What is STP Phase 2?
Finance & accounting. A plain-English definition for Australian business owners.
STP Phase 2 is the current phase of Single Touch Payroll, the ATO's real-time payroll reporting system.
Where the original phase reported gross wages, PAYG withholding and super liability, Phase 2 requires the data to be disaggregated: employment basis, income types, paid leave categories, allowances and salary-sacrifice amounts are reported separately every pay run, and it largely removes the need to lodge tax file number declarations separately. Most cloud payroll software handles Phase 2 automatically, but reporting is only as accurate as the underlying pay items — misconfigured pay categories are the most common SME error.
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.
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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.