Closing Out the Financial Year and Getting Ready for the Next — What Business Owners Need to Check

The 2025-26 financial year ends on 30 June. It’s a busy time, but here’s everything you need to wrap up — and what’s changing from the new financial year — in one place.

1. STP Finalisation — Essential If You Have Employees

Single Touch Payroll (STP) Finalisation confirms with the ATO all wages, allowances, and superannuation information reported for your employees throughout the financial year.

This needs to be completed before your employees can lodge their own tax returns.

Before the deadline, check:

• All pay runs up to 30 June have been processed and filed
• If you had any Fringe Benefits Tax (FBT), it’s been reflected in your STP reporting
• Employee details (employment type, income type, tax scale) are accurate — your payroll software’s Employee Detail Report (or equivalent) is a useful reference.
• Any corrections needed in your STP reporting are made via an Unscheduled Pay Run (in Xero, for example) — make sure the payment date falls within the 2025-26 financial year (on or before 30 June)
• Employees who left during the year are included in your STP Finalisation.

📅 Deadline: 14 July 2026

2. Payroll Tax Annual Return

If you’re already registered for payroll tax, you’ve likely received a notice from your state’s Revenue Office — the annual return deadline is approaching.

Once STP Finalisation is done, this naturally follows. Review all taxable wages paid throughout the year and you’re ready to lodge.

If you’re not currently registered, it’s worth checking your position. After completing STP Finalisation, check whether your total Australian wages for 2025-26 exceeded your state’s payroll tax threshold. This is especially worth checking if you’ve taken on new staff or increased wages this year.

One thing to keep in mind: payroll tax doesn’t only apply to ordinary wages. Superannuation contributions and payments to contractors can also count as taxable wages, so review your total taxable wage base — not just salary payments — before drawing conclusions.

📅 NSW deadline: 28 July 2026
(Other states — check your state Revenue Office website for specific deadlines)

3. Tax Rate Changes in FY2026-27

From 1 July, the ATO is updating tax withholding schedules and tax tables for the new financial year, reflecting recent legislative changes. See the ATO’s tax tables page for full details.

Don’t simply carry over last month’s net pay amount. Confirm you’re using the updated tax tables before processing payments. If you use payroll software, check that the update has been applied and verify the final calculated amount.

4. Minimum Wage Increase

The Fair Work Commission has announced an increase to the national minimum wage. If you’re paying award or minimum wage rates, check the updated figures on the Fair Work Ombudsman website and apply them from 1 July.

5. Payday Super Begins — From 1 July

Superannuation guarantee contributions must be paid within 7 business days of payday.

Make sure you’ve covered:

• The Small Business Superannuation Clearing House (SBSCH) is no longer available from 1 July — confirm you have an alternative payment method in place
• Super Guarantee is now calculated based on qualifying earnings. Check your payroll settings to confirm this new basis is being applied correctly.
• You have a process to obtain new employees’ super fund details quickly
• Cash flow planning reflects the shift from quarterly to payday contributions

6. TPAR (Taxable Payments Annual Report)

If your business operates in building and construction, cleaning, IT, or other specified industries, start preparing your records of payments made to contractors.

📅 Deadline: 28 August 2026

You don’t have to manage all of this alone. PAG is here.

End-of-financial-year obligations are easy to overlook when you’re trying to handle everything at once. Work through the checklist above one item at a time, and you’ll have it covered.

Disclaimer: The information provided in this article is for general informational purposes only and should not be considered as legal or tax advice for any specific situation. You must consult with a qualified professional regarding your individual circumstances.

Liability limited by a scheme approved under Professional Standards Legislation.