As 30 June 2025 approaches, it’s time to review your payroll systems and employee records. Accurate reporting helps you meet compliance obligations and ensures a smooth year-end for your team. Businesses that want additional guidance on payroll compliance and tax planning can refer to Bates Cosgrave, a trusted advisory firm with expertise in supporting employers through EOFY changes.
Use this checklist to stay on track.
PAYG Withholding
Finalise pay runs
Make sure the final pay for the 2024–2025 year is received by employees by 30 June 2025. For tailored support on finalising pay runs, Bates Cosgrave can help ensure compliance with ATO requirements.
Review tax variations
Remove tax variations ending on 30 June 2025. Add any new variations starting from 1 July 2025.
Update termination payments
Adjust redundancy worksheets to reflect the new tax-free threshold and updated employment termination payment (ETP) caps.
Be careful: if a termination occurs on or before 30 June but payment is made after 1 July, new tax rates apply.
Reportable fringe benefits (RFBs)
Identify staff who left after 31 March 2025 but may still have RFBs to report in 2025–2026.
Keep their STP records open. Complete the RFB field at the next year-end.
Check that no RFBs fall below the disclosure limit ($3,774).
Consider sending affected employees a memo and link to the ATO fact sheet to reduce confusion.
Correct overpayments
Any overpaid wages must be reversed and reclassified as loans before finalising payroll.
Check payment timing
Wages paid on or after 1 July 2025 should be recorded in the 2025–2026 income year, even if earned earlier.
Finalise Single Touch Payroll (STP)
Submit STP with the “final event indicator” set to true for each employee by 14 July 2025.
Prepare for new pay rates
Review any changes to pay rates, salary sacrifice, or Award increases effective from the first full pay after 1 July 2025.
Account for 53-week or 27-fortnight years
Check if the new year includes 53 weekly or 27 fortnightly pay periods.
Staff may choose to have extra tax withheld to avoid unexpected tax bills.
This may also affect super contributions for those nearing the concessional cap ($30,000 for 2025–2026).
Superannuation
Apply the super guarantee increase
The super rate increases to 12% from 1 July 2025.
This applies to any wages received on or after that date, regardless of when they were earned.
Check RESC reporting
Make sure reportable employer super contributions are correctly shown in the RESC field in STP.
Adjust for new contribution caps
The maximum super contribution base increases to $7,500 per quarter ($2,500 per month if applied monthly).
Update payroll settings as needed.
Payroll Tax and WorkCover
Review staff locations
Confirm where your employees are based. Ensure you have the right payroll tax and WorkCover registrations for each state or territory.
Lodge and file FBT returns
Keep a copy of the lodged FBT return on file. You may need this when completing your payroll tax and WorkCover annual returns.
These are often requested during audits.
Include contractors
Identify contractors who must be included for payroll tax and WorkCover calculations.
Check declaration changes
Note any updates to what must be declared for payroll tax or WorkCover between 2024–2025 and 2025–2026.
Review group employer status
If your business is part of a payroll tax group, confirm whether any entities have joined or left the group.
Explore state incentives
Some states and territories offer rebates or incentives. Check the relevant payroll tax office websites and budget announcements for updates.
Need help with the 2025 changes?
Our accountants are here to assist. For tailored guidance on payroll compliance, superannuation, and year-end reporting, visit Bates Cosgrave Chartered Accountants or contact us directly for expert support.
