The finalisation due date¶

At the end of each financial year you tell the ATO that your payroll figures for the year are complete and correct. This is called your finalisation declaration. Like most things at tax time, it has a due date.

For most employees, the finalisation declaration is due by 14 July each year. A special group of workers, called closely held payees, have a later due date. This lesson explains both, and what a closely held payee actually is.

In one line

For most employees, finalise your STP data by 14 July. Closely held payees, such as family members or directors of the business, have a later due date.

Why this matters¶

When you finalise, the ATO marks each employee's income statement as Tax ready. That is the signal your employees are waiting for, because they use those figures to do their own tax returns. Meeting the due date means your people can lodge on time and are not left chasing you for numbers.

Missing the date holds up your employees and can bring extra attention from the ATO, so it is worth putting 14 July in your calendar each year.

What you will learn¶

That finalisation for most employees is due by 14 July
What a closely held payee is
That closely held payees have a later, separate due date

Understanding the concept¶

Through the year you report each pay to the ATO under Single Touch Payroll (STP). At the end of the year you make one more report — the finalisation declaration — that says "these year-to-date figures are final".

The ATO sets the due dates:

Most employees (the ATO calls them arm's length employees — ordinary staff who are not related to the business): finalise by 14 July.
Closely held payees: a later due date, because their figures often take more work to settle.

A closely held payee is someone who is directly related to the business paying them. Common examples the ATO gives are family members of a family business, directors or shareholders of a company, and beneficiaries of a trust. Because these people are close to the business, the ATO gives extra time to finalise their pay.

If you only have ordinary employees and no closely held payees, you have one date to remember: 14 July.

For accountants & bookkeepers

The ATO sets a later finalisation due date for closely held payees than the 14 July date that applies to arm's length employees. The exact later date depends on the make-up of the workforce and the employer's circumstances — for example, whether the business has only closely held payees or a mix of closely held and arm's length employees. Confirm the applicable date for a given client against the ATO's current guidance rather than assuming a single fixed date, as it can differ case to case.

Example¶

The Nguyen family runs a small café as a company. They employ three casual staff who are not related to the family, and they also pay Mrs Nguyen, who is a director of the company.

The three casual staff are ordinary employees, so their pay must be finalised by 14 July. Mrs Nguyen is a closely held payee, because she is a director of the business. Her pay has a later due date, which gives the family more time to settle her final figures. The business finalises the casual staff first to meet 14 July, then finalises Mrs Nguyen by her later due date.

Common mistakes¶

Assuming every worker has the same due date — closely held payees have a later one.
Thinking a family member or director does not need finalising at all — they do, just by a later date.
Leaving finalisation until 14 July and running out of time to reconcile the figures.
Not knowing whether you even have any closely held payees — check who you pay before the year ends.

How this works in myaccountant¶

In the app — when you reach the end of the financial year, myaccountant guides you through the finalisation for each employee. You review the year-to-date figures and then finalise, which sends the finalisation declaration to the ATO. The app does not change the ATO due dates for you, so keep 14 July in mind for your ordinary employees, and allow for the later due date if you pay any closely held payees.

Key points¶

For most employees, finalise your STP data by 14 July each year.
Finalising marks each employee's income statement as Tax ready.
A closely held payee is someone closely related to the business — such as a family member, director or trust beneficiary.
Closely held payees have a later due date than 14 July.
If you have no closely held payees, 14 July is your only date to remember.

Learn next¶

General information only — not tax, super or financial advice.

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