ABSIA provided a submission to the inquiry by the Senate Standing Committees on Economics into the Working Holiday Maker Reform Package on 8 November 2016.
In this submission, ABSIA put forward the following:
- The proposed implementation date of 1 January 2017 did not allow much time for software developers to design, build and implement solutions for employees to meet their obligations by 1 January;
- Given Australia's complex tax system, issues would arise from introducing these changes into existing systems, and they would have the potential to impact other calculations and processes. This complexity would mean the proposed changes require careful examination and planning to ensure developers could perform these computations without adversely affecting other calculations;
- The proposed timeframe for implementation would have been challenging for businesses given December-January is the second busiest time for payroll teams in a year with business shut-downs, changes to regular pay runs and bank transactions; and
- The working holiday maker changes presented synergies with STP and how that information is reported to the ATO. A delay to this legislation would allow sufficient time to see how both these initiatives might work effectively for employers and reduce their reporting burden.
Access a PDF copy of this submission here.