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Disaggregation of gross

In STP Phase 2, all payment types are now reported consistently for each income type.

Last updated 14 November 2023

How reporting has changed

In STP Phase 1, the gross amount you reported contained different types of amounts depending on the income type. This approach has changed in STP Phase 2, all payment types are now reported consistently for each income type.

Instead of reporting a single gross amount, you will now separately report:

There are rules about which separately reported amounts can be included against each income type.

If your employee has an effective salary sacrifice arrangement, you previously would have reported post-sacrifice amounts to us. This has changed in STP Phase 2. You now must report pre-sacrifice amounts, and also report salary sacrifice separately.

Your DSP will advise you on how to implement this change in your solution.

Gross

All remuneration you pay to employees that is reportable through STP, and is not separately itemised, should be reported as gross.

Only pre-sacrifice amounts that are classified as ordinary time earnings (OTE) should be included as gross.

If you are making a back payment or arrears payment, it may be included as gross.

The following table outlines examples of what should and shouldn't be included in Gross.

Gross reporting examples

Include as gross

Don't include as gross

  • ordinary hours worked
  • casual loading
  • shift penalties (including public holiday penalties)
  • payments to employees on Workers’ compensation who are at work performing duties
  • piece rates for work done during ordinary hours
  • daily rates for employees compensated using a flat daily rate
  • flexi time                
    • all ordinary hours paid to employees under a flexi time arrangement are part of gross
    • flexi time arrangements are considered different to Rostered days off (RDOs) and Time off in lieu (TOIL)
  • breach of rest break payments. When an employee does not get an appropriate rest break between shifts, some awards require employees to be paid at overtime rates until the employee is released from duty – even though the employee is being paid at overtime rates, they are working ordinary hours and payment is reported as gross
  • time for travel or training paid within the span of ordinary hours
  • charge rates for work performed, outcomes achieved, or targets met by contractors 

 

 

Paid leave

You will now need to separately report the following leave payments made to your employees in your STP Phase 2 report:

There are special rules for reporting paid Family and Domestic Violence Leave (FDVL).

You don't need to report unpaid leave through STP as there is no payment to report.

Other paid leave (paid leave type O)

All forms of paid absences should be reported as Other paid leave (paid leave type O) unless they are required to be itemised using another leave type.

Only pre-sacrifice amounts that are classified as OTE should be included as other paid leave.

If you are making a back payment or arrears payment, it may be included in other paid leave.

The following table outlines examples of what should and shouldn't be included in Other paid leave.

Other paid leave reporting examples

Include

Don't include

  • annual leave and leave loading
  • long service leave
  • personal or carer’s leave
  • RDOs (time taken and paid at ordinary rates)
  • TOIL (time taken and paid at ordinary time)
  • compassionate and bereavement leave
  • study leave
  • special paid leave
  • gardening leave 

 

 

Paid parental leave (paid leave type P)

All types of paid parental leave must now be reported separately.

Only pre-sacrifice amounts that are not classified as OTE according to the Superannuation Guarantee Act 1992 (SGAA) should be included as paid parental leave. Some industrial instruments may require super to be paid on these amounts.

If you are making a back payment or arrears payment, it may be included as paid parental leave.

The following table outlines some examples of what should and shouldn't be included in Paid parental leave.

Paid parental leave reporting examples

Include

Don't include

  • government paid parental leave (GPPL)
  • employer paid parental leave

 

 

Workers’ compensation (paid leave type W)

Some employers pay workers' compensation to their employees, and in other circumstances the insurer makes the payment directly to the employee. Where you have made workers’ compensation payments, these must now be reported separately.

When reporting workers' compensation (paid leave type W), only include amounts you pay in relation to compensation schemes administered by:

  • a federal, state or territory workers' compensation authority
  • a federal, state or territory road and transport accident authority.

Don't include payments you make in relation to a commercially obtained insurance policy, such as private income protection or salary continuance policies – these are reported as other paid leave (paid leave type O).

Only pre-sacrifice amounts that are not classified as OTE according to the SGAA should be included as workers’ compensation. Some industrial instruments may require super to be paid on these amounts.

