What is single touch payroll?

Single touch payroll (STP) is a government initiative designed to enable a real-time exchange of data between employers and the ATO.

Under STP, you'll need to report payments to the ATO (i.e. super information, salaries and wages and pay as you go [PAYG] withholding) from your payroll system at the same time as you pay your employees. 

In effect, the new system aims to streamline tax and super reporting so that you can meet your employer obligations with less fuss.

Your payroll solution will need to be compatible with the STP system. Speak with your payroll provider to find out if you're already compliant.

When will it be mandatory?

For employers with 20 employees or more, STP will be mandatory from 1 July 2018.

Subject to legislation, the government is also looking to expand STP to employers with 19 employees or less from 1 July 2019.

Will this affect default fund arrangements?

STP won't affect your current default or employer-preferred super fund arrangements.

As you would normally, communicate default super fund arrangements to new employees when they fill in their Tax File Number Declaration and Choice of Fund forms.

I’m not using a clearing house, what should I do?

If you have 20 or more employees and aren’t using a clearing house, apply here to register for QuickSuper Clearing House access.

If you have 19 or fewer staff members, we suggest registering with the government’s Small Business Superannuation Clearing House.

Need to know more?

We'll keep you updated as information comes to hand. You can also speak to your BDM who will be happy to answer any questions you might have.

Visit the Australian Taxation Office website for more detail on the new system and your employer obligations.