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Single Touch Payroll (STP) is a Commonwealth Government proposal that enables employers accounting software to automatically report payroll and super information to the Australian Taxation Office (ATO) at the same time as they pay their employees. The key components of STP are to:
STP is designed to simplify tax and superannuation reporting obligations. The proposed changes were introduced into Parliament on 31 August 2016 as part of the Budget Savings (Omnibus) Bill 2016.
Important dates to remember:
The ATO will be running a pilot with small businesses soon to help them understand their needs, and explore the benefits of STP.
In addition, STP includes streamlined processes for new employees commencing employment. Access will be available to pre-filled forms including tax file number declaration and super “choice of fund” forms through their myGovExternal Link account, making it easier for your employees.