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.

On this page

• STP Phase 2 reporting
• Digital service provider deferrals
• If you need more time
• After you submit your request

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.

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's 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 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

To apply on behalf of your client, log in to Online services for agentsExternal Link and complete the following steps:

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

Applying on behalf of 10 or more clients (Bulk Requests)

You can lodge the Single Touch Payroll Phase 2 Delayed Transition Bulk Request (XLSX, 628KB)This link will download a file if:

• you have 10 or more clients requiring a delayed transitional deferral, and
• you or your clients are not covered by a DSP deferral.

You will need to complete all the required fields in the deferral request form and save a copy in Excel format to your computer.

From the Online Services for Agents home page

1. Select Communication then Practice mail
2. Select New message
3. Select topic View more topics then select General questions, problems and help
4. Select subject Single Touch Payroll Deferrals
5. Attach and send your deferral request.

You can't use this form for requests for less than 10 clients. For these requests, you will need to lodge separate applications through the online tool process outlined under Client not ready to report.

After you submit your request

For single applications submitted through the online tool:

• 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, if we need more information from you, we will contact you.
• You will receive a receipt ID as proof of your request.

For bulk requests:

• We may take up to 28 days to process your request, if we need more information from you, we will contact you.
• You will receive a receipt ID as proof of your request.

Do not resend a further deferral application for the same clients within the 28-day processing period. This may cause a delay to the processing of your original request.

We will let you know when your request has been processed and provide details of the new deferral dates for eligible clients through Online Services for Agents.