Single Touch Payroll (STP) was introduced for small businesses on 1 July 2019, and since then the ATO has taken the approach of engagement and communication with non-compliance. Now they are shifting their stance and will be drawing a harder line. This means the first “failure to lodge” penalties will begin appearing for employers who haven’t made the switch. When a notice arrives, the employer will have 28 days to begin STP filings or contact the ATO.