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Salary sacrifice reporting and activity statements

Last updated 7 September 2023

Salary sacrifice

Most employers have now transitioned to Single Touch Payroll (STP) Phase 2. With the transition to STP Phase 2, the way employee year-to-date (YTD) amounts are reported has changed.

Previously with STP Phase 1 reporting, employers only reported post-sacrificed amounts to us.

STP Phase 2 requires employers to report pre-sacrificed amounts and separately report the salary sacrificed amounts:

  • type S for amounts sacrificed to super
  • type O for amounts sacrificed towards other benefits.

Activity statements

There has been no change to activity statement requirements – employers still need to report post-sacrificed amounts at W1 and should not include pre-sacrificed amounts at this label.

As a reminder we will pre-fill labels W1 and W2 of your clients' activity statements in ATO online services, using the employer level totals reported to us through STP.

Different payroll solutions have different ways of setting up and displaying salary sacrifice amounts, so employers should refer to their product’s guidance.

Need help?

You can refer to our website for help to correct information reported through STP.

Accurate STP reporting is important to ensure:

  • employees have the right information displayed in their income statement
  • we can pre-fill employees’ individual income tax returns with the right information
  • other government agencies have the right information when interacting with employers or their employees.

We have a range of resources available to help your employer clients get their STP Phase 2 reporting right, including: