Statement of tax record

Why do I need a statement of tax record?

You may be required to provide a statement of tax record (STR) for one of the following reasons:

• Commonwealth procurement
• Child Care Subsidy

Commonwealth procurement rules

Businesses tendering for Commonwealth procurements for the Australian Government undertaken through open tenders are subject to the Commonwealth Procurement RulesExternal Link. All tenderers require a Statement of tax record (STR) showing satisfactory engagement with the tax system for procurements with an estimated total value at $4 million or more (inclusive of GST) for all goods or services.

Where the total value of an approach to market exceeds the $4 million threshold, all respondents are subject to STR requirements. This is regardless of the value of individual contracts that may be awarded under the procurement.

At the time of submissions, tenderers must:

• provide all valid and satisfactory STRs for their entity type in their submissions, and
• hold copies of valid and satisfactory STRs for first-tier subcontractors that the tenderer will engage to deliver goods or services as part of the procurement contract, if known at the time of submission.

STRs for prime contractors and first-tier contractors

A prime contractor is a business tendering for or under contract with a Commonwealth entity.

A first-tier subcontractor works directly for a prime contractor. The tenderer or prime contractor must hold valid satisfactory STRs of their first-tier subcontractors engaged to deliver goods or services as part of a procurement resulting from a procurement that is valued at $4 million or more, including GST. This is regardless of the value of individual contracts that may be awarded under the procurement.

If any first-tier subcontractors are subsequently engaged on the contract, the successful tenderer or prime contractor must:

• hold valid and satisfactory STRs of their first-tier subcontractors they engage to deliver goods or services as part of the procurement contract
• provide the STRs of first-tier subcontractors to the Commonwealth entity at the time of tender closing or upon entering the subcontract upon request.

At the time the contract is awarded

The Commonwealth entity must hold a valid satisfactory STR for the successful tenderer, and any other entities the successful tenderer is required to provide valid and satisfactory STRs for. If your STR is no longer valid at the time of contract award, you will be requested to provide an updated STR before entering into the contract.

During the life of the contract

Successful tenderers must maintain valid and satisfactory STRs and provide them to the Commonwealth entity on request.

The Commonwealth entity may require first-tier subcontractors to maintain valid and satisfactory STRs over the course of the contract. If this requirement is included, it must be detailed in the ‘request documentation’ and the contract.

Child Care Subsidy

From 1 April 2025, all new child care providers applying to administer the Child Care SubsidyExternal Link (CCS) program on behalf of the Australian Government will be required to provide an STR as part of their application for approval.

At the time of your submission, your STR must be valid and have an issue date of no more than 30 days before the date of your application.

Who needs to obtain an STR

Who needs to obtain an STR depends on your entity type and under which policy you are required to provide an STR.

Commonwealth procurement

You must obtain a satisfactory STR if any of the following apply:

• You are a business (prime contractor) tendering for Commonwealth procurements with an estimated total value at $4 million or more (including GST).
• You are an associated entity of the tenderer or prime contractor, such as a trustee of a trust or a partner of a partnership.
• You are a first-tier subcontractor to be engaged or engaged by the tenderer or the prime contractor in respect of the procurement contract.
• You are a supplier involved in a panel arrangement when the total value of orders under the arrangement is collectively estimated to be at $4 million or more (including GST).
• You are required as outlined in the tender request documentation.

Partnerships

If the tenderer or subcontractor is a partnership, the partnership and each partner directly involved in delivering the procurement or contract must request an STR.

New partners who subsequently become directly involved in the delivery of the contract must provide a valid and satisfactory STR to the contracting entity within a reasonable time after they become involved.

These STR requirements apply if those involved remain partners in the partnership.

Trusts

If the tenderer or subcontractor is an Australian or a foreign trust, the trust and each trustee must provide a valid and satisfactory STR.

A trustee includes a corporate trustee, and they need to have a tax file number (TFN) to apply for an STR.

Joint ventures

If the tenderer or subcontractor is a joint venture, each party to the joint venture must provide a valid and satisfactory STR.

The joint venture operator must also request an STR even if they are not a participant of the joint venture.

Income tax consolidated group

If the tenderer or subcontractor is the head company of an income tax consolidated group, or a multiple entry consolidated (MEC) group, the head company must provide a valid and satisfactory STR. Its subsidiaries do not need to request an STR.

Where the tenderer or subcontractor is a subsidiary of an income tax consolidated group, or a MEC group, both the subsidiary and the head company must provide a valid and satisfactory STR.

Member of a GST groups

If the tenderer or subcontractor is a member of a GST group, the group representative and the group member must request an STR.

Child Care Subsidy

You must obtain an STR if any of the following apply:

• You are a new child care provider applying to administer the CCS and are required to provide an STR as part of your application for approval.
• You are an existing CCS approved child care provider who has been requested to provide an STR by the Australian Government Department of Education.
• You are an associated entity of the child care provider, such as a trustee of a trust or a partner of a partnership.

