Mark these dates in your diary
Here are the key EOFY milestones you need to know or check out the Australian Tax Office (ATO) for the full list of dates.
The Australian financial year runs from 1 July to 30 June. At midnight on 30 June, the financial year ends and your business books are closed off.
Reconcile your payroll in Xero so you can submit your Single Touch Payroll end-of-year finalisation declaration by 14 July. Your employees can then complete their income tax returns.
Lodge and pay your Q4 business activity statement (BAS). If you lodge online, you may be eligible for a two-week extension.
If you have employees, your super and PAYG instalments are also due.
You have until 31 October to submit your tax return, but there are exceptions. For your precise due date, check the ATO website or ask your tax agent.
EOFY first timers
We’re here to make your first EOFY as straightforward as possible.
It’s been challenging since last EOFY, so if you need a refresher, we’ve got you covered.
Answering your top questions
You need to run both the Payroll Activity Summary and the General Ledger report, and ensure the amounts in the relevant accounts match. The Xero Central article on reviewing payroll transactions lists which accounts should match which sections of the payroll report.
Once you’ve opted in to STP and filed a pay run, you can finalise STP by going to Payroll > Employees > End of year reports > STP finalisation. Full steps are available in the Xero Central article on finalising STP payroll data.
ETP payment summaries are treated the same as normal payment summaries. Once you’ve opted in to STP, they can no longer be produced, and employees get this information through MyGov instead.
Reportable Fringe Benefit Amounts (RFBA) can be manually entered while doing STP finalisation. When editing each employee’s finalisation declaration, you'll be able to enter the RFBA amounts. Full steps are available in the Xero Central article on finalising STP payroll data.
Once you’ve opted in to STP, lump sums need to be processed through pay runs. If the lump sum is related to a redundancy payment, Xero automatically reports leave as lump sum A. If you use the redundancy pay item, Xero automatically reports the amount as lump sum D. For other lump sum types, or for adjustments, you'll need to use adjustment pay items. Full steps on adjusting the lump sum value for unused leave are available on Xero Central.
How do I change superannuation funds for future or past payments?
To update an employee’s super membership for past payments as well as future ones, overwrite their existing superannuation membership line with the new fund. For step-by-step instructions, check out how to change a superannuation fund for payments on Xero Central.
How do I resubmit an auto super payment that has been returned?
If an employee’s superannuation contributions have been returned for any reason, the authoriser and subscriber of the organisation should receive an email for more information about why the contributions have been returned.
If you’d like to reprocess these contributions using Auto Super, please raise a case with our support team, and provide the payment reference number which is included in the email. You’ll also need to ensure that Xero Support has been invited into the organisation.
What is the deadline for processing superannuation payments in Xero?
To make sure superannuation payments can be claimed as a deduction for the financial year, they need to be submitted via Auto Super in Xero by 2pm AEST 22 June 2021. To find out how to process superannuation payments, check out this Xero Central article.