Since 1 July 2000, Australia has used the pay-as-you-go tax withholding system.
Employers are required to withhold tax from the remuneration paid to employees and to remit the tax to the Australian Taxation Office on a regular basis.
The amount withheld is calculated according to scales prescribed by the Commissioner of Taxation.
Fringe benefits tax is payable by employers on the value of certain benefits provided to employees in connection with employment. These are widely defined to include a range of privileges, services or facilities such as the private use of motor vehicles, interest-free or low interest loans or accommodation.
Payroll tax is a state tax levied monthly by each state on the payroll of employers who pay wages in excess of a prescribed threshold. The rate varies by state.
Generally, states will require employers to register when monthly wage payments reach certain levels.