• Business Definition

• DataPay Setup

  • Categorized Allowances

  • Other Allowance Types

Business Definition

In STP Phase 1 reporting, some allowances were reported separately and some are reported as part of gross. The expanded STP report will report all allowances separately, not just expense allowances that may have been deductible on your employee’s individual income tax return.

This means employers will need to include additional information in their STP report about what the allowances paid to employee are for, such as:

• Cents per kilometre vehicle costs ( CD )

• Award transport payments ( AD )

• Laundry ( LD )

• Overtime meals allowance ( MD )

• Tool allowance ( TD )

• Tasks ( KN )

• Domestic or Overseas Travel Allowances and Overseas Accommodation Allowances ( RD )

• Qualifications/Certificates ( QN )

• Other allowances ( OD )

Anything that is reported as Other allowance needs to have a description or code for the category of expense

The descriptions that must be used include:

• G1 general

• H1 home office

• ND non-deductible

• T1 transport/fares

• U1 uniform

• V1 private vehicle

DataPay Setup

Categorized Allowances

The allowance type details must be set up at employee level or higher. Changes made to an allowance type or other allowance type description from the pay packet screen will not be reflected in STP reporting.

If a taxable allowance component is set up with the “Not Applicable” type, then it will simply be reported under gross payment amount. Otherwise, allowances should be set to one of the predefined allowance types:

Other Allowance Types

If none of the existing allowance types apply, but the payment is still considered an allowance, then an administrator can select “Other” as the allowance type and Type in a description for the payment item.

Descriptions or codes should be limited to the following:

Note selecting (Not Applicable) is not an acceptable option as advised by the ATO.

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