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Income Types

Owned by Jessie Du
Last updated: Oct 14, 2022
3 min read

The reporting of income types being introduced is aimed to:

  • identify payments employers make to employees with specific tax consequences

  • make it easier for employees to complete their individual income tax return

  • help ATO identify where employers are using a concessional reporting arrangement.

Business Definition

Examples of income types that can be reported include:

  • SAW (salary and wages) – this is the most common income type and was formerly known as individual non-business (INB)

  • CHP (closely held payees) – applies when the payee is directly related to the employer, such as family members. This income type will helps ATO identify where employers are using the concessional reporting arrangements for amounts paid to closely-held payees

  • WHM (working holiday makers) – applies to temporary visitors to Australia who hold a Working holiday visa (subclass 417) or Work and holiday visa (subclass 462). This income type allows ATO to identify where the individual being paid is subject to the different tax rates which apply for working holiday makers

  • FEI (foreign employment income) – applies to assessable income paid to payees (who are Australian tax residents) that is subject to tax in another country for work performed in that country, if the qualification period is met.

  • IAA (inbound assignees to Australia) – some multinational payers exchange, or transfer, payees between affiliated entities in different tax jurisdictions. This income type will help ATO identify where employers are using the concessional reporting arrangements for amounts paid to inbound assignees

  • SWP (seasonal worker programme) – applies to regional programs for government-approved employers. This includes income for a SWP engaged by a Labour-Hire business as an employee but does not include contractors engaged by a Labour-Hire business. Use this income type of to report payments to participants in the Seasonal Worker Program, and participants in the Pacific Australia Labour Mobility (PALM) scheme who have indicated on a TFN declaration that they are a "non-resident". 

Report payments to participants in the Pacific labour Scheme, and participants in the PALM scheme who indicated on their TFN declaration that they are resident. Use income type SAW.

  • JPD (joint petroleum development area) – before 1 July 2020 only. Not available in application*

  • VOL (voluntary agreement) – applies to contractors paid under a Voluntary agreement.

  • LAB (labour hire) – applies to payments by a business that arranges for persons to perform work or services, or performances, directly for clients of the entity. Income for contractors only – does not include employees. Employees of labour hire firms should be reported as the relevant income type, such as SAW.

  • OSP (other specified payments) – this is a limited income type that only applies to specified payments by regulation 27 of the Taxation Administration Regulations 2017. Not applicable in application*

Note : *DO NOT USE this income type. The full validation functionality is NOT available for STP Phase 2 on application.

DataPay Setup

Income Stream Type field available in the STP Income Stream Type parameters.

 

Application has been automated to pickup Foreign Employment Income ( FEI ). If a payment of Foreign Income Tax is made it will automatically report FEI income type.

 

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