The ATO is expanding “Single Touch Payroll” (STP) to include additional information in your payroll reporting. This expansion (also known as STP Phase 2) starts on 1 January 2022.
The additional information will be shared in near real-time with Services Australia.
STP will now report more detail to the ATO, such as employment type (full-time, casual etc), and type of remuneration (working holiday maker, allowances, overtime etc).
What do these changes mean for me?
While you will need to provide the ATO with more information, the way you report to the ATO after each pay run won’t change. Even so, as more granular detail will be reported to the ATO, this is an opportune time to review your payroll setup.
What do I need to do?
If you are using Xero, nothing just yet. Although the official start for STP Phase 2 reporting is 1 January 2022, Xero has received a 12-month deferral from the ATO for all customers until 31 December 2022.
If you are using MYOB, it is now ready for STP Phase 2. To check your file:
If you have any questions regarding the above, or need assistance, please don’t hesitate to contact our office.
– James Davis
This article is compiled as a helpful guide for your private information and is subject to copyright. We suggest that you do not act solely on the basis of material contained in this article because items are of general nature only and may be liable to misinterpretation in particular circumstances. We recommend that our advice be sought before acting on any of these crucial areas.