Every December, a Sydney business owner somewhere shuts the office for two weeks. They come back to unpaid super, a payroll error, a pile of unreconciled transactions and a BAS due in a few weeks. Meanwhile Boring Barry is at his Christmas party telling everyone the books are "basically done". This is the checklist your Sydney bookkeeper runs before the shutdown, so January starts clean.

Published: October 2026

Dates checked: 11 October 2026

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Why December Is a Risky Month for Your Books

December squeezes a month of admin into three weeks:

• Public holidays move pay dates.
• Staff want leave.
• Customers stop paying.
• Suppliers send their invoices all at once.

And since 1 July 2026, Payday Super means the super on every Christmas pay run has a deadline of its own, whether or not the office is open.

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Part 1: Payroll Before the Shutdown

Know the NSW public holidays

• Christmas Day: 2026-27 date: Friday 25 December 2026
• Boxing Day: 2026-27 date: Saturday 26 December 2026
• Additional public holiday (because Boxing Day falls on a Saturday): 2026-27 date: Monday 28 December 2026
• New Year's Day: 2026-27 date: Friday 1 January 2027

Source: NSW Government, Public holidays.

Lock in the last pay runs

List every pay run between now and the first payday in January. If a payday falls on a public holiday, process the run earlier.

Pay super with every pay run

Rule: From 1 July 2026, the employee's fund must receive super within 7 business days after payday. A new employee's first contribution has 20 business days. Weekends and public holidays are not business days.

Hypothetical example: The office closes on Friday 18 December and the last pay run goes out on Thursday 24 December. On our count, the 7 business days after payday are 29, 30 and 31 December and 4, 5, 6 and 7 January. That excludes the weekends and the 25 December, 28 December and 1 January public holidays. So the super has to reach the fund by Thursday 7 January 2027, and someone has to make that payment while the office is shut. Set it up before you leave, and allow for the fund's processing time.

More detail: super payment deadlines under Payday Super.

Check public holiday pay

Rule (National Employment Standards): An employee who would normally work on a public holiday and is absent because of it is entitled to be paid their base rate for their ordinary hours that day.

Employer action: If staff work on a public holiday, check the penalty rates in their award before the roster goes out.

Shutdown leave

Rule: Since 1 May 2023, many modern awards, including the Clerks award (cl 32.5), contain a model shutdown clause. Under that clause, an employer can direct staff in writing to take paid annual leave during a shutdown if the direction is reasonable. Affected staff must get at least 28 days' written notice of the shutdown, or a shorter period agreed between the employer and the majority of affected employees. Some awards have different rules. For award-free employees, a direction must be reasonable.

Employer action: If you plan to shut down over Christmas, check each award and get the written direction out by late November. Staff without enough leave can't be forced onto unpaid leave. They can agree to it in writing, or you can consider options such as leave in advance.

Leave loading

If staff take annual leave over Christmas, check whether their award or contract includes leave loading, and that payroll is set up to pay it.

Our Sydney payroll bookkeeper team sets up the Christmas pay calendar, Payday Super payments and public holiday rates.

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Part 2: Get Paid Before Everyone Disappears

Send every invoice by mid-December

Invoice December work in December. An invoice sent on 6 January joins the queue behind everyone else's.

Chase the overdue ones now

Call customers who are more than 30 days overdue rather than sending another email. Many businesses do a final supplier payment run before Christmas, so aim to be in it.

Turn on automatic reminders

Xero can send invoice reminders while you're at the beach. Barry prefers to post his reminders in January, with a compliments slip.

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Part 3: Bills and Cash

Know what is due in January

List everything due between 20 December and 31 January:

• Wages and super for each January pay run
• PAYG withholding (if you report monthly)
• Rent and loan repayments
• Supplier payments
• Insurance renewals
• Any ATO payment plan instalments

January revenue can be thin, because December work gets paid late. If cash doesn't cover the list, it's better to find out in December.

Pay the suppliers who matter

If cash is tight, talk to key suppliers before the due date, not after.

Our payables and cashflow service runs supplier payments and a January cash list.

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Part 4: Clean the Books Before You Leave

Reconcile bank feeds

Reconcile to the last working day before the shutdown. A backlog left over Christmas only gets harder to clear.

Clear the receipts pile

Upload every December receipt before holiday mode sets in. Barry keeps his in a shoebox labelled "Q4 vibes".

Record the Christmas party properly

Rule (FBT): Food and drink provided to current employees on your business premises on a working day is exempt from FBT. Other costs, such as an off-site venue or partners attending, may be exempt as minor benefits if the cost is under $300 per person (GST-inclusive) and other conditions are met.

Employer action: Record the total cost, the venue, the date and the number of employees and guests who attended, so your accountant can work out the FBT position.

Our monthly bookkeeping keeps bank feeds reconciled weekly, so there is no December pile to begin with.

