Single Touch Payroll (STP)
The Australian Taxation Office (ATO) receives payroll information from employers through Single Touch Payroll (STP) enabled payroll and accounting software each time the employer runs its payroll. The ATO provides selected employer and job level data items from the STP system to the ABS for the production of official statistics. STP replaces the need for businesses to provide a payment summary annual report or 'group certificates.'
STP data is used to produce near real-time weekly indexes of payroll jobs and wages, including weekly changes in the number of payroll jobs, changes in wages and average weekly wages by jobs at the national, state and territory and ANZSIC industry level by selected personal characteristics, including sex and age group.
Scope and coverage
The scope and coverage of these estimates are largely defined and constrained by the characteristics of the data sources from which these estimates are produced. As such, users should note that not all jobs and wages in the Australian labour market are captured within these estimates.
Payroll jobs as reported to the ATO through STP are in scope of these estimates. All payroll jobholders regardless of age or Australian residency status are included. Persons reported via STP must hold either a Tax File Number (TFN) or an Australian Business Number (ABN).
A payroll job is a relationship between an employee and their employing enterprise, where the employee is paid in the reference week through STP-enabled payroll or accounting software and reported to the ATO. Where an employee is paid other than weekly, the established payment pattern is used to include payroll jobs paid in weeks outside the reference week.
Payroll jobs reported via STP exclude owner managers of unincorporated enterprises (OMUEs), which are more prevalent in the Construction and Agriculture, forestry and fishing industries.
Employers with 20 or more employees (large employers) commenced transition to STP reporting on 1 July 2018. Employers with less than 20 employees (small employers) began transitioning to STP on 1 July 2019. Any reporting concessions that were made available for small employers ended on 30 June 2021. At the time of this release, almost all large employers and eligible small employers are reporting through STP.
In addition, payroll jobs reported in the Defence Industry (ANZSIC Class 7600) are excluded from these estimates by the ABS to better align with other Labour estimates.
The STP reported wages associated with each payroll job are in scope of these estimates. Wages are gross amounts, prior to taxation and deductions and include:
- salary payments and allowances,
- labour hire payments and foreign income,
- the value of payments in kind (where a fringe benefit amount is recorded),
- bonuses where they are reported in the same field as normal payments.
The total wages concept broadly aligns with the Australian System of National Accounts (ASNA) definition of wages and salaries, with the exception of payments to employee's superannuation and severance and termination payments which are excluded.
More specifically, the following STP reported income items are included in the production of wages estimates;
- gross income amount (including bonuses),
- allowance income,
- fringe benefit amount (reportable, taxable),
- fringe benefit amount (reportable, tax exempt),
- other income (not specified),
- foreign income amount including tax exempt income,
- Community Development Employment Project income.
Other data sources
The STP data are enhanced through combining other administrative data held by the ABS (also sourced from the Australian taxation system).
Sex, age and residential geography variables are primarily sourced from Client Register data (supplied by ATO to the ABS as part of the transfer of Personal Income Tax data). Sex can only be sourced from Client Register data. When age and residential geography are not available from Client Register data, they are sourced from STP data. The ABS receives annual snapshots of de-identified Client Register data from the ATO, for use in the production of statistics.
Industry of activity, sector and employment size variables of the employing business are sourced from the ABS Business Register (ABSBR).
STP data are compiled into weekly indexes of payroll jobs and wages. These are published in Weekly Payroll jobs and Wages in Australia on a monthly basis.
Each release contains both payroll jobs and total wages indexes and percentage change movements. Estimates are available at the national, state and territory and Australian and New Zealand Standard Industry Classification (ANZSIC) division by selected jobholder and employer attributes. Australian Statistical Geography Standard sub-state regions (Statistical Area 4, Statistical Area 3 and Greater Capital City Statistical Area) and ANZSIC subdivision estimates are also updated in each release.
Levels for jobs and wages are not available for release at this time. The payroll jobs index provides a measure of changes in jobs over time since the week ending 14 March 2020. Information on levels for jobs are best sourced from estimates of filled jobs from Labour Account Australia and estimates of employed persons from Labour Force, Australia. More information on the relationship between payroll jobs and LFS employment is included in the Weekly Payroll Jobs and Wages methodology page.
The data underlying these estimates are revised in each release and reflected in percentage change movements and indexes.
The estimates are presented as an original series only. Seasonally adjusted and trend estimates are not yet available. A number of years of data will be required before seasonal patterns can be observed and adjusted for.