As per the ATO, if you are preparing STP pay events on behalf of an employer a written authority must be reviewed and signed by an employer and their registered agent every 12 months or any time there has been a significant change in the industrial relations, taxation or payroll process.


In this article, we will show you the two quick steps to set up your PI account to send out STP Authorities

Step 1. Setting up your Authority template

Step 2. Setting up a declaration service

As the authority needs to be resigned every 12 months or in the event of significant change to payroll we would recommend having a seperate proposal per client. This will allow you to roll over the proposal each year very quickly through our rollover functionality. (You can add this authority to your engagement letter but it will mean each year you should be re-engaging the client)

Please note you are accepting responsibility (and any associated risks) for using these templates in your account. We strongly recommend you double check with your professional association or indemnity insurance provider prior to engaging your clients with these templates. 

If you need help setting up these templates or you'd like help in bulk creating Declaration proposals to send to your entire client base, please email [email protected], reference this article and your CSM or Account Manager will be glad to assist.

Setting up your account

Read the full instructions below or watch this short video: 

Step 1. Setting up your engagement template 

As is the case for all authority declarations, there will be sections of the authority that needs to be changed for each and every client. Using Practice Ignition’s Placeholders, you’ll be able to automatically update the declaration with all the information you need. 

If you want to create your own template from scratch, Navigate to the Templates library (click to go straight there in your account) and start a new template.

Paste in the declaration wording you need to include and look for the information you need to replace each time you send the declaration to a different client. The template below has been pre-formatted with relevant placeholders so you can just copy and paste into a new template.

You will only need to add your name and ABN to the template below. Please feel free to change the content of the authorisation if you prefer different wording or your association has different requirements. 

I, {{ }}, accept responsibility of providing staff salaries and worked hours to my authorised Tax agent, {{ }}, by the appropriate payrun date. I acknowledge my staff wages are paid in line with the appropriate payroll awards and Fairwork guidelines. My staff have the appropriate PAYG amounts withheld from each pay along with the statutory rate of superannuation paid quarterly.

I, <INSERT NAME> of {{ }}, accept responsibility of collating and entering payroll data each payrun. I accept responsibility for the calculation, reconciliation and submission of PAYG and super reporting, along with providing this information to the business owner for payment in a timely manner. I acknowledge that all payroll data processed under my authority is compliant inline with the ATO and Fairwork guidelines.

I {{ }} authorise {{ }} to lodge each STP event for the next year (12 months) commencing on {{ proposal.commencement_date }}.

Signed {{ signature.client }}
{{ }}
{{ }}, ABN: {{ client.company_number }}

Signed {{ <INSERT NAME> | signature }}
{{ }}, ABN: <XX-XXX-XXX-XXX>

Once you've finished adding the appropriate placeholders your template will look like this: 

And will appear to your client like this:

Once they sign, their signature will populate within the declaration, and then a PDF copy will be sent to them for their record keeping.

Step 2. Setting up a declaration service

Given that a Practice Ignition proposal requires a service, we recommend you set up a simple service for each declaration you need to send your clients. This also helps to set initial expectations with your client as they are reviewing the proposal. Here’s an example of how you can set up your service:

Note that the default billing type is set to Included Service. This will prevent any price from being associated with this service. As for the description, a simple explanation of why the authorisation needs to be signed is all you need here, plus instructions to “please sign this authority with your digital signature in the final step of this proposal.” Make sure you click save!

Building the STP Authority

Please read through the instructions below or watch this short video:

The first step is to create a new proposal, add your client and set the start and end date to reflect the period that the declaration covers (typically, it will align with the financial year). 

Once you’ve filled this in, scroll to the bottom of the General tab and ensure the use new accept design toggle is off. The classic design is more suited to sending a declaration. 

Now that you’ve set up the general proposal settings, next, click on the services tab and add the STP service created from Step 2: 

You shouldn’t need to make any changes so simply hit save. Next, navigate to the terms tab and select the STP template that you created in Step 1 

You can add an optional personalised message in the messaging tab, and then finally, disable payments on this proposal from the payments tab: 

You can also turn off  workflow job creation in the apps tab. Invoices are not affected so there’s no need to turn them off: 

Now, all you need to do is send the proposal to your client. The final proposal will look like this: 

Once your client signs, you’ll be notified and a PDF copy is available for you to store where you like. Your client will also automatically receive a copy of the signed PDF to store with their records.

Pro-tip: Use Zapier to automatically send all of your declarations to a cloud storage folder. 

This is the process for creating one STP authority for one client. Once you have done these steps, the bulk creation of STP authorities will take you very little time. Follow our bulk creation guide and you'll have signed authorities from all clients in no time!

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