An onboarding checklist for Australian new starters
Reviewed by Mellow Editorial Team, HR & payroll content team
Getting a new employee set up correctly in Australia means completing a specific set of tax, super and employment forms before or on their first day — missing any one of them creates compliance risk or payment delays down the line.
Before the first day
Start the paperwork before the employee arrives. Most of it can be sent digitally.
Employment contract. Issue a written contract that reflects the correct award or enterprise agreement, the classification level, pay rate, hours of work, and leave entitlements under the National Employment Standards (NES). The NES provides a floor that no contract can go below, including four weeks of annual leave per year for full-time employees.
Fair Work Information Statement. You are legally required to give every new employee a copy of the Fair Work Information Statement before or as soon as practicable after they start. Casual employees also get the Casual Employment Information Statement. Keep a record that you provided it.
Superannuation choice form. Employees are entitled to choose their own super fund. Give them an ATO Standard Choice Form and allow them time to return it. If they do not nominate a fund, check whether they have an existing stapled super fund through the ATO's online services before defaulting to your nominated default fund.
Tax and payroll forms
Tax file number (TFN) declaration or equivalent. The employee must provide their TFN so you can withhold the correct amount of income tax under Pay As You Go (PAYG) withholding. Without a TFN declaration, you are required to withhold tax at the highest marginal rate. Since the ATO moved toward digital onboarding, employees can also submit their TFN and withholding details directly to the ATO via myGov, which pre-fills the information into your STP-enabled payroll software — confirm whether your software supports this flow.
Withholding declaration. If the employee wants to claim the tax-free threshold, a higher withholding rate, or any offsets, they complete a Withholding Declaration alongside (or instead of, in digital processes) the TFN declaration. Get this right at the start — adjusting it mid-year creates reconciliation headaches.
HECS/HELP debt. Ask whether the employee has a study or training loan. If they do, additional amounts are withheld from their pay on a banded scale set by the ATO each year. Employees disclose this on their TFN declaration or Withholding Declaration. Missing it means the employee will face a tax debt at year-end, which tends to cause frustration directed at payroll.
Medicare levy variation. Most employees pay the 2% Medicare levy automatically through PAYG withholding. Employees who qualify for an exemption or reduction (for example, on the basis of income or certain visa categories) can apply for a variation — they need to submit the relevant ATO form, and you adjust withholding accordingly.
Setting up payroll
Once you have the tax and super forms, configure the employee in your payroll system before their first pay run.
- Enter their TFN, address, and withholding details exactly as declared.
- Record their super fund details — fund name, USI (Unique Superannuation Identifier), and member number. If you are waiting on stapling results from the ATO, note the date you submitted the request.
- Set the correct pay rate, pay cycle, and leave accrual rules.
- Confirm whether the employee is full-time, part-time or casual, as this affects leave accrual and STP reporting categories.
From the first pay event, you must report through Single Touch Payroll (STP). Each time you process a pay run, wage, tax and super information is reported to the ATO in real time. There is no separate annual PAYG payment summary for employees — instead, you finalise their income statement in STP by 14 July after the end of each financial year.
Employment records and policies
Employee details form. Collect their bank account details for salary payment, emergency contact information, and address. Under the Fair Work Act, you are required to keep accurate employment records for seven years.
Policies and induction documents. Give the employee your workplace policies — at minimum, a code of conduct, leave policy, and any relevant WHS (work health and safety) documents. Have them sign an acknowledgement that they have read them. This is not just good practice; it underpins your ability to manage conduct or safety issues later.
Right to work check. Confirm the employee has the legal right to work in Australia. For Australian citizens and permanent residents, a passport or birth certificate plus evidence of citizenship will suffice. For visa holders, verify their work rights on the Department of Home Affairs' Visa Entitlement Verification Online (VEVO) system and calendar any expiry dates.
Ongoing obligations in the first few months
Superannuation must be paid to the employee's chosen fund at least quarterly, though many payroll systems pay each cycle. From 2026, the Superannuation Guarantee rate is 12% of ordinary time earnings. Missing a payment — or paying late — triggers the Superannuation Guarantee Charge, which is not tax-deductible and includes interest and an administration levy on top of the unpaid amount.
If you run payroll across multiple jurisdictions, the onboarding steps vary significantly by country — how Mellow runs payroll across six countries on one platform gives a useful comparison.
Review the new starter's setup after their first pay run. Confirm the STP submission was accepted, that super fund details are valid, and that the net pay matches what was agreed in the contract. Catching errors in week one is far easier than unwinding them at year-end finalisation.
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