Australia Payslip Requirements: Complete ATO Compliance Guide for 2026

Understanding Australian payslip requirements is crucial for employers and employees to ensure compliance with the Australian Taxation Office (ATO) and Fair Work regulations. This comprehensive guide covers everything you need to know about payslip obligations in 2026.

Legal Framework

Fair Work Act 2009

The Fair Work Act governs employment relationships in Australia and sets out payslip requirements:

• Section 536: Employers must provide pay slips
• Within 1 working day of pay day
• Electronic or paper format allowed
• Must be accessible and readable

Fair Work Regulations 2009

Regulations 3.45 and 3.46 specify the form of a payslip and what must be included on it. Regulations 3.47 and 3.48 say what must not be shown: paid family and domestic violence leave. The Australian payslip template page lists each required item.

Australian Taxation Office (ATO) Requirements

The ATO requires employers to:

• Withhold PAYG (Pay As You Go) tax
• Report payments through Single Touch Payroll (STP)
• Pay Superannuation Guarantee (SG)
• Maintain accurate payroll records

What Must Be Included on an Australian Payslip

Mandatory Information

Employer Details:

• Employer's name
• Australian Business Number (ABN), if the employer has one

Employee Details:

• Employee's name
• Date of payment
• Pay period (start and end dates)

Payment Information:

• Gross pay (before deductions)
• Net pay (after deductions - take-home pay)
• Any loadings, monetary allowances, bonuses, penalty rates, incentive-based payments or other separate payments, each shown on its own
• If paid by the hour: the ordinary hourly rate, the number of hours paid at that rate and the amount for them
• If paid a salary: the annual rate of salary
• Piece rates, if they apply

Deductions:

• The amount of each deduction (including PAYG tax withheld and any salary sacrifice)
• The name, or name and number, of the fund or account each deduction was paid into

Superannuation:

• The amount of each super contribution the employer made in the period
• The name, or name and number, of the super fund

Must Not Be Included

• Paid family and domestic violence leave. Show the payment another way, for example as ordinary hours worked.
• The Tax File Number isn't required, and keeping it off payslips protects the employee.

Not Required (But Recommended)

While not mandatory, many employers include:

• Year-to-date totals
• Annual and personal/carer's leave balances
• Long service leave balance
• Public holidays taken
• Trading name (if different from legal name)
• Employee number
• Superannuation fund membership number

2026 ATO Tax Rates and Thresholds

Individual Income Tax Rates (2026-27 Income Year)

Taxable Income	Tax Rate
$0 - $18,200	0% (tax-free threshold)
$18,201 - $45,000	15%
$45,001 - $135,000	30%
$135,001 - $190,000	37%
Over $190,000	45%

The 15% rate applies from 1 July 2026 (it was 16% in 2024-25 and 2025-26) and is scheduled to fall to 14% from 1 July 2027.

Medicare Levy: 2% of taxable income for most taxpayers. Low-income earners pay less or none (2025-26 singles threshold: $28,011).

Superannuation Guarantee (SG) - 2026-27

SG Rate: 12% (since 1 July 2025) of qualifying earnings, which broadly means ordinary time earnings Payday Super (from 1 July 2026): Super must be paid at the same time as wages and reach the employee's fund within 7 business days of payday. Quarterly due dates no longer apply. Maximum Super Contribution Base: $270,830 for 2026-27 (now an annual limit)

Tax Offsets and Adjustments

Low Income Tax Offset (LITO):

• Up to $700 for taxable incomes of $37,500 or less
• Reduces between $37,501 and $66,667, reaching $0 at $66,667

Low and Middle Income Tax Offset (LMITO):

• Check ATO for current status (was temporary)

Medicare Levy Exemption/Reduction:

• Available for low-income earners
• Depends on threshold and family circumstances

PAYG Withholding Calculations

Tax File Number (TFN)

With TFN:

• Normal tax rates apply
• Based on tax-free threshold claim

Without TFN:

• 47% flat rate (highest marginal rate + Medicare levy)
• No tax-free threshold
• Significantly higher tax burden

Tax-Free Threshold

Claiming threshold ($18,200):

• Yes: If this is primary job
• No: If you have multiple jobs or other income

Foreign Residents:

• Not entitled to tax-free threshold
• Different tax rates apply
• 30% from the first dollar up to $135,000

Superannuation Requirements

Superannuation Guarantee

Who is Covered:

• Most employees, regardless of how much they earn (the old $450-a-month threshold was removed on 1 July 2022)
• Employees under 18 only if they work more than 30 hours in a week
• Contractors paid mainly for labor

