Throughout the year, your payroll software reports wages, PAYG withholding and super to the ATO each pay run. Finalisation is the year-end declaration that tells the ATO your payroll data is complete and correct for the 2025-26 financial year.

Once you finalise, your employees' income statements in myGov flip from "Year-to-date" to "Tax ready" – which is what they (or their tax agent) need to lodge their personal return.

14 July 2026 for most employers. If you have closely held payees (family members, directors, shareholders drawing wages), the deadline for those individuals is 30 September 2026.

If you can't meet the deadline, you can't just lodge late – you'll need to apply to the ATO for a deferral.

Before submitting, reconcile your payroll against your accounting records and ask:

• Are all employee year-to-date amounts correct?
• Have I included every employee paid this year – including casuals, terminated staff, and anyone not paid recently?
• Am I finalising for the correct financial year (2025-26)?
• Am I reporting under the right ABN?
• If I provided fringe benefits over $2,000 (1 April 2025 – 31 March 2026), have I included each employee's Reportable Fringe Benefits Amount (RFBA)?

Common slip-ups to watch for: backpay or bonuses paid in the new FY that belong to the old year, termination payments classified as ordinary wages, and allowances rolled into gross rather than reported separately.

You can still fix it – submit a correction event through your payroll software. The ATO is generally cooperative when you self-correct. Just be aware that if your employee has already lodged their return, they may need to amend it.

The Annual Reconciliation (known as the e-AR) is due 21 July 2026 (or the next business day). This is a hard deadline – no extensions are available, and late lodgement can attract penalty tax of up to 25% plus interest.

No. Your June wages are included in your annual reconciliation, so there's no separate June monthly return required.

The payroll tax annual reconciliation takes about 30 minutes to complete. Gather:

• Your Payroll Tax Express (PTX Express)* login, customer number and (if applicable) group number
• Total Victorian wages broken down by taxable component
• Total interstate wages paid
• Victorian primary tax already paid
• Your FBT return (if you pay fringe benefits)
• Estimated Victorian and interstate wages for 2026-27
• For regional employers: a regional vs non-regional wages breakdown
• For groups: figures for all group members

For reference, the Victorian payroll tax annual threshold remains $1,000,000 for 2026-27, with the standard rate at 4.85% and the regional employer rate at 1.2125%.

*HINT: PTX Express = Payroll Tax Express. It's the State Revenue Office Victoria's online portal for managing everything payroll-tax related. Think of it as the SRO's equivalent of the ATO's Business Portal, but just for Victorian payroll tax.

What you use PTX Express for

• Registering for payroll tax when your wages cross the threshold
• Lodging monthly returns (due by the 7th of each following month)
• Lodging the Annual Reconciliation (e-AR) each July
• Paying payroll tax liabilities (BPAY, EFT or direct debit)
• Updating business details, group members, or contact info
• Viewing your lodgement history, payment history and account balance
• Applying for refunds or nominating a Designated Group Employer (DGE) if you're part of a group

How to access it

You log in at sro.vic.gov.au using your customer number and password.

WorkSafe Victoria will issue 2026-27 renewal notices from the week commencing 6 July 2026, either by email or post.

The average premium rate for 2026-27 stays at 1.80% – but what you actually pay depends on your industry, business size, and claims history.

Two options if you want to save:

• 5% discount – pay your annual premium in full by 17 August 2026
• 3% discount – pay your annual premium in full by 1 October 2026

Prefer to spread the load? You can pay by 10 monthly or 4 quarterly instalments – no discount, but better for cash flow.

It depends on the size of your payroll:

• More than $200,000 in total remuneration → reconciliation due 24 October 2026
• Less than $200,000 in total remuneration → reconciliation due 24 March 2027

Before 1 July, it's also worth checking that your actual 2025-26 remuneration is within 20% of your original estimate – otherwise penalties can apply. And take a moment to review your estimated remuneration for 2026-27. If you don't update it, WorkSafe will apply an indexed increase of 4.75% to last year's figure.

