Employers, including international operators, face new draft penalties under the ATO’s Single Touch Payroll (STP) guidance, with public feedback open until 24 April.
The draft Law Administration Practice Statement PS LA 2026/D2 outlines how penalties will be administered when employers submit inaccurate or late STP reports. According to the ATO, the guidance introduces a structured process to determine when penalties should apply and how they may be reduced based on specific circumstances. It also identifies mitigating and aggravating factors that may influence whether penalties are increased or remitted.
Stakeholders are asked to comment on whether the step-by-step framework balances clarity with flexibility and whether the listed factors reflect situations that employers may reasonably face. The consultation also seeks public views on how the tax authority should treat cases where non-compliance results from actions taken by third-party service providers.
Feedback can be sent through the email address available on ATO’s website, with comments to be considered before the practice statement is finalised.
Last updated: 23rd Mar 2026
About the Author
Ro Elvinia is ABN Australia's Customer Success and Marketing Manager. She holds a bachelor’s degree in mass communication, majoring in journalism, and also has an academic background in civil engineering. With over a decade of experience in professional writing and a background spanning journalism, Australian immigration, and business services, Ro brings a unique mix of communication and analytical expertise. She works closely with international clients and contributes to ABN Australia's content strategy, helping global businesses stay informed and confident as they navigate the Australian market.
Ro Elvinia
Customer Success and Marketing Manager