Single Touch Payroll for Cafes: 2026 AU Guide

Single Touch Payroll (STP) is the ATO's mandatory system for reporting employee wages, tax, and super in real-time. For Australian hospitality venues—cafes, restaurants, bars, bakeries—it's non-negotiable compliance. But it's also an opportunity to slash payroll admin, eliminate late-payment penalties, and nail those tricky penalty rates (ANZAC Day, Melbourne Cup, Christmas) that trip up most owners. This guide cuts through the jargon.

What is Single Touch Payroll and why does it matter for your cafe?

Single Touch Payroll is the ATO's way of saying: report wages, tax, and superannuation when you pay your staff—not at tax time. Instead of juggling spreadsheets and hoping your accountant catches errors, STP sends data directly from your payroll software to the ATO, automatically.

For hospitality, this is huge. Your cafe or restaurant runs on casual staff, penalty rates, and split shifts. Miss a super payment by 48 hours on ANZAC Day? The ATO knows. Underpay someone on a public holiday by $2? Flagged. STP removes the guesswork and the excuses.

Since 2018, STP has been mandatory for all employers. If you're still doing payroll manually or via spreadsheet, you're technically non-compliant. The ATO has been lenient, but 2026 is the year they're tightening enforcement—especially for hospitality venues, which have historically had high compliance gaps.

How does STP work in practice?

Here's the flow:

1. You run payroll (weekly, fortnightly, or monthly—your choice).
2. Your payroll software calculates wages, tax withholding, superannuation, and any deductions.
3. The software submits to the ATO in real-time (or within 1 business day).
4. The ATO cross-checks employee tax file numbers, super fund details, and payment amounts.
5. Employees see their info in their ATO online account—no surprises at tax time.

The key: it's not about new calculations. It's about when you report. STP just moves reporting from June 30 to payday.

Which payroll software do Australian hospitality venues actually use?

You don't need fancy enterprise software. Most Australian cafes and restaurants use one of these STP-compliant platforms:

• Xero (cloud-based, integrates with suppliers like Bidvest and PFD, good for small teams)
• MYOB (Australian-owned, trusted by hospitality, strong penalty-rate templates)
• Deputy (shift-scheduling + payroll combined, popular in multi-site venues)
• Guidepoint (built for hospitality, handles casual rosters well)
• Keypad (lightweight, good for solo operators and small cafes)

All of these are STP-compliant and integrate with major suppliers (Countrywide, Bidvest, PFD) so you're not re-entering data.

Pro tip: Don't just pick the cheapest. Pick the one that syncs with your roster and supplier ordering. If you're ordering from Bidvest on Monday and paying staff on Friday, you want one platform that talks to both.

Penalty rates: the hospitality minefield

This is where STP saves your skin. Hospitality has more penalty rates than any other industry:

• Public holidays (ANZAC Day, Melbourne Cup, Christmas, New Year): typically 150–200% of base rate
• Weekends (Saturday, Sunday): 125–150% depending on award
• Late-night shifts (after 10 PM): varies by role and venue
• Split shifts (e.g., 11 AM–2 PM lunch, 6 PM–10 PM dinner): often trigger penalties

If your payroll software isn't configured correctly for these, you'll either overpay (killing margins) or underpay (ATO audit nightmare). STP forces you to get it right, because the ATO can see when each shift was worked and what rate was applied.

Example: Your cafe is open on ANZAC Day (April 25). A barista works 6 hours. Under the hospitality award, that's 150% of their base rate. If you pay the standard rate, STP flags it. If you overpay by 20%, you're bleeding money unnecessarily.

Most payroll software has built-in templates for Australian hospitality awards (Fair Work Commission rates update annually). Use them. Don't hand-calculate.

The counter-intuitive tactic: use STP data to negotiate supplier terms

Here's something most cafe owners haven't tried: your STP payroll data is gold for supplier negotiations.

When you approach Bidvest, PFD, or Countrywide for better terms, you can now show them exact payroll data—staff count, wage trends, seasonal spikes. This proves your venue's size and stability in a way a rough estimate never could.

Example: "We run 8 FTE staff year-round, with a 15% spike in December. Here's our STP report." Suddenly, Countrywide knows you're serious and stable. They'll negotiate better margins because the risk is lower.

This works especially well if you're consolidating suppliers (e.g., moving from two wholesalers to one). Your payroll data becomes your negotiating leverage.

Common STP mistakes in hospitality (and how to avoid them)

1. Forgetting to update super fund details

When staff change super funds, you must update their details in STP before the next pay run. If you submit with the old fund, the super goes to the wrong place and the ATO catches it. Check super fund changes monthly.

2. Mixing up casual and part-time rates

A casual barista and a part-time kitchen hand have different super obligations and tax withholding. If your payroll software isn't configured to distinguish them, you'll under-contribute super on casuals. Use your software's employment-type settings and audit quarterly.

3. Not accounting for leave loading

When a casual takes a week off (paid or unpaid), the leave loading (usually 25%) must be calculated and reported separately in STP. Many owners miss this because they think "casual = no leave." Wrong. Casual leave loading is mandatory.

4. Submitting late

STP reports are due by the 15th of the following month (or within 1 business day of pay day, whichever is earlier). Late submissions attract ATO penalties. Set a calendar reminder.

Seasonal spikes: how to staff and payroll for Christmas, Melbourne Cup, ANZAC Day

Hospitality venues see predictable demand spikes:

• Christmas (Dec 20–Jan 5): 40–60% more covers, often at higher penalty rates (public holidays, late shifts)
• Melbourne Cup week (first Tue in Nov): bars and restaurants see 3–5x normal volumes
• ANZAC Day (Apr 25): public holiday surcharge applies
• Easter (March/April): long weekend, penalty rates on public holidays

For STP, this means:

1. Plan casuals 6 weeks ahead. Roster them before you hire, so STP has time to register new TFNs.
2. Lock in penalty rates early. If Christmas 2026 is a Monday, update your payroll software's public holiday rules in October.
3. Use a roster-to-payroll sync. Guidepoint or Deputy let you set a shift, and it auto-calculates penalty rates. No manual entry = no errors.
4. Audit super for temp staff. Casual Christmas staff must have super contributions submitted to STP, even if they only work 2 weeks.

Where Calso fits in

Calso automates the admin that STP creates. You still need STP-compliant payroll software (Xero, MYOB, etc.), but Calso handles the upstream work: tracking hours from staff schedules, flagging penalty-rate shifts, and catching invoice mismatches that could throw payroll off. It also drafts responses to ATO queries so you're not scrambling. Fewer manual errors upstream = cleaner STP submissions downstream.

Want early access?

Australian hospitality venues are joining the Calso waitlist now for founding-venue access. Limited spots available in your city—get in early before your competitor does. Head to calso.com.au/join to secure your place.

FAQs

Do I need an accountant if I use STP?

Yes. STP handles reporting, not strategy. An accountant helps you minimise tax, structure super, and audit compliance. Use STP software + accountant, not one or the other.

What if I'm a sole trader with no staff?

You don't need STP. It only applies if you have employees. Sole traders report tax at end of financial year.

Can I use a spreadsheet for STP?

No. The ATO requires STP data to be submitted via accredited software. Spreadsheets don't count.

What happens if I'm late submitting STP?

The ATO charges penalties (usually $20–$50 per day, capped at $200 per month). It adds up fast. Automate it.

Do I need to report casuals differently?

Yes and no. Casuals are reported the same way in STP, but their super, leave loading, and tax withholding are calculated differently. Your payroll software handles this if configured correctly.