What International Employers in Australia Need to Know About Finalising STP Data
On 14 July 2025, the Australian Taxation Office (ATO) confirmed that 83% of Single Touch Payroll (STP) records have been finalised for the 2024–2025 financial year. However, if your international business is part of the remaining 17%, you need to act fast. Finalisation declarations are now overdue.
By Ro Elvinia
Why This Matters to You as an International Employer
We have encountered international businesses operating in Australia who manage their payroll functions remotely or through global teams. However, STP compliance is local, and the ATO requires that all employee data be finalised each year to ensure accurate tax return processing.
If you have not lodged your STP finalisation, your employees may experience delays or complications in lodging their tax returns. This includes casual workers, former employees, or team members who were not paid regularly. They all count.
Common Pitfalls We See
Some common oversights among international clients include:
- Not lodging STP finalisation for terminated or seasonal workers.
- Relying on global payroll teams who are not fully across local ATO requirements.
- Assuming that no recent payments means no action is required, when in fact, every payroll record for the financial year must be finalised.
As a trusted local compliance partner, we are here to bridge that gap. Our role is to ensure you do not miss these critical deadlines, even if your business operations are global.
What You Need to Do
To stay compliant and avoid unnecessary issues for your team, it is essential to take a moment now and ensure your end-of-year STP reporting is complete. The following quick check will help you avoid ATO penalties and ensure your employees, past and present, can lodge their tax returns without delay. Here is what you should do next:
- Check whether your STP declarations have been finalised for all employees paid during FY2024–2025.
- Include any inactive employees, such as casuals or part-timers who have not worked recently.
- Act quickly. If you are overdue, lodgement is required immediately to avoid penalties and employee frustration.
How ABN Australia Can Help
As a boutique provider focused 100% on international business, we offer:
- All-in-one solutions for payroll, compliance, and tax
- Responsive, tech-enabled support to keep you ahead of deadlines
- A deep understanding of local requirements you won’t find with global firms
If you are not sure whether your obligations are finalised, or if you are just looking for a more seamless way to manage Australian payroll from overseas, get in touch. We will take care of it, so you can stay focused on growing your business.
Published: 23rd July 2025 | Last updated: 23rd July 2025