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  • STP expansion (Phase 2) delayed transitions

    You may be able to delay your transition to Single Touch Payroll (STP) Phase 2 reporting, depending on your circumstances.

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    STP Phase 2 reporting

    The mandatory start date for STP Phase 2 reporting is 1 January 2022. A guide for employers is available for information about reporting.

    If your digital service provider has a deferral, this covers their customers and you do not need to apply for more time.

    If the STP-enabled solution you use is ready and you can start reporting by 1 March 2022, you will be considered to be reporting on time. You do not need to apply for extra time in this circumstance.

    However, there may be other circumstances where you will need more time to transition to STP Phase 2 reporting.

    Applying to delay your transition to STP Phase 2 reporting is different to other types of STP deferrals.

    Digital service provider deferrals

    Digital service providers (DSPs) can apply for a deferral if they need more time to upgrade their STP-enabled solutions.

    If a DSP is granted a deferral, it will cover their customers and they will let you know what to do and when. Employers using their product do not need to apply for their own deferral.

    If you can start reporting from your next pay run after your DSP's deferral expires (or earlier), you do not need to apply for more time.

    If you are covered by a DSP deferral, you must continue to meet your current STP reporting obligations until you transition to STP Phase 2 reporting.

    If you need more time

    If your DSP does not have a deferral or you need more time beyond your DSP's deferral, you can apply for a delayed transition to STP Phase 2 reporting.

    Before applying for a delayed transition to STP Phase 2 reporting, you should determine if you are already covered by your DSP's deferral. If you can start STP Phase 2 reporting when your DSP's deferral expires, you do not need to apply for your own delayed transition.

    You can apply through ATO Online Services.

    You must:

    • already be reporting through STP to be able to delay your transition to STP Phase 2 reporting
    • continue to meet your current STP reporting obligations until you transition to STP Phase 2 reporting.

    Employers requesting more time to transition

    To request more time to transition to STP Phase 2 reporting, log in to Online services for business and complete the following steps:

    1. Select Employees
    2. Select STP deferrals and exemptions
    3. Select Delayed transition to STP Phase 2 expansion
    4. Complete the request
    5. Click Submit.

    When you apply for more time, you will need to tell us:

    • which payroll software you use
    • the reason you are seeking a delayed transition
    • the date you expect to be able to start reporting the expanded data.

    You can attach supporting documentation to support your application.

    If you choose Other special circumstances, you will need to provide information about your circumstances and why they impact your ability to start Phase 2 reporting.

    If you use a registered tax or BAS agent, they can request the delayed transition for you.

    You can also phone us to apply on 13 28 66.

    Employers with 5,000 or more employees

    If you have 5,000 or more employees and need more time to transition to STP Phase 2 reporting, you must provide additional information with your application. This must include information such as a schedule and/or a detailed plan which outlines your circumstances and the steps you are taking to prepare for your transition.

    You can attach this additional information to your application.

    If you are a head entity and need to apply on behalf of multiple ABNs in your group, you will be able to submit one application. We will publish instructions on how to do this soon.

    If we need more information from you, we will contact you.

    Registered agents requesting more time to transition

    You can apply for a delayed transition to STP Phase 2 reporting on your client's behalf.

    Before you apply, you should determine if your client is already covered by their DSP's deferral.

    Client not ready to report

    If one of your clients is not ready to start STP Phase 2 reporting, you can apply for a delayed transition on their behalf. Log in to Online services for agentsExternal Link and complete the following steps:

    1. Select Business
    2. Select STP deferrals and exemptions
    3. Select Delayed transition to STP Phase 2 expansion
    4. Complete the request
    5. Click Submit.

    Multiple clients not ready to report or you need more time

    If you have multiple clients who are not ready to start STP Phase 2 reporting or need more time to get ready, you will be able to lodge a bulk request. We will publish instructions on how to do this soon.

    After you submit your request

    We will let you know immediately if your request has been accepted or if we need more time to consider your request.

    If we need more time, it may take up to 28 days for us to process your request. Do not resend an application within the 28-day processing period. This could cause possible delays to the processing of your original request.

    We will let you know when your request has been processed.

    Last modified: 03 Dec 2021QC 67409