The ATO is making changes to Single Touch Payroll (STP) reporting for award transport payments.
From 1 October 2026:
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You must withhold PAYG tax from award transport payments previously reported using the AD – Award Transport Payments category.
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Stop using the AD – Award Transport Payments category to report new payments. Instead, use an STP category that matches the nature of the payment.
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You do not need to update the STP category for historical payments.
From 1 July 2027, you won’t be able to lodge an STP report for new payments using the AD – Award Transport Payments category.
What you need to do before 1 October 2026
You need to update your STP reporting settings for award transport payments. The ATO suggests two methods of transitioning your report:
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You must use the cutover method. It means creating a new allowance to use for payments after 1 October 2026, which replaces your old allowance.
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You can’t use the zeroing out method, as it involves sending STP update events or reclassifying YTD, which is not possible in MYOB Exo Employer Services.
Create replacement allowances
Before getting started
Ensure all existing payrolls for the current pay period have been completed and finalised. This helps avoid unintended impacts on payroll processing and reporting during the transition.
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Go to Maintenance > Allowances.
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In the Allowance Maintenance screen click Find to review your allowances.
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For any allowances with the AD – Award Transport Payments STP category, create a replacement allowance:
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Use a similar name and the same PAYG type, calculation method and other settings required by your business.
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Set STP Reporting Type to Allowance Item.
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Select an STP category other than AD. The ATO hasn’t specified one category for every award transport payment. If you’re unsure which classification to use, see Changes to award transport payments on the ATO website or contact your tax or payroll adviser.
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Save your changes.
After creating a new allowance, run a test pay to check that the payroll calculations, PAYG withholding amounts and STP reporting categories are all correct.
For payments made after 1 October 2026, use the replacement allowance you created.
Comparing allowance payments before and after the change
The Allowance History report makes it easier to identify and reconcile allowance payments made before and after the change. If you created a new allowance, amounts recorded under the new settings will be tracked and reported separately to old allowances.