Calculation:

• 12% of qualifying earnings, worked out each payday since Payday Super started on 1 July 2026
• Qualifying earnings broadly match ordinary time earnings (OTE): salary, wages, commission, most bonuses and allowances
• Excludes overtime (usually)

Example:

• Qualifying earnings: $5,000/month
• SG contribution: $5,000 × 12% = $600
• Employer must pay this ON TOP of salary, and it must reach the fund within 7 business days of payday

Choice of Fund

Employee Rights:

• Right to choose super fund
• "Standard Choice Form" must be provided
• Employer must comply with choice

Default Fund:

• If no choice made, employer first asks the ATO for the employee's stapled fund
• If there is none, employer uses default fund
• Must be MySuper compliant
• Listed in Modern Award or enterprise agreement

Super Contribution Caps (2026-27)

Concessional Contributions: $32,500 per year

• Includes employer SG, salary sacrifice
• Taxed at 15% in super fund

Non-Concessional Contributions: $130,000 per year

• After-tax contributions
• Not taxed again in super

Award and Agreement Requirements

Modern Awards

Australia has 120+ Modern Awards covering different industries:

Common Awards:

• General Retail Industry Award
• Hospitality Industry (General) Award
• Manufacturing and Associated Industries Award
• Clerks Private Sector Award
• Building and Construction General On-site Award

Award Requirements:

• Minimum pay rates
• Penalty rates (weekends, public holidays, overtime)
• Allowances
• Leave entitlements
• Loadings for shift work or casual employment

Casual Loading

Casual employees receive:

• 25% casual loading (minimum)
• In lieu of paid annual leave and sick leave
• Must be clearly shown on payslip

Example:

• Permanent hourly rate: $25
• Casual hourly rate: $31.25 ($25 × 1.25)

Single Touch Payroll (STP)

What is STP?

Single Touch Payroll is the ATO's digital reporting system:

Reporting Requirements:

• Report on or before pay day
• Include all employees
• Report gross wages, PAYG, super liability

Who Must Use STP:

• All employers (since 2021)
• Micro employers (1-4 employees) - STP Phase 2
• Large employers - STP Phase 2 with additional data

STP Phase 2 (2026)

Additional Reporting:

• Disaggregated data (gross, allowances, deductions)
• Employment type (full-time, part-time, casual)
• Country codes for foreign employment
• Cessation type when employment ends

Benefits:

• Pre-fills tax returns
• Replaces payment summaries
• Real-time compliance monitoring

Leave Entitlements on Payslips

Leave balances are optional on Australian payslips: the Fair Work rules don't require them, although many employers show them. Paid family and domestic violence leave is the exception the other way: it must not appear on a payslip at all.

Annual Leave

Accrual:

• 4 weeks per year (full-time equivalent)
• Accrues progressively during the year
• Balance often shown on payslips (optional)

Shift Workers:

• 5 weeks per year (if working certain shift patterns)

Casual Employees:

• Not entitled to annual leave
• Receive 25% casual loading instead

Personal/Carer's Leave

Accrual:

• 10 days per year (full-time equivalent)
• Also called sick leave
• Cumulative (unused leave rolls over)

Often Shown (optional):

• Amount accrued
• Current balance

Long Service Leave

Entitlement:

• After 7-10 years (varies by state/territory)
• Accrual methods vary
• Not always shown on payslips (but recommended)

Common Deductions

Statutory Deductions

PAYG Tax:

• Mandatory for all employees
• Based on TFN declaration
• Withheld and paid to ATO

Higher Education Loan Program (HELP/HECS):

• Repayment through PAYG if income above threshold
• Repayment threshold for 2026-27: $69,528
• Since 2025-26, repayments only apply to income above the threshold (15c per dollar, then 17c above $129,717)

Study and Training Support Loans (STSL):

• Similar to HELP
• For VET Student Loans, ABSTUDY SSL, etc.

