Is Single Touch Payroll compulsory in Australia?

Yes. Single Touch Payroll (STP) reporting is generally compulsory for Australian employers, including small businesses, subject to applicable ATO rules and exemptions.

How often do I need to report under STP?

Most employers report STP information each time they pay their employees. The report generally needs to be submitted to the ATO on or before payday, subject to applicable reporting arrangements and exemptions.

Do I need special software for STP?

Yes. Employers generally need STP-enabled payroll software that meets ATO requirements to submit Single Touch Payroll reports.

Can I outsource STP reporting?

Yes. Small businesses can engage a registered tax or BAS agent, payroll provider, or other authorised professional to assist with payroll processing and STP reporting, depending on the services they are authorised to provide.

Does STP replace payment summaries?

For most employees, STP reporting has replaced the need for employers to provide traditional annual payment summaries. Employees generally access their income statement through myGov once it has been finalised by the employer.

What Is Single Touch Payroll?

Single Touch Payroll (STP) is the Australian Government’s mandatory system requiring employers to report wages, tax, and super to the ATO every payday. If you run a business in Queensland, understanding STP isn’t optional — it’s essential for staying compliant and avoiding penalties.

What Does Single Touch Payroll Actually Mean?

STP is real-time digital reporting. Every time you pay staff, your payroll software sends employee earnings, PAYG withholding, and superannuation data straight to the ATO automatically — no separate end-of-year reporting required.

This replaced the old system of annual payment summaries (group certificates), making payroll compliance Australia-wide far more transparent and immediate.

Why Was Single Touch Payroll Introduced?

The ATO introduced STP to close compliance gaps and give employees real-time visibility of their pay and super through myGov. It also reduces employer paperwork at tax time.

Key objectives include:

Real-time visibility of wages and super for employees
Reduced year-end reporting burden for businesses
Faster detection of underpaid super or incorrect PAYG
Streamlined data-sharing between employers, the ATO, and Services in Australia

Who Needs to Comply With STP?

Every employer in Australia, regardless of size, must report through STP — including sole traders, partnerships, and companies with even one employee.

Two phases apply:

STP Phase	Who It Applies To	What Changed
STP Phase 1	All employers (2018–2021)	Basic wage, tax, and super reporting
STP Phase 2	All employers (from 2022)	Expanded reporting: income types, employment conditions, leave categories

How Does Single Touch Payroll Registration Work?

Single Touch Payroll registration involves linking STP-enabled payroll software to your ATO account and submitting a first report on your next pay run.

Steps typically include:

Choose ATO-compliant payroll software
Notify the ATO you’re transitioning to STP
Verify employee and business details
Submit your first STP report on payday
Continue reporting each pay cycle going forward

What Does STP Setup Look Like for Small Business?

Single Touch Payroll setup for small business is simpler than most owners expect when handled by professionals who understand the ATO’s requirements.

Small operators without in-house payroll staff often benefit most from STP payroll services, since a specialist handles software configuration, employee data migration, and ongoing reporting accuracy — reducing the risk of ATO penalties for late or incorrect lodgement.

Why Brisbane Businesses Are Outsourcing Payroll Compliance

Local business owners are increasingly turning to professional payroll services Brisbane providers to manage STP obligations alongside super guarantee, PAYG, and award interpretation — all of which intersect with STP reporting.

Small business payroll outsourcing makes sense when you consider what’s involved:

Ongoing software updates and compliance changes
Correct classification of leave and allowances under STP Phase 2
Accurate small business payroll processing each pay run
Coordination with payroll tax services for small business obligations at state level

What Happens If You Don’t Comply With STP?

Non-compliance can trigger ATO penalties, interest charges, and increased audit risk. The ATO actively monitors STP data for late lodgements and payment discrepancies.

STP and Payroll Tax — Are They the Same Thing?

No. STP is a federal reporting obligation, while payroll tax is a separate state-based tax on total wages above a threshold. Businesses often need both STP payroll services and dedicated payroll tax services for small businesses to stay fully compliant.

Benefits of Professional Small Business Payroll Services

Engaging small business payroll services for STP management gives owners:

Accurate, on-time ATO reporting every pay cycle
Reduced compliance risk and administrative burden
Correct super guarantee and PAYG calculations
More time to focus on running the business, not the back office

Get STP-Compliant Today

Don’t risk ATO penalties over payroll errors. Our Brisbane-based team at H&T Accountants specialises in STP payroll services, Single Touch Payroll setup for small businesses, and complete small business payroll processing — so you can pay your people right, every time. Contact us todayfor a free payroll compliance consultation.

Frequently Asked Questions

Is Single Touch Payroll compulsory in Australia?
Yes, all employers must report through STP regardless of business size.
How often do I need to report under STP?
Reporting happens every payday, not annually.
Do I need special software for STP?
Yes, you need ATO-recognised, STP-enabled payroll software.
Can I outsource STP reporting?
Absolutely — many small businesses use professional payroll providers to manage STP compliance.
Does STP replace payment summaries?
Yes, STP has replaced the need for annual group certificates entirely.