Income Types STP2

The ATO has introduced the requirement to categorise each payment type detailed above into income types and where relevant the country of origin of the payment.  The income types are relevant to the source of the income, and/or any relationship with the payee.  The income type is configured in the payment or employees Pay Wages table. More information on that can be found here

The following table details the income types:

Type	Description	Comment
Salary and Wages (SAW)	Assessable income paid to payees for work performed in Australia, other than that included as other Income Types	Country code not required
Closely Held Payees (CHP)	Payee who is directly related to the small employer entity from which they receive payments, such as family members of a family business; directors or shareholders of a company; beneficiaries of a trust.	Country code not required
Inbound Assignees to Australia (IAA)	Some multinational payers exchange, or transfer, employees between affiliated entities in different tax jurisdictions. This is done for business and commercial purposes.	Country code mandatory
Working Holiday Makers (WHM)	Income only for limited visa subclasses for foreign residents.  Payees – In Australia on Visa subclass 417 (Working Holiday) and 462 (Work and Holiday) only.	Country code mandatory.   The Country Code must be the country of the visa (“home” country) of the payee, as per their Visa arrangements.
Seasonal Worker Programme (SWP)	Regional programmes for government-approved employers: Seasonal Worker Programme (SWP) – administered by the Department of Employment, Skills, Small and Family Business. Note - Pacific Labour Scheme (PLS) – administered by the Department of Foreign Affairs and Trade – is reported under SAW	Country code not required
Foreign Employment (FEI)	Assessable income paid to payees, who are Australian tax residents, which is subject to tax in another country, for work performed in that country, if the qualification period is met.	Country code mandatory
Voluntary Agreement (VOL)	A written agreement between a payer and a contractor payee to bring work payments into the PAYGW system. The payer does not have to withhold amounts for payments they make to contractors. However, the payer and a contract worker (payee) can enter into a voluntary agreement to withhold an amount of tax from each payment they make to the contractor.	Country code not required
Labour Hire (LAB)	Payments by a business that arranges for persons to perform work or services, or performances, directly for clients of the entity	Country code not required
Other Specified Payments (OSP)	For the purposes of subsection 12-60(2) in Schedule 1 to the Act, payments of the following kinds are prescribed: a) payments for tutorial services that are provided to improve the education of Indigenous people and are financially supported (directly or indirectly) by the Commonwealth; b) payments for translation and interpretation services provided for the Translating and Interpreting Service (also known as TIS) conducted by the Department administered by the Minister administering the Migration Act 1958; c) payments under a contract to an individual engaged as a performing artist to perform in an activity in which the individual: (i) endorses or promotes goods or services; or (ii) appears or participates in an advertisement; unless the individual is engaged primarily because he or she is a sportsperson. d) payments of green army allowance (within the meaning of the Social Security Act 1991).	Country code not required