What is Single Touch Payroll (STP)?
Single Touch Payroll, or STP, is the Australian system under which employers report each employee's pay, pay as you go (PAYG) tax withheld and superannuation information to the Australian Taxation Office every time they pay staff. The report is sent from STP-enabled payroll software on or before payday, so the ATO sees payroll as it happens.
Also calledSTPSTP Phase 2
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- Report due
- On or before payday
- Year end
- Finalisation declaration
- Country
- Australia
How Single Touch Payroll works
Each pay run creates a pay event that the payroll software sends to the ATO. It includes gross pay and tax withheld, which also pre-fill the PAYG withholding labels W1 and W2 on the business activity statement, plus super liability information. Phase 2 of STP added more detail, such as income types and a breakdown of gross pay into components like allowances, overtime and leave, so the data can be shared with other government agencies. At the end of the financial year, the employer makes a finalisation declaration through STP instead of issuing payment summaries; employees see their income statement in their myGov account. From 1 July 2026, when super guarantee moves to being paid each payday, STP reports also carry the qualifying earnings and super liability for each pay. Payroll software and payroll providers file STP directly.
Common questions
Who has to report through Single Touch Payroll?+
All employers in Australia that pay employees, with limited exemptions and concessions, for example for some small employers paying only closely held payees such as family members.
What is STP Phase 2?+
The expanded version of STP, which reports more detail on each payment, such as income types and a breakdown of gross pay into allowances, overtime, leave and bonuses.
Do employees still get payment summaries?+
No. Employers finalise each employee's data through STP at the end of the financial year, and employees see their income statement in myGov, marked tax ready.
Payroll software that reports through STP
Part of Accountio’s accounting technology coverage · Glossary
