This is part of our Payroll and STP Phase 2 series (Chapter 5 of the Xero tutorial hub):

• Lesson 1: Setting Up Xero Payroll and Connecting to the ATO
• Lesson 2: Adding Employees to Xero with STP Phase 2 Details
• Lesson 3: Running Your First Pay Run in Xero
• Lesson 4: Superannuation and Auto Super in Xero
• Lesson 5: STP Phase 2 Pay Items and Leave Categories in Xero
• Lesson 6: End of Year STP Finalisation in Xero

STP finalisation is due by 14 July each year, and it is what lets your employees see their income statement is ready for their own tax return.

1. What finalisation actually confirms

It tells the ATO that the year’s pay data reported through STP is final and complete, not still subject to correction.

2. Review your figures before finalising

Check total wages, tax withheld, and super for the year look correct before submitting, since finalisation confirms it is accurate.

3. Submitting the finalisation

This is done from within Xero’s payroll reporting, sent directly to the ATO.

4. If you spot an error afterward

You can lodge an amendment if something needs correcting after the fact, though it is far better to catch it beforehand.

Xero’s YouTube channel covers STP finalisation: watch the official Xero tutorial. Our registered BAS agents can handle this deadline for you each year.