Employer declarations and authorisations¶

Every Single Touch Payroll (STP) report you send to the Australian Taxation Office (the ATO) carries a declaration. It is a short statement that the information in the report is true and correct, and that the person sending it is allowed to make that statement.

There is also a second declaration at the end of the financial year — the finalisation declaration — which confirms the whole year has been reported.

In one line

Each STP report carries a declaration that it is true and correct, and a year-end finalisation declaration confirms the whole year is reported.

Why this matters¶

The declaration is what makes the report official. It tells the ATO the figures can be relied on, and it records that an authorised person stood behind them. The finalisation declaration then removes the need to give employees old-style payment summaries. Getting these right keeps your reporting complete and above board.

What you will learn¶

What the declaration on a pay event states
Who can make the declaration
What the finalisation declaration does

Understanding the concept¶

On each pay event. Before the report is sent, the sender must declare that the information is true and correct. The ATO gives the wording an employer (or authorised employee) must declare: "I declare the information transmitted in this payroll report is true and correct and I am authorised to make this declaration."

Who can make it. In plain terms, the declaration is made by the employer, or by an employee the employer has authorised to make it. A registered agent (a registered tax or BAS agent) can also lodge on an employer's behalf; in that case the agent declares they have received a declaration from the business that the information is true and correct.

At the end of the year. The ATO states a payer must make a declaration to the Commissioner, in the approved form, by 14 July, confirming they have fully reported for the financial year for each of their employees using STP. Making this declaration relieves the employer of the obligation to give employees payment summaries and to lodge a payment summary annual report.

For accountants & bookkeepers

The finalisation declaration is made by setting the final event indicator on a payee's STP report, which may be a submit or an update action. It can be made during the year, or after year end up to 14 July, or on the deferred due date. It updates the payee's ATO Online income statement to Tax Ready. The ATO's Declaration Statement Matrix maps senders and machine credential owners to the exact declaration wording, including separate statements for registered agents and multi-ABN scenarios.

Example¶

A business owner runs the fortnightly pay and, before lodging, confirms the true-and-correct declaration. After 30 June, the owner reviews the full year and makes the finalisation declaration by 14 July. Because the year is finalised through STP, the owner does not issue payment summaries — the employees see their finalised figures in myGov instead.

Common mistakes¶

Thinking the declaration is optional — every report carries one.
Assuming anyone can declare — it must be the employer or an authorised person (or a registered agent lodging on the employer's behalf).
Still issuing payment summaries after finalising through STP — the finalisation declaration removes that need.

How this works in myaccountant¶

In the app — myaccountant builds each STP report from your pay run, and finalisation is an Update action with the finalisation indicator. Finalisation requires a declaration, and myaccountant lets an authorised person lodge it.

Key points¶

Each STP report carries a true-and-correct declaration.
The declaration is made by the employer or an authorised person.
A registered agent can lodge on the employer's behalf.
The year-end finalisation declaration confirms the whole year is reported.
The ATO sets a finalisation declaration due date of 14 July.
Finalising through STP removes the need to give payment summaries.

Learn next¶

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

Did this answer your question?