With the introduction of STP Phase 2, there are a number of new payment classifications available for use. Detailed definitions for each payment classification can be found in this article.
The following is a reference guide to help with selecting the applicable payment classification when creating pay categories.
| Payment type | Pay category payment classification |
| Allowance - domestic accommodation where amount does not exceed ATO reasonable amount | Exclude from payment summary (income statement) |
| Allowance - domestic accommodation where amount exceeds ATO reasonable amount | Allowance - travel |
| Allowance - overseas accommodation for business purposes | Allowance - other. The ATO recommends the allowance description should be stated as G1 General |
| Allowance - overseas accommodation for private purposes | Allowance - other. The ATO recommends the allowance description should be stated as ND Non-deductible |
| Allowance – all-purpose | Allowance - tasks |
| Allowance – car – flat rate allowances, regardless of kilometres travelled | Allowance - other. The ATO recommends the allowance description should be stated as V1 Private vehicle |
| Allowance – cents per km – for a car in excess of the ATO rate for business related travel. | Allowance - cents per km |
| Allowance – cents per km – for a car up to the ATO rate for business related travel | Allowance - cents per km |
| Allowance – cents per km – for private travel such as travel between home and work | Allowance - other. The ATO recommends the allowance description should be stated as ND non-deductible |
| Allowance – cents per km – for vehicles other than a car such as a motorbike or van. | Allowance - other. The ATO recommends the allowance description should be stated as V1 Private vehicle |
| Allowance – confined spaces | Allowance - tasks |
| Allowance – danger | Allowance - tasks |
| Allowance – dirt | Allowance - tasks |
| Allowance – district | Allowance - tasks |
| Allowance – driving licence | Allowance - qualifications/certificates |
| Allowance – equipment – where equipment is supplied by employee for business purposes | Allowance - tool |
| Allowance – first aid | Allowance - tasks |
| Allowance – freezer | Allowance - tasks |
| Allowance – height | Allowance - tasks |
| Allowance – higher duties | Allowance - tasks |
| Allowance – home office equipment | Allowance - other. The ATO recommends the allowance description should be stated as H1 Home office |
| Allowance – industry | Allowance - tasks |
| Allowance – internet | Allowance - other. The ATO recommends the allowance description should be stated as H1 Home office |
| Allowance – laundry – for cleaning of approved uniforms in excess of the ATO approved limit | Allowance - laundry |
| Allowance – laundry – for cleaning of approved uniforms up to the ATO approved limit | Allowance - laundry |
| Allowance – laundry – for the cost of laundering deductible conventional clothing | Allowance - other. The ATO recommends the allowance description should be stated as G1 General |
| Allowance – laundry – for the cost of laundering uniforms for private purposes | Allowance - other. The ATO recommends the allowance description should be stated as ND Non-deductible |
| Allowance – leading hand | Allowance - tasks |
| Allowance – liquor licence | Allowance - qualifications/certificates |
| Allowance – living away from home (FBT) | Exclude from payment summary (income statement) – but may form part of RFBA |
| Allowance – locality | Allowance - tasks |
| Allowance – loss of licence | Allowance - qualifications/certificates |
| Allowance – domestic meals and incidentals where amount does not exceed ATO reasonable amount | Exclude from payment summary (income statement) |
| Allowance – domestic meals and incidentals where amount exceeds ATO reasonable amount | Allowance - travel |
| Allowance – overseas meals and incidentals where amount exceeds ATO reasonable amount | Allowance - travel |
| Allowance – on call – ordinary hours | Allowance - tasks |
| Allowance – on call – outside ordinary hours | Overtime |
| Allowance – overtime meals where amount does not exceed the ATO reasonable amount | Exclude from payment summary (income statement) |
| Allowance – overtime meals where amount exceeds the ATO reasonable amount | Allowance - overtime meal |
| Allowance: Mobile phone/ laptops |
Allowance: Other. These allowances may belong in one of the following specific allowance categories depending on the purpose of the allowance. Option one, if you require the employee to supply their own laptop or mobile phone for work, report as Tool Allowance - Allowance type TD. Option two, if the employee uses their own laptop because they are working from home, report as Other Allowance - Allowance type OD with the allowance code H1. |
| Allowance – recognition of skill level | Allowance - tasks |
| Allowance – secondment | Allowance - tasks |
| Allowance – site | Allowance - tasks |
| Allowance – supervisor | Allowance - tasks |
| Allowance – tools of trade | Allowance - tool |
| Allowance – transport – for private purposes | Allowance - other. The ATO recommends the allowance description should be stated as ND Non-deductible |
| Allowance – transport – payments for the cost of transport for business related travel traceable to a historical award in force on 29 October 1986 | Allowance - award transport payments |
| Allowance – transport – payments for the cost of transport for business related travel not traceable to a historical award in force on 29 October 1986 | Allowance - other. The ATO recommends the allowance description should be stated as T1 Fares |
| Allowance – travel – for private purposes | Allowance - other. The ATO recommends the allowance description should be stated as ND Non-deductible |
| Allowance – travel – part day | Allowance - other. The ATO recommends the allowance description should be stated as ND Non-deductible |
| Allowance – travel time – ordinary hours | Default |
| Allowance – travel time – outside ordinary hours | Overtime |
| Allowance – wet weather | Allowance - tasks |
| Allowance – working with children check | Allowance - qualifications/certificates |
| Back pay – total is below Lump sum E threshold | The payment type that matches the payment.