Child Support:

• Garnishment orders from Services Australia
• Must be deducted and remitted

Voluntary Deductions

Superannuation Salary Sacrifice:

• Pre-tax contribution to super
• Reduces taxable income
• Counts toward concessional cap

Union Fees:

• Tax-deductible
• Requires authorization

Health Insurance:

• Private health insurance premiums
• May reduce Medicare Levy Surcharge

Other:

• Novated car lease payments
• Workplace giving (charity)
• Professional association fees

Record Keeping Requirements

Employer Obligations

ATO Requirements:

• Keep payroll records for 5 years
• Include timesheets, payslips, pay registers
• Must be in English or easily converted

Fair Work Requirements:

• 7 years for employee records
• Time and wages records
• Superannuation records
• Leave records

What Must Be Kept

Employee Records:

• Personal details
• Start date and position
• Pay rate and basis
• Hours worked
• Leave taken and balances

Payment Records:

• Gross and net pay
• Deductions itemized
• Super contributions
• PAYG withholding

STP Records:

• All STP reports submitted
• Payday file reports
• Year-end finalization

Electronic Payslips

Legal Requirements

Accessibility:

• Employee must be able to readily access
• Print or save capability required
• Secure system needed

Consent:

• Not required if system meets accessibility standards
• Must provide alternative if requested

Security:

• Comply with Privacy Act 1988
• Protect personal information
• Secure transmission and storage

Best Practices

System Features:

• Self-service employee portal
• Mobile app access
• Download PDF capability
• Historical access (minimum 7 years)
• Email notifications

Data Protection:

• Encrypted connections
• Multi-factor authentication
• Regular security audits
• Data breach response plan

Penalties for Non-Compliance

Fair Work Penalties

Failure to Provide Payslip:

• Individual: Up to $18,780 per breach
• Company: Up to $93,900 per breach

Underpayment of Wages:

• Individual: Up to $93,900
• Company: Up to $469,500
• Plus back payment to employees

Record Keeping Failures:

• Significant penalties
• Difficulty defending underpayment claims

ATO Penalties

Late Super Payments (Payday Super):

• Superannuation Guarantee Charge (SGC) if super doesn't reach the fund within 7 business days of payday
• The charge is the shortfall plus notional earnings and an administrative uplift
• Further interest and penalties if the SGC itself isn't paid on time

Late PAYG Remittance:

• Failure to withhold penalty
• Up to 75% of amount not withheld
• Additional interest and penalties

STP Non-Compliance:

• Penalties for late or incorrect reporting
• Up to $13,320 for individuals
• Up to $66,600 for companies

State and Territory Variations

Workers' Compensation

Varies by state/territory:

NSW - iCare (formerly WorkCover) VIC - WorkSafe Victoria QLD - WorkCover Queensland SA - ReturnToWorkSA WA - WorkCover WA TAS - WorkSafe Tasmania NT - NT WorkSafe ACT - Comcare

Not typically shown on payslip (employer pays premium)

Payroll Tax

State-based tax on wages:

Thresholds: Set by each state and territory, and changed often. Check your state revenue office for the current threshold.

Not shown on employee payslip (employer liability)

Industry-Specific Requirements

Construction

Construction Industry Long Service Leave:

• Portable long service leave schemes
• Varies by state
• May appear on payslips

Redundancy Trust:

• Industry-specific redundancy schemes
• Contributes to portable scheme

Hospitality

Penalty Rates:

• Weekend work (Saturday/Sunday)
• Public holidays (up to 250%)
• Must be itemized on payslip

Tips and Gratuities:

• Electronic tips through employer = wages
• Subject to PAYG and super
• Cash tips directly to employee = not wages

Healthcare

Salary Packaging:

• Pre-tax benefits available
• Fringe Benefits Tax (FBT) considerations
• Complex payslip calculations

Common Mistakes to Avoid

Employer Mistakes

1. Incorrect Super Calculations

   • Using the old rate (it has been 12% since 1 July 2025)
   • Including overtime in OTE incorrectly
   • Solution: Use ATO super calculator

2. Late Super Payments

   • Missing the Payday Super deadline (7 business days after payday)
   • Results in SGC and penalties
   • Solution: Automated super clearing house

3. Incomplete Payslips

   • Missing the ABN, the annual salary rate or the hourly rate and hours
   • Loadings and penalty rates folded into one amount instead of shown separately
   • No super fund details
   • Solution: Check each payslip against the Fair Work payslip items

4. Wrong Award/Pay Rate

   • Not applying correct modern award
   • Missing penalty rates
   • Solution: Fair Work Ombudsman Pay Calculator

5. STP Reporting Errors

   • Late submissions
   • Incorrect employee data
   • Solution: Integrated payroll/STP system

Employee Mistakes

1. Not Reviewing Payslips

   • Missing underpayments
   • Incorrect super contributions
   • Solution: Check every payslip

2. Wrong TFN Declaration

   • Claiming tax-free threshold from multiple jobs
   • Not updating when circumstances change
   • Solution: Complete new TFN declaration

