If your employees are still asking for a "group certificate", it's time for a quick update. The game has changed, and for the better. What we all used to call a group certificate is now officially an income statement, and it’s all handled digitally through the Australian Taxation Office (ATO).
This shift is all thanks to Single Touch Payroll (STP). Your only job now is to finalise your payroll data at the end of the financial year. The ATO and your employees' myGov accounts handle the rest.
What Happened to Group Certificates?
While the old name sticks around in conversation, the paper trail is long gone. The official document everyone needs for their tax return is now the ATO income statement. This is a direct result of Single Touch Payroll, the system that has you reporting payroll details to the ATO every time you pay your staff.
For small business owners, this was a massive win. STP reporting kicked off for most businesses on 1 July 2018, and it completely did away with the old, painful process. Remember having to manually issue those paper group certificates by 14 July every year? Now, that information flows straight to the ATO, which creates the digital income statements automatically. You can read more about the compliance side of things over at Sprintlaw.com.au.
What’s Actually in an Income Statement?
So, what information are you finalising? The income statement is a complete summary of an employee’s earnings for the financial year. It’s the key they need to lodge their tax return, so getting it right is crucial for your team.
It breaks down a few key things:
- Gross wages and salary: The total amount you paid them before taking anything out.
- Tax withheld: All the Pay As You Go (PAYG) tax you’ve sent to the ATO on their behalf.
- Superannuation contributions: The total super you’ve paid into their chosen fund.
Think about it from your team’s perspective. Your barista, your tradie, your admin staff—they’re all counting on you to finalise their info correctly at tax time. Getting this right isn't just about ticking a box for the ATO; it’s about keeping your team happy and avoiding unnecessary headaches for everyone.
As a business owner, getting payroll right is simply non-negotiable. It’s the foundation for a smooth End of Financial Year (EOFY) and means your team can lodge their tax returns without any stress.
The move to digital income statements has made this whole process so much easier. Using proper accounting software turns what was once a manual, frustrating task into a simple final review. If you're still wrestling with spreadsheets for payroll, it might be the perfect time to think about upgrading from spreadsheets to an accounting software. It’s the best way to keep your data accurate, compliant, and ready for a pain-free EOFY.
How to Access Income Statements and Historical Records
Now that the old paper group certificate has gone the way of the dinosaur, you’re probably wondering where these all-important digital records live. The good news? For both you and your team, getting a hold of current and past payment information is much, much simpler.
It really just comes down to knowing where to look.
Getting a Current Income Statement
For your employees, grabbing their income statement is a piece of cake. They can find everything they need inside their personal myGov account.
All they have to do is log in to myGov, head over to their linked Australian Taxation Office (ATO) services, and it's right there. Once you’ve finalised your payroll for the year, the ATO will mark their statement as ‘Tax ready’.
This is a huge time-saver for them. That information pre-fills directly into their tax return when they lodge through myGov, cutting out guesswork and potential errors. Your main job as the employer is to finalise your Single Touch Payroll (STP) data by the 14 July deadline each year. Once you’ve ticked that box, the ATO handles the rest.
To make things even clearer, here's a quick guide on where everyone should be looking.
Where to Find Your Income Statement or Group Certificate
| Information Type | Primary Access Method for Employees | Primary Access Method for Employers |
|---|---|---|
| Current Income Statement (STP era) | Log in to myGov and navigate to the linked ATO online services. | Finalise STP data in your payroll software by 14 July. You can view filed reports there. |
| Old Group Certificate (Pre-STP) | Log in to myGov and check previous years' tax records. Copies from 2009 onwards should be there. | Refer to archived payroll software data or paper records. You are not required to re-issue these. |
This table should clear up any confusion and point everyone in the right direction, saving you from having to field the same questions over and over again.
Finding Old Group Certificates
But what about records from before the big switch to STP? It’s not uncommon for a former employee to pop up asking for a group certificate or payment summary from years ago. Chasing down old paperwork is a hassle no business owner has time for.
Thankfully, you don't have to. The ATO has digitised historical records, making this a non-issue.
The ATO holds records of PAYG payment summaries and group certificates dating all the way back to 2009. The move away from paper has been fantastic for accuracy, slashing payroll processing errors and saving businesses countless admin hours. For a bookkeeper, this digital access is a lifesaver for cleaning up messy historical accounts. You can often find more details on this topic in the ATO community forums.
Let's say an ex-employee from 2015 gets in touch asking for their payment summary. You don't need to go digging through dusty archive boxes. You can simply advise them to check their personal tax records through their myGov account, where they should find the copy you lodged at the time.
This digital-first approach means that hunting for historical pay information is no longer the administrative headache it used to be. Both your current and former staff can help themselves through the ATO’s online portal, freeing you up to focus on what actually matters—running your business.
If you’re still getting your head around all the changes, our guides on the PAYG payment summary statement can offer some extra clarity.
