When can a business cease STP reporting?

The ATO has identified scenarios where businesses lodging Single Touch Payroll (STP) reports is no longer necessary.

STP-enabled software allows you to run payroll, pay your employees as normal, and give them a pay slip. It also sends information about your salaries and wages, pay as you go (PAYG) withholding, and super liability information to the ATO.

You are able to cease lodgement of your STP if you fall under the following conditions.

  • No longer employing staff

If your business is no longer employing staff then you will need to submit a finalisation declaration for all employees as part of your STP reporting. Finalisation declarations can be lodged at any time during the financial year. Once you finalise your STP obligation, you can proceed to cancelling your PAYG withholding registration to alert the ATO that your business is no longer employing staff.

  • Closing a business

When ceasing trade, you must update your STP lodgements and then make a finalisation declaration for all employees. Once you do this, you can cancel your PAYG withholding registration, cancel your goods and services tax (GST) and Australian business number (ABN) registrations to let the ATO know that you have ceased trading.

  • Changes to your business structure 

Changes in business structure could mean that the ABN and branch you have been generating your STP reporting under change as well. You will need to finalise your STP under the old ABN and branch and start another using your new ABN and branch. Ensure that you finalise your STP reporting before you lose access to it.

  • No payments to employees for the rest of the year

You should lodge a ‘no requirement to report’ notification if you will not be making any payments to employees for the remaining financial year or for a period which is longer than your reporting obligations.

  • Pausing your business due to Covid-19

There have also been arrangements made for businesses who may have had to pause business during the pandemic and are no longer employing, nor receiving JobKeeper payments. Businesses in these situations should lodge a ‘No requirement to report’ notification.

Should you have any queries in regards to the above please do not hesitate to contact our office on (03) 9728 1448.

The team at TAS Tailored Accounting Solutions

This publication is for guidance only, and professional advice should be obtained before acting on any information contained herein. Neither the publishers nor the distributors can accept any responsibility for loss occasioned to any person as a result of action taken or refrained from in consequence of the contents of this publication.