alcohol and smoke from 18. National Secretary for the Shop, Distributive and Allied Employees Association (SDA) Gerard Dwyer said it was a “landmark decision, up there with the introduction of equal pay for women in the 1970s”. “It may take longer than we would have liked, but the principle has been established that no longer will 18-year-olds be treated as second class citizens,” he said. “Their work is as valuable as anyone else’s and before too long they will be paid accordingly.” The National Union of Students said when students were underpaid it directly impacted their ability to succeed at university. “This is a real win for young people. Ending junior rates means fairer pay for the work they’re already doing and takes some pressure off students balancing work and study,” National president Felix Hughes said.

Accounting, Bookkeeping, Cash Flow Essentials, GST, Payroll

Top 7 Outsourced Bookkeeping Services Firms in Sydney (2026)

Leave a Comment / Accounting, Bookkeeping, Cash Flow Essentials, GST, Payroll /

Many Sydney businesses face a number of challenges when managing their bookkeeping – from rising salary costs and a lack of skilled professionals to the constant pressure to meet ATO compliance deadlines. On top of that, business owners face ongoing recruitment challenges, seasonal workloads and the demand for accurate financial reporting. It’s easy to see why many companies are now choosing outsourced bookkeeping as a more practical and cost-effective approach. By allowing experienced professionals to manage their accounts, businesses save money, gain expert knowledge and receive timely, accurate reports without the burden of recruiting or training new staff. In this blog, we’ll discuss which bookkeeping tasks you can outsource, the key benefits of doing so and the key questions to ask your virtual bookkeeper before making a decision. Top 7 Outsourced Bookkeeping Services in Sydney 1. Truetally Bookkeeping Truetally is your trusted partner for complete financial management solutions. We specialize in bookkeeping services, accounting services, payroll outsourcing services, cash flow management services and tax services that help businesses stay organized and financially strong. Our expert team ensures accurate records, streamlined payroll processing and effective tax planning so you can focus on growing your business. At Truetally Bookkeeping, we believe in providing reliable, transparent and efficient financial support tailored to your business needs. Whether you are running a startup or an established company, Truly offers smart financial solutions that help your business stay on track and thrive. Website: https://truetally.com.au/ 2. Jacoby Cameron & Co Taking care of your complete financial well-being. Jacoby Cameron & Co. At , we focus on giving your business the right advice when you need it, not just when you ask. We guide you through every part of your business, and because we build a personal connection with each client, our advice is specifically tailored to your business needs. Website: https://www.jaccam.com.au/ 3. Business Turnaround Services We are the only consultancy firm in Australia focused on building and implementing operational and strategic systems that help struggling businesses become stable, successful and profitable. We specialise in turning serious financial challenges into sustained, long-term profits for companies with annual revenues between $3 million and $20 million. Our business turnaround services are supported by a full team of professionals including bookkeepers, management accountants, IT automation specialists, managed IT specialists and digital marketing professionals. Website: https://businessturnaround.services/ 4. RippleBytes Ripplebytes is an innovative technology company dedicated to reshaping the digital world. We build smart, scalable solutions that accelerate efficiency and growth in today’s fast-paced digital age. From cutting-edge fintech systems to tailor-made software solutions, we combine modern technology with user-centric design to keep our clients ahead. At Ripplebytes, every project is a step towards creating meaningful digital experiences – one byte at a time, making waves across industries and shaping the future. Website: https://ripplebytes.com/ Also Read: Bookkeeper vs Accountant: What’s The Main Difference? (A Complete Guide) 5. CCS Partners – Chartered Accountants Established in 1992, CCS Partners is a trusted accounting firm with offices in Sydney CBD and Hurstville CBD. As an experienced and well-established firm, CCS Partners has built a strong reputation for providing expert professional advice and highly personalised services. We work hand in hand with our clients to provide taxation, accounting, audit and assurance, SMSF solutions and succession and estate planning support. Website: https://www.ccspartners.com.au/ 6. Aero Accounting Group – Tax Accountants We pride ourselves on delivering superior results for our clients, helping them move forward to achieve their dreams and ambitions. The way people interact with financial products and services is changing, and we are excited to be a part of this transformation. We aim to be your trusted partner in all things money, serving as a true ‘enabler’ on your journey to wealth growth and financial success. Are you ready to enhance your financial experience? We are always ready. Website: https://aerogroup.com.au/ 7. Operacy Staffing Operacy Staffing is a company that supports small businesses in Australia by helping them outsource specific tasks and duties to remote professionals from the Philippines. These remote workers are experienced in a variety of fields and can assist with tasks such as customer service, data entry, scheduling, and other business operations. By connecting small businesses with skilled and reliable remote staff, Operacy Staffing helps them increase their efficiency and productivity. It also provides businesses with a cost-effective way to handle a variety of responsibilities while maintaining quality and smooth workflow. Website: https://www.operacy.com.au/ Outsourced Bookkeeping Functions Offered by Sydney Firms Bookkeeping outsourcing companies in Sydney offer a full range of financial management services, including general ledger maintenance, accounts payable and receivable handling, financial reporting, tax filing, expense tracking and bank reconciliation. Below is a breakdown of the main virtual bookkeeping services available in Sydney and how they work together to provide better financial control and clarity: General Ledger Management: When Sydney businesses outsource general ledger management, they eliminate messy books and receive streamlined, accurate and ATO-compliant financial records that are always audit-ready. Accounts Payable: Accounts Payable outsourcing ensures that all invoices are managed correctly, GST credits are recorded correctly, and supplier payments are processed on time without errors or delays. Accounts Receivable: By delegating receivables management, companies maintain consistent cash flow, reduce overdue payments, and strengthen their working capital position through stable collections. Bank Reconciliation: A skilled remote bookkeeper reviews bank transactions daily, allowing businesses to always have a clear view of their actual cash balances, helping them make smart and timely financial decisions. Payroll Management: Outsourced payroll services manage superannuation, PAYG, STP submissions, award rates, holiday entitlements, and NSW payroll tax. This keeps your business in compliance with Fair Work and ensures that employees are paid accurately and on time. Financial Reporting: Professional outsourced bookkeepers prepare customized financial statements and provide insights to accelerate growth while meeting Australian compliance and reporting standards. Accounting Automation: Virtual bookkeeping teams use accounting automation tools to streamline processes, reduce manual work and increase accuracy by lowering overall operational costs. Tax Preparation: Outsourced tax specialists manage BAS, GST, and year-end tax liabilities, ensuring full compliance and helping businesses secure