Single Touch Payroll (STP) phase one was an Australian Taxation Office (ATO) compliance regulation introduced in 2016. It mandated the need for employers to send employee payroll information including salary, wages, PAYG withholding, and superannuation through their STP-enabled payroll or accounting software to the ATO each time they ran their payroll.
In the 2019–2020 federal budget, the government announced an expansion of Single Touch Payroll (also known as STP phase two) with a start date of 1 July 2021. In late December 2020, the ATO announced an extension to the mandatory start date for STP phase two to 1 January 2022 in acknowledgment of the disruption caused to suppliers and employers by having to support COVID-19 support initiatives. The ATO has adopted a flexible approach to transition and any phase two reporting that starts before 1 March 2022 will be considered as reporting on time.