The introduction of Single Touch Payroll “Phase 2” has been set for 1 July 2021 by the Australian Government. However, so much has changed since that date was decided.
Last year, on behalf of business software vendors, the Australian Business Software Industry Association (ABSIA) drafted a letter to the Australian Government requesting that Single Touch Payroll Phase 2 be delayed
until at least 1 July 2022.
Sybiz Software was one of 30 signatories to that letter.
It is our belief the transition to, and administration of, Phase 2 will be a far greater strain on businesses than the initial implementation of STP.
The data to be reported through STP as part of Phase 2 requires a significant amount of referential data validation; that is, the data being reported is dependent on a number of checks and balances within your payroll database. Businesses would have to undertake a comprehensive process to ensure all of this data is accurate to meet the requirements of STP Phase 2.
This would have been a difficult process at any time, but the impacts of COVID-19 have only compounded this issue.
We agree that Australian businesses are under enough pressures with the response to COVID-19 restrictions and limitations without the administrative burden of STP Phase 2.
We are awaiting the response to this letter and will update our customers on any further developments regarding Single Touch Payroll Phase 2.