Single Touch Payroll Penalties
- Anthony Mazza
- 11 hours ago
- 2 min read
The ATO has made it clear they're tightening up on compliance.
If you're an employer in Australia, you're already familiar with Single Touch Payroll (STP).
It's how you report your payroll information to the ATO each time you pay your team. Simple enough, right?
But here's the thing: some business owners are getting caught out by late or missed STP reports.
So let's break down what you need to know, without the panic.
The Basics: What Are You Required to Do?
Every time you pay your employees, you need to report their payroll information through STP on or before payday. This includes:
Salaries and wages
Super contributions
PAYG withholding information
This isn't optional. It's a legal requirement for all employers.
What Happens If You Don't Report on Time?
If your STP reports are late, you could be hit with a failure to lodge on time penalty. These penalties start at $728 per late report, and they can add up quickly if you're consistently missing deadlines.
What triggers a penalty?
Late lodgement – Not reporting on or before payday
Wrong format – Not using the approved electronic form
False or misleading statements – Inaccurate data (and this one applies per employee)
How the ATO Handles Penalties.
The good news? The ATO doesn't just slap penalties on without consideration. They follow a 5-step process:
Determine the type of issue – Is it a late lodgement or a false statement?
Check for protections – Are there safe harbour provisions or statutory exceptions that apply?
Calculate the penalty – Penalties scale based on the number of employees affected
Consider remission – They'll look at your compliance history and whether you've made efforts to fix the issue
Issue a formal notice – You'll receive written notification of the outcome
So if you've made an honest mistake and acted quickly to correct it, you may have options.
What Should You Do Now?
If you've received a notice from the ATO about late STP reporting, or you're worried you might be behind, don't ignore it.
Here's our advice:
Review your payroll process. Make sure your STP reports are going out on or before each payday.
Check your software. Ensure you're using an ATO-approved electronic format.
Get in touch with us. If you've received a penalty notice or need help getting back on track, we're here to help.
The Bottom Line
STP compliance isn't complicated, but it does require consistency. A few missed reports can quickly turn into a headache and an unexpected bill.
If you're unsure whether your payroll process is set up correctly, or you need a hand sorting out a compliance issue, reach out to our team. We'll help you get it sorted and keep you on the right side of the ATO.
Because running a business is hard enough without worrying about avoidable penalties.
If you'd like clarity on your options, we're here to help.
