Reporting under Single Touch Payroll removes the requirement to issue payment summaries, payment summary annual reports and TFN declarations to the ATO.
Under STP the equivalent payroll information is made available electronically on a cumulative basis, and for most employees is prefilled into their online tax forms.
At the end of the year and within 14 days an income statement is made available to employees online via myGov or the ATO app. If not also pre-filled into the tax return, the information will need to be added in manually.
See further: Access your income statement | Australian Taxation Office
Payday Super From 1 July 2026
Payday Super is to be included in the Single Touch Payroll arrangements from 1 July 2026.
This means that (with some exceptions) employee superannuation must be paid within 7 days of the related Qualifying Earnings (“QE”) payroll payment.
Specified exceptions* allow extension of time for super payments on certain “out of cycle” payroll payments to be made within 7 days of the next QE payroll.
* Under draft ruling LI 2026/D3 payroll payments which qualify for the extended super payment time frame can include allowances, bonuses, commissions, loadings, advance payments, back payments.
- Legislation: Superannuation Guarantee Charge Amendment Bill 2025.
- Minister’s second reading speech
- Minister’s press release
- PCG 2026/1 – Payday Super – first year ATO compliance approach
- Payday superannuation | Australian Taxation Office
- Checklist: What payments are qualifying earnings | Australian Taxation Office
- See also: “Mayday. It’s Payday” – Employers urged to be 1 July ready for historic payday super rules
Quick qualifying earnings lookup tool
Enter payment type, and get a readout of whether the payment is considered Qualifying Earnings according to Tax Office guidance documents and why.
Payday Super from 1 July 2026
Qualifying earnings lookup tool
Search a payment type, example name or grey-area scenario to see whether it is treated as qualifying earnings for superannuation guarantee purposes. The wording is plain-English and based on the supplied ATO qualifying earnings guidance and draft Law Companion Ruling LCR 2026/D1.
Search logic: The search uses exact word matching and the filtration logic is: Search term match AND Selected category AND Selected quick filter. This means the search box is broad, but the category and quick filters progressively reduce the results.
Important: LCR 2026/D1 is a draft ruling. This tool is a practical guide only and is not legal or tax advice. Entries marked “Depends” or “Partial” should be reviewed against the contract, award or agreement and payroll evidence. Always check the final ATO guidance and the applicable award, agreement or contract.
The Tax Office has issued draft guidance documents for the implementation of Payday Super from 1 July 2026:
- LCR 2026/D1 Payday Super: qualifying earnings
Guidance outlining what’s included in qualifying earnings, used to calculate the minimum super contribution required to avoid the super guarantee charge (SGC). - LCR 2026/D2 Payday Super: eligible contributions
Sets out the criteria for contributions to be considered eligible contributions, including the timeframes in which super funds must receive them. - LCR 2026/D3 Payday Super: calculation and assessment of the superannuation guarantee charge
Explains how the new SGC will be calculated and assessed under the Payday Super framework. - LCR 2026/D4 Payday Super: application and transitional provisions
Details how the new laws will apply from 1 July 2026 and the transitional provisions that apply under the law. - PS LA 2026/D3 Payday Super: exceptional circumstances determinations
Explains when the Commissioner of Taxation may issue an “exceptional circumstances determination” to allow employers more time to make superannuation contributions under the Payday Super reforms.
Payday Super Guidance: Key Takeaways
- The Payday Super reforms, starting 1 July 2026, require employers to make superannuation contributions for employees at the same time they pay their qualifying earnings.
- Qualifying earnings (QE) is the single earnings base used to calculate the individual Super Guarantee amount (currently12% of QE) that must be contributed to avoid the superannuation guarantee charge.
- QE includes ordinary time earnings (OTE), all commissions, director’s fees, and amounts sacrificed under a salary sacrifice arrangement.
- QE excludes overtime (earnings solely for non-ordinary hours), specific termination payments (like unused sick leave), and expense reimbursements.
- The Maximum Contributions Base (MCB) operates as an annual limit on qualifying earnings for each financial year.
