If the business ever had employees and reported through Single Touch Payroll, there's a specific finalisation step that needs to happen when you close — separate from the normal end-of-financial-year process.
Why finalisation matters
STP finalisation is what tells the ATO (and pre-fills your employees' income tax returns and myGov records) that the figures reported during the year are complete and final. Without it, an employee's income statement can sit marked "year to date" indefinitely, which causes real problems for them at tax time.
Finalising mid-year, not at EOFY
Normally STP finalisation happens once a year, by mid-July. If you're closing the business partway through a financial year, you don't wait for the usual deadline — finalise as soon as practical after the employee's final pay, so their income statement is accurate and available when they need it.
What to check
- Every employee who worked during the year has a finalised income statement, not just those still employed at closure
- Final pay, including any unused leave paid out, is included in the STP figures before finalising
- Superannuation guarantee amounts reported through STP match what's actually been paid (see our guide on super guarantee obligations when closing)
Software and access
Most payroll software has a specific "finalise" action separate from just processing a final pay run — make sure it's actually been triggered before you cancel software subscriptions and lose access to the system that can do it.
This is general information, not tax advice — check the specific finalisation process for your payroll software, or ask your tax agent or bookkeeper to confirm it's been done correctly.