Hi LKJAMES17
When completing the move to STP Phase 2 this is done online via a web browser, to integrate with the ATO's online services, which is only possible if your company file is online.
If your company file is offline, you'll need to put your company file online to move to STP Phase 2. (Having your file online is included with your subscription, so there's no extra cost.)
Putting the file online is only needed when moving to STP Phase 2, and to give you plenty of time to move your file online, we've obtained a deferral from the ATO until 1 January 2023.
As long as you are still on phase 1, it can stay offline. If it is offline but you are having issues, then I would also suggest checking your device meets our system requirements, and if not perform the necessary updates.
Hope that clarifies it for you.
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