What You Need to Know   Payday Super is one of the biggest changes to Australia’s super system in years. Here’s a plain-English summary of what’s changing and what employers need to do. Topic Details What is it? From 1 July 2026, employers must pay super at the same time as wages — every single […]

Wine Equalisation Tax (WET) is a tax on wine levied at 29% of the taxable value of wine. The taxing point is the last wholesale sale, or a retail sale or application for own use (e.g. tastings) when there is no wholesale sale. The taxable value is the actual sale price (excluding WET and GST)

Taxpayers who do not meet their tax obligations may face penalty or interest charges. To avoid these charges, ensure you pay the full amount of tax you owe by the due date. The main charges for failing to meet tax obligations are the: General interest charge (GIC) – applies to a variety of situations, whenever amounts

A tax file number (TFN) is a unique number issued to each taxpayer by the ATO. The TFN is used to identify taxpayers, detect non-disclosure of income and to enable the ATO to match the details of income disclosed in a taxpayer’s return with details it receives from other sources. While this is primarily in

Your guide to employer super obligations — current rules and upcoming changes Overview   As an employer, you are required to pay superannuation contributions on top of your employees’ wages and salaries. This compulsory payment is called the Superannuation Guarantee (SG). The rules are changing significantly from 1 July 2026. This guide explains how things

Additional tax on superannuation contributions at the rate of 15% is imposed on individuals whose combined income and contributions are greater than a certain threshold. This threshold is $250,000 and for affected individuals, this effectively increases the rate of tax on their superannuation contributions from 15% to 30%. The additional tax can be paid personally by

Payroll tax Payroll tax is a state tax on the wages paid by employers when the total wages exemption threshold is exceeded. Exemption thresholds vary between states. The definition of wages generally includes employer superannuation contributions and fringe benefits, although the definition also varies between states. NOTE: Payroll tax is not the same as PAYG

Small businesses with an annual turnover of less than $10 million may qualify for a range of tax concessions (although the threshold may be lower or higher based on the concession). If your business is eligible you can use the concessions that suit you. For certain concessions, the threshold has been increased from $10 million to $50

Single Touch Payroll (STP) is a reporting framework for employers to provide payroll information to the ATO. It is embedded in most payroll software programs and allows for reporting of the following obligations: Salary and wages, including foreign employment income Payments under labour mobility programs, labour hire arrangements and CDEP scheme Termination payments (including ETPs, lump

Some business in certain industries need to report to the ATO the payments for supplies. The reporting is made in the taxable payments annual report and is due by 28 August each year. The industries covered include: Building and construction services for contractor and sub-contractor payments Cleaning services for contractor payments Courier services for contractor payments Road

Top 10 tips to help rental property owners avoid common tax mistakes Whether you use a tax agent or choose to lodge your tax return yourself, avoiding these common mistakes will save you time and money. Top 10 tips for rental property owners | Australian Taxation Office. You can download this information in portable document

The Australian Taxation Office (ATO) provides a variety of rate tables, tax calculators, and other tools on many topics, including the following: Capital gains tax Fringe benefits tax Fuel tax credits Goods and services tax Income tax, including Medicare levy PAYG withholding Superannuation Residency Certain expenses MORE: To access these tools, navigate to the Calculators &

The government-funded Paid Parental Leave scheme provides financial support for parents to take up to 18 weeks off work following the birth or adoption of a child, with pay at the National Minimum Wage. Dad and Partner Pay provides eligible working dads or partners with up to two weeks of pay at the National Minimum Wage. Employers receive funds

Pay as you go (PAYG) withholding is a system for withholding amounts from payments to employees, other individuals and businesses. An entity will have withholding obligations if the entity: Has employees, including company directors and officeholders Has other workers such as contractors, and voluntarily agrees to withhold tax from payments to them Makes payments to other

Pay As You Go (PAYG) Instalments is a system for paying instalments during the income year towards an entity’s or individual’s expected tax liability on business and investment income. The actual tax liability is worked out at the end of the income year when the annual income tax return is assessed. PAYG instalments paid during the

The Medicare Levy is a tax payable by Australian residents to cover health care charges. It is payable on taxable income, in addition to income tax. Individuals and families on higher incomes who do not have an appropriate level of private hospital cover may have to pay the Medicare levy surcharge. Medicare Levy is usually calculated

