Revised 1 October 2024
Satisfactory Tax Record (STR) requirements
When is an STR required?
Please check the tender request documentation to see if you are required to submit a valid and satisfactory STR with your tender. Generally this is the case for Commonwealth Government procurements undertaken through open tenders with an estimated value of $4 million or more inclusive of GST.
Who needs to provide an STR with the tender?
If the tender documentation specifies that a valid and satisfactory STR is required to be submitted with their tender, then this applies to the tenderer, and any first tier sub‑contractors.
If the tenderer is a partnership, trust, joint venture, or tax consolidated group then additional STRs are required for related entities and you should refer to the Shadow Economy Procurement Connected Policy (PCP) for further information.
The ABNs on the STRs must match the entities submitting the tender. It is a minimum content and format requirement that all STRs must be satisfactory and have not expired.
Applying for an STR
How do I apply for an STR?
STRs must be obtained from the ATO. Information on how to apply for an STR (including for new or foreign businesses) is provided on the ATO’s website.
When should I apply for an STR?
It is not necessary to wait until you have identified a potential tender in order to apply for an STR.
If you are likely to be involved in a government procurement valued at $4 million or more, then you are encouraged to apply for an STR well ahead of this time. While the ATO will respond to STR applications within 4 business days, the advantage of applying before this time is that it reduces the risk of not having a satisfactory STR when it is needed. This includes the situation where an unsatisfactory STR is received and steps need to be taken (such as lodging an outstanding return) in order to reapply so that a satisfactory STR can be obtained.
Receiving your STR
Which document should be included with the tender?
The ATO will provide 3 documents as part of the STR application process:
- An STR request receipt. The ATO will issue a request receipt within 24 hours of your request.
- The actual STR: The STR will state if your engagement with the Australian Tax system is satisfactory or unsatisfactory. Only a satisfactory STR will be recognised as being acceptable by the Commonwealth entity.
- The STR taxpayer report – this report is provided for your information only and is not required to be lodged with the tender. It is provided so you can see how you have met the STR criteria (or can be used to rectify any matters that may have led to receiving an unsatisfactory STR).
Where will I find my STR?
Information on where to find your STR and STR Receipt will be provided on the ATO’s website.
What do I do if I get an unsatisfactory STR?
It is a minimum content and format requirement in a tender where the PCP applies that the STR must be valid and satisfactory.
The taxpayer report provided with your STR for your information will provide you with details of where you have not met the criteria and the action(s) you can take to address these. Once this has been done, you will be able to reapply for an STR.
You will need to take any necessary actions, reapply for an STR and resubmit a valid and satisfactory STR prior to the close of tender, in order to satisfy the minimum content and format requirements.
If the STR is still unsatisfactory, then the Commonwealth entity may either provide you with 10 business days to rectify any unintentional errors of form or the tender may not be accepted.
Can the STR be used for other purposes?
The STR is based on limited criteria which may not be suitable for other purposes such as establishing the financial viability of a business.
STR receipts
What is a STR request receipt?
The ATO will issue an STR request receipt within 24 hours of submitting a successful online application for an STR. This request will be available under the Requests section within 24 hours as confirmation of your request.
A request receipt is provided to the tenderer when they have submitted their request for a STR as a STR may take up to four working days to be received by the tenderer.
Example:
Where will I find my STR request receipt?
The ATO will issue an STR request receipt within 24 hours of submitting a successful online application for an STR. The STR request receipt will be available under the Requests section of the online service you used to apply for your STR (Online services for registered tax agents, the Business Portal for businesses and MyGov for sole traders). See ‘Where will I find my STR?’ above for more detailed instructions.
What if I have not received an STR request receipt?
The ATO will issue an STR request receipt under the Requests section of the online service you used to apply for your STR (Online services for registered tax agents, the Business Portal for businesses and MyGov for sole traders).
If a receipt does not display within 24 hours of submitting the request, please call the ATO on:
- 13 28 66 (for businesses)
- 13 72 86 (for registered agents).
Expired STRs
How do I know if my STR is still current?
The STR includes a date of expiry and you should check this is current before submitting it with your tender. You can also apply for another STR on the expiry of your previous STR in order to ensure you are ready for future tender opportunities.
Example:
