Asked about Australian payroll, PAYG withholding, superannuation guarantee, Single Touch Payroll, or employer obligations in Australia.
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General reference only
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Resident individual tax rate — tax-free threshold
0% on taxable income $0–$18,200Income Tax Assessment Act 1997; ATO Schedule 1 — NAT 1004
Resident individual tax rate — band 2
16% on taxable income $18,201–$45,000 (16c for each $1 over $18,200)Income Tax Assessment Act 1997; ATO Schedule 1 — NAT 1004
Resident individual tax rate — band 3
30% on taxable income $45,001–$135,000 ($4,288 plus 30c for each $1 over $45,000)Income Tax Assessment Act 1997; ATO Schedule 1 — NAT 1004
Resident individual tax rate — band 4
37% on taxable income $135,001–$190,000 ($31,288 plus 37c for each $1 over $135,000)Income Tax Assessment Act 1997; ATO Schedule 1 — NAT 1004
Resident individual tax rate — band 5 (top rate)
45% on taxable income $190,001+ ($51,638 plus 45c for each $1 over $190,000)Income Tax Assessment Act 1997; ATO Schedule 1 — NAT 1004
Medicare levy — standard rate
2% of taxable incomeMedicare Levy Act 1986
Medicare levy — low-income threshold (single), no levy below
$28,011Medicare Levy Act 1986
Medicare levy — low-income threshold (single), reduced levy range
$28,012–$35,014Medicare Levy Act 1986
Medicare levy — low-income threshold (family), no levy below
$47,238Medicare Levy Act 1986
Medicare levy — low-income threshold (family), reduced levy range
$47,239–$59,048Medicare Levy Act 1986
Medicare Levy Surcharge — rate range
1.0%–1.5% additional for high earners without private hospital coverMedicare Levy Surcharge (Fringe Benefits) Act 1999; A New Tax System (Medicare Levy Surcharge — Fringe Benefits) Act 1999
No-TFN withholding rate
47% (45% top marginal rate + Medicare levy) from the first dollarIncome Tax Assessment Act 1997; ATO Schedule 1 — NAT 1004
STSL (HELP) repayment rate range
1%–10% of income (income-based, per Schedule 8)Income Tax Assessment Act 1997; ATO Schedule 8
Concessional superannuation contributions cap
$30,000 per yearIncome Tax Assessment Act 1997
Superannuation Guarantee rate
12% of ordinary time earnings (OTE)Superannuation Guarantee (Administration) Act 1992
SG maximum contribution base — per quarter
$62,500 per quarter for 2025-26ATO Super guarantee maximum contribution base 2025-26
SG maximum contribution base — annual note
No annual MCB applies for SG through 30 June 2026; ATO applies a quarterly MCB of $62,500 for 2025-26ATO Super guarantee maximum contribution base 2025-26
SG minimum earnings threshold — abolished
No $450/month threshold from 1 July 2022Superannuation Guarantee (Administration) Act 1992 (amended)
SG payment frequency
Quarterly — 28 days after quarter endSuperannuation Guarantee (Administration) Act 1992
SG eligible employees — age threshold
All employees 18+; under-18s working 30+ hours/weekSuperannuation Guarantee (Administration) Act 1992
SG quarterly due date — Q1 (July–September)
28 OctoberSuperannuation Guarantee (Administration) Act 1992
SG quarterly due date — Q2 (October–December)
28 JanuarySuperannuation Guarantee (Administration) Act 1992
SG quarterly due date — Q3 (January–March)
28 AprilSuperannuation Guarantee (Administration) Act 1992
SG quarterly due date — Q4 (April–June)
28 JulySuperannuation Guarantee (Administration) Act 1992
SGC — nominal interest rate on shortfall
10% per annumSuperannuation Guarantee (Administration) Act 1992
SGC — administration fee per employee per quarter
$20 per employee per quarterSuperannuation Guarantee (Administration) Act 1992
SGC amounts — tax deductibility
Not tax-deductibleIncome Tax Assessment Act 1997
Workers' compensation insurance — typical premium range (office-based)
1%–5% of wagesState/territory workers' compensation legislation (varies by jurisdiction)
Payroll tax threshold — NSW
$1,200,000 annual wagesPayroll Tax Act 2007 (NSW)
