In the 2019-20 Budget, the government announced that Single Touch Payroll (STP) would be expanded to included additional information.

The expansion of STP, also known as STP Phase 2, will reduce reporting burden for employers who need to report information about their employees to multiple government agencies. It will also help Services Australia’s customers, who may be your employees, get the right payment at the right time.

STP Phase 2 started on 1 January 2022. Some Digital Service Providers (DSPs), such as Xero and MYOB, needed more time to update their products and transition their customers. If your DSP has a deferral, this covers you.

It’s important you understand which of the following circumstances apply to you:

• Your payroll product is ready – it’s time for you to start STP Phase 2 reporting now or have a plan in place to transition as soon as possible
• You are covered by your DSPs deferral – make sure you understand when your product will be ready and that you are ready to start Phase 2 reporting when it has been updated, or no later than the first pay day after your DSP deferral expires
• The product you’re using is not being updated to offer STP Phase 2 reporting – your DSP will let you know if they have another product you can use. If not, you’ll need to choose a product that offers STP Phase 2 reporting.

If you are not sure which of these circumstances applies to you, please contact us.

What You Need To Do

You need to start reporting the additional information when your product is ready, so you should start preparing now.

Many DSPs are releasing changes progressively. Your DSP will provide you with instructions and it’s important that you follow them.

Please click here for additional resources to help you understand the changes and prepare. These include:

• A factsheet outlining the key changes of STP Phase 2 reporting
• A checklist to consider what you need to do
• Detailed reporting guidelines which outline the STP Phase 2 reporting requirements

Want more information? You can find detailed STP information and access resources to assist you by clicking here.