Understanding Australian Payroll Legislation – Part II

FBT: Legislative Details

Fringe Benefits are benefits that an employee receives from their employer in place of salary or wages. Fringe Benefits Tax (FBT) is tax that is payable by the employer for non-salary benefits provided to the employee.

Understanding Australian Payroll Legislation – Part I

PAYG: Legislative Details

Pay As You Go (PAYG) is the system of deducting income tax installments from employees' personal earnings, and remitting the money to the Australian Tax Office (ATO).

Superannuation

“A system where money is placed in a fund to provide for a person's retirement.” This is how Australian Taxation Office defines Superannuation

How does it work?

If you work for a company or organisation, your employer must pay money into a super account in your name, which is then managed by a super fund. The formula used is currently 9.5% of your income, including bonuses, commissions and loadings. This is called the Super Guarantee and it's the law.