Australia BAS, Super & STP Phase 2 Compliance Guide
Complete guide to Australian tax obligations — BAS filing, Superannuation Guarantee, Single Touch Payroll Phase 2, PAYG, FBT, and the upcoming Payday Super. Updated for 2025–26.
Australian GST Rates
Tax Obligations
Australian businesses have multiple ATO obligations. Here is a detailed breakdown of each, with deadlines and requirements.
BAS (Business Activity Statement)
The BAS is a form submitted to the ATO to report GST, PAYG withholding, PAYG instalments, and other tax obligations. Most businesses lodge quarterly; large businesses lodge monthly.
- Report GST collected and paid (G1–G11 labels)
- PAYG withholding from employee wages
- PAYG income tax instalments
- Fuel tax credits (if applicable)
- Wine Equalisation Tax (WET) if applicable
- Lodge via myGov, tax agent, or accounting software
Superannuation Guarantee (SG)
Employers must pay Super Guarantee contributions for eligible employees. The SG rate increases progressively, reaching 12% from 1 July 2025.
- SG rate: 12% of ordinary time earnings (from 1 Jul 2025)
- Payable for employees earning ≥ $450/month (threshold removed Jul 2022)
- Pay to employee's nominated super fund
- Due within 28 days after each quarter
- Super Guarantee Charge (SGC) for late payments
- Payday Super from 1 July 2026 — pay with each pay run
Single Touch Payroll (STP Phase 2)
STP Phase 2 requires employers to report detailed payroll information to the ATO each pay run. This includes gross wages, tax withheld, super, allowances, deductions, and employment conditions.
- Report every pay run to ATO in real-time
- Phase 2: expanded reporting (income types, country codes)
- Separate reporting of allowances, overtime, bonuses
- Employment basis codes (full-time, part-time, casual, labour hire)
- Cessation reporting when employees leave
- Replaces payment summaries (no more group certificates)
PAYG Withholding & Instalments
PAYG withholding collects tax from employee wages and contractor payments. PAYG instalments are prepayments of your own income tax, payable quarterly or monthly.
- Withhold tax from wages per ATO tax tables
- Withhold from contractors without ABN (47% rate)
- Voluntary agreements for contractors
- Report on BAS (W1–W5 labels)
- PAYG instalments: quarterly amount or rate method
- Annual PAYG withholding summary (due 14 August)
Fringe Benefits Tax (FBT)
FBT applies to non-cash benefits provided to employees — company cars, entertainment, housing, etc. The FBT year runs 1 April to 31 March.
- FBT rate: 47% (2025–26 FBT year)
- Car fringe benefits (statutory formula or operating cost)
- Entertainment FBT (meals, events, recreation)
- Living Away From Home Allowance (LAFHA)
- Salary packaging / salary sacrifice arrangements
- FBT return due 21 May (25 June via tax agent)
- Exempt: work-related items < $300, portable devices
Payday Super (from 1 July 2026)
From 1 July 2026, employers must pay super at the same time as wages (within 7 days of payday). This replaces the current quarterly payment cycle.
- Super due within 7 days of each payday
- Replaces quarterly super guarantee deadlines
- Aligns with STP Phase 2 reporting
- ATO will detect late payments in real-time
- Super Guarantee Charge still applies for late payment
- Start preparing payroll systems now for 2026 transition
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