- A contribution is on-time if it is received by the employee’s fund within 7 business days after the QE day (the day earnings are paid).
- Allowable longer periods of 20 business days apply for the first contribution for a new employee or when an employee changes their superannuation fund.
- The “bunching rule” applies when a later payment of qualifying earnings has a “usual period” (the standard deadline of 7 business days) that would end before the end of an allowable longer period applied to a preceding pay run for the same employee. When this occurs, the deadline for making on-time contributions for the later pay run is extended and aligned with the end of the longest allowable period of the earlier pay run. See example below.
- The SG charge for a shortfall includes the unpaid super, notional earnings (interest based on the GIC rate), an administrative uplift, and any choice loading.
- The administrative uplift is a penalty (default 60%) that can be reduced if the employer voluntarily discloses a shortfall or has no previous assessments in the last 24 months.
- Choice loading (a penalty imposed when an employer makes superannuation contributions that do not comply with choice of fund requirements) applies if contributions are made to the incorrect fund and is capped at $1,200 per employee per notice period.
- The late payment offset is abolished for contributions made from 1 July 2026, meaning late payments cannot offset old quarter liabilities. The last quarter for which the offset is fully available is the quarter ending 31 March 2026
- Transitional: Contributions made between 1 July and 28 July 2026 are first applied to any outstanding shortfalls for the quarter ending 30 June 2026 before being applied to Payday Super obligations.
Bunching Rule: How It Works
If a new employee is paid on Day 1, they have an allowable longer period of 20 business days (ending on Day 29) for that first contribution.
If that same employee is paid again on Day 8, the standard deadline for this second pay run would normally be 7 business days later (Day 17).
Because Day 17 falls before the Day 29 deadline of the first pay run, the bunching rule extends the deadline for the Day 8 payment to Day 29 as well.
(Source: LCR 2026/D2)
Employees will have access to their to their information online via my.gov.au or the ATO app, and the Tax Office will also use the data to pre-load information for employees’ tax returns.
STP and Payment Summaries
Single Touch Payroll started on 1 July 2018 for employers with 20 or more employees, and 1 July 2019 for those with 19 and under.
The Tax Office had advised that leniency will be available to small businesses attempting to comply within in the first year of implementation.
Businesses of all sizes are to be included. Concessionary arrangements for micro businesses and others are due to end with the expansion of STP to all employers from 1 July 2021.
What is Single Touch Payroll reporting?
Single Touch Payroll software solutions provide a direct reporting link from computer payroll systems to the Australian Taxation Office.
The purpose is real-time reporting, replacing the traditional process of reporting all payroll data at the end of the financial year. Payroll information is sent to the ATO at the time of the pay run, without having to separately lodge reports.
This means real-time access to accurate information is also available to employees through their individual account access to their payroll data.
A stated purpose of STP regime is to reduce employers’ reporting burden to other government agencies, such as Services Australia, and in due course to the States for the calculation of payroll taxes. See also Government Media Release: Cash flow support and red tape reduction to help small business.
Under the first STP phase the Tax Office receives payroll data including gross amount of wages, PAYG withholdings and superannuation information.
From 1 July 2021 closely held employees must be reported through STP. Small employees (employee count under 20) can report each pay or quarterly. Until 30 June 2021 small employees were not compelled to report closely held employee payments through STP.
Expanded payroll transaction reporting (the second STP Phase) commences 1 January 2022. See details outlined below.
The law has been amended to allow employers to voluntarily report child support deductions and garnishee amounts to the Tax Office instead of the Child Support Commissioner. The Child Support Commissioner will then be provided with access to the data by the Tax Office.
Voluntary reporting is also extended to employer superannuation contributions and fringe benefits amounts. See Treasury Laws Amendment (2020 Measures No. 2) Bill 2020.
End Of Financial Year Finalisation
From 2021 there is a general deadline of 14 July for end-of-year finalisation.
Finalisation for closely held employees is 30 September, or the date of tax return lodgement date for small employers (less than 20 employees) with only closely held employees. See End-of-year finalisation through STP.
STP procedures require that employers make a finalisation declaration to the Tax Office on completion of annual payroll processing. By this process annual payment summaries become available for employees.