Payroll tax rate — NSW
4.85%Payroll Tax Act 2007 (NSW)
Payroll tax threshold — VIC
$900,000 annual wagesPayroll Tax Act 2007 (VIC)
Payroll tax rate — VIC
4.85%Payroll Tax Act 2007 (VIC)
Payroll tax threshold — QLD
$1,300,000 annual wagesPayroll Tax Act 1971 (QLD)
Payroll tax rate — QLD
4.75%Payroll Tax Act 1971 (QLD)
Payroll tax threshold — WA
$1,000,000 annual wagesPay-roll Tax Assessment Act 2002 (WA)
Payroll tax rate — WA
5.50%Pay-roll Tax Assessment Act 2002 (WA)
Payroll tax threshold — SA
$1,500,000 annual wagesPayroll Tax Act 2009 (SA)
Payroll tax rate — SA
Varies 0%–4.95%Payroll Tax Act 2009 (SA)
Payroll tax threshold — TAS
$1,250,000 annual wagesPay-roll Tax Act 2008 (TAS)
Payroll tax rate — TAS
4.00%Pay-roll Tax Act 2008 (TAS)
Payroll tax threshold — ACT
$2,000,000 annual wagesPayroll Tax Act 2011 (ACT)
Payroll tax rate — ACT
6.85%Payroll Tax Act 2011 (ACT)
Payroll tax threshold — NT
$1,500,000 annual wagesPayroll Tax Act 2009 (NT)
Payroll tax rate — NT
5.50%Payroll Tax Act 2009 (NT)
National Minimum Wage — adult full-time hourly rate (from 1 July 2025)
$24.95/hourFair Work Act 2009
National Minimum Wage — adult full-time weekly rate (from 1 July 2025)
$948.10/week (38 hrs/week)Fair Work Act 2009
Casual loading
25% on top of base rateFair Work Act 2009
Overtime — first 2 hours (Mon–Sat)
150% (time and a half)Fair Work Act 2009; applicable modern award
Overtime — after first 2 hours
200% (double time)Fair Work Act 2009; applicable modern award
Sunday work penalty rate
200%Fair Work Act 2009; applicable modern award
Public holiday work penalty rate
250%Fair Work Act 2009; applicable modern award
Maximum ordinary hours per week (NES)
38 hours/weekFair Work Act 2009
Maximum ordinary hours — averaging period
Up to 26 weeksFair Work Act 2009
Annual leave — full-time entitlement
4 weeks per year (pro-rata for part-time)Fair Work Act 2009
Annual leave — shift workers entitlement
5 weeks per yearFair Work Act 2009
Annual leave loading
17.5% on top of base rate (common under awards, paid when leave is taken)Fair Work Act 2009; applicable modern award
Personal/carer's leave — full-time entitlement
10 days per year (pro-rata for part-time); accumulates with no capFair Work Act 2009
Compassionate/bereavement leave
2 days per occasion (paid for permanent employees)Fair Work Act 2009
Long service leave — standard entitlement
8.67 weeks after 10 years of continuous serviceState/territory long service leave legislation (varies by jurisdiction)
Long service leave — pro-rata access threshold (some states)
After 5–7 years of continuous serviceState/territory long service leave legislation (varies by jurisdiction)
Government Paid Parental Leave — duration
Up to 22 weeks (increasing to 26 weeks by July 2026)Paid Parental Leave Act 2010
Government Paid Parental Leave — payment rate
National minimum wage ratePaid Parental Leave Act 2010
Unpaid parental leave — entitlement
Up to 12 months (can request additional 12 months)Fair Work Act 2009
Public holidays — national entitlement
8 national public holidaysFair Work Act 2009
Redundancy pay — 1–2 years of service
4 weeks of payFair Work Act 2009
Redundancy pay — 2–3 years of service
6 weeks of payFair Work Act 2009
Redundancy pay — 3–4 years of service
7 weeks of payFair Work Act 2009
Redundancy pay — 4–5 years of service
8 weeks of payFair Work Act 2009
Redundancy pay — 5–6 years of service
10 weeks of payFair Work Act 2009
Redundancy pay — 6–7 years of service
11 weeks of payFair Work Act 2009
Redundancy pay — 7–8 years of service
13 weeks of payFair Work Act 2009
Redundancy pay — 8–9 years of service
14 weeks of payFair Work Act 2009
Redundancy pay — 9–10 years of service
16 weeks of payFair Work Act 2009
Redundancy pay — 10+ years of service
12 weeks of payFair Work Act 2009
Small business redundancy pay exemption — employee threshold
Fewer than 15 employeesFair Work Act 2009
Payslip issuance deadline
Within 1 working day of paydayFair Work Act 2009 s536; Fair Work Regulations r3.36
