STP Phase 2 is expanded form of STP reporting. As you may be aware, the STP Phase 2 is aimed at enhancing the efficiency and accuracy of payroll information.

Under STP Phase 2, we will be reporting additional information to the ATO through payroll lodgements.  Previously all income types were reported in total as Wages to the ATO. However, with STP Phase 2, each type will be reported separately. 

The main areas of changes are 

•           Tax file number declaration

•           Income Type

•           Termination reason

•           Paid leave

•           Allowance types

•           Directors Fees

•           Lump Sum W (Return to work) payments

•           Tax treatment codes

•           Bonuses and Commissions

•           Lumpsum E Payments

With start date of STP Phase 2, Xero, QuickBooks & MYOB customers have deferral to report payroll through STP phase 2 until 31 March 2023. If you are using Reckon it is not yet introduced and they have taken deferral to report till 30 June 2023.