About 40,000 businesses, including 15,000 small businesses, have started using the soon-to-be-mandatory reporting system.

Thousands of small businesses have already switched to the Australian Taxation Office’s new payroll system.

The ATO said that about 15,000 small businesses with up to 19 staff have voluntarily started using Single Touch Payroll.

The system is already compulsory, as of July 1, for businesses with 20 or more employees.

So far, about 40,000 businesses, with 2.5 million employees, have used Single Touch Payroll, according to the ATO.

Single Touch Payroll allows employees to see their year-to-date tax and super information online, by logging in through the MyGov website.

At tax time, this data will be pre-filled into employees’ tax returns, while their payment summary information will be available to their registered tax agent.

The ATO expects about 73,000 businesses with 20 or more staff to transition to Single Touch Payroll this financial year.

The ATO said that penalties generally wouldn’t apply in this transition year, as the ATO wanted to focus on helping businesses learn the new Single Touch Payroll system.