Getting Your Payroll Finalised in Xero and MYOB
Alright, let's get down to the practical side of things. If you're a small business owner using modern accounting software, the end-of-financial-year (EOFY) payroll finalisation is your new reality. It’s how you officially sign off on your records and report everything to the ATO, replacing the old-school chore of printing and handing out group certificates. For anyone on Xero or MYOB, the whole process is baked right into your payroll system.
This is your final checkpoint. It’s the moment to double-check that every dollar of wages, tax, and super has been tallied up correctly for the year. Get this right, and your employees will see accurate, ‘Tax ready’ income statements pop up in their myGov accounts. It makes their tax time a breeze and keeps you compliant. It’s all about doing that one last, thorough review before you click the final button.
Reviewing and Finalising Payroll in Xero
I find Xero has done a great job of making the STP finalisation process fairly painless. The trick is knowing exactly where to look and what you need to be scrutinising before you declare the year done and dusted.
To kick things off, head into the payroll section. You’ll usually find what you need by going to Payroll > Single Touch Payroll > Finalisation. This screen will show you a list of all your employees for the financial year, including anyone who might have left the business part-way through.
Before you even think about hitting finalise, it is absolutely essential to review the year-to-date summaries for each and every employee. Don't just give it a once-over. You need to actually compare the figures in Xero against your own payment records or management reports to be certain everything lines up perfectly. If you want to dive deeper into getting the most out of the platform, you might find some useful tips in our expert guide on optimising your Xero setup.
This is a good look at the Single Touch Payroll dashboard in Xero.
As you can see, the interface is clean and helps you manage your pay runs, keep tabs on STP filings, and get to that crucial finalisation screen without any fuss. It really does make EOFY compliance a lot less stressful.
Checking Key Details in MYOB
The process in MYOB is very similar. You'll find the STP reporting centre tucked inside your payroll command centre. From there, just pick the financial year you’re finalising and pull the year-to-date (YTD) verification report.
This report is your ultimate source of truth. It gives you a complete summary of gross payments, tax withheld, and superannuation for every single person on your payroll.
Pro Tip: One of the most common mistakes we see is people forgetting to check the basic employee details. Before you finalise, triple-check that every employee's Tax File Number (TFN), full name, and address are correct. A simple typo here can cause massive headaches for your staff when they try to lodge their own tax returns.
This flowchart shows what happens to the data once you, the employer, have done your part.
It’s a simple flow: you finalise the records, the info shoots off to the ATO, and the ATO then makes it available to your employee.
No matter which software you use, don’t rush these final checks. A few extra minutes spent reviewing the details now can save you hours of pain backtracking and fixing errors later. Remember, once you finalise and file with the ATO, that data becomes the official record for your employees' tax affairs.
Fixing Common Income Statement Problems
Let's be honest, even the most watertight payroll systems can spring a leak. Mistakes happen. And more often than not, it’s a sharp-eyed employee who flags an issue before you even notice it.
When it comes to sorting out your income statements (the new-age group certificates), knowing how to fix problems quickly and correctly is absolutely crucial.
One of the classic slip-ups we see all the time? Incorrect payment figures or missing allowances. An employee might notice their gross pay looks a bit off, or that a bonus you paid them back in March never made it onto their statement. Don't panic. This is usually a straightforward fix right inside your accounting software.
Another frequent headache is missing that 14 July finalisation deadline. Life gets busy, we get it. While the Australian Taxation Office (ATO) expects everything finalised on time, if you miss the date, the answer is simple: get it done. The moment you realise the oversight, finalise your Single Touch Payroll (STP) data. The worst thing you can do is ignore it.
Correcting an Employee’s Income Statement
Imagine your best team member comes to you, concerned their income statement is wrong. They’ve logged into myGov, but the numbers just don't add up against their payslips.
Your first move is to listen, then dive into the data. Pull up their records in your Xero or MYOB account and compare things pay run by pay run. Often, you’ll find the culprit is a simple data entry error or a misclassified allowance from a few months back.
Once you’ve nailed down the discrepancy, you need to process an amendment through STP. You don’t issue a new document. Here’s how it generally works:
- Lodge an unscheduled pay run. This is a special pay event created specifically for making corrections outside your normal pay cycle.
- Adjust the year-to-date (YTD) figures. You’ll process an entry that corrects their gross pay, tax, or super to make the YTD totals accurate.
- File the update with the ATO. As soon as you file this amended pay run, the new information is sent directly to the ATO’s systems.
- Loop your employee in. Let them know you've submitted the correction. It’s also good to mention that it can take the ATO a few days to update the information in their myGov account. Managing their expectations here is key.
Following this process makes sure the official record with the ATO is accurate, which is what your employee needs to lodge their tax return without a hitch.
The Importance of Proactive Communication
Fixing a payroll error is more than just a technical task—it’s about managing relationships. How you handle these little bumps in the road says a lot about you as an employer.