If you employ workers in Victoria and your wages/benefits will exceed $7,500 in the financial year (or you employ trainees or apprentices), WorkCover insurance is mandatory.

A quick FY26-27 watchlist:

• Super Guarantee is now 12% from 1 July 2026 (this was the final scheduled increase)
• PAYG withholding tax tables update from 1 July – make sure your payroll software has refreshed
• Payday Super commences from 1 July 2026 – a significant shift in how and when super is paid
• Q4 Super Guarantee (Apr-Jun) and June quarter BAS are both due 28 July 2026

Whether you're sticking with your current accountant, switching providers, or engaging one for the first time - a little preparation on your end means faster turnaround, fewer follow-up emails, and a much smoother July.

First, the new rule that affects everyone: AML/CTF verification

From 1 July 2026, every accounting and bookkeeping practice in Australia is legally required to verify the identity of their clients under Australia's Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF) reforms, regulated by AUSTRAC.

This applies to all clients - existing and new. So even if you've worked with the same accountant for 20 years, expect to be asked for ID and a few extra details over the coming months. It's not personal, and it's not optional - it's a new federal compliance requirement that every practice must meet to keep providing services.

Have these ready when your accountant or bookkeeper asks:

Everyone:

• Photo ID (licence or passport) for directors, owners, trustees, partners
• Date of birth and residential/business address
• Up-to-date contact details, TFN, ABN/ACN

Companies: ASIC company extract, beneficial ownership details (anyone owning ≥25%), group structure chart if applicable.

Trusts & SMSFs: trust deed and any amendments, settlor details, trustee and appointor details.

Then, for the work itself - your financial picture for FY25-26:

• Income records – STP income statements, business income, rental income, dividends, distributions, interest, crypto, capital gains
• Deduction records – motor vehicle logbook, work-from-home hours, donations, depreciation schedules, asset purchases
• Loan and offset info – HELP/SFSS, PAYG instalments, Division 7A loans
• Payroll info – payslips, payroll summaries, super records, leave balances, employee contracts

A quick note if you're considering a change of accountant: Switching is more common than people realise, and it doesn't need to be awkward. A good new accountant will manage the handover for you - including requesting your prior year files (the "ethical clearance" letter), transferring your tax agent linking, and bringing your bookkeeping software (Xero, MYOB, etc.) across cleanly. The best time to switch is before lodgement season heats up, so if you've been weighing it up - now's the moment.

Tip: If you're not sure whether something is relevant, include it anyway. Clarity starts with conversation.

Engaging a SMART team isn't just outsourcing data entry – it's bringing in a partner who keeps your business compliant, informed, and ready to make confident decisions.

Bookkeeping (your day-to-day financial engine):

• Data entry and bank reconciliations
• Accounts payable, accounts receivable and debt collection
• Payroll, super, GST and BAS lodgements
• Xero setup, training and ongoing support
• Paperless payables via Hubdoc / Dext-style tools

Payroll & employee compliance:

• STP reporting and end-of-year finalisation
• Super Guarantee calculations and payments (including Payday Super readiness)
• WorkCover annual remuneration reconciliation
• Payroll tax monthly returns and annual reconciliation
• Termination payments, leave entitlements and award compliance

Accounting, tax & advisory:

• Annual financial statements and tax returns (individuals, companies, trusts, SMSFs)
• BAS, IAS and TPAR lodgements
• Tax planning and EOFY strategy
• Business advisory, budget vs variance analysis, growth and profit strategies
• Virtual CFO services for businesses ready to scale

A simple way to think about the split: a bookkeeper keeps the data clean, accurate and current. An accountant interprets the data, plans ahead, lodges your returns, and advises on structure and tax. At SMART, both sit under one roof – meaning your numbers, payroll, BAS, tax and advice all stay aligned, with nothing falling through the cracks.