Institute of Certified Bookkeepers

Authorisations and Declarations in an STP world – a practical approach

Announced for release by the ATO 4th September

Prior to a future legislative amendment, the ATO have agreed, in the meantime, to apply the Authorisations and Declarations requirements in a manner to enable natural business process in the preparation and lodgment of Single Touch Payroll (STP) reports prepared by Agents on behalf of employers.


A correctly constructed, agreed and declared upfront engagement letter authorising the Agent to act in accordance with the agreed “Parameters” of the employer’s process will be accepted by the ATO, in lieu of the required Declaration for each payevent.

We specifically note that this practical approach ONLY applies to the STP payevent and update event reporting.  It does not apply to the “Finalise” notification or the lodgment of any other approved form with the Commissioner.  All such forms must adhere to the normal Declaration provisions of Sn 388-65

Draft Detail 

(to be finalised with the ATO this week)

The practical approach may be applied where an Agent is preparing and lodging STP reports on behalf of the employer.

The “Parameters” that describe the process of preparing the payroll event for the specific employer must be agreed and properly declared, in an executed engagement letter,

The Agent is then able to make the Agent Declaration(*3 below) at the time of processing each payevent that is prepared in accordance with the agreed parameters.

The draft requirements:

Available in the additional information for members

Changes to process

If the “Parameters” relating to the employers process alter the Engagement Letter must be amended to reflect the change in process in advance of the reliance on the declaration with in the Engagement Letter.

More Details for Members

ICB Website page on the form of the Declaration

  • 4 September 2018