For example, back pay of ordinary pay = Default, back pay of higher duties allowance = Allowance - tasks |
| Back pay – accrued less than 12 months before date of payment | The payment type that matches the payment.
For example, back pay of ordinary pay = Default, back pay of higher duties allowance = Allowance - tasks |
| Back pay – accrued more than 12 months before date of payment | Lump sum E |
| Bonus – Christmas | Bonuses and commissions |
| Bonus – ex-gratia, in respect of ordinary hours of work | Bonuses and commissions |
| Bonus – paid to employee that has resigned to encourage withdrawal of resignation | Return to work payment |
| Bonus – paid to end industrial action | Return to work payment |
| Bonus – paid to ex-employee to return | Return to work payment |
| Bonus – performance | Bonuses and commissions |
| Bonus – referral | Bonuses and commissions |
| Bonus – relating entirely to time worked outside ordinary hours | Overtime |
| Bonus – retention | Bonuses and commissions |
| Bonus – sign-on | Bonuses and commissions |
| Breach of rest break payment | Default |
| Call back payment | Overtime |
| Commission | Bonuses and commissions |
| Directors’ fees – working or non-working director | Directors’ fees |
| Flexi time – hours worked and taken | Default |
The next section is a reference list for leave-related pay categories and appropriate payment classifications.
| Leave type | Pay category payment classification |
| Identifiable overtime component of annualised salary | Overtime |
| Leave – annual – cashed out in service | Leave - cash out of leave in service |
| Leave – annual – taken | Leave - other paid leave |
| Leave – bereavement | Leave - other paid leave |
| Leave – carer’s | Leave - other paid leave |
| Leave – community service | Leave - ancillary and defence leave |
| Leave – compassionate | Leave - other paid leave |
| Leave – defence | Leave - ancillary and defence leave |
| Leave – domestic violence | Leave - other paid leave |
| Leave – family | Leave - other paid leave |
| Leave – firefighting service | Leave - ancillary and defence leave |
| Leave – gardening | Leave - other paid leave |
| Leave – jury duty | Leave - ancillary and defence leave |
| Leave – long service – cashed out in service | Leave - cash out of leave in service |
| Leave – long service – taken | Leave - other paid leave |
| Leave – parental – employer paid | Leave - paid parental leave |
| Leave – parental – government paid (GPPL) | Leave - paid parental leave |
| Leave – personal – cashed out in service | Leave - cash out of leave in service |
| Leave – personal – taken | Leave - other paid leave |
| Leave – RSPCA | Leave - ancillary and defence leave |
| Leave – sick | Leave - other paid leave |
| Leave – State Emergency Service (SES) | Leave - ancillary and defence leave |
| Leave – study | Leave - other paid leave |
| Leave – paid on termination – annual leave or leave loading accrued after 17 August 1993 paid on a normal termination | Leave - unused leave on termination |
| Leave – paid on termination – long service leave accrued after 17 August 1993 paid on a normal termination | Leave - unused leave on termination |
| Leave – paid on termination – annual leave or leave loading accrued after 17 August 1993, termination for genuine redundancy, invalidity or early retirement scheme reasons | Lump Sum A (Type R) |
| Leave – paid on termination – unused annual leave or leave loading paid on termination that accrued before 17 August 1993 | Lump Sum A (Type T) |
| Leave – paid on termination – long service leave that accrued between 16 August 1978 and 17 August 1993. | Lump Sum A (Type T) |
| Leave – paid on termination – long service leave that accrued before 16 August 1978 | Lump Sum B |
| Loadings – annual leave loading (demonstrably referable to a loss of overtime) | Overtime |
| Loadings – annual leave loading (standard) | Leave - other paid leave |
| Loadings – casual loading | Default |
| Ordinary hours | Default |
| Overtime | Overtime |
| Penalties – public holiday | Default |
| Penalties – shift | Default |
| Public holiday – day not worked | Report as if the employee had worked (Default and any other relevant payment types) |
| Rostered day off (RDO) – hours cashed out in service | Leave - cash out of leave in service |
| Rostered day off (RDO) – hours taken | Leave - other paid leave |
| Time off in lieu (TOIL) – hours taken | Leave - other paid leave |
| Time off in lieu (TOIL) – hours cashed out in service | Overtime |
| Travel time – Excess, for travel outside ordinary hours | Overtime |
| Workers’ compensation – no work is performed | Leave - worker's compensation |
| Workers’ compensation – paid after termination | Leave - worker's compensation |
| Workers’ compensation – top-up, no work is performed | Leave - worker's compensation |
| Workers’ compensation – top-up, work is performed | Default |
| Workers’ compensation – work is performed | Default |
Please note: Each classification will have a short version that may be used in back-end reporting, depending on the number of characters allowed in a specific field, e.g. Allowance (Car) is the short-form description for Allowance - cents per km. The short version will still report correctly as long as the Pay category payment classification has been updated as per the above.
If you have any questions or feedback, please let us know via support@yourpayroll.com.au.