When you find a mistake—whether you spot it first or an employee brings it to you—be upfront. Acknowledge the error, explain what you’re doing to fix it, and give them a clear timeline. This approach can turn a potential negative into a moment that actually builds trust.
It’s the same philosophy when dealing with the ATO. Being proactive is always the best policy. They are far more reasonable when you’re the one to identify an issue and work with them to resolve it, rather than waiting for them to find it during an audit. It’s just good business management, and it’s vital for your compliance and your peace of mind.
Beyond Compliance: Good Payroll Drives a Better Business
Let's be honest, finalising payroll and income statements can often feel like just another chore on a never-ending to-do list. While getting it right is a non-negotiable legal requirement, if you only see payroll as a compliance task, you’re missing out on a massive opportunity.
Clean, accurate payroll data is the foundation for making smarter business decisions. When your payroll is managed with care, it gives you a rock-solid understanding of your biggest expense—your wage bill. This allows you to forecast your cash flow with real confidence and make informed choices about hiring, expansion, and growth.
This accuracy also makes lodging your Business Activity Statement (BAS) a whole lot easier. With correct PAYG withholding and superannuation figures calculated in every pay run, BAS time becomes a simple check-and-send, not a frantic scramble for numbers.
Contractors Versus Employees: A Common Pitfall
As your business grows, bringing on contractors to help with the workload is a common step. But this is exactly where many business owners get into hot water. The rules for contractors are completely different from those for employees, and mixing them up can lead to some serious penalties from the ATO.
It's crucial to understand the difference:
- Employees are part of your team. You need to withhold tax (PAYG), pay their super, and report their earnings through Single Touch Payroll (STP).
- Contractors run their own business. You pay their invoices, and they are responsible for sorting out their own tax and super obligations.
Getting this wrong isn't an option. The ATO's data-matching systems are more sophisticated than ever and will eventually spot discrepancies, leaving you with a painful bill for unpaid super and tax.
Think of accurate payroll as the engine room of your business. It’s not just about compliance; it's the source of truth that powers your financial reports, clarifies your cash flow, and gives you the insights needed to build a more profitable, resilient operation.
A Foundation for a Stronger Future
Modern payroll is about so much more than just getting group certificates (or income statements) right. For many Australian small businesses, the automation from STP can significantly slash administration time, giving you back precious hours to focus on your operations.
This efficiency is invaluable. Well-managed payroll data gives you clear insights into your business performance and helps you make better-informed decisions. You can read more about educational trends at the Australian Bureau of Statistics.
Ultimately, our job is to help business owners like you reframe payroll from a chore into a strategic tool. It’s all about knowing your numbers so you can build a stronger business for the future.
Your Questions About Group Certificates Answered
Payroll jargon can be a real headache, right? Group certificates, payment summaries, income statements… it’s enough to make your head spin. We get these questions from business owners all the time, so let’s clear a few common ones up right now.
Payment Summary Versus Income Statement
You’ve probably heard these terms thrown around, maybe even used them yourself. So, what’s the real story?
Put simply, the payment summary is the old-school paper document you used to have to give your employees at the end of the year. The income statement is the new digital equivalent, which the ATO creates automatically from your Single Touch Payroll (STP) reporting. They do the same job, but the income statement is what we all use now.
Do I Issue a Group Certificate if I Use STP?
Plain and simple: no. If you’re reporting payroll through Single Touch Payroll, you do not need to create or give your employees a manual payment summary (or "group certificate").
Your only job is to finalise your STP data for the financial year. Get this done by the 14 July deadline, and you’ve met your obligation. The old way of doing things is completely replaced.
Once you finalise your data, the ATO pushes that information directly to your employees' myGov accounts as a ‘Tax ready’ income statement. Your work is done, and you don’t need to lift another finger.
What if an Employee Leaves Mid-Year?
This is a classic scenario, and thankfully, STP makes it a breeze. There’s no need to make a departing team member wait until July for their information.
When you process their final pay, you can finalise that employee individually. This simple step sends their complete, year-to-date figures straight to the ATO. It means they can get their ‘Tax ready’ income statement sorted early and lodge their tax return whenever they’re ready.
Can I Get a Group Certificate from Before 2009?
Now this is where it can get a bit dusty. The ATO’s digital records for individuals generally only go back to the 2009 financial year. If someone needs a record from 2009 onwards, they should find it waiting for them in their myGov account.
For anything from before 2009, however, the ATO won’t have a copy. In those rare cases, the only place to find it is with the original employer. If that’s you, it’s time to dig through the physical archives or search through old payroll system backups.
Feeling overwhelmed by payroll compliance? At Ideal Calculations, we translate complex financial tasks into plain English, helping you stay compliant and understand your numbers. If you'd like to ensure your payroll is spot on, consider a bookkeeping health check. Get in touch with Ideal Calculations today.