Start your year-end payroll, tax and employee leave planning now

The end‑of‑year holiday period can make or break your business. Whether you expect a seasonal rush or plan a shutdown, early planning for payroll, tax, superannuation and employee leave helps you stay compliant and avoid costly mistakes.

By preparing now, you can manage cash flow, meet ATO obligations and comply with workplace laws with confidence.

Plan Ahead for Year‑End Payroll and Public Holiday Pay

Start by reviewing your payroll calendar to identify any paydays that fall on public holidays or during a business closure. If a scheduled payday coincides with a holiday, bring the pay run forward so employees receive their wages before bank cut‑off times.

Notify employees in writing if you temporarily change pay dates. While the ATO generally allows lodgment and payment on the next business day when a due date falls on a weekend or public holiday, this concession does not apply to paying wages late.

Report each pay run through Single Touch Payroll (STP) on or before payday, including any payments you process early due to a year‑end shutdown.

Stay on Track With PAYG Withholding and BAS Obligations

Keep your PAYG withholding and BAS lodgments up to date during the holiday period. If you anticipate difficulty meeting due dates, contact your tax adviser and the ATO early to discuss your options and avoid penalties.

Proactive communication can help you manage compliance issues before they escalate.

Pay Super Guarantee Contributions on Time

Don’t overlook super guarantee (SG) contributions on wages and paid leave taken over the holiday break. Annual leave and public holiday pay form part of ordinary time earnings for SG purposes.

Ensure employees’ super funds receive October–December quarter contributions by 28 January. Pay early to allow for bank processing times and to avoid the super guarantee charge, interest, penalties and the loss of tax deductibility.

Manage Bonuses, Staff Gifts and Fringe Benefits Tax

If you pay year‑end bonuses, process them through payroll and withhold the correct amount of tax. Review staff gifts and end‑of‑year functions to determine whether fringe benefits tax (FBT) applies.

The minor benefits exemption may cover low‑cost, infrequent items, but you must keep accurate records to support your position.

Apply Public Holiday and Leave Entitlements Correctly

Pay full‑time and part‑time employees their base rate for ordinary hours when a public holiday falls on a day they would normally work and they do not attend work.

You may request employees to work on a public holiday, but the request must be reasonable, and employees may refuse on reasonable grounds. If employees work, apply the correct penalty rates or time off in lieu under the relevant award or agreement.

When a public holiday occurs during annual leave, treat the day as a public holiday rather than a leave day.

Prepare Properly for Holiday Shutdowns

Only direct employees to take annual leave during a shutdown if an applicable award or registered agreement allows it, and provide advance written notice where required.

If employees do not have enough accrued leave, many awards allow leave in advance or unpaid leave by agreement. Always document these arrangements in writing.

Check whether leave loading applies to annual leave taken during the shutdown and confirm that your payroll system calculates it correctly.