What is Single Touch Payroll (STP)?
Finance & accounting. A plain-English definition for Australian business owners.
STP is the ATO-mandated real-time payroll reporting system.
Each pay run, the employer's payroll system reports gross wages, PAYG withheld, and super liabilities directly to the ATO. STP Phase 2 (operational since 2022) requires more granular reporting including employment basis, leave categories, and disaggregated income types. Most cloud payroll systems handle STP automatically; the practical effect is that the ATO sees payroll data in near-real-time rather than at year-end.
In a connected back office this sits with the Finance hub, where Valont runs bookkeeping, managed payroll and bas & tax compliance for Australian SMEs as one team. The full definition set is on the glossary.
Talk to an Advisor
General information, not advice. For how this applies to your business, talk it through with a Trusted Advisor or start with the Business Health Check.