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STP Penalty

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Newbie

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As noted in some of the post, one late lodgement penalty unit is $210. However, the first 12 months is a transition period for employers and we want to support employers through this period, therefore we will not be applying penalties for the first year unless the Commissioner uses his discretion to do so.  

 

So after one year of transition period, how is the late lodgment penalty being calculated? Could you please direct me to the reliable source/ legislation that detailed how the penalty works? Thanks.

 

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ATO Certified

Community Support

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Hi @sydTT,

 

Thanks for your question!

 

The STP late lodgement penalty will be the same as Failure to Lodge penalties, so it will be one penalty unit per 28 day period, or part thereof, up to a maximum of five penalty units. This means if the document is 29 days late, there will be two penalty units imposed. The base rate of a failure to lodge penalty unit is multiplied depending on the size of the entity.

 

Though there will not be any penalties applied in the first twelve months of STP reporting, if there are documents still outstanding after that twelve month period has passed, the penalties will generally calculate based on the original due date.

 

The information explaining that Failure to Lodge penalties will be applicable to STP reporting can be located under the heading "You missed sending an STP report" here.

 

Hope this helps,

 

Rachael B.

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Best answer

ATO Certified

Community Support

Replies 4

Hi @sydTT,

 

Thanks for your question!

 

The STP late lodgement penalty will be the same as Failure to Lodge penalties, so it will be one penalty unit per 28 day period, or part thereof, up to a maximum of five penalty units. This means if the document is 29 days late, there will be two penalty units imposed. The base rate of a failure to lodge penalty unit is multiplied depending on the size of the entity.

 

Though there will not be any penalties applied in the first twelve months of STP reporting, if there are documents still outstanding after that twelve month period has passed, the penalties will generally calculate based on the original due date.

 

The information explaining that Failure to Lodge penalties will be applicable to STP reporting can be located under the heading "You missed sending an STP report" here.

 

Hope this helps,

 

Rachael B.

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Newbie

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The link referenced in your last line is broken.  Are you able to update it with current information or provide us an update?

 

"The information explaining that Failure to Lodge penalties will be applicable to STP reporting can be located under the heading "You missed sending an STP report" here."

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ATO Certified

Community Support

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Hi @MWilliams,

 

Thanks for getting in touch!

 

The broken link has been updated, but I'll provide the information here as well.

 

If you missed sending an STP report:

 

Your employees will not see the correct year-to-date amounts in ATO online services until you either:

  •     submit the missed report
  •     lodge a subsequent STP report.

There are a number of options available if you realise you have missed an STP report:

  •     You can lodge the missed report, if you are able to do so.
  •     If all employees in the missed report will be paid again in the next regular pay run, make sure the year-to-date values in the next pay run are up-to-date.
  •     If some employees are not being paid again, lodge an update event within 14 days to update their year-to-date balance.

If you continue to miss reports, you may be subject to failure to lodge penalties after the first year of reporting.

 

Hope this helps,

 

Rachael B.

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I'm new

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Dear ATO,

 

I have a question regarding STP penalty.

 

I understand STP penalty did not apply during the 12 months STP transition period which ended on 30 June 2019.

 

If a company has a deferral to report STP (for example, it will only start reporting on 1 Jan 2020) will the penalty apply on the first 12 months of reporting STP (i.e. does the no penalty on transition year applies)?

 

Many thanks

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Community Manager

Replies 0

Hi @youngc,

 

We have answered your query on another post check it out here.

 

Thanks

 

KylieS