Authorisations to act

Employers may authorise their registered agents to act on their behalf for STP through an annual agreement.

Last updated 12 March 2025

STP pay event form

The Single Touch Payroll (STP) pay event is an approved form submitted to the Commissioner of Taxation. Each time you lodge, you need to declare that the:

  • information contained in the approved form is ‘true and correct’
  • declarer is authorised to lodge the approved form.

Employers can make a standing declaration for STP reporting allowing registered tax or BAS agents to act on their behalf covering a period of time instead of making a declaration at each pay event. This is called an STP engagement authority.

STP engagement authority

The STP engagement authority is a written agreement providing evidence that a registered agent is:

  • authorised to prepare STP pay events on behalf of an employer
  • allowed to make the relevant declaration to the Commissioner when each STP pay event is lodged.

The STP engagement authority must only be used for lodging an STP pay event. It does not apply to other forms (such as activity statements) that the employer may be required to lodge.

The engagement authority can cover multiple pay event lodgments and ends at the earlier of:

  • 12 months after the engagement authority was given to the registered agent
  • the day the agent is notified that the declaration is withdrawn by the employer, or
  • the day the agent becomes aware there has been a material change in the relationship between the employer and the agent or in the affairs of the entity since the declaration was made.

For an STP engagement authority to continue beyond that time, a new one needs to be made.

Material changes include, but are not limited to, changes to:

  • the agent relationship (ending the engagement or changing the level of the agent’s responsibilities)
  • the agent’s status (for example, there is a change to the status of the agent’s Tax Practitioners Board registration through termination, suspension or other sanctions)
  • the business environment that results in a significant change to how the employer completes reporting obligations (for example, changes to the payroll software used), or
  • the law or policy applying to STP reporting (for example, if the employer was required to report additional amounts or if significant changes to the approved forms for reporting are made).

What to include in the authority

The STP engagement authority should:

  • outline the responsibilities of both parties
  • include the employer's
    • agreed terms of collation of payroll related inputs
    • process for calculating and paying their employees
    • taxation and superannuation obligations.

It is expected the declaration will include the following statement:

The STP engagement authority may only apply for a period of no longer than 12 months. This is to ensure the employer and the registered agent have reviewed and agreed on the terms of the arrangement in line with industrial, taxation and business changes impacting the payroll.

Both the employer and registered agent must:

  • co-sign the agreement
  • keep a copy for their records.

You don't need to provide a copy to us unless we ask for it.

Exclusions

The STP engagement authority does not apply to:

  • other approved forms
  • the finalisation declaration.

A registered agent must still obtain a signed declaration in writing from an employer before making the STP finalisation declaration on behalf of the employer.

QC56773