Reportable Allowances and Deductions

Overview

There is significant ATO reporting requirement changes between STP Phase 1 and STP Phase 2 reporting.

In STP Phase 1, some allowances allowances were reported separately some were reported as part of gross income and some not reported at all.

In STP Phase 2 the reporting of Allowances enables the ATO to identify if the allowance is for a business or person service, deductible expense or non-deductible expense. For PayGlobal customers, this means ALL paying regardless of being setup as taxable/non-taxable allowances are to be separately itemised - not just those historically reported as “expense” allowances.

Allowances for STP are reported via the following groupings:

1. Gross Amount
2. Paid leave
3. Allowances Items
   1. Cents per km (allowance type CD) formally 'car'
   2. Award transport payments (allowance type AD)
   3. Laundry (allowance type LD)
   4. Overtime meal allowance (allowance type MD)
   5. Domestic or overseas travel (allowance type RD)
   6. Tool allowances (allowance type TD) (new)
   7. Qualification and certification allowances (allowance type QN) (new)
   8. Task allowances (allowance type KN) (new)
   9. Other - Non-deductible (ND)
   10. Other - Uniform (U1)
   11. Other - Private Vehicle (V1)
   12. Other - Home Office (H1)
   13. Other - Transport/Fares (T1)
   14. Other - General (G1)
   15. Other - Job Keeper
4. Overtime
5. Bonuses and commissions
6. Directors’ fees
7. Lump Sums (A, B, D, E and W)
8. Salary sacrifice
   1. To super
   2. To other
9. Superannuation
   1. Superannuation Guarantee (SG)
   2. Reportable Employer Superannuation Contributions (RESC)
10. Reporting Fringe Benefits

Gross Payments

Gross Payments are typically allowances relating to OTE - Hours worked

In STP Phase 1 - Gross was the "taxable gross" earnings minus amounts reported separately.

In STP Phase 2- Gross is the total "assessable income" i.e. "total pre-tax & pre-salary sacrifice" amount, minus the amounts reported separately.

Note: Gross Payments will also include "R-Salary" and "A.Allowance" type paying allowances that do not have a defined ATO Reporting Category or ATO Reporting Subcategory.

Topic: 44752