In STP Phase 1, the gross amount you reported contained different amounts, depending on the particular income type. This approach has changed since introducing STP Phase 2, and all payment types are now reported consistently for each income type. With this, there are several new payment classifications now available for use as well.
The process will make sure you have the reference list at hand for the pay category payment classifications to make sure you are adhering to the ATO guidelines. We have categorised them below as Pay Category payment classification by Payment Type and Pay Category payment classification by Leave Type, respectively.
Important
Each classification will have a short version that you can use in back-end reporting, depending on the number of characters allowed in a specific field. For example, Allowance (Car) is the short-form description for Allowance - cents per km. The short version will still report correctly as long as you have you have updated the pay category payment classification as per the below tables.
Helpful Hint
When dealing with Long Service after 1993, that is paid out on genuine redundancy, both AL and LSL (post 1993) on genuine redundancy will go to the Lump Sum A (Type R) payment for STP.
Payment Classifications when creating pay categories
The following is a reference guide to help when selecting the applicable payment classification when you are creating your organisation's pay categories.
Pay Category payment classification by Payment Type
| Payment type. | Pay category payment classification. |
|---|---|
| Allowance: Domestic accommodation where the amount does not exceed ATO's reasonable amount. | Exclude from payment summary (income statement) |
| Allowance: Domestic accommodation where amount exceeds ATO's reasonable amount. | Allowance: Travel. |
| Allowance: Overseas accommodation for business purposes. | Allowance: Other. The ATO recommends that you state the allowance description as G1 General. |
| Allowance: Overseas accommodation for private purposes. | Allowance: Other. The ATO recommends you state the allowance description as ND Non-deductible. |
| Allowance: All-purpose. | Allowance: Tasks. |
| Allowance: Car flat rate allowances, regardless of kilometres travelled. | Allowance: Other. The ATO recommends you state the allowance description as V1 Private vehicle. |
| Allowance: Cents per km for a car over the ATO rate for business-related travel. | Allowance: Cents per km. |
| Allowance: Cents per km for a car up to the ATO rate for business-related travel. | Allowance: Cents per km. |
| Allowance: Cents per km for private travel such as travel between home and work. | Allowance: other. The ATO recommends you state the allowance description as ND non-deductible. |
| Allowance: Cents per km for vehicles other than a car such as a motorbike or van. | Allowance:Other. The ATO recommends you state the allowance description should as V1 Private vehicle. |
| Allowance: Confined spaces. | Allowance: Tasks. |
| Allowance: Danger. | Allowance: Tasks. |
| Allowance: Dirt. | Allowance: Tasks. |
| Allowance: District. | Allowance: Tasks. |
| Allowance: Driving licence. | Allowance: Qualifications/certificates. |
| Allowance: Equipment supplied by employee for business purposes. | Allowance: Tool. |
| Allowance: First aid. | Allowance: Tasks. |
| Allowance: Freezer. | Allowance: Tasks. |
| Allowance: Height. | Allowance: Tasks. |
| Allowance: Higher duties. | Allowance: Tasks. |
| Allowance: Home office equipment. | Allowance: Other. The ATO recommends you state the allowance description as H1 Home Office. |
| Allowance: Industry. | Allowance: Tasks. |
| Allowance: Internet. | Allowance: Other. The ATO recommends you state the allowance description as H1 Home Office. |
| Allowance: Laundry for cleaning of approved uniforms over the ATO approved limit. | Allowance: Laundry. |
| Allowance: Laundry for cleaning of approved uniforms up to the ATO approved limit. | Allowance: Laundry. |
| Allowance: Laundry for the cost of laundering deductible conventional clothing. | Allowance: Other. The ATO recommends that you state the allowance description as G1 General. |
| Allowance: Laundry for the cost of laundering uniforms for private purposes. | Allowance: Other. The ATO recommends you should state the allowance description as ND Non-deductible. |
| Allowance: Leading hand. | Allowance: Tasks. |
| Allowance: Liquor licence. | Allowance: Qualifications/certificates. |
