From 1 July 2021, small businesses who pay wages or director fees to closely held (related) payees must report payments through Single Touch Payroll (STP). you can choose to report these amount on or before each payday, or have the concessional option to report quarterly when your BAS is due.

Note that if you have other employees (arm’s length), their pays must be reported on or before each payday.

A closely held payee is an individual directly related to the entity from which they receive payments.

For example:

  • family members of a family business
  • directors or shareholders of a company
  • beneficiaries of a trust.

For the quarterly reporting option, you can either:

  • Report actual payments quarterly or
  • Report a reasonable estimate quarterly

How to lodge your STP reports

You must lodge your STP report for closely held payees through an STP-enabled software, the same as you would for arm’s length employees. You can either lodge the report yourself or have your registered agent lodge it on your behalf.


Please note that this article is intended to be a general guide only, and should not be seen to constitute legal or tax advice. Where necessary, you should seek a second professional opinion for any legal or tax issues raised in your personal or business tax affairs.

Emma Zhao

Emma Zhao

Chartered Accountant | Registered Tax Agent | SMSF Speacialist™