What Is a Payslip?
A payslip is a written record your employer provides every pay cycle showing exactly how your salary was calculated, taxed, and distributed. Australian employers issue payslips weekly, fortnightly, or monthly depending on the pay cycle stated in your employment contract.
The Fair Work Act 2009 makes payslips a legal requirement for every employee in Australia, including full-time, part-time, and casual workers. Employers who fail to issue a payslip face penalties of up to $19,800 per breach for individuals and $99,000 per breach for companies. Understanding your payslip protects you from underpayment, incorrect tax withholding, and missing superannuation contributions. Use our Take-Home Pay Calculator to generate a benchmark payslip you can compare against your real one.
Payslips can be delivered electronically (email, payroll portal, PDF) or as a printed document. Both formats carry the same legal weight. Modern payroll systems including Xero, MYOB, and Employment Hero generate compliant payslips automatically.
What Must a Payslip Include?
A compliant Australian payslip must contain 14 mandatory items under Fair Work Regulation 3.46. Omitting any of these items makes the payslip non-compliant and exposes the employer to Fair Work penalties.
| Category | Required Item | Example |
|---|---|---|
| Identity | Employer's name | ABC Pty Ltd |
| Identity | Employer's ABN | 12 345 678 901 |
| Identity | Employee's name | Jane Smith |
| Timing | Pay period start and end dates | 1 Jul – 14 Jul 2025 |
| Timing | Date of payment | 16 Jul 2025 |
| Pay | Gross amount paid | $4,230.77 |
| Pay | Net amount paid | $3,241.15 |
| Pay | Loadings, allowances, bonuses, incentive payments, penalty rates (each itemised separately) | Overtime: $320.00 |
| Hours | Ordinary hours worked | 76 hours |
| Hours | Hourly rate (if applicable) | $42.31/hr |
| Tax | PAYG withholding amount | $989.62 |
| Super | Super contribution amount | $507.69 |
| Super | Name of super fund | AustralianSuper |
| Deductions | Any deductions (with name and amount) | Union fees: $25.00 |
Identity Details
- Employer's name and ABN
- Employee's name
Timing Details
- Pay period dates (e.g. 1 July to 14 July)
- Date the payment was actively made
Money & Tax
- Gross pay and Net pay amounts
- Specific tax deductions (PAYG)
Superannuation
- Amount of super contributions made
- Name of the fund receiving the super
Employers must deliver the payslip within 1 working day of paying the employee. The payslip delivery deadline applies regardless of whether the employee is paid weekly, fortnightly, or monthly. Check our Award Rates guide to confirm your hourly rate matches the correct Modern Award classification on your payslip.
How Do You Read Your Payslip Line by Line?
A standard Australian payslip follows a top-to-bottom flow: identity, earnings, deductions, net pay, superannuation, and leave balances. Each line represents a distinct calculation step.
The worked example below shows a fortnightly payslip for an employee earning $85,000 per year with no HECS-HELP debt and no salary sacrifice arrangements.
| Payslip Line | Fortnightly Amount | What It Means |
|---|---|---|
| Base Salary (76 hrs) | $3,269.23 | $85,000 ÷ 26 fortnights |
| Gross Pay | $3,269.23 | Total earnings before deductions |
| PAYG Withholding | −$669.23 | Income tax + Medicare Levy combined |
| Net Pay | $2,600.00 | Cash deposited into your bank account |
| Super (SG 12%) | $392.31 | Employer-paid, not deducted from your pay |
| Annual Leave Balance | 96.45 hrs | Accumulated paid leave available |
| Personal Leave Balance | 52.20 hrs | Sick/carer's leave available |
The PAYG withholding line bundles income tax and the 2% Medicare Levy into a single figure. Your employer uses the ATO's withholding schedule to calculate this amount. Verify the calculation matches the official PAYG Withholding Tables for your income bracket and tax file number declaration settings.
What Is the Difference Between Gross Pay and Net Pay?
Gross pay is the total amount your employer owes you before any deductions. Net pay (take-home pay) is the amount deposited into your bank account after PAYG tax, Medicare Levy, and other deductions are subtracted.
