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  • What is STP?

    STP works by sending tax and super information from your STP-enabled payroll or accounting software to the ATO as you run your payroll.

    You will:

    • run your payroll
    • pay your employees as normal
    • give them a payslip.

    Your pay cycle does not need to change. You can continue to pay your employees weekly, fortnightly or monthly.

    Your STP-enabled payroll software will send us a report which includes the information we need from you, such as:

    • salaries and wages
    • pay as you go (PAYG) withholding
    • super liability information.

    STP Phase 2 doesn't change the payments you need to report through STP, but it does change how those amounts need to be reported. For a full list of payments that must be reported through STP, see:

    Super funds will also be reporting to us. They'll let us know when you make the super payment to your employees' chosen or default fund. This is an important step toward making sure employees are paid their correct entitlements.

    ATO systems will match the STP information to our employer and employee records.

    If your employees have a myGov account linked to ATO online services, they will be able to see their year-to-date tax and super information in their Income statement. Their data is updated every time you report. For most employers, this will be each pay day.

    At the end of the financial year you'll need to finalise your STP data. This means you are making a declaration that you have completed your reporting for the financial year.

    Once you finalise your data, your employees' Income statement in ATO online services will be marked as 'Tax ready'. They, or their registered agent, will use the Income statement to lodge their tax return.

    You won't need to provide us with a payment summary annual report for the payments you report through STP.

    If you currently lodge an activity statement you will continue to do so.

    See also:

    Last modified: 01 Sep 2021QC 60136