| Allowance: Living away from home (FBT). | Exclude from payment summary (income statement) but may form part of RFBA. |
| Allowance: Locality. | Allowance: Tasks. |
| Allowance: Loss of licence. | Allowance: Qualifications/certificates. |
| Allowance: Domestic meals and incidentals where the amount does not exceed ATO's reasonable amount. | Exclude from payment summary (income statement). |
| Allowance: Domestic meals and incidentals where the amount exceeds ATO's reasonable amount. | Allowance: Travel. |
| Allowance: Overseas meals and incidentals where amount exceeds ATO's reasonable amount. | Allowance: Travel. |
| Allowance: On call ordinary hours. | Allowance: Tasks. |
| Allowance: On call outside ordinary hours. | Overtime. |
| Allowance: Overtime meals where the amount does not exceed the ATO's reasonable amount. | Exclude from payment summary (income statement) |
| Allowance: Overtime meals where the amount exceeds the ATO reasonable amount. | Allowance: Overtime meal. |
| Allowance: Mobile phone/ laptops |
Allowance: Other. These allowances may belong in one of the following specific allowance categories depending on the purpose of the allowance. Option one, if you require the employee to supply their own laptop or mobile phone for work, report as Tool Allowance - Allowance type TD. Option two, if the employee uses their own laptop because they are working from home, report as Other Allowance - Allowance type OD with the allowance code H1. |
| Allowance: Recognition of skill level. | Allowance: Tasks. |
| Allowance: Secondment. | Allowance: Tasks. |
| Allowance: Site. | Allowance: Tasks. |
| Allowance: Supervisor. | Allowance: Tasks. |
| Allowance: Tools of trade. | Allowance: Tool. |
| Allowance: Transport for private purposes. | Allowance: Other. The ATO recommends you state the allowance description as ND Non-deductible. |
| Allowance: Transport payments for the cost of transport for business-related travel traceable to a historical award in force on the 29th October 1986 | Allowance: Award transport payments. |
| Allowance: Transport payments for the cost of transport for business related travel not traceable to a historical award in force on the 29th October 1986 | Allowance: Other. The ATO recommends you state the allowance description as T1 Fares. |
| Allowance: Travel for private purposes. | Allowance: Other. The ATO recommends you state the allowance description as ND Non-deductible. |
| Allowance: Travel part day. | Allowance: Other. The ATO recommends you state the allowance description as ND Non-deductible |
| Allowance: Travel time ordinary hours. | Default. |
| Allowance: Travel time outside ordinary hours. | Overtime. |
| Allowance: Wet weather. | Allowance: Tasks. |
| Allowance: Working with children check. | Allowance: Qualifications/certificates. |
| Back pay: Total is below Lump sum E threshold. | The payment type that matches the payment.
For example, back pay of ordinary pay = Default, back pay of higher duties allowance = Allowance: Tasks/ |
| Back pay: Accrued less than 12 months before the date of payment. | The payment type that matches the payment.
For example, back pay of ordinary pay = Default, back pay of higher duties allowance = Allowance: Tasks. |
| Back pay: Accrued over 12 months before date of payment. | Lump sum E. |
| Bonus: Christmas. | Bonuses and commissions. |
| Bonus: Ex-gratia, regarding ordinary hours of work. | Bonuses and commissions. |
| Bonus: Aid to employees that have resigned to encourage withdrawal of resignation. | Return to work payment. |
| Bonus: Paid to end industrial action. | Return to work payment. |
| Bonus: Paid to ex-employee to return. | Return to work payment. |
| Bonus: Performance. | Bonuses and commissions. |
| Bonus: Referral. | Bonuses and commissions. |
| Bonus: Relating entirely to time worked outside ordinary hours. | Overtime. |
| Bonus: Retention. | Bonuses and commissions. |
| Bonus: Sign-on. | Bonuses and commissions. |
| Breach of rest break payment. | Default. |
| Call back payment. | Overtime. |
| Commission. | Bonuses and commissions. |
| Directors’ fees: Working or non-working director. | Directors’ fees. |
| Flexi time: Hours worked and taken. | Default. |
Payment Classifications when creating leave-related pay categories
The next reference guide will help when selecting your organisation's applicable leave-related pay categories and payment classifications.
