Employees now access their income statements previously known as payment summaries or group certificate through their personal myGov account.
Single Touch Payroll finalisation must be completed by 14 July 2026.
To finalise your Single Touch Payroll in Xero you need to complete your End of Year Employer Reporting. There are two ways to complete this:
The cost to prepare End of Year Employer Reporting will be as follows:
Step 1 – Complete the instructions on the Xero Payroll Checklist
Step 2 – Workers Compensation Annual Declaration of Rateable RemunerationAt the end of each financial year, employers are required to declare their total rateable remuneration to their workers’ compensation insurer, along with an estimate of the following year’s remuneration. If you employ staff in various states, you may be required to hold a workers’ compensation policy for each state. Please let us know if you would like assistance with this.
If you are registered for workers’ compensation, your insurer will issue a tax invoice shortly after the end of the financial year. This tax invoice will provide details on how to access your online account if you haven’t done so already. By logging into your online account, you can complete the declaration online.
If you only employ staff in Victoria, here is a link to assist you in calculating your remuneration: Remuneration inclusions and exclusions.
Alternatively, if you would like further information about workers’ compensation insurance in Victoria, please click on this link: More information about Victorian Workers’ Compensation Insurance.
Step 3 – Payroll Tax Annual Reconciliation (if applicable)
Payroll tax is a state government tax that applies to employers once their total Australian wages exceed the relevant state or territory threshold. Thresholds and tax rates vary between states and territories.
If you employ staff in multiple states or territories and require advice regarding your payroll tax obligations, please contact us for assistance.
For employers who only employ staff in Victoria, please refer to the thresholds below.
Threshold
The payroll tax-free threshold increased for the 2025-26 financial year from $900,000 to $1 million for annual returns, and from $75,000 to $83,333 for monthly returns.
Phase-out rate
From 1 July 2024, employers and groups with total annual taxable Australian wages between $3 million and $5 million are eligible for a tax-free threshold. The threshold is reduced progressively as wages increase, under a phase-out model.
The phase-out rates are:
Employers and groups with total annual taxable Australian wages above $5 million are not eligible for any tax-free threshold.
If you would like further information or assistance with your payroll tax obligations, please contact our office on 03 8746 7700.
Regards,
Your Suntax Team
