Hi,
Some of our employees are paid allowances such as car or phone allowances post-tax.
We have always excluded these payments from reporting at W1 as there is no tax withheld.
Now we have STP2 and information is prefilled into the monthly IAS on the ATO Portal, I can see that these allowances have been included at W1.
Should amounts such as allowances which have no withholding tax applied, be included at W1?
Thanks
Jennifer
Hiya @Jennifer0604 👋
All Payment Types reported in the pay event are included in the parent Gross total amount (W1) except for these exempt amounts:
All other amounts are payments subject to withholding, even if conditions are met where the withholding is reduced to zero, such as for some deductible expense allowances.
This was the same requirement introduced for the initial phase of STP and has not changed with STP2.
Deanne
Hiya @Jennifer0604 👋
All Payment Types reported in the pay event are included in the parent Gross total amount (W1) except for these exempt amounts:
All other amounts are payments subject to withholding, even if conditions are met where the withholding is reduced to zero, such as for some deductible expense allowances.
This was the same requirement introduced for the initial phase of STP and has not changed with STP2.
Deanne
15 Apr 2026 · 4 min read time
16 July 2025 · 5 min read time
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