You may be able to delay transitioning to Single Touch Payroll (STP) Phase 2 reporting, depending on your circumstances.
Transitioning to STP Phase 2 reporting
The mandatory start date for STP Phase 2 reporting was 1 January 2022. A guide for employers is available for information about reporting.
Most employers have now transitioned to STP Phase 2 reporting. However, there may be circumstances where you need more time to transition to STP Phase 2 reporting.
Applying to delay your transition to STP Phase 2 reporting is different to other types of STP deferrals.
Digital service provider deferrals
Digital Service Providers (DSPs) were granted deferrals if they needed more time to upgrade their STP-enabled solutions.
You need to start reporting from your next pay run after your DSP's deferral expires (or earlier).
While you are covered by a DSP's deferral, you must continue to meet your current STP reporting obligations until you transition to STP Phase 2 reporting.
If you need more time
If you need more time, you can apply for a delayed transition to STP Phase 2 reporting through ATO online services.
You must:
- already be reporting through STP to be able to delay your transition to STP Phase 2 reporting
- continue to meet your current STP reporting obligations until you transition to STP Phase 2 reporting.
Employers requesting more time to transition
To request more time to transition to STP Phase 2 reporting, log in to Online services for business and complete the following steps:
- Select Employees.
- Select STP deferrals and exemptions.
- Select Delayed transition to STP Phase 2 expansion.
- Complete the request.
- Select Submit.
When you apply for more time, you will need to tell us:
- which payroll software you use
- the reason you are seeking a delayed transition
- the date you expect to be able to start reporting the expanded data.
You can attach supporting documentation to support your application.
If you choose Other special circumstances, you will need to provide information about your circumstances and why they impact your ability to start Phase 2 reporting.
If you use a registered tax or BAS agent, they can request the delayed transition for you.
You can also phone us to apply on 13 28 66.
Employers with 5,000 or more employees
If you have 5,000 or more employees and need more time to transition to STP Phase 2 reporting, you must provide additional information with your application. This must include information such as a schedule or a detailed plan which outlines your circumstances and the steps you are taking to prepare for your transition.
You can attach this additional information to your application.
If we need more information from you, we will contact you.
Registered agents requesting more time to transition
You can apply for a delayed transition to STP Phase 2 reporting on your client's behalf.
Client not ready to report
To apply on behalf of your client, log in to Online services for agentsExternal Link and complete the following steps:
- Select a client.
- Select Business.
- Select STP deferrals and exemptions.
- Select Delayed transition to STP Phase 2 expansion.
- Complete the request.
- Select Submit.
After you submit your request
We will let you know immediately if your request has been accepted or if we need more time to consider your request.
If we need more time, it may take up to 28 days for us to process your request, if we need more information from you, we will contact you.
You will receive a receipt ID as proof of your request.
Registered agents who have submitted a request
Don't resend a further deferral application for the same clients within the 28-day processing period. This may cause a delay to the processing of your original request.
We'll let you know when your request has been processed and provide details of the new deferral dates for eligible clients through Online services for agents.
You may be able to delay transitioning to Single Touch Payroll (STP) Phase 2 reporting, depending on your circumstances.