The Australian Taxation Office (ATO) is the principal revenue collection agency for the Australian Government. It isresponsible for administering and enforcing the federal taxation laws, including income tax, the Goodsand Services Tax (GST), PayAs You Go (PAYG) withholding, superannuation guarantee, and the Fringe Benefits Tax (FBT).
Whetheryou’re a business, employee, or contractor, the ATO plays a significant role inyour tax obligations, record-keeping, and compliance.
· Collecting income taxfrom individuals and businesses.
· Administering the GST system.
· Managing the Single Touch Payroll (STP) system.
· Overseeing superannuation compliance for employers.
· Monitoring complianceand conducting audits.
· Providing tools and education for Australian taxpayers.
If you're anemployer in Australia, your interactions with the ATO are frequent andessential. Here’s how:
· PAYG Withholding: You must withholdtax from employee wages and remit it to the ATO.
· STP Reporting: Each pay run mustbe reported in real-time to the ATO.
· Superannuation: You are legally required to pay super contributions and report them accordingly.
· Tax File Numbers(TFNs): Employers collect and report TFNs via payroll systems.
Learn how Microkeeper integrates STP compliance.
Employees also rely on the ATO to:
· Lodge their annualtax return.
· View income statements (previously payment summaries).
· Track their super contributions through myGov.
· myGov: A secure platformwhere individuals access ATO records.
· Business Portal (replaced by Online services for business): For lodging activity statements, updating details, etc.
· SuperStream: Standards forelectronic super contributions.
1. Single Touch Payroll (STP)
STP requires employers to report payroll information directly to the ATO at thetime of payment. It enhances transparency and helps prevent underpayment.
2. Payday Super (coming in 2026)
Superannuation will need to be paid more frequently (on payday), increasing the need for up-to-date payroll and super systems.
3. Tax Cuts and Bracket Changes
The ATO also oversees adjustments in tax brackets, thresholds, and Medicare levy changes that affect both employees and employers.
· Incorrect reporting can lead to audits or penalties.
· Lodgement deadlinesare strictly enforced.
· The ATO serves as thesource of truth for all tax and super obligations.
TheAustralian Taxation Office is more than just a government department, it’scentral to every aspect of running a compliant, tax-responsible business. Whether you’re onboarding new staff or processing end-of-year summaries, your system must align with ATO requirements.
Microkeeper helps businesses stay compliant by embedding ATO rules directly into its payroll, super, andr eporting workflows.
Disclaimer: This glossary entry is for general informational purposes only and does notconstitute legal or financial advice. For official guidance, always refer to the ATO or consult a registered tax agent.
