Read time: 9-10 minutes
Published Thursday, 25th June 2026

The end of the financial year brings a cluster of obligations that tend to arrive together, often in the same few weeks. If you employ staff, or you operate through a company, trust, or partnership structure, or you are considering doing so, the period before 30 June is the point to confirm that nothing has been left unresolved. Loose ends here can lead to additional tax payable, interest charges, penalties, or a deduction being lost. This article walks through four areas where acting before 30 June is most likely to matter: superannuation, WorkCover, payroll, and cash flow.

Superannuation

Quarter four Superannuation Guarantee contributions

The Superannuation Guarantee (SG) rate for the financial year ending 30 June 2026 is 12 per cent of ordinary time earnings. For the April to June 2026 quarter, contributions must be received by the relevant superannuation fund or retirement savings account by 28 July 2026 to meet the SG deadline.

For contributions to be claimed as a tax deduction in the 2025/26 financial year, they must be received by the fund before 30 June 2026, not merely paid. If your business intends to bring the deduction into the current year, contributions need to be processed and cleared to the fund by 30 June. Paying on 30 June does not guarantee same-day receipt, so allowing several business days is advisable.

If SG contributions are not received by the fund by the due date, a Superannuation Guarantee Charge (SGC) becomes payable. The SGC is calculated on a broader base than ordinary SG, includes an interest component and an administration charge, and is not deductible. Employers who have missed or underpaid SG should take steps to identify the shortfall and address it before the charge falls due.

Small Business Superannuation Clearing House closing 1 July 2026

The Australian Taxation Office (ATO) operates the Small Business Superannuation Clearing House (SBSCH), a free payment service available to employers with 19 or fewer employees, or with an annual aggregated turnover below 10 million dollars. The SBSCH closes permanently on 1 July 2026. Access to the service, including the ability to make payments and to view or download records, will cease at 11:59 PM Australian Eastern Standard Time (AEST) on 30 June 2026.

There are two practical consequences for employers currently using the SBSCH.

First, the quarter four superannuation contribution, due to funds by 28 July 2026, cannot be made through the SBSCH after 30 June 2026. Employers will need an alternative clearing house or payment arrangement in place before the service closes in order to meet this obligation on time.

Second, where an employer intends to claim a deduction for superannuation contributions in the 2025/26 financial year, the relevant payment must be received by the employee’s superannuation fund before 30 June 2026. Leaving payment until the final days of June and relying on the SBSCH to process it carries a risk that the fund does not receive the payment before the service closes. Employers in this position should act well before 30 June to allow sufficient processing time.

Employers who have not yet transitioned away from the SBSCH should do so now. The ATO SuperStream Product Register lists approved alternative providers. Payroll software providers, registered tax agents, and bookkeepers can also assist with identifying a suitable alternative. Employers should also download their SBSCH records, including employee details and payment transaction history, before access closes on 30 June 2026.

Payday Super from 1 July 2026

From 1 July 2026, the Payday Super measure is legislated to commence. Under Payday Super, employers will be required to pay SG contributions at the same time as salary and wages, rather than on a quarterly cycle. This represents a significant change to payroll and superannuation administration for most businesses. Any business that is not yet aware of this change should use the remaining weeks before 30 June to understand what adjustments to payroll processes, software, and cash flow planning will be required.

WorkCover

WorkCover, known in Victoria as WorkSafe and as WorkCover in other states and territories, is a compulsory employer insurance scheme covering workers for work-related injuries and illnesses. The annual premium is calculated based on the remuneration paid to workers during the policy year, applied against the industry rate for the business.

Remuneration declarations

At the end of each policy year, employers are required to declare their actual rateable remuneration for the year and provide an estimate for the year ahead. The due date for this declaration appears on the notice issued by the employer’s WorkSafe agent and varies depending on the size of the business. Inaccurate declarations, whether understated or overstated, can result in adjusted premiums, shortfall charges, or penalties.

Rateable remuneration is broader than standard payroll. In Victoria, it includes salaries, wages, overtime, bonuses, back pay, commissions, director’s fees, annual leave, long service leave, sick leave, employer superannuation contributions, fringe benefits, and certain allowances. It does not include termination payments, and apprentice remuneration is classified separately. Employers who are uncertain about which payments are included should confirm with their WorkSafe agent or adviser before submitting a declaration.