Luxury car tax (LCT) is a tax on cars that have a GST-inclusive value above a certain threshold. For the 2024-25 income year, the threshold is $91,387 for fuel-efficient vehicles and $80,567 for other vehicles. LCT is imposed at the rate of 33% on the amount above the threshold and is paid by businesses that

Advances (or loans), including the forgiving of debts, made by a private company to a shareholder (or an associate of a shareholder) are automatically deemed to be dividends, unless they come within certain specified exclusions. The deemed dividend can also apply to the unpaid present entitlement to which the private company is entitled. If the advances

Income tax is levied on taxable income, which is calculated as assessable income less allowable deductions. Gross tax on taxable income is reduced by tax offsets and credits, to arrive at net tax payable or refundable. Individuals The Australian Taxation Office (ATO) publishes lists of assessable income, allowable deductions and tax offsets for individuals. Sole traders declare business income in

The imputation system provides a way for Australian and New Zealand corporate tax entities that pay Australian tax, to pass on to their members a credit for Australian income tax they have paid. This prevents the same income from being taxed twice – once when the income is earned by the entity, and again when the income

Goods and services tax (GST) is a tax of 10% on most goods, services, and other items sold or consumed in Australia. The general principle is that only the end consumer bears the economic cost of GST. Registered entities bear the liability of collecting GST in the price of sales to their customers, but can

Fuel schemes provide credits and grants to reduce the costs of some fuels or provide a benefit to encourage recycling of waste oils. There are various types of schemes: Fuel tax credits for business – provides a credit for the excise or customs duty included in the price of fuel used for business activities, in machinery,

Fringe Benefits Tax (FBT) is paid on particular benefits employers provide to their employees or their employees’ associates instead of salary or wages. Benefits can be provided by an employer, an associate of an employer, or a third party by arrangement with an employer. An employee can be a former, current, or future employee. FBT

Eligible individuals can make voluntary contributions to their superannuation account under a First Home Super Saver (FHSS) Scheme. The Scheme enables individuals to save for their first home and take advantage of the concessional taxation arrangements that apply in the superannuation system. An FHSS tax is payable if the individuals withdraw money from the scheme and

The Federal Treasurer, Dr Jim Chalmers, handed down the 2024–25 Federal Budget at 7:30 pm (AEST) on 14 May 2024. Described as a “responsible Budget that helps people under pressure today”, the Treasurer has forecast a second consecutive surplus of $9.3 billion. The main priorities of the government, as reflected in the Budget, are helping with the cost of living, building more housing,

Excise duty is a tax on certain types of goods that are made in Australia including alcohol, tobacco, fuel and petroleum products. Customs duty is imposed at an equal rate on imported alcohol, tobacco, fuel and petroleum products to ensure imported and local goods are treated consistently. These goods are referred to as Excise Equivalent

The director identification number (DIN) is a unique permanent identifier for each person who consents to being a director. DINs provide traceability of a director’s relationships across companies and allow regulators and administrators to investigate a director’s involvement in unlawful activity including illegal phoenix activity. Subject to limited exemptions, a director of a registered body corporate must

Deductions are available for capital expenditure incurred in constructing ‘capital works’, including buildings and structural improvements. The deduction is either 2.5% or 4% of the construction cost, depending on when the construction started and how the capital works are used. The deduction cannot exceed the undeducted expenditure. Unlike capital allowances, the deduction for capital works

Capital gains tax (CGT) generally applies to CGT events that happen to CGT assets acquired after 19 September 1985. CGT is not a separate tax; it forms part of income tax. CGT events The most common CGT event is the disposal of an asset by selling it or giving it away. A full list of

Deductions for the decline in value of depreciating assets are available under the Uniform capital allowance (UCA) system. In addition to the rules for depreciating assets, deductions are allowed for certain other capital expenditure. Small business entities have the option of choosing simplified depreciation rules. Under these rules, small business entities can claim an immediate deduction if the cost

The Australian business number (ABN) is a single business identifier that allows businesses to deal with the Australian Taxation Office (ATO) and other government departments and agencies with one identifier. An ABN is generally not compulsory and not everyone is entitled to an ABN. The following entities will need an ABN to comply with other tax obligations

Businesses use activity statements to report and pay a number of tax obligations, including GST, pay as you go (PAYG) instalments, PAYG withholding and fringe benefits tax. Non-business taxpayers who need to pay quarterly PAYG instalments also use activity statements. Activity statements are personalised to each taxpayer to support reporting against identified obligations. Activity statements for