3. Not Tracking Leave

   • Not aware of leave balances
   • Missing accrual errors
   • Solution: Check balances on your payslip or your employer's payroll portal

Technology and Payroll Software

Essential Features

ATO Compliance:

• Automated PAYG calculations
• STP Phase 2 reporting
• Tax table updates

Fair Work Compliance:

• Modern award interpretation
• Penalty rate calculations
• Leave management

Superannuation:

• SG calculation (12%)
• Super clearing house integration
• Choice of fund management

Reporting:

• Payslip generation
• Payment summaries
• STP reports
• Activity statements

Popular Australian Payroll Software

Cloud-Based:

• MYOB
• Xero
• QuickBooks Online
• Employment Hero
• KeyPay

Enterprise:

• SAP
• Oracle
• ADP
• Preceda

How to Generate Australian Payslips

Need professional Australian payslips with accurate ATO calculations?

Our Australia Payslip Generator includes:

✅ PAYG, Medicare levy and super calculations - PAYG tax (tax-free threshold claimed), Medicare levy, super ✅ 2026-27 tax rates - Current tax brackets and super rate (12%) ✅ Fair Work payslip fields - Employer ABN, hours and rates, annual salary, separate loadings and allowances, deductions ✅ Superannuation included - Automatic SG calculation, shown as an employer contribution with the fund name ✅ TFNs never printed ✅ Unlimited generation - A$3.99 for 24-hour access ✅ Instant PDF download - Professional templates

It doesn't show leave balances (they're optional), add HELP repayments or lodge STP reports. See the Australian payslip template for a sample and the full list of items.

Generate Australia Payslip for A$3.99 →

Frequently Asked Questions

Q: Are payslips mandatory in Australia?

A: Yes, under the Fair Work Act 2009, employers must provide payslips within 1 working day of pay day.

Q: Can payslips be provided electronically?

A: Yes, electronic payslips are legal if employees can readily access, view, and print them.

Q: How long should I keep my payslips?

A: Keep them for at least 7 years to match employment record requirements and for personal financial records.

Q: What if my employer doesn't provide payslips?

A: Contact the Fair Work Ombudsman. Employers can face significant civil penalties for each contravention, and much higher penalties for serious contraventions.

Q: How do I verify my super is being paid?

A: Check payslips for super amount, log into your super fund account, or use ATO's online services to check contributions.

Q: What's the current super guarantee rate?

A: 12% of qualifying earnings (broadly ordinary time earnings). It rose from 11.5% on 1 July 2025 and is legislated to stay at 12%. Since 1 July 2026 it must reach the fund within 7 business days of each payday.

Q: Do casual employees get superannuation?

A: Yes. The $450-a-month threshold was removed in 2022, so casuals get super however much they earn (under-18s only if they work more than 30 hours in a week). Casual loading counts as ordinary time earnings, so super is calculated on it too.

Q: How is PAYG tax calculated?

A: Based on your TFN declaration, tax-free threshold claim, and income. Use the ATO's PAYG withholding calculator.

Formula: Progressive tax rates apply based on annual income, with fortnightly/monthly amounts withheld.

Q: What's the difference between gross and net pay?

A: Gross pay is total earnings before deductions. Net pay is take-home after PAYG tax, super (if salary sacrifice), and other deductions.

Conclusion

Australian payslip requirements for 2026 involve compliance with Fair Work regulations and ATO obligations. Employers must provide detailed payslips within 1 working day of payment, including earnings, deductions and super contributions.

Key Takeaways:

1. Payslips mandatory within 1 working day of pay day
2. Must include employer details, employee details, payment breakdown
3. Super Guarantee: 12% of qualifying earnings, paid with wages under Payday Super from 1 July 2026
4. PAYG withholding based on tax tables and TFN declaration
5. Leave balances are commonly shown, though the Fair Work rules don't require them
6. STP reporting to ATO on or before pay day
7. Keep records for 7 years (Fair Work) or 5 years (ATO)
8. Significant penalties apply for non-compliance

Stay compliant with Fair Work and ATO requirements using proper payroll systems. For complex situations, consult Fair Work Ombudsman or a payroll professional.

Need Australian payslips? Try our Australia Payslip Generator - A$3.99 for 24-hour unlimited access!

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Last updated: October 25, 2026 - Based on 2026-27 ATO tax rates, the 12% superannuation guarantee and Payday Super. Regulations may change. Always verify with ATO.gov.au or Fair Work Ombudsman.