Single Touch Payroll Phase 2

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Single Touch Payroll (STP) is the way you report your employees’ tax and super information to the ATO. Single Touch Payroll (STP) is part of the government’s commitment to streamlining employer reporting obligations. STP was legislated on 16 September 2016 as part of the Budget Savings (Omnibus) Act 2016External Link.

The mandatory start date for STP Phase 2 reporting is 1 January 2022. Some DSPs, despite their best efforts, will need more time to get ready and transition their customers. They will advise you if we have approved a deferral for you to start reporting later than the mandatory start date. If you need more time in addition to your DSP’s deferral, you must apply. See STP expansion (Phase 2) delayed transitions.

How STP works

STP works by sending tax and super information from your STP-enabled payroll or accounting solution to us when you run your payroll.

This has not changed with Phase 2.

Your STP Phase 2 solution will send us a report with the information we need from you, such as:

  • details of the remuneration you pay
    • the type of income for the employee (such as salary and wages, or working holiday maker income)
    • the components which make up the amounts (such as gross pay, paid leave, allowances or overtime)
  • details of your pay as you go (PAYG) withholding
    • the amounts you have withheld from payments you make
    • information about how you calculated the amount, which you currently provide to us by sending a copy of the employee’s TFN declaration
  • super liability information.

Source: Single Touch Payroll Phase 2 employer reporting guidelines | Australian Taxation Office (ato.gov.au)