STP Phase 2 — finalisation deadline
14 July following end of financial yearTaxation Administration Act 1953; ATO STP Phase 2 guidelines
STP Phase 2 — closely held payees reporting frequency
Quarterly; finalise by 14 JulyTaxation Administration Act 1953; ATO STP Phase 2 guidelines
PAYG withholding remittance — small withholders (< $25,000 annual PAYG)
Quarterly BAS — 28 days after quarter endTaxation Administration Act 1953
PAYG withholding remittance — medium withholders ($25,000–$1M annual PAYG)
Monthly IAS — 21st of following monthTaxation Administration Act 1953
PAYG withholding remittance — large withholders (> $1M annual PAYG)
Monthly IAS — 21st of following month (may need to pay more frequently)Taxation Administration Act 1953
Small withholder PAYG threshold (upper bound)
< $25,000 annual PAYG withheldTaxation Administration Act 1953
Medium withholder PAYG threshold range
$25,000–$1,000,000 annual PAYG withheldTaxation Administration Act 1953
Large withholder PAYG threshold (lower bound)
> $1,000,000 annual PAYG withheldTaxation Administration Act 1953
Payslip non-compliance — individual penalty (per contravention)
Up to $16,500Fair Work Act 2009
Payslip non-compliance — body corporate penalty (per contravention)
Up to $82,500Fair Work Act 2009
Salary sacrifice to super — tax rate inside fund (concessional contributions)
15% inside the super fundIncome Tax Assessment Act 1997
STSL repayment threshold update effective date
24 September 2025Income Tax Assessment Act 1997; ATO Schedule 8
Quick Reference table
| Field | Value |
|---|---|
| Country | Australia (Commonwealth of Australia) |
| Currency | AUD ($) only |
| Tax year (income year) | 1 July -- 30 June |
| Primary legislation | Income Tax Assessment Act 1997; Superannuation Guarantee (Administration) Act 1992; Fair Work Act 2009 |
| Tax authority | Australian Taxation Office (ATO) |
| Workplace regulator | Fair Work Ombudsman (FWO) |
| Reporting system | Single Touch Payroll (STP) Phase 2 |
| Pay frequency | Weekly, fortnightly, monthly (fortnightly most common) |
| Employer registration | ABN + PAYG withholding registration via ATO |
| Validated by | Pending -- requires sign-off by an Australian CPA, CA, or registered tax agent |
| Skill version | 1.0 |
PAYG withholding is calculated per pay period using ATO tax tables (Schedule 1 -- NAT 1004) or the Statement of Formulas. The employer applies the appropriate coefficients based on weekly/fortnightly/monthly earnings.
Resident Individual Tax Rates (2025--26)
| Taxable Income (AUD) | Rate | Tax on This Income |
|---|---|---|
| 0 -- 18,200 | 0% | Nil |
| 18,201 -- 45,000 | 16% | 16c for each $1 over $18,200 |
| 45,001 -- 135,000 | 30% | $4,288 plus 30c for each $1 over $45,000 |
| 135,001 -- 190,000 | 37% | $31,288 plus 37c for each $1 over $135,000 |
| 190,001+ | 45% | $51,638 plus 45c for each $1 over $190,000 |
Medicare Levy
| Item | Detail |
|---|---|
| Standard rate | 2% of taxable income |
| Low-income threshold (single) | No levy up to $28,011; reduced levy $28,012--$35,014 |
| Low-income threshold (family) | No levy up to $47,238; reduced $47,239--$59,048 |
| Medicare Levy Surcharge | 1.0%--1.5% additional for high earners without private hospital cover |
Australia does not have a separate employee social security contribution. The Medicare levy (2%) serves a similar function but is collected through PAYG withholding, not as a separate line item.
Employee-Side Deductions Summary
| Deduction | Rate | Ceiling | Notes |
|---|---|---|---|
| PAYG income tax | Progressive (see above) | No ceiling | Includes Medicare levy in tax tables |
| STSL repayment | 1%--10% (income-based) | No ceiling | Only if employee has HELP/STSL debt |
| Salary sacrifice (super) | Voluntary | Concessional cap $30,000/year | Pre-tax; reduces PAYG withholding base |
There is no employee-paid social insurance premium equivalent to NIC (UK) or social security tax (US).
