Income Stream Types

(from the ATO's Business Implementation Guide)

Income Types/Country Codes

Income Types are a critical foundation to the Payee data reported to the ATO. This grouping of income has always been required:

• Payment Summaries – separate forms/labels for each income type
  
  
• STP 2018 (Phase 1) – replicated the Payment Summary groupings of separate Income Types/Payment Types (different labels per form).
  
  

The data structure change for STP Phase 2 has moved to a framework where the Payment Types (labels) are grouped by Income Type and, for some Income Types, by Country Code. This is known as the Income Stream Collection.  Income Stream Collection does not include these Other Components that are reported for the Payee without reference to the Income Type/Country Code:

• Deductions
  
  
• Super Entitlements
  
  
• Reportable Fringe Benefits Amounts.
  
  

Not all Payment Types are permitted for all Income Types. Income types and country codes serve three primary purposes:

• To identify amounts with specific tax consequence and/or mapping to a specific part of the individual’s IITR
  
  
• To identify that a Payer may choose to claim an STP reporting concession and to avoid unnecessary contact with the Payer. For example; claiming a reporting concession for Closely Held Payees
  
  
• Clarifies the reporting obligations of the Payer with respect to the Income Type and Country Code. For example; if there is a tax treaty in place with the foreign country.

Income Stream Types

Salary and Wages

Closely Held Payees

Inbound Assignees to Australia – New

Working Holiday Makers

Seasonal Worker Programme – New

Foreign Employment

Voluntary Agreement

Labour-Hire

Other Specified Payments

STP Creator - MYOB Users

In STP Creator, the above information is entered/selected on the Employment Details screen, accessible from the Payee Details screen. STP Creator will extract the details from the Employee's Card in MYOB and this can be used to pre-fill the selections. Also if changes are made to the Employee Card, you will be required to update the Employment Details screen to ensure it reflects the changes.

STP Creator - non MYOB Users

In STP Creator, the above information is entered/selected on the Employment Details screen, accessible from the Payee Details screen. .

Note: Only one Income Type can be set for each Payee ID. If an employee changes Income Types during a payroll year, create a new Payee ID for the new Income Type. For example if an employee started as a Working Holiday Maker and later became an Australian Resident, use one Payee ID for the Working Holiday Maker Income Type and a different Payee ID for the Salary and Wages Income Type.