STP Phase 2

In the 2019–20 Budget, the Government announced expansion of Single Touch Payroll (STP) to include additional information. This expansion of STP (also known as STP Phase 2) is aimed to reduce the reporting burden for employers who need to report information about their employees to multiple government agencies. It also supports the administration of the social security system.

The mandatory start date for STP Phase 2 reporting will be 1 January 2022.

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What will remain the same ?

While there will be a need to report additional information through STP report, there are many things that aren’t changing, such as:

• the way STP reports are lodged

• STP reports are is still due on or before pay day unless employer is eligible for a reporting concession

• the types of payments that are in-scope for STP reporting

• taxation and superannuation obligations

• end of year finalisation requirements.

What are the key changes ?

• Disaggregation of gross

• Employment conditions

• Income type

• Country Codes

• Lump sums

• Reporting previous Business Management Software IDs and Payroll IDs

• Child support garnishees and Child support deductions

ATO have a published a factsheet for clients which covers the key changes here for clients.