STP Finalisation 2026: Payroll Checklist Before 14 July
Published June 4th, 2026 | Team Gimbla
STP finalisation is one of the last payroll jobs after 30 June. For the 2025-26 financial year, Australian employers reporting through Single Touch Payroll should treat 14 July 2026 as the key date for checking that employee year-to-date payroll information is complete before income statements are marked tax ready.
The work is not only a button press. Before finalising, small employers should reconcile wages, PAYG withholding, allowances, deductions, super information, employee details and any corrections that affect the year just finished.
STP finalisation works best when it follows a payroll reconciliation, not when it replaces one. Check the numbers first, then finalise.
Quick answer
The ATO’s finalising your STP data guidance says a finalisation declaration is lodged by 14 July each year to indicate the employer has fully reported for the financial year for each employee. When the finalisation indicator is provided, the ATO can show the employee’s income statement as tax ready in ATO online services accessed through myGov.
For the 2025-26 year, that means the practical deadline is Tuesday, 14 July 2026 unless the employer has an extended due date. The safest sequence is to finish the last June pay run, review year-to-date payroll reports, fix any obvious errors, then make the finalisation declaration through STP-enabled payroll software.
Do not wait until the first July pay run has distracted the payroll team. July 2026 also brings new PAYG withholding tax tables, wage-rate checks for many employers and other EOFY tasks, so finalisation should have its own short checklist.
Key points
- STP finalisation tells the ATO that payroll reporting is complete for an employee for the financial year.
- The usual finalisation due date is 14 July each year.
- Employees rely on finalised income statements when preparing tax returns.
- Finalisation does not replace payroll records, payslips, super records or accounting reconciliation.
- Corrections should be made promptly if an error is found before or after finalisation.
- The 2026-27 PAYG withholding tables apply from 1 July 2026, so do not mix old-year finalisation with new-year setup.
What STP finalisation means
During the year, STP reports payroll information to the ATO each payday. At year end, finalisation tells the ATO that reporting is complete for a particular employee for that financial year.
For small employers, that makes STP finalisation a quality-control step. The payroll software may submit the declaration, but the business still needs to know that the payroll information is complete and sensible.
| Area | What finalisation confirms | What to check first |
|---|---|---|
| Employee records | The employee’s STP record is ready to be treated as final for the year. | Name, TFN status, employment basis, start and termination details. |
| Pay information | Reported payroll amounts for the year have been completed. | Gross wages, paid leave, allowances, overtime, bonuses and other pay items. |
| PAYG withholding | Tax withheld through payroll has been reported for the year. | Employee tax settings, year-to-date withholding and any corrections. |
| Super information | Superannuation liability information reported through STP is complete. | Superable earnings, fund details, liability reports and payment records. |
| Corrections | The finalisation indicator is applied after known errors have been reviewed. | Out-of-cycle payments, termination payments, back pays and update events. |
The practical test is simple: if an employee, accountant or tax agent asks how the final income statement number was reached, the business should be able to trace it back through payroll reports and records.
What to check before 14 July
Start with the last pay run of the financial year, then work backwards through the year-to-date reports. The aim is not to recalculate every payslip by hand. It is to catch mismatches that often appear at EOFY.
| Checklist item | Why it matters | Useful evidence |
|---|---|---|
| Last June pay run | Final payroll totals often depend on whether a payment belongs before or after 30 June. | Approved pay run, payment date, payslips and bank payment record. |
| Employee details | Wrong employment or tax details can make the final income statement confusing. | Employee master file, TFN declaration details, start date and termination record. |
| Gross wages and salary | The main year-to-date amount should agree with payroll reports and the accounting record. | Payroll summary, wages expense report and employee year-to-date report. |
| Allowances and deductions | STP Phase 2 categories can make vague pay items harder to fix late. | Pay item list, allowance mapping and deduction authorisations. |
| PAYG withholding | Employees and tax agents rely on the final withholding amount when preparing tax returns. | Payroll withholding report, activity-statement labels and pay-run summaries. |
| Super information | Super liability information should line up with payroll categories and payment records. | Super liability report, super fund details and payment or clearing house records. |
| Termination payments | Final pay, unused leave and employment termination payments can affect reporting categories. | Termination calculation, final payslip and STP payment category review. |
| Corrections and update events | Known payroll errors should be corrected before the finalisation indicator is applied. | Correction notes, update event history and employee communication if needed. |
If the business uses an accountant or bookkeeper for EOFY payroll, give them the payroll reports early enough to review before 14 July. Late review increases the risk that a simple correction becomes an amended finalisation issue.
Do not mix finalisation with new-year setup
STP finalisation closes the year just finished. July payroll setup opens the next year. They happen close together, but they are different jobs.
The 2026 PAYG withholding tables were published for software developers in May 2026 and apply from 1 July 2026. That matters for the first 2026-27 pay run, not for changing the payroll amounts that belong to 2025-26.
