TFN Declarations and STP Phase 2

How to lodge online

Don't lodge your report or payees’ completed TFN declarations with the ATO if:

• you’re using Single Touch Payroll (STP) Phase 2-enabled reporting software

• Your STP Phase 2 reporting already includes the information the ATO requires.

Note: You must keep your employees' completed TFN declarations for your records.

Lodging tax file number (TFN) declaration data online

Lodging your TFN declaration data online is a quick, secure way to meet your reporting obligations.

Benefits of lodging online

Lodging online has the advantages of:

• reducing your paperwork (you don't send forms to us)

• eliminating the possibility of loss or damage to your paper documents sent by mail

• allowing you to lodge reports after hours

• ensuring you complete all reports correctly (using inbuilt checks)

• providing you with an online confirmation of your lodgment.

If you lodge your reporting obligations online, you can now accept a payees' electronic signature on an electronic TFN declaration form. Refer to the TFN declaration – approved electronic payee to payer process

Relationship between STP and the TFN declaration

STP Phase 2 doesn't change the way your employees give you information about their tax circumstances. Your employees should still give you a completed TFN declaration.

When you start reporting through STP Phase 2, the employment and taxation information in your STP report will replace sending TFN declarations to us. This means you don't need to send us a copy of the TFN declaration your employee has given you. However, you can continue to send TFN declarations to us if it supports your other business processes, such as establishing an employment relationship before requesting stapled super fund details.

Before, TFN declaration information sent to the ATO was never updated. Now with STP Phase 2, the employment and taxation information you report through STP is updated when your employees' circumstances change. Sometimes, the information may change even though the employee has not given you a new TFN declaration form.

You don't need new TFN declarations from your existing employees to start reporting using STP Phase 2.

Learn how FairPay's STP Phase 2 compliant software can help you keep compliant with the ATO's requirements.