Single Touch Payroll reporting, Operational Framework security changes and the costs involved.

Updated: Jun 1



Recently the Australian Taxation Office introduced several significant changes with requirements for how DSP's (Digital Service Providers) interact with Government.


It all started with data breaches.


Initially, there was a "knee jerk" reaction to some data breaches and fraudulent activity with ATO's initial response suggesting onerous security requirements for DSP's. This Operational Framework came at a cost that would have been prohibitive to most DSP, resulting in significantly reduced competition within the Marketplace, which would have culminated in driving up prices for Employers. The ATO engaged with Industry resulting in moving forward from this initial position to a more acceptable security stance providing for a reasonable cost outcome.


ISO 27001, one solution from many.


We are currently finalising meeting ISO 27001 Information Security Management System (ISMS) standards, which still comes at a significant cost but better than where we first started. The flip side of the coin is, if a DSP does not meet the Operational Framework Security Standards, they will have no choice but to cease selling their payroll offerings, resulting in the closure of the business.


The role of Sending Service Providers.


As you are no doubt aware by now, STP is legislated for all employers from the 1 July 2019 and allows for real-time reporting directly to the ATO. While it is free for the ATO to receive and process the information (which they keep reminding us of this fact), the actual transfer of this information comes at a cost. We lobbied actively and passionately against this position but sadly to no avail; you can read more here. Sending service providers (SSP) provide the ability for DSP's (us) to submit payroll data directly to the ATO, but it comes at a price.


We initially teamed with a SSP in 2017, but as we progressed we considered their costs were prohibitive which then left us in a position of being unable to include these fees within our Subscriptions due to the always present threat of price increases. As a result, the decision was originally made data was to be purchased separately, which we did not consider an acceptable ongoing business model for anyone involved.


A happier place for all of us.


After lengthy negotiations, we now have a new SSP who was able to provide a fixed monthly cost, therefore, allowing us to include STP reporting within our subscription cost. A "win-win" for all involved.


This new agreement enabled us to reach our goal of keeping our prices down, providing for the cost of doing business in the new digital age but keeping payroll affordable. See our new pricing.


Support for the new SSP is included from V19.62 which is available from 4 June 2019.


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