Keep three checks separate:
- Finalise 2025-26 payroll: reconcile the year just finished and lodge the finalisation indicator.
- Set up 2026-27 payroll: check tax tables, pay rates, super settings and employee records for July.
- Review future payroll changes: plan around Payday Super, SBSCH closure and any other changes that affect cash flow or payroll timing.
This separation helps avoid a common mistake: trying to fix an old-year mismatch by changing a new-year payroll setting. Fix the record in the right period.
Simple example
Imagine a small design studio has two employees. The payroll summary for 2025-26 shows wages, PAYG withholding and super information. Before STP finalisation, the owner compares those totals with the STP report and notices one allowance was set up under the wrong pay item for several pay runs.
The owner fixes the payroll categorisation through the software’s correction process, checks the employee year-to-date report again, then finalises STP before 14 July. The employee does not need a payment summary for the amounts reported and finalised through STP, because the ATO makes the income statement available through online services.
The example is small, but the habit is the same for larger employers: compare payroll totals, check the STP report, correct known issues and finalise only when the record is ready.
Records to keep close
STP finalisation does not remove the employer’s record-keeping obligations. The Fair Work Ombudsman’s record-keeping and pay slips fact sheet says employers must make and keep accurate and complete records for employees and issue payslips.
For an EOFY payroll file, keep the records that explain the finalised amounts:
- payroll summary report for the year
- employee year-to-date reports
- final June pay-run approval
- payslips and payment records
- PAYG withholding report
- super liability and payment records
- termination calculations, where relevant
- correction notes or update event history
- adviser review notes, if an accountant or bookkeeper checked the file
These records make later questions easier to answer. They also help connect payroll with the accounting file, BAS or IAS work, management reports and adviser review.
Common STP finalisation mistakes
Finalising before the last payment is reviewed
Check whether the final June pay run, bonus, back pay or termination payment has been included correctly. If a payment belongs to the financial year, it should be handled before the year is treated as complete.
Assuming STP replaces payslips
STP reports payroll information to the ATO. It does not remove the need to issue payslips or keep employee pay records. Treat STP and payslips as connected records, not substitutes.
Ignoring terminated employees
Some employees leave during the year. Their records may already have been finalised, or they may still need review. Check terminated employees before submitting the year-end declaration for the business.
Letting payroll and bookkeeping disagree
Payroll totals should make sense beside wage expenses, PAYG withholding liabilities, super liabilities and bank payments. A difference does not always mean payroll is wrong, but it should be explained before finalisation.
Discovering errors after employees lodge tax returns
The ATO allows amendments after finalisation, but a later change can affect employees who already used the earlier income-statement information. Fix known issues before finalising where possible.
How Gimbla fits the workflow
Gimbla is built for small businesses that want payroll and accounting records in one place. That matters at STP finalisation because the useful workflow is not only lodgment. It is employee setup, pay-run approval, PAYG withholding, super information, STP reporting and accounting records that can be checked together.
If you are setting up STP for the first time, start with the Gimbla Single Touch Payroll page and the register your software ID guide. For the wider payroll workflow, use Payroll for Small Business in Australia and the What Is Single Touch Payroll Software? guide.
If your EOFY review also includes new-year payroll changes, the Australian financial year guide, Annual Wage Review 2026 checklist and SBSCH closure and Payday Super checklist are the natural next reads.
Finalisation checklist
Before submitting the finalisation declaration, run this short review:
- Confirm every employee who should be finalised is included.
- Check terminated employees and final pays.
- Compare employee year-to-date totals with payroll summary reports.
- Review gross wages, allowances, deductions and unusual pay items.
- Check PAYG withholding totals.
- Review super liability information and fund details.
- Confirm corrections and update events have been handled.
- Save payroll reports and supporting records.
- Ask your accountant or bookkeeper to review anything unclear.
- Lodge the finalisation declaration through STP-enabled software by 14 July 2026, unless an extended due date applies.
Frequently asked questions
When is STP finalisation due for 2026?
Employers reporting through STP generally make the finalisation declaration by 14 July each year. For the 2025-26 financial year, that makes Tuesday, 14 July 2026 the practical deadline unless an extended due date applies.
What does STP finalisation do?
It tells the ATO that STP reporting is complete for an employee for the financial year. Once finalised after year end, the employee’s income statement can be shown as tax ready through ATO online services.
What should employers check before STP finalisation?
Check employee details, gross pay, PAYG withholding, allowances, deductions, super information, termination payments, corrections and year-to-date payroll reports before lodging the finalisation indicator.
Does STP finalisation replace payroll records?
No. Employers still need accurate payroll records, payslips and supporting documents. STP finalisation is a reporting declaration, not a replacement for employment records or accounting records.
In short
STP finalisation is the payroll close for the year, not a shortcut around payroll review. Reconcile the payroll file, check employee year-to-date amounts, fix known issues and submit the finalisation declaration by 14 July 2026 unless an extended due date applies.