Overview of Australian Year End

Payroll Administrator Guide
Version
R2025.2.1
ft:lastEdition
2025-12-01
Overview of Australian Year End

The tax year in Australia runs from July 1 to June 30. Australian year end processing generally requires that all pay runs have been committed and that all monthly tax filings have been transmitted to the Australian Tax Office (ATO). In Dayforce, payroll administrators can complete the following year end tasks prior to the July 14 cut-off date for the Australian tax year deadline to ensure that the employer obligation is completed without missing the July 14 deadline each year:

  • Adjust the payment amount on the STP report from individual gross to allowances
  • Verify all employees processed through payroll during the year have the final flag set to true on the STP file
  • Report fringe benefits tax
  • Report YTD data
  • View the STP Summary Report

Adjust the Payment Amount on the STP Report From Individual Gross to Allowances

To report the correct payment types to the tax office using STP, payroll administrators can adjust the payment amount on the STP report from individual gross to allowances. You can reduce the individual gross to allowances and vice versa in STP reporting for the following adjustments types:

  • A prior pay period adjustment off-cycle pay run is processed to move the amount from regular salary to allowances.
  • A prior pay period adjustment off- cycle pay run is processed to move amount from allowances to regular salary.

The following STP file shows the final event indicator prior to running the year end process.

STP file showing the final event indicator prior to running the year end process.

Verify Employees Set the Final Flag on the STP File

After the final pay for all of the pay groups are associated with a legal entity, the final pay status is displayed in green and the Make Finalisation Declaration option in the Process Job drop-down list in Year End > Australia Year End becomes available for selection. By selecting the Make Finalisation Declaration option, Dayforce verifies that all employees processed through payroll during the year have the final flag set to true on the STP file.

STPs under the Overview tab in the 2020 Year End section.

When you select the Make Finalisation Declaration option, a background job runs to set the STP flag as final for all employees in the selected legal entity. This process changes the status of the final event flag from FALSE to TRUE on the STP file. When this completes, the end of year status also turns green.

STPs with green End of Year statuses.

Note: As of the 2021 year end, all employees in a legal entity will be set to TRUE on the STP final event flag, only after the application processes the steps listed above. This is a change from 2020, where the final event flag was automatically set to TRUE upon processing the final payroll for each pay group.

Report the Fringe Benefits Tax

In Dayforce, employers can report the Fringe Benefits Tax (FBT) and FBT exempt amounts for each employee on the STP report at the end of the year.

To report the Fringe Benefits Tax:

  1. In Dayforce, create the AUS FBT Reporting off-cycle type that is available exclusively for Australia payroll. To do so, select the AUS FBT Reporting option in the New Off-Cycle Pay Run dialog box in Payroll > Pay Run Management.
  2. Parameters in the New Off-Cycle Pay Run dialog box.
  3. Note: With this off-cycle type, the pay date always defaults to the corresponding pay period’s pay date because FBT is reported in the first week of July for the previous year. So, the pay date should be in the previous year. Also, this off-cycle type is used only for STP reporting and no payments should be made using this run type.
  4. After you create the off-cycle pay run, create or upload employee FBT data in the Quick Entry tab of Payroll > Pay Run Management. If you select an earning code that isn’t marked as FBT in the Tax and Compliance configuration, Dayforce prompts an error such as in the following screenshot:
  5. In the Quick Entry tab of Pay Run Management, an earning code is selected and an error is shown prompting user review.
  6. To configure an earning code for FBT or an FBT exemption as part of the Tax and Compliance configuration, in the Tax Compliance Rules tab of Payroll Setup > Earnings and Deductions, select the Memo Calc option in the Earning Type drop-down list and select the Fringe Benefits Tax checkbox or Fringe Benefit Tax Exempt checkbox.
  7. Note: Conversely, you can also select the Fringe Benefits Tax or Fringe Benefit Tax Exempt in the Tax Compliance Rules tab of Payroll Setup > Earnings and Deductions for FBT deduction codes.
  8. Under an FBT memo earning rule, the checkboxes titled Fringe Benefit Tax Exempt and Fringe Benefit Tax are highlighted, with the former selected.
  9. These FBT or FBT exempt flags are used specifically in the STP report.
  10. After you enter the correct codes in the Quick Entry tab of Payroll > Pay Run Management, the error is no longer shown:
  11. In the Quick Entry tab of Pay Run Management, no errors are displayed.
  12. Calculate and then check the pay slip in the Pay Slip tab of the Employee Preview slide-out panel:
  13. Test pay slip in the Pay Slip tab of the Employee Preview slide-out panel.
  14. Check the STP preview in the STP Preview tab of the Employee Preview slide-out panel:
  15. Contents of the STP Preview tab of the Employee Preview slide-out panel.

Report YTD Data

You can report all employee YTD data that is imported into Dayforce to ATO during the first pay run. To report the imported YTD data to ATO, select the background job, ATO Pay Event Submission, in the Available Jobs tab of System Admin > Background Jobs.

View the STP Summary Report

After the ATO Pay Event Submission background job is complete, the application generates the STP Summary Report in the Archived Reports tab of Year End > AUS Year End as part of the update event submission. This report lists all of the employees that were included as part of the ATO Pay Event Submission background job.

The report is named STP Finalisation LegalEntityEmployees._DD-MM-YYYY-HHMMSS-AM/PM.pdf

As part of the year end task completion process, the year end final event flag submission generates an update event submission to ATO.

Payroll administrators can retrieve up to date STP finalization reports in the Archived Reports tab of Year End > Australia Year End. Click the Refresh icon to access the latest reports without having to switch between tabs when the year end background process for legal entities with a large number of employees may take longer to complete.

You can also view which action triggered the generation of STP finalisation without having to navigate between different tabs and manually checking the year end background process status and complete year end tasks efficiently. After you run the Australian year end process in Year End > Australia Year End, the STP Finalisation Report in the Archived Reports tab is appended with the following respective actions:

  • After the Validate Year End action is run successfully, the STP finalisation report is appended with a prefix of “Validated_”.
  • After the Declare Year End action is run successfully, the STP finalisation report is appended with a prefix of “Declared_”.

A warning message shows if you attempt year end finalisation too early. For example, if you perform year end finalisation for a legal entity prior to 1 June of the selected financial year in Year End > Australia Year End, Dayforce shows a dialog confirming that you want to perform early year end finalisation.