STP Finalisation Deadline Australia Explained

Single Touch Payroll (STP) has become a core compliance requirement for Australian employers. While employers report payroll information to the Australian Taxation Office (ATO) with each pay run, the process is not complete until STP finalisation is done.

Understanding the STP finalisation deadline in Australia is essential to avoid penalties, ensure accurate employee records, and support smooth end-of-financial-year (EOFY) reporting.

What Is STP Finalisation?

STP finalisation is the process where an employer confirms that all payroll information reported through STP for the financial year is complete and accurate. Once finalised, employee income statements are marked as “Tax Ready” in the ATO system, allowing employees to lodge their tax returns.

STP finalisation replaces the need to issue traditional payment summaries, as all required income details are submitted digitally to the ATO.

Standard STP Finalisation Deadline in Australia

For most employers, the standard STP finalisation deadline is 14 July following the end of the financial year. This means:

1. Payroll data for the year ending 30 June must be finalised by 14 July
2. Employee income statements become available through MyGov
3. Employees can then proceed with their tax returns

Meeting this deadline is critical, as delays can impact both employer compliance and employee tax lodgement.

STP Finalisation Deadline for Closely Held Employees

Closely held employees include individuals such as business owners, family members, or directors who receive wages but are closely associated with the business.

For these employees, the ATO allows extended STP finalisation deadlines, which may be:

30 September

Or aligned with the business’s tax return lodgement date

These extended deadlines provide flexibility but still require accurate and timely reporting.

STP Finalisation Deadline for Registered Tax and BAS Agents

Employers who use a registered tax agent or BAS agent may be eligible for extended STP finalisation deadlines. In many cases:

The deadline may be extended beyond 14 July

The exact date depends on the agent’s lodgement program and ATO approvals

Even with an extension, employers should aim to prepare payroll data early to avoid last-minute issues.

What Happens If You Miss the STP Finalisation Deadline?

Failing to meet the STP finalisation deadline can lead to several problems:

1. Employees cannot see their income statement as “Tax Ready.”
2. Employees may be unable to lodge their tax returns on time
3. Increased risk of ATO compliance reviews
4. Potential penalties for ongoing non-compliance

While the ATO may allow corrections after the deadline, repeated delays can attract unwanted attention.

What Should Be Checked Before Finalising STP?

Before submitting STP finalisation, employers should review:

1. Gross wages and allowances
2. Overtime and bonuses
3. PAYG withholding amounts
4. Superannuation figures
5. Termination payments, if any

Ensuring accuracy before finalisation reduces the need for amendments later.

Conclusion

Understanding the STP finalisation deadline in Australia is essential for every employer. For most businesses, the key date to remember is 14 July, with extended deadlines available for closely held employees and businesses using registered agents. Completing STP finalisation on time ensures employees can lodge their tax returns smoothly and helps employers stay compliant with ATO requirements.

By preparing payroll records early, reviewing data carefully, and meeting deadlines, employers can complete STP finalisation confidently and avoid unnecessary complications at EOFY.