ATO Updates: Get ready for changes to super guarantee & Single Touch Payroll changes

ATO Australian Gov Logo

Get ready for changes to super guarantee
From 1 July 2022, employees can be eligible for super guarantee (SG), regardless of how much they earn. This is because the $450 per month eligibility threshold for when SG is paid is being removed. You only need to pay super for workers under 18 when they work more than 30 hours in a week. The super guarantee (SG) rate will also increase from 10% to 10.5% on 1 July 2022. You'll need to use the new rate to calculate super on payments you make to employees on or after 1 July, even if some or all of the pay period is for work done before 1 July. The SG rate is legislated to increase to 12% by 2025.Make sure you update your payroll and accounting systems so that you continue to pay the right amount of super for your employees. Visit the ATO website for more information.

Single Touch Payroll changes
STP Phase 2 started on 1 January 2022. Some Digital Service Providers (DSPs) needed more time to update their products and transition their customers. If your DSP has a deferral, this covers you.It's important you understand which of the following circumstances apply to you:

  • your payroll product is ready - it's time for you to start STP Phase 2 reporting now or have a plan in place to transition as soon as possible.
  • you are covered by your DSPs deferral - make sure you understand when your product will be ready and that you are ready to start Phase 2 reporting when it has been updated, or no later than the first pay day after your DSP deferral expires.
  • the product you're using is not being updated to offer STP Phase 2 reporting - your DSP will let you know if they have another product you can use. If not, you'll need to choose a product that offers STP Phase 2 reporting.

If you're not sure which of these circumstances applies to you, you need to speak with your DSP and/or your tax or BAS professional. 

What you need to do
You need to start reporting the additional information when your product is ready, so you should start preparing now. Many DSPs are releasing changes progressively. Your DSP will provide you with instructions and it's important that you follow them. We have resources to help you to understand the changes and prepare. These include:

  • a factsheet outlining the key changes of STP Phase 2 reporting
  • a checklist to consider what you need to do
  • detailed reporting guidelines which outline the STP Phase 2 reporting requirements.

You can access these and other resources at ato.gov.au/STPresources

Need extra time to transition?
You can apply for a delayed transition if you need more time to start STP Phase 2 reporting. Visit ato.gov.au/delayedstp2transitions to find out how to apply