STP came into effect on 1 July 2018 for all employers with 20 or more employees. If you haven’t started reporting and need more information check out this ATO ‘Get Ready’ article and you can apply for a deferral.
Legislation has just been passed in Parliament to extend STP reporting to all employers with 19 or less employees from 1 July this year and the ATO have advised that different STP reporting options will be available by 1 July to help smaller employers. For example micro employers (1-4 employees) will have a number of alternative options such as initially allowing your registered tax or BAS agent to report quarterly.
The STP process in Xero is just two clicks in the payroll workflow and you are ATO compliant and Xero has just announced that it is launching a standalone solution for businesses with 1-4 employees. This payroll-only product will be compliant with the ATO and is expected to cost about $10 a month.
You can find more information about STP on the ATO website