The start of a new financial year presents an ideal opportunity for small business owners to ensure a smooth transition and set the stage for financial success. To help you navigate these important tasks, we've compiled a list of key action items. From payroll and tax obligations to superannuation changes, let's delve into these essential tasks that will keep your business on the right track.
Finalise Your Single Touch Payroll (STP) Declaration
Employers must finalise Single Touch Payroll (STP) data for FY25 by 14 July 2025 and ensure all the information is accurate. STP streamlines payroll reporting to the Australian Taxation Office (ATO) and it's crucial to submit your finalisation declaration promptly.
Lodge Your Payroll Tax Declarations
If you operate in Victoria and have gross wages over $900,000, you must lodge and pay your FY25 Victorian Annual Payroll Tax Reconciliation by 21 July 2025. Make sure to include fringe benefits provided to employees or eligible payments made to contractors when calculating the taxable value.
Payroll Tax Thresholds
The payroll tax–free threshold in Victoria has increased for FY25. If your business has Victorian taxable wages under $3 million, you won’t pay payroll tax on the first $900,000 (up from $700,000 last year).
- If your wages are between $3 million and $5 million, you’ll get a reduced deduction.
- If your wages are over $5 million, you won’t get any deduction.
Looking ahead, the tax–free threshold will jump to $1 million in FY26. The Victorian government also plans to roll out more changes to payroll tax over the next few years.
Taxable Payments Annual Report (TPAR)
If your business is required to lodge a Taxable Payments Annual Report (TPAR) for the year ending 30 June 2025, the 2024/25 TPAR must be lodged by 28 August 2025. Businesses in certain industries need to report the total payments they make to each contractor, each year. The following details need to be reported for the contractors:
- ABN
- Name
- Address
- Gross amount you paid for the financial year
- Total GST included in the gross amount you paid
ESS Reporting Obligations
If your business has an active Employee Share Scheme (ESS) arrangement, be aware of the ESS reporting requirements . You need to submit reports to both your employees (due 14 July) and the ATO (due 14 August) if any interests were acquired during the year. Consult with your accounting advisors for assistance and provide them with the necessary documentation.
Annual Workcover Reconciliation and Remuneration Declarations
Check your WorkCover requirements for FY25 and plan ahead for FY26. Ensure you review the Declaration of Rateable Remuneration form, rate changes, payroll figures and include all necessary payments, such as contractor fees. Conversely, be mindful of items that should be excluded, such as payments in lieu of notice or accrued leave. Overpaying on Workcover is common, so if you’re a Xero user, check out their website to learn how to process a final pay for redundancy or termination .
Changes to Superannuation
The Superannuation Guarantee (SG) rate increases to 12% from 1 July 2025. This means you must calculate and contribute the new rate on payments made to employees on or after 1 July, even if the work was performed prior to that date. Review employment contracts to address potential adjustments in base salaries, considering the impact on both employer costs and employee take-home pay.
ESIC Compliance
A reminder for businesses with Early-Stage Innovation Company (ESIC) status who issued new shares to one or more investors during FY25. If that investor is entitled to access the early stage investor tax incentives, declarations must be lodged by 31 July.
Budgeting for FY26
Now is the perfect time to start preparing FY26 budgets and year-end financials considering your budget, cash flow needs, and business goals. Whether you need assistance in creating a new budget or reviewing your existing one, our team is ready to provide valuable insights and support. Here's a quick list of things to consider as the new year begins:
- Bonuses
- Bad Debt Expenses
- Review of Fixed Asset Register & Instant Asset Write Off
- Prepayment of Expenses
- Stock on hand as at 30th June 2025
Outgrown Your Accountant? Work With Skilled Business Advisors to Boost Growth
As a small business owner, staying on top of your financial obligations is crucial for long-term success. By addressing key tasks such as STP finalisation, payroll tax declarations, ESS reporting, WorkCover reconciliation, and understanding changes in superannuation, you'll be set up for growth in the new financial year. If you need help with any of the above tasks, get in touch with our business advisors for guidance tailored to your specific needs.