Partnerships

If the child care provider is a partnership, the partnership and each partner of the provider must provide a valid STR.

New partners joining the provider must request an STR within a reasonable time after they join the partnership.

STR requirements apply to all partners in the partnership.

Trusts

If the provider is a trustee, all trustees and the trust must provide a valid STR.

A trustee includes a corporate trustee. They need to have a TFN to apply for a valid STR.

Joint ventures

If the provider is a joint venture, each party to a joint venture must provide a valid STR.

The joint venture operator must also request an STR even if they are not a participant of the joint venture.

Income tax consolidated group

If the provider is the head company of an income tax consolidated group, or a multiple entry consolidated (MEC) group, the head company must provide a valid STR. Its subsidiaries do not need to request an STR.

Where the provider is a subsidiary of an income tax consolidated group, or a MEC group, both the subsidiary and the head company must provide a valid STR.

Member of a GST group

If the provider is a member of a GST group, the group representative and the group member must request an STR.

Who should not apply for an STR

An individual who is not in business should not apply for an STR.

The criteria for a satisfactory STR only apply to businesses (or their associated entities) that are either:

• tendering for a Commonwealth procurement
• applying for approval to administer CCS or to continue administering CCS.

Criteria for a satisfactory STR

The information in an STR comes from details on our systems. This may include information provided under Australia’s self-assessment regime.

To get a satisfactory STR, you need to:

• be up to date with registration requirements, which may include
  • being registered for an Australian business number (ABN) and goods and services tax (GST)
  • having a tax file number (TFN)
    • if you are a tendering business or their first-tier subcontractor, you will need to be registered for a TFN, ABN and GST
    • if you are a partner or trustee, including a corporate trustee, you will need a TFN (you may also need to be registered for an ABN and GST if you are carrying on a business in your own right)
• have lodged at least 90% (of each lodgment type) of your obligations due in the last 4 years of operation (from the date of your request for an STR), including
  • income tax returns
  • business activity statements (BAS)
  • fringe benefits tax (FBT) returns
• need to pay any undisputed debt of $10,000 or more by the due date or have a payment plan in place with us. (Disputed debts subject to a formal objection, review or appeal will not affect a satisfactory STR.)

Note: Reasonable delays in lodgments due to extensions agreed to by us will not affect you receiving a satisfactory STR.

Child care providers – GST registration

If you are a child care provider and have received an unsatisfactory STR because you did not meet the GST registration requirements, and you believe you do not need to be registered for GST, contact us at STRenquiries@ato.gov.au to confirm. We will respond within 4 business days.

Entities with less than 4 years Australian tax history

If you have an Australian tax record of less than 4 years (for example, if you are a new Australian business or a foreign tenderer), you need to meet extra additional conditions to obtain a satisfactory STR. This includes making statements confirming that you:

• agree to comply with and pay all Australian tax obligations
• have no tax-related convictions in the last 4 years
• are complying with or do not have tax obligations outside of Australia
• are an Australian resident or non-resident for tax purposes.

Make sure you have correctly answered all supplementary statements before submitting your application.

If you are unable to agree to any of these statements, you may still submit your request. However, you will not receive a satisfactory STR.

Unsatisfactory STR

You will receive a Statement of tax record – Taxpayer report, with your STR. The taxpayer report will show the criteria that were met or not met and is for your information only. You do not need to provide this to a third party.

If you did not meet the satisfactory STR criteria, you may be able to take corrective action to bring your tax obligations up to date. You may then reapply for an STR the day after the corrective action is recorded in our systems.

How to correct an unsatisfactory STR

The following corrective actions may help you to meet the satisfactory STR criteria.

Registration

Ensure you are up to date with registration requirements (ABN, GST, TFN). You may need to work out which registrations you need.

Outstanding lodgments

Ensure you have lodged at least 90% of all tax returns, FBT returns and BAS due in the last 4 years, or the period of operation if less than 4 years.

See how to work out if you need to lodge a tax return.

You should also notify us if lodgment is not required or if you have nothing to report. Otherwise, you may receive an unsatisfactory STR. You must tell us before the lodgment due date so we can update our records.

Outstanding debt

You can pay any undisputed debt of $10,000 or more by the due date, or ask to set up a payment plan.

Partners or trustees of a tendering business

Ensure you have correctly indicated these details in your STR request.

Less than 4 years Australian tax history

Ensure you have correctly answered all supplementary statements.

Requesting an STR

We recommend that entities requiring an STR:

• Refer to the tender request documentation or information from the Department of Education to confirm your requirements.
• Apply for an STR early to allow time for processing, ensuring easier submission of your STRs for current and future requirements.
• Keep your tax obligations (registration, lodgment, payment) up to date to ensure you receive a satisfactory STR.

We will process changes made to your tax records in line with our service standards, either before your STR application or as part of corrective action. This may not be faster due to your STR request.

How to apply

How to apply for an STR will depend on whether you are:

• Registered with the ATO
• Not registered with the ATO
• Without digital access to the ATO
• Applying during an ATO system outage

Registered with the ATO

Being registered with the ATO means you have a TFN, ABN or both.

