Single Touch Payroll Phase 2 Advisory Group key messages 20 May 2021

Group outcomes

The Single Touch Payroll (STP) Phase 2 Advisory Group Charter was tabled and endorsed by the group. The primary focus of the group is to work with industry to help guide and shape the direction of the program specifically for STP Phase 2.

The group discussed how it connects with other internal/external STP committees, consultative and special purpose working groups. ATO will provide members with an overview post meeting.

Industry update

Members provided insights on STP Phase 2 including:

• Request for additional guidance on the ATO website, which provides the granular detail for digital service providers (DSP), accountants, bookkeepers, and tax agents to assist employers with STP Phase 2.
• Employers need to understand how to report STP code. Questions were raised about transitioning between a payroll solution with the same or different vendors.
• The Association for Payroll Specialists have seen a reduction in inbound calls regarding STP Phase 2 following the STP livestream event.
• There has been good response to STP Phase 2 support and messaging from ATO.
• The group discussed the complexities in implementing STP Phase 2, such as year to date amounts that were aggregated in Phase 1, now disaggregated in Phase 2. ‘Disaggregation of gross’ can be problematic for employers to accurately report these amounts to ATO and will require clear guidance/communication.
• Concerns from large platform providers and BAS/payroll agents around the 1 January 2022 start date.
• DSP developers noted the ATOs testing environments and approach for Phase 2 appear more robust and mature.
• DSPs indicated they will be utilising the deferral framework.

STP journey

ATO provided a presentation on the overview of the STP journey to date. Discussion included changes in ATO’s approach to post verification testing , extended conformance testing and challenges employers may experience transitioning from STP Phase 1 to STP Phase 2.

Other business

Members asked for a STP induction pack to assist new and current members to be on the same page and have the same understanding of STP.