STP Phase 2 Explained for Australian Small Business Owners

Single Touch Payroll (STP) Phase 2 has been mandatory for Australian employers since 1 January 2022 (with transition deferrals for some payroll products). It expanded the data each pay event must carry — not the way you submit it. What changed in Phase 2? - Disaggregated gross: pay items split into ordinary, overtime, paid leave, allowances, bonuses and commissions, directors' fees, etc. - Employment basis: full-time, part-time, casual, labour hire, non-employee. - Income type: salary and wages, working holiday maker, foreign employment, closely held payees. - Tax treatment: explicit codes covering residency, study loans, Medicare levy, tax-free threshold and offsets. - Country code for working holiday makers and foreign employees. What you need to do Make sure each employee record has the correct employment type, income type and tax treatment code. Run a test pay event through your STP submission channel to confirm the ATO accepts the data. Where Registrum fits in Important: Registrum is not currently listed on the ATO's Digital Service Provider (DSP) register, so it does not lodge STP directly to the ATO. What Registrum does do is prepare your payroll data in the Phase 2-aligned shape — disaggregated gross, employment basis, income type and tax treatment codes derived from each employee record — and produces compliant payslips and a Phase 2 payroll dataset. You (or your registered tax/BAS agent) submit this through a DSP-certified STP channel. Disclaimer: General information only — not tax, legal or financial advice. Registrum is record-keeping software and is not an ATO-listed DSP. Consult a registered tax/BAS agent for your STP obligations.