You can apply for an STR using ATO online services. You will receive your STR through the same online service you applied through within 4 business days.

Note: Corporate trustees that have a TFN but do not have an ABN cannot apply for an STR online. You can apply by phone and request an STR application receipt during your phone application. We can email it the same day.

Online services for individuals and sole traders

As a sole trader, you can apply for your STR online using either:

• Online services for individuals
  • if you haven't set it up yet, create a myGov account and link it to the ATO
  • once set up and linked, you can apply for your STR online
• Online services for business
  • if you have it already set it up for your ABN to apply for your STR online
  • if you need to set it up, use the following guidance.

Online services for business

As a business or not for profit (NFP) organisation, you need to be set up to use Online services for business.

Corporate trustees of trusts who have an ABN can also use this service.

Update ABN details

To use Online services for business, your associate details must be up to date on the Australian Business RegisterExternal Link (ABR).

An associateExternal Link is usually a public officer, director or office bearer.

You can check the public information for your Australian business number (ABN) by searching on ABN LookupExternal Link.

If your ABN details are up to date, go to Set up your myID.

If your ABN details are not up to date, you’ll need to update them by phoning or lodging a form. See how to:

• Update your details for businesses
• Notify us of changes for not-for-profits.

Set up your myID

Each person who uses Online services for business on behalf of your ABN must have their own unique myID.

You can download the myID app from the Apple App Store or Google Play. Follow the instructions on How to set up your myIDExternal Link to a Strong or a Standard identity strength.

Note: Online services for business will log out after 20 minutes of inactivity, so it's important to regularly save your work. If you are timed out, just log in again.

Link your myID to your ABN in RAM

If you have a Strong myIDExternal Link and are listed on the ABR, you can link your ABN online on Relationship Authorisation ManagerExternal Link (RAM). See how to link as a Principal authorityExternal Link.

If you have a Standard myIDExternal Link or you are not listed as an associate, you’ll need to contact RAMExternal Link to link your business.

Once linked, you can Set up authorisationsExternal Link for others to access government services, including Online services for business on behalf, of your ABN.

If authorisations are correct, use your myID to log in to Online services for businessExternal Link and follow the instructions to Apply for an STR.

Review permissions in Access Manager

As the principal authority, you can manage permissions for access to ATO online services for your business in Access Manager.

You can assign and manage permissions for all your authorised users.

To lodge the STR on behalf of the ABN, your staff will need full permission and access in RAM.

All actions taken by those authorised are deemed to have been taken by the principal.

After you set permissions in Access Manager, use your myID to log in to Online services for businessExternal Link and follow the instructions to Apply for an STR.

Apply for an STR

Note:

• You can refer to the Help content on the online application page for more guidance on completing your application.
• If you are applying for an STR as a partner or a trustee of a business, you must indicate this in your STR request.

Are you applying as a partner or a trustee of a business, either:

• tendering for a Commonwealth contract through AusTender
• providing child care services or will be applying for approval to administer CCS from the Department of Education.

Select You are applying as a Partner or a Trustee of a business for the question 'Why are you applying for an STR' during your application.

Not registered with the ATO

No digital access to the ATO or there is an ATO system outage

If you have no digital access:

• for businesses, phone 13 28 66
• for tax agents, phone 13 72 86 Fast Key Code 1 2 5 1.

If you apply by phone, you will be mailed a paper copy of your STR. It may take longer than 4 business days for you to receive it due to postal delivery times.

If you are applying by phone due to an ATO system outage, your STR will be available in online services when ATO systems are operating again.

Receiving an STR

We will generally process your request for an STR within 4 business days.

If you apply using Online services for agents, Online services for business or ATO online services (for individuals and sole traders), you will receive your STR through the same online service and Statement of tax record screen that you applied through.

Statement of tax record screen

The Statement of tax record screen will display a receipt within 24 hours of submitting your request. Your receipt is evidence that you have applied for an STR, and we have received your application.

Once we have processed your request, the Requests section will display both your:

• Statement of tax record – specifying whether you have met or not met the satisfactory criteria
• Statement of tax record – taxpayer report detailing the elements of the SEPCP or CCS criteria you met or did not meet.

Phone us

If a receipt does not display within 24 hours of submitting your request, or you do not receive the STR within 4 business days, phone us on:

• 13 28 66 (for businesses)
• 13 72 86 (for registered agents).

If you believe the outcome of your statement is inconsistent with the information you have provided to us, phone us on the numbers above.

STR not received within 4 business days

For Commonwealth procurement, if you have requested an STR but have not received it by the tender closing date, refer to your tender request documentation to determine what you can do.

For Child Care Subsidy, refer to your information about the Child Care Subsidy requirements for what you may need to do.

STR validity

An STR is valid for either:

• 12 months from the time of issue, if you have an Australian tax record of 4 or more years.
• 6 months from the time of issue, if you have an Australian tax record of less than 4 years.