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Payroll & STP

Award interpretation, STP Phase 2 reporting and superannuation, run by people who know what the Fair Work Ombudsman looks for.

Overview

Payroll is where small errors compound

An award rate applied slightly wrong does not stay small. It repeats every pay cycle, accrues leave on the wrong base, flows into superannuation, and eventually arrives as a back-payment claim covering years. Underpayment is now the most common source of enforcement action against small employers, and honest mistakes attract the same liability as deliberate ones.

We interpret the award, set the rates, run the cycle, report through STP Phase 2 on the day you pay, and reconcile superannuation against the 12% guarantee. When you cross a state payroll tax threshold we tell you before the revenue office does.

How we help

  1. 01

    Award interpretation and rates

    The correct award identified, classifications mapped and penalty rates configured, then reviewed at each annual increase.

  2. 02

    STP Phase 2 reporting

    Reported to the ATO on the day you pay, with income types and disaggregated gross set up correctly.

  3. 03

    Superannuation guarantee timing

    Contributions calculated at 12% and paid in time to be deductible, including the move to payday super.

  4. 04

    Leave and termination calculations

    Accruals, cashing out, redundancy and employment termination payments calculated and taxed correctly.

  5. 05

    Payroll tax registration

    Monitored against each state threshold, with grouping rules applied before you cross them.

Resources

Payroll & STP checklist (PDF)
ATO lodgement dates 2026–27

Key figures and dates

12%
Super guarantee rate
1 July 2026
Payday super starts
$1.3 million
QLD payroll tax threshold
$1.2 million
NSW payroll tax threshold

Superannuation is currently due 28 days after quarter end, moving to payment at the same time as salary and wages from 1 July 2026. Payroll tax thresholds apply to Australia-wide grouped wages, not just wages paid in that state.

Worried about an award you cannot interpret?

We review your current rates against the award and tell you where the exposure is.

TALK TO US

FAQ

Payroll and STP questions

From 1 July 2026, superannuation must be paid at the same time as salary and wages rather than quarterly. It removes the quarterly cash-flow buffer many employers rely on, so we model the transition before it starts.

Once your Australia-wide grouped wages exceed the state threshold: $1.3 million in Queensland and $1.2 million in New South Wales. Grouping rules catch related entities, so the test is rarely just one company's wages.

Late superannuation stops being deductible and triggers a superannuation guarantee charge, which includes the shortfall, interest and an administration component. It must be reported to the ATO. Paying on time is materially cheaper than paying late.

Often yes. A contractor engaged mainly for their labour is treated as an employee for superannuation purposes even where they invoice through an ABN. We review your contractor arrangements against the tests rather than the paperwork.

Yes, though it works better together. If your bookkeeping stays in-house we still need access to the ledger so wages, PAYG withholding and superannuation reconcile against what is reported on your BAS.

Speak to an accountant

Free 30-minute consultation.

No obligation. We’ll review where you are and tell you what we’d do.

+61 451 114 862Book a consultation

This page is general information only. It does not take your circumstances into account. Speak to a registered tax agent before acting on anything here.

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