Pay Category payment classification by Leave Type
| Leave type. | Pay category payment classification. |
|---|---|
| Identifiable overtime component of annualised salary. | Overtime. |
| Leave: Annual cashed out in service. | Leave: Cash out of leave in service. |
| Leave: Annual leave taken. | Leave: Other paid leave. |
| Leave: Bereavement. | Leave: Other paid leave. |
| Leave: Carer’s. | Leave: Other paid leave. |
| Leave: Community service. | Leave: Ancillary and defence leave. |
| Leave: Compassionate. | Leave: Other paid leave. |
| Leave: Defence. | Leave: Ancillary and defence leave. |
| Leave: Domestic violence. | Leave: Other paid leave. |
| Leave: Family. | Leave: Other paid leave. |
| Leave: Firefighting service. | Leave: Ancillary and defence leave. |
| Leave: Gardening. | Leave: Other paid leave. |
| Leave: Jury duty. | Leave: Ancillary and defence leave. |
| Leave: Long service cashed out in service. | Leave: Cash out of leave in service. |
| Leave: Long service taken. | Leave: Other paid leave. |
| Leave: Parental employer paid. | Leave: Paid parental leave. |
| Leave: Parental government paid (GPPL). | Leave: Paid parental leave. |
| Leave: Personal cashed out in service. | Leave: Cash out of leave in service. |
| Leave: Personal taken. | Leave: Other paid leave. |
| Leave: RSPCA. | Leave: Ancillary and defence leave. |
| Leave: Sick. | Leave: Other paid leave. |
| Leave: State Emergency Service (SES). | Leave: Ancillary and defence leave. |
| Leave: Study. | Leave: Other paid leave. |
| Leave: Paid on termination, annual leave or leave loading accrued after the 17th August 1993, paid on a normal termination. | Leave: Unused leave on termination. |
| Leave: Paid on termination long service leave accrued after the 17th August 1993, paid on a normal termination. | Leave: Unused leave on termination. |
| Leave: Paid on termination, annual leave or leave loading accrued after the 17th August 1993, termination for genuine redundancy, invalidity or early retirement scheme reasons. | Lump Sum A (Type R). |
| Leave:Paid on termination unused annual leave or leave loading paid on termination that accrued before the 17th August 1993. | Lump Sum A (Type T). |
| Leave: Paid on termination of long service leave that accrued between the 16th August 1978 and 17th August 1993. | Lump Sum A (Type T). |
| Leave: Paid on termination of long service leave that accrued before the 16th August 1978. | Lump Sum B. |
| Loadings: Annual leave loading (demonstrably referable to a loss of overtime). | Overtime. |
| Loadings: Annual leave loading (standard). | Leave: Other paid leave. |
| Loadings: Casual loading. | Default. |
| Ordinary hours. | Default. |
| Overtime. | Overtime. |
| Penalties: Public holiday. | Default. |
| Penalties: shift. | Default. |
| Public holiday: Day not worked. | Report as if the employee had worked (Default and any other relevant payment types). |
| Rostered day off (RDO): Hours cashed out in service. | Leave: Cash out of leave in service. |
| Rostered day off (RDO): Hours taken. | Leave: Other paid leave. |
| Time off in lieu (TOIL): Hours taken. | Leave: Other paid leave. |
| Time off in lieu (TOIL): Hours cashed out in service | Overtime. |
| Travel time: Excess, for travel outside ordinary hours. | Overtime. |
| Workers’ compensation: No work performed. | Leave: Worker's compensation. |
| Workers’ compensation: Paid after termination. | Leave:Worker's compensation. |
| Workers’ compensation: Top-up, no work performed. | Leave: Worker's compensation. |
| Workers’ compensation: Top-up, work performed. | Default. |
| Workers’ compensation:Work performed. | Default. |
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