ATO Targets STP Compliance

Single Touch Payroll (STP) and super fund member reporting are now a core part of Australia’s tax and superannuation system, and the ATO has made it clear that penalties may apply where reporting is late, incomplete, inaccurate or not lodged in the correct format.

For employers, STP is no longer just an administrative payroll function. It has become a key source of data across the tax and super systems, feeding into employee income statements, activity statements and super guarantee compliance. As this information is reported in real time, getting it right and getting it in on time is more important than ever.

Employer Reporting Obligations

Employers are generally required to report payroll information through STP-enabled software on or before each payday, and to complete an end-of-year finalisation by 14 July. Businesses that have not yet commenced STP reporting or have not transitioned to STP Phase 2 where required, may be at risk of penalties.

Super Fund Reporting Obligations

Super funds also have their own reporting obligations. Penalties may apply where required information is lodged late, reported incorrectly or where proper records are not maintained. This reporting helps ensure member balances, contribution details and account information are accurately reflected across the super system. As the ATO can compare this data against employer reporting, errors, omissions and delays are becoming easier to detect.

Keeping Compliance on Track

The key message for businesses is that STP should be treated as an ongoing compliance responsibility rather than a year-end exercise. Regular payroll reconciliations, accurate STP Phase 2 reporting and prompt correction of errors can go a long way towards reducing risk and keeping reporting obligations on track.