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  • End-of-year finalisation through STP

    You need to make a finalisation declaration by 14 July each year.

    If you start reporting through STP in the 2019–20 financial year and have 19 or less employees, you have until 31 July 2020 to make the finalisation declaration.

    When you have made the finalisation declaration, your employee's information will display as 'Tax ready' in ATO online services via myGov.

    This finalisation process is explained in detail in the STP employer reporting guidelines – see Finalising your Single Touch Payroll data.

    When you have reported and finalised your employee's information through STP, you are exempt from:

    • providing payment summaries to your employees
    • lodging a payment summary annual report to us.

    For payments to your employees that were not reported through STP, you still need to:

    See also:

    How to get ready for end-of-year reporting

    Before making your finalisation declaration, make sure your STP information is correct.

    If you can't make a finalisation declaration by the due date, you will need to apply for a deferral.

    You can finalise your data earlier if it’s ready. The sooner you finalise your employees’ information, the sooner they will be able to lodge their tax return.

    Tell your employees their income statement will be available in ATO online services. You can provide them with the Single Touch Payroll employees factsheet to help them understand the changes.

    If your employees don’t have a myGov account, it's easy to create one – we have a video that will show them how to set up a myGov account.

    Employers with closely held payees

    If you have 19 employees or less and report your closely held payees quarterly, you will have up to the due date of your income tax return to submit the finalisation declaration for your closely held payees.

    If you have 20 or more employees, you should be reporting closely held payees each pay day along with arms-length employees.

    You also have extra time to submit the finalisation declaration for your closely held payees, you will have until 30 September each year to finalise closely held payee information.

    Making a correction after finalisation

    If you realise you need to make a correction after you have done your finalisation declaration, you should make an amendment as soon as possible. You can do this by submitting an update event in your STP-enabled software.

    What your employees will see

    On 1 July, your employees' year-to-date STP information in ATO online services will change from 'Year-to-date' to 'Not tax ready'. It will stay like that until you submit your finalisation.

    Some employees like to lodge their tax returns during July and may choose to do so before you have finalised their STP information. We will make it clear to them that their income statement is not 'Tax ready'. If they choose to use the un-finalised information, they will need to acknowledge that:

    • you may finalise their income statement with different amounts
    • they may need to amend their tax return and pay additional tax.

    We have produced the following summary factsheet as a handy resource:

    See also:


    This video is a webinar about end of year processing through Single Touch Payroll.

    Media: [End of year processing through Single Touch Payroll] Link (Duration: 40:03)

    Last modified: 27 Nov 2019QC 58561