If you are making a back payment or arrears payment, it may be included in Workers’ compensation.

The following table outlines some examples of what should and shouldn't be included in Workers’ compensation.

Workers' compensation reporting examples

Include

Don't include

  • payments for any approved (or anticipated approval of) workers’ compensation absence paid by the employer to the employee
  • top-up payments made by the employer
  • workers’ compensation payments made after termination  
    • workers’ compensation payments may be required to continue to be paid, even after the employee is terminated, in accordance with insurer requirements
    • although no longer technically an employee absence, these payments should be reported as workers’ compensation (paid leave type W)
  • payments to employees on workers’ compensation who are at work performing duties – this payment must be reported as gross
  • payments to employees under an income protection or salary continuance insurance policy - this is reported as other paid leave (paid leave type O)

 

  • payments to employees on workers’ compensation who are at work performing duties – this payment must be reported as gross
  • payments to employees under an income protection or salary continuance insurance policy - this is reported as other paid leave (paid leave type O)

 

Ancillary and defence leave (paid leave type A)

There are a range of leave types that are paid while employees participate in volunteer or community activities. If you make ancillary and defence leave payments, they must now be reported separately in your STP Phase 2 report.

Only pre-sacrifice amounts that are not classified as OTE according to the SGAA should be included as ancillary and defence leave. Some industrial instruments may require super to be paid on these amounts.

If you are making a back payment or arrears payment, it may be included in Ancillary and defence leave.

The following table outlines some examples of what should and shouldn't be included in Ancillary and defence leave.

Ancillary and defence leave reporting examples

Include

Don't include

  • community service leave, including voluntary emergency management activities for bodies such as a State Emergency Service, Country Fire Authority and the RSPCA
  • jury duty leave, including attendance for jury selection and jury duty
  • defence reserve leave paid to volunteers of the Australian Defence Forces to undertake defence services
  • all paid absences – including 'make-up pay' for ancillary and defence leave are to be reported as ancillary and defence leave

 

  • defence leave taken by the employee using annual leave, long service leave (LSL) or rostered days off (RDOs) – this should be reported as other paid leave

 

Cash out of leave in service (paid leave type C)

When you pay out leave entitlements in lieu of your employee taking the absence from work, you must now report this separately.

The cash out of leave can only occur when it is allowed by Fair Work rules or other legislative sources.

Only pre-sacrifice amounts that are classified as OTE should be included as cash out of leave in service.

If you are making a back payment or arrears payment, it may be included as cash out of leave in service.

The following table outlines some examples of what should and shouldn't be included in Cash out of leave in service.

Cash out of leave in service reporting examples

Include

Don't include

  • cashed out annual leave and leave loading
  • cashed out long service leave
  • cashed out personal leave
  • cashed out rostered days off 

 

  • cash out of TOIL – this is reported as overtime
  • cash out of annual leave loading that is clearly linked to a loss of overtime – this is reported as overtime

 

Unused leave on termination (paid leave type U)

If you make payments to your employees for unused leave on termination, you must separately include these payments. For more information, see Termination payments.

Family and Domestic Violence Leave (FDVL)

If an employee has taken a period of paid Family and Domestic Violence Leave (FDVL), employers should record this on their pay slip in a way that makes the pay slip look as close as possible to how it would have looked if the employee had not taken the leave.

FDVL must be reported in STP to align with how you show these amounts on the employee's payslip as either:

  • part of gross as an employee’s ordinary hours of work
  • a payment made in relation to the performance of the employee’s work, including (but not limited to) an allowance, bonus or a payment of overtime
  • upon request by the employee, as an amount paid for taking a period of another type of leave (other than a period of paid family and domestic violence leave).

You must continue to treat any amounts that would ordinarily be considered OTE as OTE for super guarantee purposes, and report information about your employee's super entitlements.

Further information about FDVL can be found at the Fair Work OmbudsmanExternal Link.

Overtime

You need to report overtime amounts paid to your employees.

Overtime is when an employee works extra time.

It can include work done:

  • beyond their ordinary hours of work
  • outside the agreed number of hours
  • outside the spread of ordinary hours (the times of the day ordinary hours can be worked).

