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Australian payroll runs on Single Touch Payroll — every pay run is reported to the ATO in real time. Rippling handles STP Phase 2, Superannuation via SuperStream, and state payroll tax so your Pty Ltd stays compliant.
Running payroll in Australia requires registration of a Pty Ltd (or other entity) with ASIC, obtaining an ABN (Australian Business Number) and ACN, registering for PAYG withholding with the ATO, and enrolling in SuperStream for superannuation remittances. Single Touch Payroll (STP) Phase 2 — mandatory since January 2022 — requires detailed payroll data to be reported to the ATO in real time on each pay date.
Australia's payroll complexity is compounded by the Modern Award system — each employee's role must be classified under the relevant Award, which sets minimum pay rates, allowances, overtime entitlements, and penalty rates. Misclassification under the wrong Award or classification level can trigger back-pay liability for the difference between Award minimums and what was actually paid.
State-based payroll tax adds a further compliance layer for employers with aggregate Australian payroll above each state's threshold.
Rippling's Australian payroll module provides:
| Contribution | Rate | Notes |
|---|---|---|
| Superannuation Guarantee | 11.5% | On ordinary time earnings. Rising to 12% July 2025. Paid at least quarterly. |
| State Payroll Tax | 4.75%–6.85% | Varies by state and aggregate payroll level. Only once threshold exceeded. |
| WorkCover / Workers Compensation | 0.5%–5%+ | State-based. Rate varies by industry and claim history. |
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| Contribution | Rate | Notes |
|---|---|---|
| PAYG Withholding (Income Tax) | Per ATO tables | Based on TFN declaration, tax residency, and any HELP/student loan debt. |
| Medicare Levy | 2% | Included in PAYG withholding. Surcharge applies to higher earners without private hospital cover. |
| Taxable Income | Rate (2024-25, post Stage 3 cuts) |
|---|---|
| $0–$18,200 | 0% |
| $18,201–$45,000 | 19% |
| $45,001–$135,000 | 32.5% |
| $135,001–$190,000 | 37% |
| Over $190,000 | 45% |
HELP (Higher Education Loan Program) repayments are compulsory through PAYG withholding once income exceeds the minimum repayment threshold ($54,435 for 2024-25). Rippling processes HELP repayments automatically based on TFN declaration data.
Final pay must include all accrued annual leave (including leave loading if applicable under the Modern Award), and pro-rata long service leave if the employee has served the qualifying period. Notice pay is subject to PAYG withholding. Genuine redundancy payments up to the tax-free limit ($12,524 base + $6,264 per completed year of service for 2024–25) are tax-free; amounts above are taxed at a concessional 32% rate.
Statutory: Superannuation (11.5%), 4 weeks annual leave, 10 days personal leave, government-funded parental leave, WorkCover.
Market standard: Private health insurance allowance, novated lease (tax-effective vehicle financing popular in Australia), income protection insurance, salary packaging, professional development budget. Sydney/Melbourne tech market: equity, laptop, home office allowance, 26–28 days leave standard.
Single Touch Payroll Phase 2 (STP2) is the ATO's real-time payroll reporting system, mandatory since January 2022. It requires employers to report disaggregated payroll data — broken down by income type, tax withholding type, and other categories — on or before each pay date. Rippling is STP Phase 2 certified and submits all required data to the ATO automatically on each pay run.
Rippling calculates Superannuation Guarantee contributions (11.5% of ordinary time earnings) on each pay run and remits via SuperStream to the employee's nominated fund at least quarterly. Employee fund preferences are collected during onboarding; if no choice is made, Rippling checks the ATO's stapled fund register. Contribution records are maintained for TPAR and year-end reporting.
The Australian payroll year ends 30 June. Key year-end obligations include: STP finalisation by 14 July (replacing payment summaries), Q4 super contributions by 28 July, TPAR by 28 August (if applicable), and state payroll tax annual reconciliation (July–August depending on state). Rippling's year-end workflow guides through each step with automated filing where supported.
Yes. Rippling's Australian payroll module is STP Phase 2 certified and handles PAYG withholding, STP reporting, Superannuation via SuperStream, Modern Award compliance, state payroll tax monitoring, and year-end STP finalisation. thePeopleStack configures the Australian payroll setup including ASIC/ABN registration guidance, Award classification, and super fund setup. Contact us to scope your Australia payroll configuration.