For non closely-held employees, this means that the information should be viewable on myGOV by the end of the year, and the employees’ tax returns are pre-filled with the income statement information.
One Touch Payroll and Superannuation
Under the STP arrangements, accrued super contributions are included in the data received by the Tax Office from the employer.
Super funds report payment of the contribution to the ATO, which is intended to “create visibility of non-payment or late payment of super entitlements and enable the ATO to take prompt action“.
Online Information For Employees
Employee’s point of access for information updated through One Touch Payroll is through my.gov.au (myGOV) where year-to-date information including super contributions can be reviewed.
There are a number of forms, typically required on commencement of employment, which can be completed electronically, pre-filled with ATO-held information.
The forms include:
- Tax file number declaration
- Superannuation choice
- Withholding declaration
- Medicare levy variation
Paper versions of the forms cam still be lodged as in the past, depending on employers’ procedures.
Further details and instructions are here: New Employees
STP Phase 2 Reporting – January 2022
The expanded reporting requirements of Phase 2 implementation was deferred to 1 January 2022, with compliance generally required by 1 March 2022, however digital service providers can apply for bulk deferrals on behalf of their clients.
Lenient Phase 2 enforcement measures (no penalties for genuine mistakes) will be in place until 31 December 2022.
Deferrals (typically for a short periods of the implementation have been granted by the ATO on a selective basis to payroll solution providers who have applied, who in turn will notify their user base of their coverage under the issued deferral notice.
Additional detailed information to be reported under the Phase 2 requirements include:
- Income types (i.e. Salary and Wages, Closely Held Payees, Working Holiday Maker, etc.)
- Country codes when relevant (e.g. employees working overseas, Working Holiday Makers)
- Payment types including:
- Paid parental leave
- Defence leave
- Worker’s compensation
- Lump sums
- New allowance types
- Termination reason (i.e. voluntary or redundancy. Employee separation certificates will no longer be required)
- Withholding Payer Number (WPN) holders can report through STP
- TFN details are included, so separate TFN Declarations are no longer required
- Employment basis (full time, part time, casual)
- Ordinary time earnings, overtime, allowances, etc.
- Salary sacrifice
For more information about the Phase 2 reporting details, see ATO: Expanding Single Touch Payroll Phase 2 and payments guide.
STP Phase 2 Reporting Checklist
To locate an item start typing in the search box:
| Payment type | STP Phase 2 |
|---|---|
| Allowance – accommodation – domestic, amount does not exceed ATO reasonable amount | Not reported |
| Allowance – accommodation – domestic, amount exceeds ATO reasonable amount | Travel allowances (allowance type RD) |
| Allowance – accommodation – overseas, for business purposes | Other allowances (allowance type OD) with the description G1 (general) |
| Allowance – accommodation – overseas, for private purposes | Other allowances (allowance type OD) with the description ND (non-deductible) |
| Allowance – car – flat rate | Other allowances (allowance type OD) with the description V1 (Private vehicle) |
| Allowance – cents per km - for a car in excess of the ATO rate for business related travel. | Cents per km allowance (allowance type CD) |
| Allowance – cents per km – for a car up to the ATO rate for business related travel | Cents per km allowance (allowance type CD) |
| Allowance – cents per km – for private travel such as travel between home and work. | Other allowances (allowance type OD) with the description ND (non-deductible) |
| Allowance – cents per km – for vehicles other than a car such as a motorbike or van. | Other allowances (allowance type OD) with the description V1 (Private vehicle) |
| Allowance – confined spaces | Task allowances (allowance type KN) |
| Allowance – danger | Task allowances (allowance type KN) |
| Allowance – dirt | Task allowances (allowance type KN) |
| Allowance – district | Task allowances (allowance type KN) |
| Allowance – driving licence | Qualification and certification allowances (allowance type QN) |
| Allowance – equipment – where equipment is supplied by employee for business purposes | Tool allowances (Allowance type TD) |