Superannuation Guarantee (SG) parameters 2025-26
| Parameter | 2025--26 Value |
|---|---|
| SG rate | 12% of ordinary time earnings (OTE) |
| Maximum contribution base | $62,500 per quarter for 2025-26; no annual MCB applies for SG through 30 Jun 2026 |
| Minimum earnings threshold | Abolished (no $450/month threshold from 1 Jul 2022) |
| Payment frequency | Quarterly (28 days after quarter end) |
| Eligible employees | All employees 18+; under-18s working 30+ hours/week |
Payroll Tax (State/Territory)
| State/Territory | Threshold (Annual) | Rate |
|---|---|---|
| NSW | $1,200,000 | 4.85% |
| VIC | $900,000 | 4.85% |
| QLD | $1,300,000 | 4.75% |
| WA | $1,000,000 | 5.50% |
| SA | $1,500,000 | Varies (0%--4.95%) |
| TAS | $1,250,000 | 4.00% |
| ACT | $2,000,000 | 6.85% |
| NT | $1,500,000 | 5.50% |
National Minimum Wage (from 1 July 2025)
| Category | Rate |
|---|---|
| Adult (full-time, 38 hrs/week) | $24.95/hour ($948.10/week) |
| Junior rates | Percentage of adult rate by age (under awards) |
| Casual loading | 25% on top of base rate (in lieu of leave entitlements) |
Overtime (Under Awards)
| Period | Typical Award Rate |
|---|---|
| First 2 hours overtime (Mon--Sat) | 150% (time and a half) |
| After 2 hours overtime | 200% (double time) |
| Sunday work | 200% |
| Public holiday work | 250% |
Parental Leave
| Type | Duration | Payment |
|---|---|---|
| Government Paid Parental Leave | Up to 22 weeks (increasing to 26 weeks by Jul 2026) | National minimum wage rate |
| Unpaid parental leave | Up to 12 months (can request additional 12 months) | Nil (job-protected) |
Redundancy Pay (NES)
| Years of Service | Weeks of Pay |
|---|---|
| 1--2 years | 4 weeks |
| 2--3 years | 6 weeks |
| 3--4 years | 7 weeks |
| 4--5 years | 8 weeks |
| 5--6 years | 10 weeks |
| 6--7 years | 11 weeks |
| 7--8 years | 13 weeks |
| 8--9 years | 14 weeks |
| 9--10 years | 16 weeks |
| 10+ years | 12 weeks |
Not strictly required on payslips but must be provided to employees on request. Best practice is to include annual leave and personal leave balances.
Single Touch Payroll (STP) Phase 2
| Item | Detail |
|---|---|
| Reporting frequency | Each pay event (each time employees are paid) |
| Method | STP-enabled payroll software submits to ATO |
| Content | Gross payments, PAYG withheld, super liability, employee details, income types, country codes |
| Finalisation deadline | 14 July following end of financial year |
| Closely held payees | May report quarterly; finalise by 14 July |
PAYG Withholding Remittance
| Employer Size | Reporting | Payment Due |
|---|---|---|
| Small withholders (< $25,000 annual PAYG) | Quarterly BAS | 28 days after quarter end |
| Medium withholders ($25,000--$1M) | Monthly IAS | 21st of following month |
| Large withholders (> $1M) | Monthly IAS + may need to pay more frequently | 21st of following month |
Superannuation Remittance
| Due Date | Quarter |
|---|---|
| 28 October | July -- September |
| 28 January | October -- December |
| 28 April | January -- March |
| 28 July | April -- June |
Annual Obligations
| Task | Deadline |
|---|---|
| STP finalisation | 14 July |
| PAYG payment summary (now replaced by STP income statement) | Via STP -- no separate form required |
| Workers' comp annual declaration | Per state insurer schedule |
| Payroll tax annual reconciliation | Per state revenue office (typically July/August) |
Penalties
| Violation | Consequence |
|---|---|
| Late SG payment | SGC: shortfall + 10% interest + $20/employee admin fee; not deductible |
| Failure to withhold PAYG | Employer liable for amount that should have been withheld |
| Late BAS/IAS lodgement | General interest charge (GIC) + potential failure-to-lodge penalty |
| Payslip non-compliance | Up to $16,500 per contravention (individual); $82,500 (body corporate) |
Annual salary $85,000. Paid monthly. No STSL debt.
Base rate $28.50/hour under award. Casual loading 25% = $35.63/hour. Works 25 hours.
Annual salary $120,000. Sacrifices $10,000/year to super.
Employee earning $65,000 with HELP debt. STSL repayment rate from Schedule 8 tables: approximately 4.5%. Annual repayment: $65,000 × 4.5% = $2,925, withheld progressively via PAYG.
Interaction with Other Skills
| Skill | Interaction |
|---|---|
| payroll-workflow-base | Provides generic payroll processing steps; this skill adds Australian-specific rules |
| australia-bookkeeping | Payroll journals: salaries + super + payroll tax to P&L; PAYG liability + super liability + net pay to BS |
| australia-bas | PAYG withholding reported on BAS/IAS; GST does not apply to wages |
| australia-stp | STP Phase 2 reporting is the primary payroll compliance mechanism |
This skill and its outputs are provided for informational and computational purposes only and do not constitute tax, legal, or financial advice. Open Accountants and its contributors accept no liability for any errors, omissions, or outcomes arising from the use of this skill. All outputs must be reviewed and signed off by a qualified professional (such as a CPA, EA, tax attorney, or equivalent licensed practitioner in your jurisdiction) before filing or acting upon.
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Other Australia computations in the OpenAccountants Tax Library.
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