In drafting contracts of employment, businesses must be mindful of their legal obligations with regard to the terms of such contracts, particularly with regard to minimum statutory wages and other conditions such as workplace health and safety, superannuation (retirement fund contributions), leave entitlements and unfair dismissal laws.
See the Fair Work Commission website for further details.
Pay-As-You-Go withholding ('PAYGW')
Where a business pays wages to employees (and certain contractors) the business must register for PAYGW. Once registered, the employer must withhold from each employee's wages the amount of income tax notionally owed by the employee on those wages. The amount withheld must be remitted to the ATO.
Application for an ABN, TFN, PAYG and GST registration can be made at the same time, using a single online application. See also Tolley's Global Mobility: Employment Taxes (Worldwide excluding Europe), Australia 5.1.
Each of these registrations can be cancelled once the business ceases operation.
Payroll tax
State and territory governments impose a tax on wages paid to employees. While broadly similar,
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Web page updated on 17 Mar 2025 13:20