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Part 5: The BAS Waiting in the New Year

Know your due date

• Quarterly: Period: October to December 2026; Due date: 28 February 2027 is a Sunday and Monday 1 March 2027 is Labour Day in WA, so the ATO's first business day is Tuesday 2 March 2027 (for every state)
• Monthly: Period: December 2026; Due date: Thursday 21 January 2027
• Monthly, lodging electronically through a registered agent, turnover up to $10 million: Period: December 2026; Due date: 21 February 2027 is a Sunday, so Monday 22 February 2027 (not available for deferred GST)

Sources: ATO, Due dates for lodging and paying your BAS; ATO, Registered agent lodgment program, activity statements; ATO, Lodgment and payment dates on weekends or public holidays.

When a due date falls on a weekend or public holiday, you can lodge and pay on the next business day (ato.gov.au/BASduedates). For this rule the ATO counts a public holiday in any whole state or territory, which is why a WA holiday moves the quarterly date for a Sydney business too. Lodging a few days early costs nothing.

Set aside the GST now

The GST you collected in October, November and December belongs to the ATO. Move it to a separate account before Christmas so it isn't spent in the Boxing Day sales.

Our team handles BAS lodgement in Sydney from reconciled books. See the BAS Countdown for the next deadline.

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The Checklist

1. List every pay run from now to the first January payday
2. Note the NSW public holidays (25, 26 and 28 December; 1 January) and adjust pay dates
3. Schedule super so the fund receives it within 7 business days of each Christmas payday
4. Confirm public holiday pay and penalty rates
5. Give written shutdown leave directions with the notice your award requires (often 28 days)
6. Check leave loading on annual leave
7. Invoice all December work by mid-December
8. Chase every debt over 30 days
9. Turn on automatic invoice reminders
10. List all January payments and check cash covers them
11. Pay key suppliers, or agree terms, before Christmas
12. Reconcile bank feeds to the last working day
13. Upload December receipts
14. Record Christmas party costs, venue and attendees
15. Set aside GST for the BAS

If your current bookkeeper is still "getting to" November, a Free Xero Roast will show you how far behind the file is.

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FAQ

Do I have to pay super before the Christmas shutdown?

Super for each pay run must be received by the fund within 7 business days after payday. Weekends and public holidays don't count. For a 24 December 2026 payday, that works out to Thursday 7 January 2027.

Can I make staff take annual leave over Christmas?

Many awards allow it if you give a written direction with at least 28 days' notice. Check your award, because the rules vary.

When is the October to December BAS due?

For quarterly lodgers, 28 February 2027 falls on a Sunday and Monday 1 March 2027 is a public holiday in Western Australia. The ATO's public holiday table gives Tuesday 2 March 2027 as the first business day, and that applies to Sydney businesses too.

Are public holidays over Christmas paid?

Employees who would normally work on the day are entitled to their base rate for ordinary hours.

Does the Christmas party create FBT?

Not if it's food and drink for current employees on your premises on a working day. Other arrangements may be exempt minor benefits under $300 per person. Ask your accountant.

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About Sydney Bookkeeper

Sydney Bookkeeper is a fixed-price Sydney bookkeeper for businesses with staff: monthly bookkeeping, BAS lodgement, payroll and Xero file clean-ups, with no lock-in.

Get a Free Xero Roast | Payroll | BAS lodgement

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Legal

The team uses a registered BAS Agent for all BAS and IAS lodgement services. Registration details are available on request. This content is general information only. It is not tax, financial product or legal advice. Information was current at publication and may change.

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Sources

• NSW Government, Public holidays: https://www.nsw.gov.au/about-nsw/public-holidays
• ATO, Payment deadlines for Payday Super: https://www.ato.gov.au/businesses-and-organisations/super-for-employers/paying-super-on-payday/payment-deadlines-for-payday-super
• Acts Interpretation Act 1901 s2B ("business day"): https://www.austlii.edu.au/cgi-bin/viewdoc/au/legis/cth/consol_act/aia1901230/s2b.html
• Fair Work Ombudsman, Direction to take annual leave during a shutdown: https://www.fairwork.gov.au/leave/annual-leave/directing-an-employee-to-take-annual-leave/direction-to-take-annual-leave-during-a-shut-down
• Fair Work Ombudsman, New shutdown rules for awards: https://www.fairwork.gov.au/newsroom/news/new-shutdown-rules-for-awards
• Fair Work Ombudsman, Public holidays: https://www.fairwork.gov.au/employment-conditions/public-holidays/not-working-on-public-holidays
• ATO, Due dates for lodging and paying your BAS: https://www.ato.gov.au/businesses-and-organisations/preparing-lodging-and-paying/business-activity-statements-bas/due-dates-for-lodging-and-paying-your-bas
• ATO, Registered agent lodgment program, activity statements: https://www.ato.gov.au/tax-and-super-professionals/for-tax-professionals/prepare-and-lodge/registered-agent-lodgment-program/due-dates-by-obligation-type/activity-statements
• ATO, Lodgment and payment dates on weekends or public holidays: https://www.ato.gov.au/tax-and-super-professionals/for-tax-professionals/prepare-and-lodge/registered-agent-lodgment-program/lodgment-and-payment-dates-on-weekends-or-public-holidays
• ATO, FBT and festivities: https://www.ato.gov.au/businesses-and-organisations/small-business-newsroom/fbt-and-festivities-what-employers-need-to-know

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