Only pre-sacrifice amounts that are not classified as OTE according to the SGAA should be included as overtime.

If you are making a back payment or arrears payment, it may be included as overtime.

The following table outlines some examples of what should and shouldn't be included in Overtime.

Overtime reporting examples

Include

Don't include

  • overtime worked
  • leave loading that is demonstrably referable to a loss of overtime (both taken and cashed out)
  • cash out of accrued TOIL hours. If the absence is not taken, the employee may request that the accrued time be paid out as overtime – the cash out of TOIL in service is reported as overtime
  • on call, stand-by or availability allowances to remain in readiness for a return to work, payable outside the employees normal working hours
  • call back payments. If an employee is called back into work for overtime
  • overtime bonuses that relate entirely to time worked outside of normal hours
  • identifiable overtime component of annualised salary – for those annualised salary or wages amounts that have distinctly identifiable components within the outer limits that are expressly referable to overtime hours
  • excess travelling time for travel to an alternative place of work outside the ordinary span of hours
  • hourly driving rates or rates per km –the excess of the total ordinary hours per period, if no regard to the terms of the award, or the stipulated overtime rate for piece-rate awards that include hourly driving rates and rates per kilometre
  • part-time additional hours – this is payable in accordance with industrial instruments that stipulate those additional hours are paid at a penalty or overtime rate that do not accrue leave entitlements 

 

  • shift penalties – these are reported in gross
  • breach of rest break payments                
    • when an employee does not get an appropriate rest break between shifts, some awards require employees to be paid at overtime rates until the employee is released from duty
    • even though the employee is being paid at overtime rates, they are working ordinary hours and payment is reported as gross

 

Bonuses and commissions

You may pay some employees bonus and commission payments to reward their performance, service or for meeting a specific goal. These are typically paid as a lump sum.

Only pre-sacrifice amounts that are classified as OTE should be included as bonuses and commissions.

If you are making a back payment or arrears payment, it may be included as bonuses and commissions.

The following table outlines some examples of what should and shouldn't be included in Bonuses and commissions.

Bonuses and commissions reporting examples

Include

Don't include

  • Christmas bonus
  • retention bonus
  • sign-on bonus for new employees
  • performance bonus
  • referral bonus
  • bonus labelled as ex-gratia but in respect of ordinary hours work
  • return-to-work bonus after parental leave
  • commission payment 

 

  • bonuses and commissions that relate entirely to work performed outside normal hours – these are reported as overtime

 

Directors’ fees

If you pay directors’ fees you must separately include these in your STP Phase 2 report.

Directors’ fees include payments to:

  • the director of a company
  • a person who performs the duties of a director of the company
  • a member of the committee of management of the company, or as a person who performs the duties of such a member if the company is not incorporated.

Directors’ fees may include payment to cover travelling costs, costs associated with attending meetings and other expenses incurred in the position of a company director.

Only pre-sacrifice amounts that are classified as OTE should be included as directors’ fees.

If you are making a back payment or arrears payment, it may be included as directors’ fees.

The following table outlines some examples of what should and shouldn't be included in Directors’ fees.

Directors' fees reporting examples

Include

Don't include

  • remuneration you pay to a working director
  • remuneration you pay to a non-working director 

 

 

Lump sum W (return to work payment)

A return to work amount is paid to induce an employee to resume work (for example, to end industrial action or to return from working for another employer). These payments have a different tax rate to other payments.

This is a new category of lump sum payments which is being introduced as part of STP Phase 2. Previously, they were reported as gross and not separately identified.

Only pre-sacrifice amounts that are classified as OTE should be included as lump sum W.

If you are making a back payment or arrears payment, it may be included as lump sum W.

The following table outlines some examples of what should and should not be included in Lump sum W.

Lump sum W reporting examples

Include

Don't include

  • bonus paid to an ex-employee to encourage them to return to the employer
  • bonus payments made to end industrial action and have employees resume work
  • bonus paid to an employee who has resigned and is encouraged to withdraw their resignation 

 

  • sign-on bonus for new employees – this is reported as Bonuses and commissions
  • payments to employees returning to work after workers’ compensation 

 

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