STP (Single Touch Payroll)
Single Touch Payroll (STP) Phase 2 requires Australian employers to report payroll data to the ATO on or before each payday. Mandatory since January 2022.
Ask Chalkline about this →Single Touch Payroll (STP) is the ATO’s real-time payroll reporting system. Under STP Phase 2, which became mandatory for all Australian employers on 1 January 2022, employers must report each pay event to the ATO on or before the day they pay their employees (verified 2026-05-11, ATO, Single Touch Payroll Phase 2 employer reporting guidelines). The report includes gross wages, tax withheld, and super liability for each employee. All major payroll software packages (Xero, MYOB, KeyPay) handle STP2 reporting automatically.
Phase 2 expanded the original STP (Phase 1) by requiring more detailed income disaggregation: allowances, salary sacrifice, and leave types must be separately itemised rather than rolled into a gross figure. This change benefits employees (Centrelink can see more accurate income data) and the ATO (better cross-matching).
Also known as: Single Touch Payroll, STP2, STP Phase 2.
Category: Tax and payroll.
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Last updated: 2026-05-11. Verified: 2026-05-11. Quarterly review for currency.