STP expansion (Phase 2) date announced

In the 2019-2020 Budget it was announced that the data collected through Single Touch Payroll (STP) will be expanded. This expansion of STP data reduces the reporting burden for employers who need to report information about their employees to multiple government agencies and supports the administration of the social security system.

Between 8 December 2020 and 14 January 2021 we released a draft Legislative instrument for consultation. This specified a proposed mandatory commencement date of 1 July 2021 for additional STP reporting.

We have considered the feedback received on the proposed mandatory reporting date and the importance of this government initiative to reduce the reporting burden for employers. The Commission has now decided to proceed with a mandatory commencement date of 1 January 2022.

As we move closer to 1 January 2022 there may be circumstances where a Digital Service Provider, Payroll Service Provider or employer informs us that, despite their best efforts, they may not be able to meet this deadline. There will be a deferral framework which will provide a process for an application for a deferral to be made. We will consider these applications based on the circumstances presented to us. The deferral can be applied for by a software provider on behalf of their clients. Details of the deferral framework will be provided shortly.

04.02.2021 – Jennifer Moltisanti, Assistant Commissioner, ATO