Single Touch Payroll – Determination of Amounts to be Notified

Administered by Department of the Treasury

Legislation au F2019L00122 Not in force Legislative Instrument

Legislation content

Explanatory Statement

 

Single Touch Payroll – Determination of Amounts to be Notified

 

 

General Outline of Instrument

  1. This instrument is made under subsection 389-5(3) of Schedule 1 to the Taxation Administration Act 1953 (TAA 1953).
  2. This instrument determines the information which the approved form may require to be reported through Single Touch Payroll for the purposes of paragraph 389-5(2)(b) of Schedule 1 to the TAA 1953.
  3. The instrument is a legislative instrument for the purposes of the Legislation Act 2003.
  4. Under subsection 33(3) of the Acts Interpretation Act 1901, where an Act confers a power to make, grant or issue any instrument of a legislative or administrative character (including rules, regulations or by-laws), the power shall be construed as including a power exercisable in the like manner and subject to the like conditions (if any) to repeal, rescind, revoke, amend, or vary any such instrument.

Date of effect

5.      The instrument commences on 1 July 2018.

6.      Subsection 12(1A) of the Legislation Act 2003 provides that a legislative instrument may commence before the instrument is registered.

What is this instrument about

7.      Division 389 of Schedule 1 to the TAA 1953 established Single Touch Payroll reporting.

8.      That Division provides for both mandatory (section 389-5 of Schedule 1 to the TAA 1953) and voluntary (section 389-15 of Schedule 1 to the TAA 1953) reporting of employee payroll and superannuation information by employers.

9.      Reporting through Single Touch Payroll is required to be in the approved form.

10.  Subsection 389-5(2) of Schedule 1 to the TAA 1953 provides that the approved form may only require the reporting of information which is prescribed by subsection 389-5(1) of Schedule 1 to the TAA 1953 or additional information which has been prescribed by legislative instrument.

11.  This instrument prescribes the additional information which may be required by the approved form for the purposes of paragraph 389-5(2)(b) of Schedule 1 to the TAA 1953.

What is the effect of this instrument

12.  This instrument prescribes additional information which the approved form may require to be reported under Division 389 of Schedule 1 to the TAA 1953 using Standard Business Reporting (SBR) enabled software.

13.  The kinds of amounts that need to be reported can be found in the Standard Business Reporting Australian Taxation Office Payroll Event package (as published from time to time by the Commissioner of Taxation and available at www.ato.gov.au/PAYGWapprovedforms)

14.  The additional information required includes all necessary identity information and information required for each employee’s tax return in relation to reported earnings. It also provides for increased reporting in relation to employees’ superannuation entitlements.

15.  The prescribed information has been reported from 1 July 2018. The instrument is not detrimental to anyone including the Commonwealth.

16.  The compliance cost impact has already been assessed in the original Single Touch Payroll Regulation Impact Statement. As such, the implementation of this instrument will not place any additional impacts on business.

Consultation

12.  The reporting requirements have been developed through consultation by the ATO with payroll software developers and bodies representing payroll users.

13.  The consultation process worked through the practicalities of regular employee payroll and superannuation information reporting as it relates to day-to-day payroll operation.

 

 

 

 

 

Legislative references:

Acts Interpretation Act 1901

Human Rights (Parliamentary Scrutiny) Act 2011

Legislation Act 2003

Taxation Administration Act 1953

 

 


Statement of Compatibility with Human Rights

 

This Statement is prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.

 

Single Touch Payroll - Determination of Amounts to be Notified

This Legislative Instrument is compatible with the human rights and freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.

 

Overview

This instrument prescribes kinds of amounts determined for the purposes of paragraph 389-5(2)(b) of Schedule 1 to the Taxation Administration Act 1953 that need to be reported by employers to the Commissioner of Taxation under Single Touch Payroll. 