Premium payments

WorkCover premiums for the new policy year are typically based on the estimate submitted at declaration time. Where the prior year estimate differed significantly from actual remuneration, the adjustment will be reflected in the forthcoming premium notice. Businesses with significant changes to headcount or wage levels in the year ahead should ensure their estimate reflects this accurately.

Payroll

Payroll tax

Payroll tax is a state and territory tax levied on employers whose total Australian wages exceed a threshold. The threshold varies by state and territory. In Victoria, the tax-free threshold for the 2025/26 financial year is 1 million dollars in annual Victorian taxable wages, and the standard rate is 4.85 per cent. The threshold is not a flat exemption for all employers. For employers or groups with total Australian wages between 3 million dollars and 5 million dollars, the threshold reduces progressively at a phase-out rate of 50 per cent. Employers with total Australian wages exceeding 5 million dollars receive no threshold entitlement and pay the standard rate on the full payroll amount. Wages paid to related entities may also need to be grouped for payroll tax purposes.

Employers who are currently below the threshold but expect wages to grow should monitor their position as the year progresses. End of financial year is an appropriate time to reconcile total wages paid and confirm the payroll tax position before annual returns are due.

Single Touch Payroll reporting

Single Touch Payroll (STP) requires employers to report salary and wages, Pay As You Go (PAYG) withholding, and superannuation information to the ATO each time payroll is processed. At the end of the financial year, employers must finalise their STP data. The ATO requires STP finalisation to be completed by 14 July for most employers, though different deadlines may apply in some circumstances.

Finalising STP data allows the ATO to pre-fill income tax returns for employees. Errors or omissions in STP data that are not corrected before finalisation will require an amendment process and may cause delays or incorrect assessments for employees.

PAYG withholding obligations

Employers are required to withhold the correct amount of tax from each employee’s pay and remit it to the ATO. Common causes of error include incorrect tax file number declarations, outdated withholding schedules, or processing mistakes.

The way an error is corrected depends on its nature. If the wrong amount was withheld, or no amount was withheld when it should have been, the employer cannot simply adjust this on an activity statement. A formal written disclosure must be made to the ATO. Making this disclosure generally results in more concessional treatment of any penalties and interest, and protects the deduction for the wages concerned, which could otherwise be denied.

If the correct amount was withheld but reporting of it was incorrect or omitted, the correction is generally made through a revised activity statement, or through Single Touch Payroll reporting corrections where applicable, rather than through a written disclosure.

Employers who identify a withholding error before 30 June should act promptly and seek advice on the correct method of disclosure or correction, given the different treatment that applies depending on the type of error.

Annual leave and long service leave provisions

Some businesses choose to review their employee leave entitlements at year-end. While this does not create an immediate tax obligation in most cases, understanding accrued leave liabilities is relevant to the accuracy of financial statements and to any planning around discretionary payments before 30 June.

Cash flow

End-of-financial-year compliance can create cash flow pressure if not planned for in advance. The following items are commonly overlooked until they fall due at the same time.

Tax payments

Businesses paying tax by instalment should confirm their current instalment position and whether any variation is appropriate before the June quarter instalment falls due. Varying an instalment downward when income has been lower than expected can preserve working capital. Varying below the amount that ultimately proves correct will result in a shortfall charge, so any variation should be based on a reasonable estimate.

Business Activity Statement lodgement and payment

For businesses lodging a Business Activity Statement (BAS) on a quarterly basis, the April to June quarter BAS is due for lodgement and payment by 28 July 2026 if lodging by paper or through myGovID. Businesses that lodge online may have an additional two weeks, bringing the due date to 11 August 2026. Businesses lodging through a registered tax or BAS agent may receive a further concession, with a due date of 25 August 2026, provided their previous activity statement was lodged electronically and their account is in good standing.

This period also coincides with two other employer obligations. The quarter four Superannuation Guarantee contribution is due to funds by 28 July 2026, and Single Touch Payroll finalisation is due by 14 July 2026. Businesses experiencing cash flow pressure in July should plan for all three obligations together, rather than treating the BAS due date in isolation.