The formula is: Net Pay = Gross Pay − PAYG Tax − Medicare Levy − Other Deductions. On an $85,000 gross salary in FY2025-26, net pay is approximately $67,533 per year (or $2,597 per fortnight) for a resident with no HECS debt. The gap between gross and net widens at higher income tax brackets. An employee earning $150,000 gross takes home approximately $106,692 net — a deduction rate of 28.9%.
- Gross Pay: The total, pre-tax amount earned during the pay period. A “$100k salary” refers to the gross annual figure. Gross pay includes base salary, overtime, penalty rates, allowances, and commissions.
- Net Pay: The after-tax cash deposited into your bank account. Net pay is calculated as
Gross Pay − Tax − Deductions. Use our Gross Pay Calculator to convert between gross and net amounts at any salary level.
Superannuation does not reduce your net pay. The SG contribution of 12% is paid by your employer on top of your gross salary, unless your contract specifies a “total remuneration package” that includes super.
What Are the Common Payslip Deductions?
Payslip deductions fall into 2 categories: mandatory deductions (required by law) and voluntary deductions (authorised by the employee). Mandatory deductions include PAYG withholding and, where applicable, HECS-HELP repayments and child support.
| Deduction | Type | How It Works | FY2025-26 Rate / Threshold |
|---|---|---|---|
| PAYG Withholding | Mandatory | Income tax + Medicare Levy withheld each pay cycle | 16%–45% marginal + 2% ML |
| HECS-HELP Repayment | Mandatory (if applicable) | Withheld when income exceeds repayment threshold | Threshold: $67,000 |
| Child Support | Mandatory (if applicable) | Employer deducts per Services Australia notice | Varies by assessment |
| Salary Sacrifice (Super) | Voluntary | Pre-tax contribution to super fund | Concessional cap: $30,000/yr |
| Salary Sacrifice (Other) | Voluntary | Novated lease, laptop, additional insurance | Subject to FBT rules |
| Union Fees | Voluntary | Deducted per written authorisation | Typically $10–$30/fortnight |
| Private Health Insurance | Voluntary | Employer may deduct premiums at employee request | Varies by policy |
Voluntary deductions require your written authorisation. An employer cannot deduct union fees, charity donations, or salary sacrifice amounts without a signed agreement. Review the Salary Sacrifice Guide to understand how pre-tax deductions reduce your taxable income while boosting your retirement savings.
How Does PAYG Withholding Appear on Your Payslip?
“PAYG Withholding” is the single largest deduction on every Australian payslip. Your employer withholds income tax plus the 2% Medicare Levy each pay cycle and remits the combined amount directly to the ATO.
PAYG stands for “Pay As You Go.” The system spreads your annual tax liability across 26 fortnights (or 52 weeks, or 12 months) so you do not face a lump-sum tax bill at the end of the financial year. On an $85,000 salary, total annual PAYG withholding is approximately $17,467, comprising $15,767 in income tax (after the “Low Income Tax Offset” of $700) and $1,700 in Medicare Levy.
If your employer withholds too much tax during the year, the ATO refunds the excess when you lodge your tax return in July or August. Conversely, under-withholding results in a tax bill. The ATO's withholding schedules determine the correct amount based on your gross earnings, residency status, tax-free threshold claim, and HECS-HELP status. Check the PAYG Withholding Tables to verify your employer is withholding the correct amount.
Where Is the Medicare Levy on Your Payslip?
The 2% Medicare Levy does not appear as a separate line on your payslip. It is bundled into the PAYG withholding amount alongside your income tax.
Your employer calculates income tax and the Medicare Levy together, then withholds the combined total. On an $85,000 salary, the Medicare Levy component is $1,700 per year (or $65.38 per fortnight). Employees earning below the low-income threshold of $27,222 pay a reduced Medicare Levy or are fully exempt. The “Medicare Levy Surcharge” (MLS) of 1%–1.5% applies to individuals earning above $93,000 who do not hold private hospital cover. To see exactly how much of your PAYG withholding goes towards Medicare, use our Medicare Levy Calculator which isolates the levy at any salary level.
