Australia Payroll, Superannuation, STP and State Payroll Tax
Australian employers report each pay run to the ATO through Single Touch Payroll, withhold PAYG tax, pay the super guarantee (12% from 1 July 2025) and register for state payroll tax once wages pass the relevant state threshold.
Implemented by ERPHUBs · AustraliaFederal and state payroll duties
Federal obligations include STP reporting, PAYG withholding and super. States and territories add payroll tax, with thresholds and rates that differ and change often, plus workers' compensation insurance.
From 1 July 2026, employers are required to pay super with wages under the Payday Super reforms, so cash planning and reconciliation matter more. We confirm the current rules before implementation.
Key rules at a glance
- STP: Report payroll to the ATO each pay run via compliant software.
- Super guarantee: 12% of ordinary time earnings from 1 July 2025; Payday Super changes timing from 1 July 2026.
- PAYG withholding: Reported and paid on the BAS or on the schedule assigned by the ATO.
- State payroll tax: Each state or territory sets its own threshold, rate and grouping rules.
- Finalisation: STP finalisation by 14 July for the prior year.
- Workers compensation: Insurance rules vary by state.
Payroll, Super & State Payroll Tax: scope of service
STP reporting
Pay-run reports and finalisation.
Super payments
Contributions via clearing house and fund reconciliation.
State payroll tax
Wages by state and grouped-entity checks.
Awards & leave
Entitlements configured in payroll.
Workers comp
Premium accruals and wage declarations.
Payroll journals
Posted to Zoho Books.
Australia compliance calendar
Dates shown are the general statutory dates; they move with your year-end, entity type and any extension.
Each pay run
STP report to the ATO.
28th after quarter
Super guarantee under the current quarterly system.
Monthly
State payroll tax returns (most states).
14 July
STP finalisation.
1 July 2026
Payday Super starts.
Set-up in Zoho Books
- Connect compliant payroll software and Zoho Books.
- Register for state payroll tax where wages exceed the threshold.
- Configure award rates and super funds.
- Reconcile liabilities monthly.
- Plan cash for super payments.
What we watch for
- Missing STP reports.
- Super paid late or to the wrong fund.
- Grouped entities each assuming the threshold applies separately.
- Contractor versus employee misclassification.
Payroll, Super & State Payroll Tax: common questions
A system where employers send payroll and super data to the ATO from their payroll software every time they pay employees.
12% of ordinary time earnings from 1 July 2025.
Every state and territory levies payroll tax above its own threshold, with differing rates and exemptions.
We work with Zoho-compatible STP payroll tools and confirm what suits your size and award.
General guidance for Australia, last reviewed 2026-10-16; it is not tax advice. Rates, thresholds and dates change, so confirm with a qualified local adviser. Official sources: Australian Taxation Office
A practical guide for Australia businesses
Single Touch Payroll: what is reported and when
Every employer with employees must report payroll information to the ATO through Single Touch Payroll each time they pay employees. The report includes salary and wages, PAYG withholding, super liability and, under Phase 2, additional detail such as income types, employment basis and certain allowances and deductions.
At year-end, a finalisation declaration replaces the old payment summary, and it is due by 14 July. Employees can see their income statements in myGov. Errors require an update event, and we reconcile STP totals to the ledger before finalising.
Superannuation guarantee and the move to payday super
Employers must pay superannuation guarantee contributions for eligible employees. The rate increased to 12 percent from 1 July 2025. Contributions have traditionally been due quarterly, by the 28th after the quarter, but legislation provides for payday super from 1 July 2026, requiring contributions to be paid within a set number of days after each payday.
Late payment attracts the superannuation guarantee charge, which includes interest and an administration fee and is not deductible. We calculate super from payroll records, check contribution caps and ordinary time earnings rules, and use a clearing house or direct payments, so the amounts arrive on time.
- Check contractor arrangements, because some contracts are treated as employment for super
- Salary sacrifice and extra contributions need documentation
- Choice of fund forms must be offered to new employees
- Workers compensation and payroll tax apply by state or territory
State payroll tax, leave and awards
Payroll tax is a state tax on wages above a threshold, with different rates and thresholds in each state, and grouping rules for related businesses. Employers must also meet award or enterprise agreement rates, leave loading, overtime and allowances.
We configure pay items in Zoho Payroll or your payroll tool, post journals to Zoho Books, and review a sample of pay runs against award rules before go-live.
Australian payroll obligations
| Obligation | Deadline | Comment |
|---|---|---|
| STP report | On or before each payday | Phase 2 data fields apply |
| STP finalisation | 14 July | Replaces payment summaries |
| Super guarantee | Quarterly by 28th; payday super from 1 July 2026 | Check the current rule for your pay dates |
| PAYG withholding | With the BAS or on the assigned schedule | Depends on withholding size |
More questions about this topic in Australia
The rate is 12 percent from 1 July 2025 for eligible employees.
Yes. Employers with one or more employees are generally required to report through STP, with limited exceptions.
Yes. Super guarantee is an employer contribution paid in addition to salary for eligible employees, based on ordinary time earnings.
You may have to pay the superannuation guarantee charge, which includes the shortfall, interest and an administration amount, and is not tax deductible.
This guide is general information based on published Australia rules and is not legal or tax advice. Rates, thresholds and due dates change; confirm current figures with the tax authority or your adviser.
Get Payroll, Super & State Payroll Tax right the first time
Book a free consultation with the Australia team and get a Zoho Books plan for your business.