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Small Business ResourcesSingle Touch PayrollSTP Phase 2Why the ATO is rolling STP Phase 2

Why is the ATO rolling out STP Phase 2?

The ATO and several related government bodies are seeking to reduce manual processes, reporting burdens and increase communication between businesses and the government. The aim is to better understand how each individual employee is paid and automate the transmission and storage of this information, especially when inter-departmental processes arise, such as child support.

As the ATO notes on the new update: “This expansion of STP (also known as STP Phase 2) will reduce the reporting burden for employers who need to report information about their employees to multiple government agencies. It also supports the administration of the social security system.”

Key benefits:

  • Some reporting requirements across multiple Government agencies are now consolidated e.g child support reporting
  • Improve visibility and support the delivery of social welfare
  • Remove the need for employment separation certificates
  • Remove the requirement to send employee TFN declarations to the ATO
  • Employee tax return deductions and returns are easier to complete

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