A New Financial Year: What Employers Need to Know

With the new financial year underway, it’s an ideal time for business owners to review their payroll and compliance obligations. Several important updates have come into effect from 1 July 2025 that may affect how you process employee pay and report to the ATO.

One of the key updates relates to changes in the Pay As You Go (PAYG) withholding rates. The ATO has updated some tax tables for the 2025–26 financial year. Not all tax tables have changed, but employers are advised to check which rates apply to their employees and ensure payroll systems are correctly updated. You can use the ATO’s Tax Withheld Calculator or download the latest tax tables for reference.

Another important obligation is the finalisation of Single Touch Payroll (STP) data for the 2024–25 financial year. 

Employers must finalise their STP reporting by 14 July 2025. This process confirms the total wages, tax withheld, and super paid for each employee for the year. It’s important to include all employees paid during the year, even if they have since left your business. If you’re changing payroll software this year, make sure you finalise all STP data before switching systems to ensure your records remain complete and accurate.

Ensuring your PAYG withholding and STP reporting are correct not only keeps your business compliant but also ensures your employees can lodge their tax returns without unnecessary delays. If you need help reviewing your obligations or updating your payroll system, we’re here to support you. Contact our team on 1800 618 800 or email admin@simmonslivingstone.com.au for practical guidance.