 

Human rights implications

This legislative instrument does not engage any of the applicable rights or freedoms because the new instrument is of a minor or machinery nature. This instrument determines that the kinds of amounts that are reported under Single Touch Payroll are described in the approved form. The approved form gives instruction for people building software that will be used for reporting under Single Touch Payroll.

 

Conclusion

This legislative instrument is compatible with human rights as it does not raise any human rights issues.

 

 

 

Overview

The Single Touch Payroll – Determination of Amounts to be Notified instrument, made under the Taxation Administration Act 1953 (TAA 1953), was enacted to address the need for a standardised reporting method for payroll and superannuation information by employers. This instrument, which commenced on 1 July 2018, is designed to complement the existing Single Touch Payroll framework by specifying additional information that may be required in the approved form for reporting purposes. The instrument is a legislative tool aimed at ensuring compliance with the TAA 1953 by prescribing the types of data that must be reported through the Single Touch Payroll system, including identity information and details necessary for employees' tax returns and superannuation entitlements. This was achieved through consultation with payroll software developers and relevant industry bodies to ensure practicality and effectiveness in daily payroll operations. The instrument is consistent with human rights as it does not engage any of the applicable rights or freedoms, being of a minor or machinery nature. It merely determines the kinds of amounts reported under Single Touch Payroll, providing instructions for software developers building reporting tools. This legislative measure is intended to streamline and standardise payroll reporting, thereby reducing compliance costs and administrative burdens without impacting any human rights.

Scope and Application

The legislative instrument F2019L00122 pertains to the reporting requirements under the Taxation Administration Act 1953, specifically focusing on the Single Touch Payroll (STP) system. This system mandates that employers report employee payroll and superannuation information to the Commissioner of Taxation. The instrument is applicable to all employers operating within Australia, ensuring that they comply with the specified reporting standards using approved forms and Standard Business Reporting (SBR) enabled software. The instrument commenced on 1 July 2018 and determines the types of additional information that may be required to be reported, including necessary identity details and information pertinent to employees' tax returns and superannuation entitlements. The instrument does not impose additional compliance costs on businesses as these requirements have been previously assessed. It is compatible with human rights as it does not engage any of the applicable rights or freedoms, being of a minor or machinery nature.

Key Provisions

This legislation outlines the key provisions of the Single Touch Payroll (STP) system, which is a method for reporting employee payroll and superannuation information electronically to the Australian Taxation Office (ATO). Under section 389-5(2)(b) of Schedule 1 to the Taxation Administration Act 1953 (TAA 1953), employers must report certain specified amounts through the approved form, which is to be submitted using Standard Business Reporting (SBR) enabled software. The approved form, as prescribed by the legislative instrument, requires employers to report all necessary identity information, information required for each employee’s tax return in relation to reported earnings, and increased reporting in relation to employees' superannuation entitlements. These reports must be made in accordance with the Standard Business Reporting Australian Taxation Office Payroll Event package, which is periodically updated by the Commissioner of Taxation. Employers are obligated to ensure that they report the prescribed amounts accurately and in a timely manner. This includes verifying the identity of each employee, reporting all earnings and related deductions, and providing comprehensive details of superannuation contributions and related information. Employers must also ensure that the software they use for reporting is compliant with the ATO’s specifications and that they are aware of any updates to the reporting requirements. Failure to comply with these obligations can result in significant administrative and financial penalties. The legislation imposes penalties for non-compliance with the reporting requirements. Employers who fail to report the specified amounts as required may face administrative penalties. Additionally, providing false or misleading information can result in criminal penalties, including fines and imprisonment. The maximum penalties for providing false or misleading information are set out in the TAA 1953 and can be substantial, reflecting the importance of accurate and timely reporting under the STP system. Employers are encouraged to maintain accurate records and ensure their reporting is both compliant and complete to avoid these potential consequences.

Legal classification tags

Area of Law
Taxation Law
Instrument
Legislative Instrument
Concepts
Definitions & Interpretation
Reporting & Disclosure Obligations
Compliance Obligations
Single Touch Payroll

Interactions

Authorises

All Versions

Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.