MYOB has this afternoon given us an update on the upcoming Australian compliance changes and subsequent release impact in the coming weeks.
The Current Situation
At this moment in time, MYOB are heavily impacted by three (3) Bills that are all in different stages of the legislative process, and time is becoming sparse, as we count down to 1 July 2018.
The approach they are taking, is that they DO NOT release changes until they have passed legislation, providing for an easy upgrade experience for clients, especially for the desktop solutions.
The first, The Budget Savings (Omnibus) Bill 2016 (aka Omnibus Bill), that introduces a new lower minimum repayment rate and threshold for all HELP debts from 1 July 2018, was passed by both Houses on 15 September 2016. The ATO have published final formulas for this change.
The second Bill, Higher Education Support Legislation Amendment (Student Loan Sustainability) Bill 2018 (aka Sustainability Bill), which reduces the minimum repayment rates and thresholds, and add additional ones at the higher end for Higher Education Loan Program (HELP) debts, is currently before Senate, and has been there since March 2018. The ATO has provided “provisional” formulas on this change and stress that these have no legal basis presently. If this Bill does pass, it will supersede the Omnibus Bill.
Lastly, as announced in the Federal Budget in May 2018, the Treasury Laws Amendment (Personal Income Tax Plan) Bill 2018 (aka Tax Cuts Bill), that introduces tax cuts to low and middle-income earners in the 2018–19, 2019–20, 2020–21 and 2021–22 financial years, is currently before the House of Representatives.
It is planned to be re-discussed in the house from today (Monday 18th June 2018). The ATO has provided “provisional” formulas on this change and stress that these have no legal basis presently. If passed, we will need to include the relevant formulas from either a) The Budget Savings (Omnibus) Bill 2016; OR b) Higher Education Support Legislation Amendment (Student Loan Sustainability) Bill 2018 if this is passed in time.
Impact to Exo Employer Services
For Exo Employer Services, as the changes rely on launching a product update and users downloading the changes and upgrading to this version. Although this can take anywhere between 5–10 minutes, it still relies on user intervention.
MYOB have four options:
Omnibus Bill without Tax Cuts Bill; Omnibus Bill with Tax Cuts Bill; Sustainability Bill without Tax Cuts Bill; or Sustainability Bill with Tax Cuts Bill;
Their plan at this moment in time is the following:
The team at MYOB have prepared for the Omnibus without Tax Cuts option. Exo Employer Services: have a build ready will wait on a General Release to market until we know more about the status of Tax Cuts and Sustainability Bills ;
Next week MYOB will follow the progress of both the Tax Cuts and Sustainability Bills and by Friday 22nd June make a decision of our approach.
If the ATO has provided guidance to proceed MYOB will aim to deploy the applicable solution to General Availability Tuesday 26th June;
If the ATO has provided guidance to NOT proceed MYOB will aim to deploy an Omnibus without Tax Cuts option on Tuesday 26th June. They will then continue to monitor both Tax Cuts Bill & Sustainability Bill until they have passed. Once they have proper guidance from the ATO they can respond within a 24 hour period to provide the applicable option required for both products. This will mean that those sites that have upgraded to the Omnibus without Tax Cuts option, will need to upgrade once again to obtain the latest tax formulas.