| Allowance – first aid | Task allowances (allowance type KN) |
| Allowance – freezer | Task allowances (allowance type KN) |
| Allowance – height | Task allowances (allowance type KN) |
| Allowance – higher duties | Task allowances (allowance type KN) |
| Allowance – home office equipment | Other allowances (allowance type OD) with the description H1 (Home office) |
| Allowance – industry | Task allowances (allowance type KN) |
| Allowance – Internet | Other allowances (allowance type OD) with the description H1 (Home office) |
| Allowance – laundry – for cleaning of approved uniforms in excess of the ATO approved limit. | Laundry allowance (allowance type LD) |
| Allowance – Laundry – for cleaning of approved uniforms up to the ATO approved limit | Laundry allowance (allowance type LD) |
| Allowance – laundry – for the cost of laundering deductible conventional clothing | Other allowances (allowance type OD) with the description G1 (general) |
| Allowance – laundry – for the cost of laundering uniforms for private purposes | Other allowances (allowance type OD) with the description ND (non-deductible) |
| Allowance – leading hand | Task allowances (allowance type KN) |
| Allowance – liquor licence | Qualification and certification allowances (allowance type QN) |
| Allowance – living away from home (FBT) | Not reported – but may form part of RFBA |
| Allowance – locality | Task allowances (allowance type KN) |
| Allowance – loss of licence | Qualification and certification allowances (allowance type QN) |
| Allowance – meals and incidentals – domestic, amount does not exceed ATO reasonable amount. | Not reported |
| Allowance – meals and incidentals – domestic, amount exceeds ATO reasonable amount | Travel allowances (allowance type RD) |
| Allowance – meals and incidentals – overseas, amount exceeds ATO reasonable amount | Travel allowances (allowance type RD) |
| Allowance – on call – ordinary hours | Task allowances (allowance type KN) |
| Allowance – on call – outside ordinary hours | Overtime |
| Allowance – overtime meals – amount does not exceed the ATO reasonable amount | Not reported |
| Allowance – overtime meals – amount exceeds the ATO reasonable amount | Overtime meal allowance |
| Allowance – recognition of skill level | Task allowances (allowance type KN) |
| Allowance – secondment | Task allowances (allowance type KN) |
| Allowance – site | Task allowances (allowance type KN) |
| Allowance – supervisor | Task allowances (allowance type KN) |
| Allowance – tools of trade | Tool allowances (allowance type TD) |
| Allowance – transport – for private purposes | Other allowances (allowance type OD) with the description ND (non-deductible) |
| Allowance – transport – payments for the cost of transport for business related travel traceable to a historical award in force on 29 October 1986 | Award transport payments (allowance type AD) |
| Allowance – transport – payments for the cost of transport for business related travel not traceable to a historical award in force on 29 October 1986 | Other allowances (allowance type OD) with the description T1 (fares) |
| Allowance – travel – for private purposes | Other allowances (allowance type OD) with the description ND (non-deductible) |
| Allowance – travel – part day | Other allowances (allowance type OD) with the description ND (non-deductible) |
| Allowance – travel time – ordinary hours | Gross |
| Allowance – travel time – outside ordinary hours | Overtime |
| Allowance – wet weather | Task allowances (allowance type KN) |
| Allowance – working with children check | Qualification and certification allowances (allowance type QN) |
| Back pay – total is below Lump sum E threshold | The payment type that matches the payment. For example, back pay of ordinary pay = gross, back pay of higher duties allowance = task allowance (allowance type KN). |
| Back pay – accrued less than 12 months before date of payment | The payment type that matches the payment. For example, back pay of ordinary pay = gross, back pay of higher duties allowance = task allowance (allowance type KN). |
| Back pay – accrued more than 12 months before date of payment | Lump sum E |
| Bonus – Christmas | Bonus and commission |
| Bonus – ex-gratia, in respect of ordinary hours of work | Bonus and commission |
| Bonus – paid to employee that has resigned to encourage withdrawal of resignation | Return to work payment (Lump sum W) |
| Bonus – paid to end industrial action | Return to work payment (Lump sum W) |
| Bonus – paid to ex-employee to return | Return to work payment (Lump sum W) |
| Bonus – performance | Bonus and commission |
