How to complete EOFY payroll
A complete guide to end of financial year payroll processing in Australia, including STP finalisation, superannuation deadlines, and preparing for the new financial year.
Written by
Georgia Morgan
General information only – not tax or legal advice
This guide provides general information about EOFY payroll processing. It does not constitute legal, HR, or professional advice and should not be relied on as a substitute for advice specific to your business, workforce, or circumstances.
What is EOFY payroll processing?
End of Financial Year (EOFY) payroll processing involves finalising all payroll records for the financial year (1 July to 30 June) and reporting this information to the Australian Taxation Office through Single Touch Payroll (STP).
Since the introduction of STP, employers no longer issue paper payment summaries. Instead, employees access their income statement through myGov once you submit your finalisation declaration. Getting this process right ensures employees can complete their tax returns and helps you avoid ATO penalties.
EOFY payroll deadlines
Critical dates for EOFY payroll processing. Mark these in your calendar.
23 June
Submit super payments for EOFY tax deductibility (allows clearing time)
28 June
Super contributions must be received by funds for tax deductibility
30 June
End of financial year
1 July
New tax tables, award rates, and super guarantee rate take effect
14 July
STP finalisation declaration due to ATO
21 July
June quarter super guarantee due to funds
28 July
Extended STP deadline for closely held payees
31 October
Tax returns due (without tax agent)
6 steps to EOFY payroll completion
Follow these steps to ensure compliant EOFY payroll processing.
Reconcile all pay runs for the financial year
Ensure every pay run from 1 July to 30 June has been processed and reported to the ATO via STP.
Key actions:
- Check all pay runs have been lodged with the ATO
- Review any pay runs with errors or amendments
- Reconcile gross wages, PAYG withholding, and superannuation
- Ensure terminated employees have final pay processed
Review employee payment summaries
Check year-to-date totals for each employee match your records before finalisation.
Key actions:
- Compare YTD totals in payroll system with ATO records
- Verify PAYG withheld amounts are correct
- Check reportable fringe benefits (if applicable)
- Confirm allowances are correctly categorised
Ensure superannuation is up to date
All super contributions must be paid by 28 June for tax deductibility in the current financial year.
Key actions:
- Submit super payments by 23 June to allow clearing time
- Verify all employee super fund details are correct
- Check for any unpaid super obligations
- Document any super guarantee charge (SGC) if applicable
Process STP finalisation declaration
Submit your finalisation declaration to the ATO by 14 July to confirm year-end reporting.
Key actions:
- Set income type to "Tax ready" for each employee
- Include all employees who received payments during the year
- Submit finalisation event through your payroll software
- Keep confirmation records for your files
Handle terminated employees
Ensure all ceased employees have been correctly finalised in STP.
Key actions:
- Check cessation date and reason codes are correct
- Verify final pay included all entitlements
- Submit finalisation within 14 days of termination
- Issue employment separation certificate if requested
Prepare for the new financial year
Set up your payroll system for the 2025-26 financial year.
Key actions:
- Update tax tables for new PAYG rates (1 July)
- Update minimum wage and award rates
- Review superannuation guarantee rate (currently 11.5%)
- Configure new public holiday dates
Simplify EOFY payroll
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EOFY payroll checklist
Use this checklist to ensure you've completed all EOFY requirements.
All pay runs processed and lodged with ATO
YTD totals reconciled for all employees
Terminated employees finalised in STP
Super contributions paid by 28 June
Super fund details verified for all employees
Reportable fringe benefits calculated
STP finalisation declaration submitted by 14 July
Employee income statements marked "Tax ready"
Tax tables updated for new financial year
Award rates updated for 1 July increases
Super guarantee rate updated (if changed)
Public holidays updated in rostering system
STP phase 2 reporting elements
Key data elements you must report through STP Phase 2.
| Element | Description | Code |
|---|---|---|
| Gross payments | Total gross wages before deductions | GAP |
| PAYG withholding | Tax withheld from payments | PTW |
| Superannuation | Super guarantee and salary sacrifice | SUP |
| Allowances | Itemised by type (travel, tools, etc.) | ALL |
| Deductions | Union fees, salary sacrifice, etc. | DED |
| Reportable fringe benefits | Grossed-up taxable value of FBT | RFB |
| Employment basis | Full-time, part-time, or casual | EMB |
| Cessation details | Termination date and reason code | CES |
Common EOFY payroll mistakes
Avoid these costly errors during EOFY processing.
Missing the super payment deadline
Consequence: Super paid after 28 June is not tax deductible in the current year and may attract SGC
Solution: Submit super payments by 23 June to allow for bank clearing times
Forgetting terminated employees
Consequence: Employees cannot lodge tax returns until their income statement is finalised
Solution: Finalise terminated employees within 14 days of their last pay
Not updating tax tables on 1 July
Consequence: Incorrect PAYG withholding from the start of the new financial year
Solution: Update tax tables before processing the first pay run in July
Ignoring STP amendments
Consequence: Employees receive incorrect pre-fill data in their tax returns
Solution: Review and amend any STP errors before finalisation
Missing the 14 July deadline
Consequence: ATO penalties up to $16,500 per breach for STP non-compliance
Solution: Apply for a deferral if you cannot meet the deadline
Frequently asked questions
- STP (Single Touch Payroll) finalisation is the process of confirming to the ATO that all payroll information for the financial year is complete and correct. Once finalised, employees can see their income statement as "Tax ready" in myGov and use it for their tax return.
- The deadline is 14 July each year. For example, STP finalisation for the 2024-25 financial year must be submitted by 14 July 2025. If you cannot meet this deadline, you must apply to the ATO for a deferral.
- No. STP has replaced payment summaries for most employers. Employees access their income statement through myGov. However, you may still need to provide a payment summary for reportable employer superannuation contributions (RESC) or if specifically requested.
- The ATO may apply penalties of up to $16,500 per breach for STP non-compliance. More importantly, your employees cannot see their finalised income information to complete their tax returns until you submit the declaration.
Regulatory sources
This guide is aligned with official Australian tax and payroll regulations.
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