Native Australian payroll
Australian payroll — PAYG, super and HECS-HELP.
PAYG withholding across the bands, the Medicare Levy, compulsory superannuation and HECS-HELP repayments — calculated for the 1 July to 30 June Australian tax year.
- ✓ PAYG + Medicare Levy
- ✓ Super at the current rate
- ✓ HECS-HELP via payroll
Australia payroll
What Australia payroll actually has to do
The tax authority is ATO. Currency is AUD. Single Touch Payroll — PAYG, Medicare Levy and Superannuation computed, with your STP figures prepared for the ATO on every pay run.
- PAYG withholding
- Pay As You Go income tax across Australia's bands (0% / 15% / 30% / 37% / 45%), applied for the Australian tax year (1 July to 30 June).
- Medicare Levy
- 2% of taxable income — plus the Medicare Levy Surcharge for higher earners who do not hold private health insurance.
- Superannuation
- Compulsory employer super contributions at the current Super Guarantee rate (12%, rising to 12.5% from 1 July 2027), calculated on Ordinary Time Earnings.
- HECS-HELP repayments
- Student-loan repayments collected through payroll using the marginal-band rates published by the ATO each financial year.
- Single Touch Payroll (STP)
- Mellow calculates the STP report on every pay event and provides a guided submission through the ATO Business Portal. Direct STP integration is on the roadmap.
Australia payroll — questions answered
Quick, honest answers — also exposed as structured data so AI search engines can read them.
- Does Mellow lodge STP with the ATO?
- Mellow calculates the STP-format report on every pay event and provides a step-by-step lodgement guide through the ATO Business Portal. Direct STP integration is a planned enhancement.
- What's the current superannuation guarantee rate?
- The Super Guarantee is currently 12% of Ordinary Time Earnings, scheduled to rise to 12.5% from 1 July 2027. Mellow applies the right rate for the period.
- Does Mellow handle HECS-HELP repayments?
- Yes — Mellow applies HECS-HELP repayments through payroll using the marginal-band rates the ATO publishes each financial year. Repayments start once the employee's income reaches the threshold.
- Which tax year does Mellow use?
- The Australian tax year — 1 July to 30 June. Annualised calculations, year-end reports and STP data all align to that calendar.
- Is the Medicare Levy Surcharge handled?
- Yes — for higher-earning employees without private health insurance, the surcharge is applied through PAYG withholding based on the employee's declaration.
Payroll, country by country
Mellow runs native payroll in six countries from one platform.
Run Australia payroll on Mellow
The full HR platform — payroll included — from A$8 per employee per month. 14-day free trial. No credit card required.