| Bonus – referral | Bonus and commission |
| Bonus – relating entirely to time worked outside ordinary hours | Overtime |
| Bonus – retention | Bonus and commission |
| Bonus – sign-on | Bonus and commission |
| Breach of rest break payment | Gross |
| Call back payment | Overtime |
| Commission | Bonus and commission |
| Directors’ fees – working or non-working director | Directors’ fees |
| Flexi time – hours worked and taken | Gross |
| Identifiable overtime component of annualised salary | Overtime |
| Leave – annual – cashed out in service | Cash out of leave in service (paid leave type C) |
| Leave – annual – taken | Other paid leave (paid leave type O) |
| Leave – bereavement | Other paid leave (paid leave type O) |
| Leave – carer’s | Other paid leave (paid leave type O) |
| Leave – community service | Ancillary and defence leave (paid leave type A) |
| Leave – compassionate | Other paid leave (paid leave type O) |
| Leave – defence | Ancillary and defence leave (paid leave type A) |
| Leave – domestic violence | Other paid leave (paid leave type O) |
| Leave – family | Other paid leave (paid leave type O) |
| Leave – firefighting service | Ancillary and defence leave (paid leave type A) |
| Leave – gardening | Other paid leave (paid leave type O) |
| Leave – jury duty | Ancillary and defence leave (paid leave type A) |
| Leave – long service – cashed out in service | Cash out of leave in service (paid leave type C) |
| Leave – long service – taken | Other paid leave (paid leave type O) |
| Leave – parental – employer paid | Paid parental leave (paid leave type P) |
| Leave – parental – government paid (GPPL) | Paid parental leave (paid leave type P) |
| Leave – personal – cashed out in service | Cash out of leave in service (paid leave type C) |
| Leave – personal – taken | Other paid leave (paid leave type O) |
| Leave – RSPCA | Ancillary and defence leave (paid leave type A) |
| Leave – sick | Other paid leave (paid leave type O) |
| Leave – State Emergency Service (SES) | Ancillary and defence leave (paid leave type A) |
| Leave – study | Other paid leave (paid leave type O) |
| Leave – paid on termination – annual leave or leave loading accrued after 17 August 1993 paid on a normal termination | Unused leave on termination (paid leave type U) |
| Leave – paid on termination – long service leave accrued after 17 August 1993 paid on a normal termination | Unused leave on termination (paid leave type U) |
| Leave – paid on termination – annual leave or leave loading accrued after 17 August 1993, termination for genuine redundancy, invalidity or early retirement scheme reasons | Lump sum A, type code R |
| Leave – paid on termination – unused annual leave or leave loading paid on termination that accrued before 17 August 1993 | Lump sum A, type code T |
| Leave – paid on termination – long service leave that accrued between 16 August 1978 and 17 August 1993. | Lump sum A, type code T |
| Leave – paid on termination – long service leave that accrued before 16 August 1978 | Lump sum B |
| Loadings – annual leave loading (demonstrably referable to a loss of overtime) | Overtime |
| Loadings – annual leave loading (standard) | Leave type O |
| Loadings – casual loading | Gross |
| Ordinary hours | Gross |
| Overtime | Overtime |
| Penalties – public holiday | Gross |
| Penalties – shift | Gross |
| Public holiday - day not worked | Report as if the employee had worked (Gross and any other relevant payment types) |
| Rostered day off (RDO) – hours cashed out in service | Leave type C |
| Rostered day off (RDO) – hours taken | Leave type O |
| Time off in lieu (TOIL) – hours taken | Other paid leave (leave type O) |
| Time off in lieu (TOIL) – hours cashed out in service | Overtime |
| Travel time – Excess, for travel outside ordinary hours | Overtime |
| Workers’ compensation – no work is performed | Leave type W |
| Workers’ compensation – paid after termination | Leave type W |
| Workers’ compensation – top-up, no work is performed | Leave type W |
| Workers’ compensation – top-up, work is performed | Gross |
| Workers’ compensation – work is performed | Gross |
Source: ato.gov.au | Download PDF
Single Touch Payroll is compulsory
Single Touch Payroll reporting is mandatory for:
- Employers with 20 or more employees – from 1 July 2018
- Includes employers with 19 or fewer employees (i.e. ALL employers) – from 1 July 2019
Deferrals and Exemptions
Concessional reporting for micro employees
Micro employers are those with 1 to 4 employees and were able to report quarterly for 2 years via a registered agent.
