Module: PYAU | Molga: 13 | Currency: AUD | Group: APAC
Includes: PAYG Withholding | Superannuation (11.5%) | STP Phase 2 | Medicare Levy | 3 case studies
🧭 The Gross-to-Net Pipeline
Gross Pay (/101) → PAYG Withholding → Medicare Levy → NET PAY (/560)
Australia uses Single Touch Payroll (STP Phase 2): every pay event reported to ATO in real time. Superannuation (11.5% ER) is paid quarterly to employee's chosen super fund — it's an employer obligation on top of gross, not deducted from net.
📌 Australia Payroll Anchors (2025-26)
- PAYG Withholding: ATO tax tables (weekly/fortnightly/monthly)
- Medicare Levy: 2% of taxable income (above threshold)
- Superannuation Guarantee (SG): 11.5% ER (2025-26) — not deducted from employee
- STP Phase 2: report Year-to-Date figures per pay event
- Tax File Number (TFN): mandatory declaration; no TFN = withholding at top rate
- HECS/HELP repayment: compulsory repayment on top of PAYG for student debtors
- Salary sacrifice to super: reduces PAYG base
👥 Case Studies
ㅤ | Case A: Engineer | Case B: Part-time (Mid-year) | Case C: Manager |
Annual Salary | AUD 85,000 | AUD 45,000 | AUD 200,000 |
Monthly Gross | AUD 7,083 | AUD 3,750 | AUD 16,667 |
Tax Residency | Resident | Resident | Resident |
HECS | No | Yes | No |
🏗️ Step 1 — Salary Structure (AUD)
Component | WT | Monthly (AUD) | Notes |
Base Salary | AU01 | 7,083 | Fully taxable |
Super ER (11.5%) | AU61 | 814 | ER obligation; not deducted from pay |
GROSS /101 | ㅤ | 7,083 | Super is on top |
🔢 Step 2 — PAYG Withholding (Case A: AUD 85,000/year)
- Taxable income: AUD 85,000
- PAYG: AUD 19,717/year (ATO table, resident, 2025-26 brackets)
- Medicare Levy 2%: AUD 1,700/year
- Monthly PAYG: ~AUD 1,785
- Monthly Medicare: ~AUD 142
🔢 Step 3 — Net Pay Summary
ㅤ | AUD 85,000/year |
Monthly Gross /101 | 7,083 |
PAYG Withholding | −1,785 |
Medicare Levy | −142 |
Net /560 | ~5,156 |
⚙️ Schema AU Touchpoints
PCR AUPG— PAYG ATO table calculation
PCR AUML— Medicare Levy calculation
ACTIO AUSP— STP Phase 2 YTD accumulation
PCR AUSG— Super Guarantee calculation (ER obligation)
🏷️ Key Wage Types
WT | Description | Payslip? |
AU01 | Gross Pay | ✅ |
/3T1 | PAYG Withholding | ✅ |
/3M1 | Medicare Levy | ✅ |
/3S1 | Super ER | Informational |
/560 | Net Pay | ✅ |
📅 Statutory Calendar (Australia)
Activity | Deadline |
STP Phase 2 reporting | Each pay event |
PAYG payment to ATO | Monthly/quarterly |
Super contribution | Quarterly (28th after quarter end) |
Payment summaries (STP) | Annual finalisation July |
SuccessLabs Academy | SAP ECP Australia Payroll (PYAU) | Gross-to-Net Playbook