Business advice
and accounting

Our purpose is to help you on your journey as you grow. Learn more about our history, partners and purpose.

Our purpose is to help you on your journey as you grow. Learn more about our history, partners and purpose.

Your partners for Business Service and Advisory, Taxation, Audit, Fraud and Risk.

Whatever your business, industry or family office, from local or international institutions we bring extensive expertise.

We're one team with a purpose and passion for what we do. Learn about our culture and career opportunities available to you.

Uncovering insights, trends and inspiration to help business grow in an ever-changing world.

We are always looking for ways to engage and give back to our community.

Telephone: +612 9283 1666
Email: admin@esvgroup.com.au

Level 13, 68 York Street,
Sydney NSW 2000

Why us

Our purpose is to help you on your journey as you grow. Learn more about our history, partners and purpose.

What we do

Your partners for Business Service and Advisory, Taxation, Audit, Fraud and Risk.

Who do we help

Whatever your business, industry or family office, from local or international institutions we bring extensive expertise.

Work with us

We're one team with a purpose and passion for what we do. Learn about our culture and career opportunities available to you.

What we think

Uncovering insights, trends and inspiration to help business grow in an ever-changing world.

Working to give back

We are always looking for ways to engage and give back to our community.

Contact us

Telephone: +612 9283 1666
Email: admin@esvgroup.com.au

Level 13, 68 York Street,
Sydney NSW 2000

2 March 2023

by Susan Cass & Heather Hilton

Reminder – Phase 2 Changes to Single Touch Payroll Reporting

Since 1st July 2018, employers have been reporting payroll and superannuation information to the ATO on a real-time basis through Single Touch Payroll (STP). In the 2019–20 Budget, the Government announced STP Phase 2 with additional information required.

The ATO deadline to be Phase 2 compliant was1st January 2022. However, some payroll solution suppliers, for example Xero, negotiated an extension to this deadline. Xero was granted a deferral due to COVID, until 31st March 2023 for employers to report their first STP Phase 2 pay run.

Under STP Phase 2, the Australian Government requires all employers to report additional information through STP on or before each payday. This information will include details such as an employee’s employment or income type and the reason for any cessation of employment.

It is timely for all business owners with employees to check that they are STP Phase 2 compliant.

If you are a Xero customer, there are actions an employer needs to take to transition to the new STP Phase 2 reporting requirements. If you are a Xero customer and are yet to transition, here are some helpful tips on what you need to do.

  • Update employee records with:
  • Employment type
  • Income type
  • Employment basis
  • Tax scale
  • Replace earning pay items – you need to assign ATO reporting categories to your existing earnings pay items.
  • Update leave pay items – you need to assign a leave category to each of your active leave pay items in your organisation.

For ESV outsourced CFO clients who use Xero we have completed the required updates for you.

If you do have any questions on STP Phase 2, don’t hesitate to reach out to your ESV Engagement Partner.