From 1 July 2021 this concession is only available in exceptional circumstances.
See further: Concessional reporting for micro employers
Deferrals
The ATO recognise grounds for deferral of STP reporting in circumstances of
- transition – only in exceptional circumstances
- inadequate internet services
- operational and recurring ‘special circumstances’
Detailed information: Deferrals | Australian Taxation Office
Exemptions
Exemptions are likewise only available in very limited circumstances.
Employers exempt from STP reporting must still meet their PAYG withholding obligations, including reporting and paying liabilities and providing payment summaries.
Small employers and those facing exceptional circumstances can apply for exemptions, while others may seek deferrals if they do not qualify.
Further information here: Exemptions from STP reporting | Australian Taxation Office
Single Touch Rollout Payroll Timetable
Source: ATO’s Single Touch Payroll update and other ATO published information
| Date | Activity |
| July 2017 | STP reporting limited functionality for a select number of employers |
| September 2017 | ATO writing to employers with more than 15 employees |
| October 2017 | Service providers starting to release payroll software solutions |
| 1 April 2018 | Employers required to do a head-count to determine STP reporting obligation |
| 1 July 2018 | Single Touch Payroll mandatory reporting for employers with 20 or more employees |
| 1 July 2019 | Single Touch Payroll mandatory reporting for employers with less than 20 employees (closely held employees excluded for 2 years) |
| 1 July 2021 | Closely held employees mandatory reporting (3 options) |
| 1 Jan 2022 | Phase 2 expansion of info reporting, closely held employees included |
How To Implement Single Touch Payroll
Implementation of STP reporting requires compliant upgraded payroll products.
The process and procedure for implementing STP by a business will therefore rely primarily on its payroll software, and any support available from the chosen software provider.
There is a product register for complying software solutions here. The list can be filtered by number of employees and functionality.
STP Penalties
The legislation provides the Commissioner of Taxation with authority to specify a grace period for entities to make corrections to withholding statements.
A general 14-day grace period is provided to make corrections. See Correcting a Pay Event Report and Legislative Instrument STP 2019/5 Single Touch Payroll – Grace periods for correcting statements
The Tax Office has stated that the first 12 months Single Touch Payroll reporting will be a transition period, during which failing to report on time penalties will not be applied, unless the Commissioner of Taxation has first given the employer written notice advising that a failure to report on time in the future may attract a penalty.
The Tax Office has advised that leniency will be available to small businesses attempting to comply within in the first year of implementation which starts on 1 July 2019. See further under Deferrals and Exemptions.
What happens if employee numbers drop below 20?
Once you’re in the STP reporting arrangements, you have to stay in, regardless of employee numbers.
Low Cost, Free and All Approved Payroll Software Solutions
Compliant software solutions can be identified from the ATO’s product register or simply a Google search.
See also further Single Touch Payroll info:
- STP reporting issues and errors – ATO website
- (ATO) Single Touch Payroll
- STP Legislation link: Budget Savings (Omnibus) Bill 2016
Employees – Using myGov To Check Your Pay and Super Details
- Step 1 Login to my.gov.au
- Step 2 Select ATO services
- Step 3 Select the “Super” label at the top of the screen (or top left on mobile)
Then select “Fund details” from the expended menu. This will display the ATO’s record of your super funds, the balances and the last date updated.
Step 4 Select the “Employment” drop down from the top of the screen.
Then select “Income statements” from the Employment drop-down menu. This will show your employers and employment income year to date.
If any details of your records don’t look right, contact your super fund or employer to find out why.
STP Software Solutions ATO Register
The Tax Office maintains a register of compliant payroll software products helpfully categorised by business type.
Your can inspect the register here.
This page was last modified 2026-05-27