STP Phase 2 Explained — What Australian Employers Need to Know
Single Touch Payroll Phase 2 expands the data reported to the ATO with each pay run, including disaggregated gross amounts, income types, and country codes. All employers should now be STP Phase 2 compliant through their payroll software, replacing payment summaries with ATO income statements.
Overview
Single Touch Payroll Phase 2 expands the data reported to the ATO with each pay run, including disaggregated gross amounts, income types, and country codes. All employers should now be STP Phase 2 compliant through their payroll software, replacing payment summaries with ATO income statements.
Key Facts
- STP Phase 2 requires reporting disaggregated gross amounts (salary, allowances, overtime, bonuses separately)
- Payment summaries are no longer issued — employees access income statements via myGov
- Income types (SAW, CHP, WHM, etc.) must be correctly mapped for each employee
- Closely held payees have a quarterly reporting concession
- Non-compliance can result in penalties starting at $210 per failed report
What You Need to Know
This guide covers the essential compliance requirements that Australian employers need to understand. Non-compliance can result in significant penalties, ATO audits, and reputational damage.
We recommend using purpose-built software that automates compliance reporting. The right software will handle rate changes, deadline reminders, and lodgement with the relevant authorities.
Official Resources
For the latest official requirements, refer to these government resources:
- ATO — Single Touch Payroll — Official ATO resource for STP Phase 2 reporting requirements and compliance
- ATO — STP Phase 2 Details — Detailed Phase 2 reporting changes, income types, and employer obligations
Recommended Software
The following software products handle payroll compliance for Australian businesses: