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STP for insolvency practitioners

As an insolvency practitioner, work out how to meet STP obligations of an incapacitated entity under administration.

Last updated 31 August 2021

If you are an insolvency practitioner for an 'incapacitated entity' under administration, you will need to work out how the entity's Single Touch Payroll (STP) obligations can be met.

Payments that need to be reported include:

  • all payments of salary and wages, fair entitlements guarantee (where applicable), either superannuation liability or ordinary time earnings (or both) and pay as you go (PAYG) withholding for employees of your client
  • any component of a dividend in lieu of salary and wages or leave, where that component is separately identifiable
  • any other payments subject to withholding that have typically been included in the employees PAYG withholding payment summary.

If your client is already reporting through STP, you should continue to report on, or before, the pay date either through the client’s software or your own practice software.

The way to report STP obligations depends on the circumstances, such as who is controlling the payroll and associated reporting.

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:

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Client controls payroll and associated reporting

If the client continues to manage their payroll software, pay runs and associated reporting, they can submit their STP data to the ATO directly through their STP-enabled software solution.

You control payroll using entity’s software

If you are using the incapacitated entity’s software to run pays and generate associated reporting, you can lodge the STP reports from their STP-enabled software.

If you need to report for a pre-insolvency period using the entity's software, you don't need to change the integrated client account number.

If you're reporting for the post-insolvency period, you will need to change the integrated client account number to the administrator or liquidator's integrated client account number.


  • If payments are made under the incapacitated entity’s ABN, then the STP reports should reflect this ABN.
  • If payments are made under a new ABN for the purposes of the administration, the reports should reflect this ABN.

You control payroll using your software

Most insolvency practice software has now been updated to become STP-enabled.

This means you will be able to generate and lodge the STP reports for an incapacitated entity’s payroll from your practice software.

Appointed as an insolvency practitioner

Where you have been appointed as an insolvency practitioner and are waiting for the ATO to issue a branch number, you are not required to report under STP on behalf of the incapacitated entity during this period.

Once the branch number has been issued, you must ensure that STP reporting commences from the very next pay day. The STP report should capture the year-to-date amounts paid to employees of the incapacitated entity from the date you were appointed.

Any amounts the employer has reported through STP prior to the date of appointment should be reviewed. Where possible, the employer should finalise STP reports under their ABN and branch number.

Where the employer cannot finalise previously reported STP amounts, you or the employer should advise us. This is to ensure the correct information is displayed in the employee's income statement and pre-filled in myTax.

Seeking more time or an exemption

If your client has entered into administration and you need more time to move them onto STP reporting, or you're seeking an exemption from STP reporting, you can apply online. To apply for a deferral of exemption on behalf of your client:

Appointment or cessation as a representative

If you're appointed as, or cease being, a representative of an incapacitated entity, you must notify us using the existing form and process.

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