How Do You Check Your Payslip for Errors?
Payslip errors affect 1 in 6 Australian workers according to Fair Work Ombudsman compliance data. Checking your payslip each pay cycle takes 5 minutes and protects against underpayment, incorrect tax withholding, and missing super contributions.
Follow these 6 steps every time you receive a payslip:
- Verify your hours: Multiply your ordinary hours by your hourly rate. The result must match the gross pay figure. For salaried employees on $85,000, the fortnightly gross is $3,269.23 ($85,000 ÷ 26).
- Check overtime and penalty rates: Overtime, Saturday, Sunday, and public holiday hours must each appear as separate line items with the correct loading. Standard overtime rates range from 1.5x (first 2–3 hours) to 2.0x (subsequent hours) depending on your award.
- Confirm PAYG withholding: Compare the tax withheld against the ATO's online tax withheld calculator or our Take-Home Pay Calculator. A discrepancy of more than $5 per pay cycle warrants investigation.
- Validate superannuation: The super amount must equal your ordinary time earnings multiplied by 12%. On $3,269.23 fortnightly gross, super is $392.31.
- Cross-check YTD totals: Add the current period's amounts to the previous payslip's YTD figures. The new YTD must equal the sum. A mismatch indicates a payroll processing error.
- Verify leave balances: Full-time employees accrue 4 weeks (152 hours) of annual leave per year, equal to 2.923 hours per week. Check that your balance increases by this amount each pay period.
If you find an error, raise it with your payroll department in writing. Employers must correct payslip errors and issue an amended payslip. Persistent underpayment can be reported to the Fair Work Ombudsman.
What Is YTD on a Payslip?
YTD stands for “Year-to-Date” and shows your cumulative totals for gross pay, tax withheld, and super contributions since 1 July (the start of the Australian financial year).
YTD figures serve 3 critical purposes: verifying your income statement at tax time, detecting payroll errors mid-year, and confirming your employer has actually transferred superannuation to your fund.
- YTD Gross: Total gross earnings since 1 July. At 30 June, this figure must match the gross income on your “Income Statement” (formerly called the PAYG Payment Summary) in myGov.
- YTD Tax: Total PAYG withholding (income tax + Medicare Levy) deducted so far. If this amount is significantly higher than expected based on your salary, you are likely over-withholding and due a refund. Review our Tax Refund Guide for details.
- YTD Super: Total superannuation contributions your employer has made. Cross-reference this against your super fund's online portal to confirm the money actually arrived. Super theft — where an employer lists super on a payslip but never transfers it — affects over 2.8 million Australian workers annually, costing an estimated $5.9 billion per year.
How to Use YTD to Estimate Your Tax Refund
Compare your YTD Tax figure against the annual tax liability for your salary level. On an $85,000 gross salary, total annual tax plus Medicare is approximately $17,467. If your YTD Tax at 30 June exceeds this amount, the difference is your expected tax refund. Common causes of over-withholding include not claiming the tax-free threshold, incorrect HECS-HELP flag on your TFN declaration, and working multiple jobs with each employer withholding at the full marginal rate.
How Does Superannuation Appear on Your Payslip?
The “Superannuation Guarantee” (SG) contribution of 12% appears as a separate line on your payslip showing the dollar amount and the name of your super fund. This amount is paid by your employer on top of your gross salary.
The SG rate increased from 11.5% to 12% on 1 July 2025. On an $85,000 salary, your employer contributes $10,200 per year (or $392.31 per fortnight) to your nominated super fund. The maximum super contribution base is $62,500 per quarter for FY2025-26, meaning earnings above $250,000 per year do not attract additional SG contributions. Read the Superannuation Guide for a full breakdown of SG rates, contribution caps, and Division 293 tax.
Crucial Check: Ensure your payslip clearly states the name of your chosen super fund and the dollar amount being contributed. It is alarmingly common for businesses to list super on a payslip but fail to actually transfer the cash to the fund (a practice known as Super Theft). If you suspect this, log into your Super fund's portal to verify the cash actually arrived.
When Must Employers Pay Super?