Timing of deductible expenditure

Expenditure incurred before 30 June that is deductible in the current year will reduce taxable income for the 2025/26 year. Expenditure incurred on or after 1 July will fall into the 2026/27 year. For businesses with discretionary expenditure planned in the near term, the timing of that expenditure can affect which year the deduction falls in. This applies to genuine commercial expenditure only. Expenditure incurred purely to accelerate a deduction, without a genuine business purpose, does not give rise to a valid deduction.

Prepaid expenses

Certain prepaid expenses can be deducted in the year of payment rather than the year the service is provided, subject to conditions. This is known as the twelve-month rule. To qualify, the period covered by the prepayment must be twelve months or less, and that period must end no later than the last day of the following financial year.

The twelve-month rule is available to small business entities, generally those with an aggregated turnover below 10 million dollars, and is also available to larger entities with an aggregated turnover below 50 million dollars that elect to access this concession. Businesses above the 50 million dollar threshold, or any business making a prepayment that does not meet the twelve-month rule, must spread the deduction over the period the prepayment covers rather than claiming it upfront. Confirming eligibility and the correct treatment before making a prepayment is recommended.

Outstanding receivables and bad debts

Businesses operating on an accruals basis can claim a deduction for a debt that has been written off as bad before 30 June. A debt is not deductible as a bad debt simply because it is overdue. A decision must be made that the debt is genuinely irrecoverable, and it must be written off in the accounts before year-end. The ATO may scrutinise bad debt claims, so documentation supporting the decision to write off should be retained.

For businesses accounting for Goods and Services Tax (GST) on an accruals basis, writing off a bad debt can also give rise to a GST adjustment. If GST was charged and remitted on the original sale, a decreasing adjustment may be available once the debt is written off, allowing the GST component to be recovered through the next activity statement. This is a separate outcome from the income tax deduction and depends on how the business accounts for GST. Businesses on a cash basis for GST do not have the same adjustment available, since GST is only remitted once payment is actually received.

Summary Reference Table

Area Key Action Relevant Deadline
Superannuation Guarantee Q4 contributions received by fund for a 2025/26 deduction 30 June 2026 (for deduction); 28 July 2026 (SG due date)
Superannuation Guarantee Charge Identify and address any SG underpayments Before SGC lodgement due date
Small Business Superannuation Clearing House Transition to an alternative provider; download records before access closes Access closes 11:59 PM AEST 30 June 2026
Payday Super Review payroll processes ahead of commencement Commences 1 July 2026
WorkCover Lodge annual remuneration declaration Policy year end (confirm with insurer)
Payroll Tax Reconcile total wages paid for the year Before annual return due date (varies by state)
Single Touch Payroll Finalise STP data for 2025/26 14 July 2026 (most employers)
PAYG Withholding Confirm correct withholding; errors require written disclosure to ATO or a revised activity statement depending on error type Before 30 June 2026
BAS (April to June quarter) Lodge and pay Q4 BAS 28 July 2026 (self-lodged); 11 August 2026 (online); 25 August 2026 (registered agent)
Bad Debts Write off irrecoverable debts in accounts; non-cash basis businesses may have a GST adjustment available Before 30 June 2026
Prepaid Expenses Confirm eligibility under twelve month rule (turnover under $10 million, or under $50 million by election) Before 30 June 2026

Where to from here

This checkpoint is a starting point rather than a complete list, and the right action for any business depends on its structure, size, industry, and circumstances. The value in reviewing these areas before 30 June is simple: it is far easier to confirm your position while there is still time to act than to correct an obligation after it has fallen due. If any of the areas above have not been looked at recently, or you are unsure how they apply to your situation, consider raising them with your accountant before the financial year closes.

 

For general information only

This article contains general information only. It does not take into account your specific circumstances, entity structure, state or territory obligations, or individual eligibility for any of the measures described. Individual outcomes may vary depending on personal circumstances and the facts of each case. Tax laws, superannuation rules, and state-based obligations can change. Speak with a qualified accountant or adviser before acting on any of the information in this article.