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Sciatic_Taxes(Initiate)Initiate
31 Mar 2026

Does an employer report deductions that are being deducted on the payslips for example pre-text deductions accommodation, mess (food) shearing gear these are all being deducted from the gross amounts before tax is taken (PAYG is withheld) because they are taken from the gross amounts before PAYG is withheld dose the the deductions lower FY gross amount or dose the employer need to report these deductions via STP . Example, if I made $130,000 gross for the financial year $20,000 pre tax deducted for accommodation, food. work tools ( work tools are purchased through the employer not supplied by the employer) would my correct PAYG withholding percentage be that of $130,000 or less the pre tax deduction $110,000.


If that makes sense.


I'm trying to figure out if the pre-text deductions are to be reported through STP or are they meant to show up on my income statement on myGov account.


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4 replies
73 views
4 replies

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PayrollDeanne(Taxicorn)Taxicorn
31 Mar 2026

G'day @Sciatic_Taxes πŸ‘‹


The ATO requirements for STP2 means that your employer is required to report both the pre-sacrifice gross ($130,000) and the salary sacrifice amounts ($20,000) that appear on your Income Statement. The ATO deducts the salary sacrifice amounts from gross to derive your taxable gross that is pre-filled into your tax return. πŸ€“


Deanne

Sciatic_Taxes(Initiate)Initiate
1 Apr 2026

Thanks for your help my employer has failed to do this for the last 10 years

PayrollDeanne(Taxicorn)Taxicorn
1 Apr 2026

Reporting pre-sacrifice amounts and salary sacrifice is a requirement of STP2 that came into effect on 1 Jan 2022. Prior to that, post-sacrifice amounts only were required to be reported in the first phase of STP and prior to that, Payment Summaries πŸ€“ Deanne

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