AWCC made the following submission to The Treasury in response to their public consultation on Exempting lump sum payments in arrears from the Medicare Levy. Although this proposed change specifically addresses the amount of the Lump sum payment in arrears tax offset claimed by taxpayers for impacted prior financial years, our submission focuses on how payroll and employment technology can assist taxpayers by ensuring that valid Lump Sum E amounts are accurately reported in Single Touch Payroll Phase 2.
Many employers and payers consider the ATO threshold amount for Lump Sum E of $1,200 relates to each payment. It doesn’t: it’s an annual threshold amount. Read our submission to find out how employers and payers may get this right, with the assistance from payroll professionals and employment technology.