- What you report through STP
- The 1 July 2026 Payday Super change
- Finalising at the end of the financial year
- Paying people outside the normal pay cycle
- Who can be exempt from STP
- What your payroll software handles for you
- Setting up STP, step by step
- Plain advice for STP and Payday Super
- Frequently asked questions
Single Touch Payroll (STP) is the way Australian employers report payroll to the ATO. Each time you pay your employees, your STP-enabled payroll software sends their salary or wages, PAYG withholding and super information to the ATO, on or before payday. From 1 July 2026 your STP reports must also include each employee's qualifying earnings and super liability, under the Payday Super changes.
STP replaced the old end-of-year payment summary routine, and it's changed again this financial year with Payday Super. I read the Australian Taxation Office (ATO) Single Touch Payroll pages, its exemptions page, its finalisation guidance and its Payday Super reporting page, so this explainer sticks to what the ATO itself says.
What you report through STP
| What | When | How |
|---|---|---|
| Salaries and wages | On or before each payday | STP-enabled payroll software |
| PAYG withholding | On or before each payday | Included in the same pay event |
| Super liability information | On or before each payday | Included in the same pay event |
| Qualifying earnings (year to date) | Each payday from 1 July 2026 | Added under Payday Super |
| Finalisation declaration | By 14 July each year | A finalisation indicator for each employee |
The 1 July 2026 Payday Super change
For paydays from 1 July 2026, the ATO says your STP reports must include two amounts for each employee: qualifying earnings and superannuation liability. Qualifying earnings are reported as year-to-date amounts, and they're the earnings that attract super guarantee. Things like fringe benefits and expense reimbursements aren't qualifying earnings, and the ATO warns that reporting them as such can cause mismatches with super fund data and prompt it to contact you.
There's also a ceiling. Once an employee's earnings reach the maximum contribution base, which the ATO lists as $270,830 for the 2026-27 financial year (as of October 2026), you don't need to make more super guarantee contributions for the rest of that year, and you can keep reporting the base amount instead of the growing total.
Finalising at the end of the financial year
You let the ATO know your reporting is complete for each employee by making a finalisation declaration by 14 July. Once you do, the ATO pre-fills your employee's tax return and shows their information as tax ready in myGov. Your employees then see an income statement in ATO online services, which replaces the payment summary you used to hand out. You can amend finalised information for up to 5 years after the end of the financial year.
Paying people outside the normal pay cycle
Bonuses, commissions and back pay don't have to wait. The ATO says you can report them in a separate pay event on or before the day you pay them, or include them in your next regular pay event if your software allows it. If the next regular pay run falls in the next financial year, you must report the payment by 30 June, before you finalise.
Who can be exempt from STP
- Employers with a withholding payer number are exempt until 30 June 2033, without needing to apply.
- Small employers with 19 or fewer employees can apply if they have low digital capability or unreliable internet.
- Employers hit by exceptional or unforeseen circumstances can apply.
- Businesses in an area with no internet service can seek an exemption for 1 or more financial years.
- A registered tax or BAS agent can apply on your behalf.
An exemption doesn't remove your other duties. The ATO says exempt employers must still report and pay PAYG withholding and super, give employees payment summaries and send a payment summary annual report.
What your payroll software handles for you
Your STP report includes an employment basis code for each worker (full time, part time, casual, labour hire and others) and a 6-character tax treatment code. The ATO says STP-enabled software creates and checks these codes automatically, though it's still worth knowing what they mean, because the tax treatment code tells the ATO about the factors that affect how much you withhold.
Payroll is only as accurate as the hours behind it, so see time clock software for small employers.
Setting up STP, step by step
- Choose STP-enabled payroll software, or check that your current software is STP enabled and up to date for Payday Super.
- Set each employee's employment basis and tax details correctly.
- Lodge a pay event on or before every payday.
- Make your finalisation declaration for each employee by 14 July.
If you're choosing software, my guide to bookkeeping software for small businesses is a good place to start, and this piece on how the right software helps you keep staff covers the people side.
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Plain advice for STP and Payday Super
Check with your payroll software provider now that it's set up for qualifying earnings and super liability reporting from 1 July 2026, because that's the change most likely to trip up small employers in 2026-27. Report every pay event on time, keep fringe benefits and reimbursements out of qualifying earnings, and diary 14 July for finalisation. If your internet or your business circumstances make STP hard, ask a registered agent about an exemption rather than simply not reporting.
Do you make payroll or accounting software? Tool makers can ask to be considered for a featured mention in guides like this one.
Frequently asked questions
What is Single Touch Payroll?
STP is how Australian employers report payroll information to the ATO. Your payroll software sends salaries and wages, PAYG withholding and super information each time you pay employees.
When does an employer report through STP?
On or before each payday, through STP-enabled software. You make a finalisation declaration for each employee by 14 July each year.
What changed with STP on 1 July 2026?
Under Payday Super, the ATO says STP reports for paydays from 1 July 2026 must include each employee's year-to-date qualifying earnings and superannuation liability.
Do employees still get a payment summary?
Not for payments reported and finalised through STP. Employees see an income statement in ATO online services through myGov instead.
Can a small business be exempt from STP?
In limited cases. Small employers with 19 or fewer employees can apply if they have low digital capability or unreliable internet, and employers with a withholding payer number are exempt until 30 June 2033.
Should contractors be reported through STP?
Not usually. The ATO says it isn't mandatory to report independent contractors paid mainly for their labour, though you can choose to.
