Single Touch Payroll (STP) is significant as it enables the ease of compliance of payroll as well as transparency. In the case of businesses, it does not require separate end-of-year employee summary lodging, which saves time and minimises errors. The data regarding payroll (salaries, tax withheld and super contributions) is sent directly to ATO every pay period via STP-enabled software. To the employees, STP has brought them real time access to their income and superannuation record through myGov which is accurate and provides the employees with peace of mind. This system also assists the government in monitoring entitlements in a more effective way, and this results in a modernized, efficient system of payroll reporting that is beneficial to employers, employees as well as regulators.

Source: accountingbyte.com/what-is-single-touch-payroll