Employers must pay SG contributions to your super fund within 28 days after the end of each quarter. The 4 quarterly deadlines are 28 October, 28 January, 28 April, and 28 July. Late payment triggers the “Superannuation Guarantee Charge” (SGC), which includes the unpaid super, an interest component of 10% per annum, and a $20 per-employee administration fee.
What Is the Difference Between a Payslip, Payment Summary, and Income Statement?
A payslip is a per-pay-cycle document. A “Payment Summary” (now replaced by the “Income Statement”) is an annual summary of your total earnings and tax withheld for the full financial year.
| Document | Frequency | Issued By | Where to Find It |
|---|---|---|---|
| Payslip | Every pay cycle (weekly, fortnightly, or monthly) | Employer | Payroll portal, email, or printed |
| Payment Summary (PAYG Summary) | Annual (discontinued from 2020) | Employer | No longer issued — replaced by Income Statement |
| Income Statement | Annual (marked “Tax Ready” by 14 July) | ATO via employer STP reporting | myGov > ATO > Income Statements |
Since 2020, employers report payroll data to the ATO in real-time through “Single Touch Payroll” (STP). The ATO uses this data to pre-fill your Income Statement in myGov. Your YTD Gross and YTD Tax on your final payslip of the financial year must match the corresponding figures on your Income Statement. Discrepancies indicate a payroll reporting error that your employer must correct before you lodge your tax return.
What Changed for Payslips in FY2025-26?
Three changes in the 2025-26 financial year directly affect the numbers on your payslip: the SG rate increase, the Stage 3 income tax bracket adjustments (carried over from 1 July 2024), and the new HECS-HELP marginal repayment system.
- SG rate increased to 12%: The super line on your payslip rises from 11.5% to 12% of ordinary time earnings from 1 July 2025. On an $85,000 salary, this adds $425 per year to your super.
- Stage 3 tax cuts (ongoing): The 19% bracket reduced to 16% and the 32.5% bracket reduced to 30%, with the threshold extended from $120,000 to $135,000. PAYG withholding amounts on your payslip reflect these lower rates.
- HECS-HELP marginal system: The repayment threshold increased to $67,000 (from $54,435). Repayments now use a marginal model at 15 cents per dollar over $67,000 instead of the previous percentage-of-total-income system. Employees with HECS debt see lower withholding amounts near the threshold.
- Income Statement deadline: Employers must finalise STP data and mark Income Statements as “Tax Ready” by 14 July 2026 for the FY2025-26 year.
Compare your payslip before and after 1 July 2025 to confirm these changes are reflected. Use our HECS-HELP Guide to calculate your exact repayment amount under the new marginal system.
Do Leave Balances Appear on Your Payslip?
Leave balances are not a mandatory payslip item under Fair Work Regulation 3.46, but they are considered best practice and appear on the majority of Australian payslips.
Full-time employees accrue 4 weeks (152 hours) of annual leave and 10 days (76 hours) of personal/carer's leave per year under the National Employment Standards (NES). Part-time employees accrue leave on a pro-rata basis. If your employer does not print leave balances on your payslip, they must still provide them upon reasonable request. Most modern payroll software (Xero, MYOB, Employment Hero, KeyPay) includes accumulated leave balances automatically.
Frequently Asked Questions
How this guide works▼
Payslip requirements on this page are based on Fair Work Ombudsman regulations under the Fair Work Act 2009. PAYG withholding and superannuation reporting obligations reference current ATO record-keeping requirements for employers.
Sources & References
- 1Payslips— Fair Work Ombudsman
- 2Record-keeping requirements— Australian Taxation Office
Last verified: 14 March 2026. Our content is based on the latest information from official Australian government sources.
Penny Ward
Verified AuthorEmployment & Workplace Rights Editor
B.Com (Hons), Cert IV Financial Planning
Penny is a financial journalist and workplace compliance specialist with over a decade of experience writing about Australian employment law, Fair Work entitlements, and payroll. She has contributed to publications covering industrial relations and personal finance, and previously advised small businesses on award interpretation and pay compliance.
Areas of Expertise