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STP Allowances
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 )
Travel allowance for business purposes that is up to ATO measure is NOT reported on STP reports.
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
Reimbursements that are a precise amount that reimburses an expense, verifiable by receipts, which was (or will be) incurred by the payee in the course of their duties must not be reported.
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:
DataPay Allowance Type | STP Mapping |
---|---|
Car | Cents per kilometre vehicle costs ( CD ) |
Transport | Award transport payments ( AD ) |
Laundry | Laundry ( LD ) |
Meals | Overtime Meal Allowances ( MD ) |
Travel | Domestic or Overseas Travel Allowances and Overseas Accommodation Allowances ( RD ) |
Tool (new) | Tool allowance ( TD ) |
Task (new) | Tasks ( KN ) |
Qualification (new) | Qualifications/Certificates ( QN ) |
Other | Other allowances ( OD ) |
Transitional issue new allowances ie Tools, Task, and Qualification should only be updated once STPv2 enabled
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:
Other Allowance | Description | Code |
---|---|---|
general | G1 general | G1 |
home office | H1 home office | H1 |
non-deductible | ND non-deductible | ND |
transport/fares | T1 transport/fares | T1 |
uniform | U1 uniform | U1 |
private vehicle | V1 private vehicle | V1 |
Specific description per ATO | As per ATO’s advise | As per ATO’s advise |
Note selecting (Not Applicable) is not an acceptable option as advised by the ATO.
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