As part of the expansion of Single Touch Payroll
(known as STP Phase 2), from 1 January 2022,
employers will need to report additional payroll
information in their STP reports including:

• disaggregation of gross amounts
  (including separate reporting of paid leave,
  allowances, overtime, directors’ fees and
  salary sacrifice amounts);
• employment and taxation conditions
  (including information from the TFN
  declaration); and
• income types (for example, salary and
  wages, working holiday maker income,
  foreign employment income).

To support employers with the move to STP Phase 2
reporting, the ATO will take the following approach:

• Employers that can start Phase 2
  reporting by their digital service provider’s
  deferral date (if applicable), do not need to
  apply to the ATO for more time.
•  If an employer’s software will be ready for
  1 January 2022 and they are able to start
  reporting before 1 March 2022, they do
  not need to apply to the ATO for more time
  (that is, an automatic extension applies).

The ATO has also advised that penalties will not
be applied for genuine mistakes in the first year of
Phase 2 reporting until 31 December 2022.