Single Touch Payroll 2 Deferral

STP 2 Single Touch Payroll

The Australian Taxation Office announced a blanket 2-month deferral for employers to transition to Single Touch Payroll (STP) Phase 2. Australian employers will now have two more months to transition to the second phase of Single Touch Payroll. The deferral was announced by the ATO  in light of the current business environment. See link  – here

Benefits of the upgraded STP 2 phase include more breakdown of the wages, allowances and other payments employees receive. Details of an employees termination will be recorded through STP meaning no more separation certificates are required. The information will be shared with Services Australia (Centrelink). Over time Services Australia will be able to prefill customers forms and streamline claims with the information they receive.

“Whilst the start date for STP phase 2 remains 1 January 2022, the ATO is committed to supporting employers transition to STP Phase 2 reporting by being flexible, reasonable and pragmatic,” an ATO spokesperson told Accountants Daily.

Whilst the official start date remains at 1 January 2022, an ATO spokesperson told Accountants Daily  that the Australian Taxation Office are “committed to supporting employers transition to STP Phase 2 reporting by being flexible, reasonable and pragmatic.”

Matthew Addison, executive director of the Institute of Certified Bookkeepers, said the ATO’s concessions would come as a relief for many practitioners and their clients.

The Institute of Public Accountants general manager of technical policy Tony Greco said the profession would welcome any concession after a torrid 18 months.

If your software is STP Phase 2 enabled and ready on 1 January 2022 you can of course start reporting. The ATO encourage earlier adoption as February and March is a busy time with December BAS, FBT and tax planning!

Software such as Xero and MYOB has already started to prepare and transition for the new requirements.