STP Finalisation: What It Is, What’s Required, and Why It Matters

As the end of the financial year approaches, it's time to turn your attention to Single Touch Payroll (STP) finalisation—a critical reporting obligation for employers in Australia.

This isn’t just a box to tick. Finalising your STP data is how you confirm what’s been reported to the ATO throughout the year—and it needs to be accurate, complete, and lodged on time. Miss the deadline or get the numbers wrong, and you could be facing penalties, ATO follow-ups, or frustrated employees trying to lodge their tax returns with incorrect info.

Here’s what’s involved, what the key deadlines are, and how WakPac can support you through the process.

What is STP Finalisation?

STP finalisation is the process of confirming the year-to-date amounts reported to the ATO for each employee via Single Touch Payroll throughout the financial year.

Every time a pay run is filed with the ATO, that data builds a real-time earnings record for each employee. At year-end, the total figures must be reviewed, reconciled, and formally declared “final” via your STP-enabled payroll system. Once finalised, the employee’s income statement is marked as Tax ready in myGov.

This process applies to both arm’s-length employees and closely held payees—a category that includes individuals who are directly related to the business, such as directors, shareholders, adult children, or beneficiaries of a trust.

Deadlines to Know and Why You Need to Meet Them

The ATO requires STP finalisation to be completed by:

• 14 July 2025 – for all standard employees
• 30 September 2025 – for closely held payees

Failing to finalise on time can result in:

• ATO penalties for late reporting
• Employee delays in lodging their tax returns
• Increased audit risk, especially if reported data doesn't match your financials
• Loss of compliance status, which may affect your standing with the ATO

Even if another party (such as an accountant or bookkeeper) manages your payroll, it's still your responsibility as the employer to ensure STP obligations are met by the required deadlines.

Why STP Finalisation Deserves Attention

This isn’t just a routine admin task—it’s a key compliance step that ties together your payroll, accounting, and tax reporting. It confirms that everything you’ve reported to the ATO throughout the year is complete and accurate—so there are no missing amounts, reporting errors, or surprises down the line.

It’s also a good opportunity to catch issues early. Finalising gives you the chance to spot any problems with employee setups, pay categories, or super contributions before they turn into bigger compliance headaches.

Since the ATO matches your STP data against your BAS and tax returns, making sure it all lines up helps keep things consistent—and keeps you off the ATO’s radar.

What’s Actually Involved?

STP finalisation isn’t a one-click task—it’s a detailed compliance process that requires a thorough review of your payroll records to ensure everything reported to the ATO is complete, correct, and reconciled.

Here’s what it involves:

• Reviewing all STP submissions lodged during the financial year to identify any missing or duplicate data
• Reconciling STP data to annual payroll reports to ensure consistency across all employee year-to-date totals
• Checking pay categories and classifications to confirm they align with ATO reporting requirements
• Reconciling key ledger accounts, including wages, superannuation, PAYG withholding, and reimbursement expense/payable accounts
• Identifying any outstanding payroll-related payments, such as unpaid super or withheld tax amounts
• Reviewing employee details for completeness and accuracy, including TFNs, addresses, and termination dates
• Lodging the final STP declaration via your payroll system to mark each employee’s record as “Tax ready”

Got directors, adult children, or family members on the books? Got unpaid bonuses or manual journals? Things can get complicated fast.

Done properly, this process gives you confidence that your payroll records are accurate and that your business is meeting its reporting obligations.

Let’s Get It Done Before 17 June

To ensure your STP finalisation is accurate, timely, and penalty-free, we recommend getting started early.

Need help? At WakPac, we offer a comprehensive STP Finalisation Service that removes the stress, ensures full compliance, and gives you peace of mind heading into the new financial year.

Please get in touch no later than Tuesday, 17 June 2025 to engage us for STP finalisation. This gives us time to thoroughly review your data, resolve any issues, and lodge with the ATO on your behalf.