All About PAYGW and STP Activity Statements!

All About PAYGW and STP Activity Statements!

The ATO have advised that they are increasing the ways they report pay as you go (PAYG) withholding via STP and use Single Touch Payroll (STP) data to simplify employer reporting obligations. They have also introduced a guideline that explains how they’ll use the Single Touch Payroll (STP) data to simplify employer reporting obligations.

From July 2023, PAYG withholding labels W1 and W2 will be prefilled in ATO online services using the information reported through STP.

Also, from July 2023, ATO will remind employers to lodge their activity statement if:

  • it’s considered late, and
  • PAYG withholding has been reported via STP for the period

Prefill will be made available from the:

  • July 2023 activity statement for monthly PAYG withholders
  • September 2023 activity statement for quarterly PAYG withholders

If the prefilled amount doesn’t match your records, you will need to update it and the majority of PAYG withholdings will be reported through STP. Your business will not be impacted by this change if you receive prefill as the part of restricted roll-out.

For activity statement lodgement reminders, ATO will randomly select 3,000 employers in the 2023–24 financial year.  If you’re selected for this pilot, the first activity statement you’ll be reminded to lodge will be in July 2023 for monthly PAYG withholders and in September 2023 for quarterly PAYG withholders.

ATO will assume that you don’t have any corrections to disclose if you don’t file by the deadline specified in the reminder.

On-demand Activity Statement Lodgement Report For Agents

If you have hired an agent to file lodgement report, they will have access to up-to-date on-demand activity statement lodgement reports starting in November 2023 to see:

  • which of their customers has received a reminder
  • the suggested course of action and timing

The ATO is committed to provide more information to the authorised agents before June 2023. For more details about lodgement reports, PAYG and STP activity statements, schedule a consultation with our tax accountant at KPG Taxation.

Consulting with KPG Taxation

Focus On Growing Your Business, Leave The Accounting On Us!

  • Income Tax : File your taxes & get the best claims & returns.
  • Accountancy : Hire expert accountants to manage your transactions.
  • Bookkeeping : Let us handle your record books and expense reports.
  • Business Advisory : From company set-up to payroll, we handle it all.