January 2027 Payroll Planning: A Mid-Year Reset for Australian Businesses
October 6, 2026 | By Gopareto Marketing
For many Australian businesses, January feels like a fresh start: staff return from the Christmas close-down, budgets are reviewed and new hires begin. But for payroll, January is not the start of the year at all. The Australian financial year runs from 1 July to 30 June, so January 2027 sits right in the middle of the 2026–27 financial year.
That makes January the ideal moment for a mid-year reset rather than a “financial year setup”. Six months of data are on the books, the big 1 July 2026 changes have had time to bed in, and there is still time to correct errors before end-of-financial-year finalisation. This guide sets out what to check, what is due, and how to plan the rest of the year.
Where January Sits in the Australian Payroll Year
Australian employers juggle three different “years”. Knowing which one applies stops you from planning around the wrong deadline.
| Year | Runs | What it drives | Where January 2027 sits |
|---|---|---|---|
| Financial (income) year | 1 July – 30 June | PAYG withholding, tax tables, STP finalisation, payroll tax annual reconciliation | Halfway through 2026–27 |
| FBT year | 1 April – 31 March | Fringe benefits tax returns and reportable fringe benefits on income statements | Final quarter of the year ending 31 March 2027 |
| Calendar year | 1 January – 31 December | Many internal salary review cycles, leave planning and company policies | Start of 2027 |
Key point: end-of-year payroll work for 2025–26 is already behind you. STP finalisation for that year was due by 14 July 2026. January is about checking that 2026–27 is on track, not setting it up.
The 1 July 2026 Changes to Review Now
Most rate and rule changes in Australian payroll take effect on 1 July. January is a good time to confirm they were actually applied and are working as intended.
Payday Super
- From 1 July 2026, super guarantee must be paid with each pay cycle rather than quarterly
- Contributions generally need to reach the employee’s fund within 7 business days of payday
- The ATO Small Business Superannuation Clearing House closed on 1 July 2026
Super guarantee rate
- The SG rate is 12%, as it has been since 1 July 2025
- Salary-sacrificed amounts still count in the base used to calculate SG
Wages and awards
- Annual Wage Review increases apply from the first full pay period on or after 1 July
- Check every award classification, allowance and penalty rate was updated
Tax tables
- The 16% personal tax rate fell to 15% from 1 July 2026
- Confirm your payroll system is using the current ATO withholding schedules
No 28 January super deadline this year
Under the old quarterly system, super for October–December was due on 28 January. With Payday Super in place from 1 July 2026, contributions for that period should already have been paid alongside each pay run. If your process still batches super for a quarterly payment, fix it now. Our guide to calculating super contributions correctly covers the base and rate.
Key Dates for January to March 2027
These are the dates most small and medium employers need to plan around in the first quarter of the calendar year. Exact obligations depend on your reporting cycle, so confirm with the ATO, your state revenue office or your tax agent.
| Date | What happens |
|---|---|
| Friday 1 January | New Year’s Day public holiday — check penalty rates for anyone rostered |
| Throughout January | Monthly payroll tax returns for December (due dates vary by state) |
| Thursday 21 January | December monthly activity statement due for monthly lodgers, including PAYG withholding |
| Tuesday 26 January | Australia Day public holiday |
| 28 February (Sunday in 2027, so the next business day) | October–December quarterly BAS due for quarterly lodgers |
| Wednesday 31 March | End of the FBT year — capture odometer readings and benefit records |
| Every payday | STP pay event lodged and super contributions paid under Payday Super |
For state-by-state payroll tax and PAYG timing, see our PAYG and payroll tax deadline guide for 2027, and for a system to keep all of these on track, read how to track regulatory deadlines without missing them.
Your January 2027 Mid-Year Payroll Checklist
Reconcile year-to-date STP figures
Compare July–December gross wages, tax withheld and super in STP with your general ledger and activity statements. Fixing differences now is far easier than in July.
Check super was paid on time, every time
Review six months of Payday Super contributions against pay dates. Late or short payments can attract the super guarantee charge.
Audit award rates and classifications
Confirm 1 July rate increases were applied, employees are on the right classification, and allowances and penalty rates over the holiday period were paid correctly.
Review Christmas close-down leave
Check annual leave was deducted correctly for any close-down, that public holidays were not charged as leave, and that leave balances are accurate.
Onboard January starters properly
Collect TFN declarations and super choice forms, request stapled fund details where no choice is made, and set up pay rates before the first pay run.
Prepare for FBT year-end
Start collecting car logbooks, expense payment records and benefit details so the FBT return and reportable fringe benefits amounts are right.
Plan calendar-year salary reviews
If you review pay in January, document effective dates and update salary sacrifice arrangements prospectively, before the income is earned.
Forecast to 30 June
Project wages for the rest of the year to check payroll tax thresholds, budget for the 1 July 2027 wage review and plan EOFY finalisation.
Common Mid-Year Payroll Mistakes
Treating January as a new tax year
- Resetting year-to-date totals or leave accruals on 1 January
- Planning EOFY tasks around December instead of June
Old super habits
- Still paying super quarterly after Payday Super started
- Relying on the closed ATO clearing house
Holiday pay errors
- Missing public holiday penalty rates for staff who worked
- Charging public holidays against annual leave during a close-down
Ignoring underpayment risk
- Intentional wage underpayment has been a criminal offence since 1 January 2025
- Small errors left unchecked compound across every pay run
For a broader framework, read our guide to preventing payroll errors in a small business.
Planning the Rest of 2026–27
A January review gives you a clean path to 30 June. Use it to set the second half of the year in motion:
Before 30 June 2027
- Lodge the FBT return for the year ending 31 March 2027 by its due date
- Confirm payroll tax registration and thresholds in each state you employ in
- Budget for the 1 July 2027 Annual Wage Review and any award changes
- Note that the 15% tax rate is legislated to fall to 14% from 1 July 2027
- Schedule STP finalisation for 2026–27, due by 14 July 2027
- Review wellness and salary packaging arrangements before the new FBT year begins on 1 April
If you offer wellness benefits or salary packaging, our guide to integrating employee wellness programs with payroll explains the FBT and super implications.
Frequently Asked Questions
No. It runs from 1 July to 30 June. January 2027 is the midpoint of the 2026–27 financial year.
Not for wages paid from 1 July 2026. Under Payday Super, contributions are due with each pay cycle and generally must reach the fund within 7 business days of payday.
By 14 July 2026. If you find errors in January, you can still lodge an amended finalisation through STP.
The FBT year ends on 31 March, so January to March is when you gather the records needed for the return and for reportable fringe benefits.
Conclusion
January 2027 is not a financial year setup for Australian employers; it is a mid-year checkpoint. Use it to confirm that the 1 July 2026 changes, especially Payday Super, are working, reconcile six months of STP data, tidy up holiday-period pay and leave, and prepare for FBT year-end on 31 March. Businesses that do this review in January head into June with fewer surprises and a far simpler end-of-year finalisation. For a full-year view, keep our Fair Work compliance calendar for 2027 close at hand.
Ready to make your mid-year payroll review easy?
How GoPareto Helps
- Australian payroll with super calculations, award-based pay rules and automatic payslips
- Attendance, leave and payroll in one system, so holiday and close-down leave is recorded once
- Compliance reports and audit trails for reviewing year-to-date figures
- An employee self-service portal for payslips, leave balances and personal details
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