How to Register as an Employer in Australia (2026 Step-by-Step Guide)

Quick Answer

To register as an employer in Australia, you need an ABN, a PAYG withholding registration through the ATO Business Portal, a complying super fund, and Single Touch Payroll software before your first employee starts. If you hire from 1 July 2026, payday super also requires you to pay super on every payday — not quarterly. The whole process takes less than a day if you have your ABN ready.

Step 1 — Confirm Your ABN Is Active and Correctly Structured

Before anything else, you need an active Australian Business Number (ABN). If you're already operating as a sole trader or company, you likely have one. Check its status at abr.business.gov.au and confirm the entity type matches how you're hiring. A sole trader ABN is fine if you're hiring employees under your own name. If you're operating through a company (Pty Ltd), the company must have its own ABN — you cannot use a personal sole trader ABN to employ staff under a company structure.

If you're registering a new ABN, do it through the Australian Business Register. It's free and usually processed within minutes for straightforward applications. You'll need your Tax File Number (TFN), business address, and a description of your main business activity. The ABN is the anchor for everything else — PAYG withholding, super, and STP all tie back to this number.

One thing migrant business owners often miss: your visa conditions don't stop you from having an ABN or employing staff, but you must ensure your business activity falls within what your visa permits. On a student visa (subclass 500), for example, running a business is generally allowed, but you should seek migration advice before taking on employees if there's any doubt about how that interacts with your work hour conditions.

Step 2 — Register for PAYG Withholding with the ATO

Pay As You Go (PAYG) withholding is the system where you deduct tax from your employees' wages and send it to the ATO on their behalf. Under section 12-35 of Schedule 1 to the Taxation Administration Act 1953, employers are legally required to withhold tax from wages before they're paid. You cannot pay gross wages and leave it to your employees to sort out their own tax — that's not how it works in Australia.

To register, log in to the ATO Business Portal (business.gov.au or myGovID) and add PAYG withholding to your tax registrations. It takes about five minutes. You'll nominate how often you'll lodge — monthly, quarterly, or annually — based on your expected withholding amounts. Most small businesses with one or two employees fall into the quarterly category (total withheld under $25,000 per year), but the ATO will guide you through this during registration.

Once registered, you're required to issue payment summaries (now handled through STP — more on that below), lodge Business Activity Statements (BAS) that include your PAYG withholding amounts, and remit those amounts by the BAS due date. The ATO can charge a failure-to-lodge penalty of $330 per 28-day period, up to $1,650, so getting this right from the start matters.

Step 3 — Choose a Complying Super Fund and Set Up Contributions

Under the Superannuation Guarantee (Administration) Act 1992, you must pay super for most employees aged 18 and over who earn $450 or more per month — although as of 1 July 2022, the $450 threshold was abolished. That means you now pay super for all eligible employees regardless of how little they earn in a month. The current super guarantee rate is 11.5% of ordinary time earnings, rising to 12% on 1 July 2025.

Before their first day, you must offer your employee a choice of super fund using the ATO's Standard Choice Form (NAT 13080). If they don't nominate a fund within 28 days, you check their 'stapled super fund' via the ATO — this is the fund already linked to them from previous employment. If there's no stapled fund, you pay into your default fund. Your default fund must be a complying fund — one that meets ATO and APRA requirements. Most industry funds (Australian Super, Hostplus, REST) and retail funds qualify.

Do not skip the stapled fund check. Since November 2021, failing to check an employee's stapled fund and defaulting them into your fund instead is a breach. The ATO can issue a choice liability penalty equal to the super you should have paid into the correct fund. Set up an employer account with your chosen default fund before hiring — most funds process this within 48 hours online.

Step 4 — Enrol in Single Touch Payroll (STP) Before the First Pay Run

Single Touch Payroll is mandatory for all employers in Australia, regardless of size. Under the Taxation Administration Act 1953 (Schedule 1, Part 2-5), you must report wages, tax withheld, and super information to the ATO each time you run payroll. STP replaced the old payment summary system — you no longer issue group certificates at EOFY. Instead, your STP-enabled software sends a report to the ATO automatically on payday.

To enrol, you need an STP-compliant payroll solution. Options range from enterprise platforms like Xero and MYOB down to low-cost tools built specifically for micro-employers. The ATO maintains a list of STP Phase 2-compliant products at ato.gov.au/stp. STP Phase 2 — which has been live since January 2022 — requires more detailed reporting including employment type (full-time, part-time, casual), income type, and country of tax residency. Make sure your software is Phase 2 compliant, not just Phase 1.

Once your software is set up, you'll connect it to the ATO using your ABN and withholding payer number. Run a test payroll if your software allows it. The ATO receives your first real report on the day of your first actual pay run. From that point, every payroll event is reported in real time. There's no separate enrolment form — the first STP submission from compliant software effectively registers you in the system.

Step 5 — Meet Fair Work Act Obligations Before the First Shift

Registering with the ATO covers your tax obligations. The Fair Work Act 2009 covers everything else — minimum pay rates, awards, leave entitlements, and record-keeping. Before your employee starts, you need to determine which Modern Award applies to their role. There are over 100 industry and occupation awards that set minimum pay rates, penalty rates, allowances, and overtime rules. Check the Fair Work Commission's Pay and Conditions Tool (calculate.fairwork.gov.au) to identify the correct award and minimum rate.

You must also give every new employee the Fair Work Information Statement (FWIS) on or before their first day. If they're a casual, they also need the Casual Employment Information Statement (CEIS). Both are available free from fairwork.gov.au. Failure to provide these statements is a breach of the Fair Work Act and can result in civil penalties of up to $16,500 per contravention for an individual employer.

Under the Fair Work Act (sections 535–536), you must keep accurate employment records for every employee for at least seven years. These include hours worked, pay rates, leave balances, and superannuation paid. Paper records are fine, but payroll software that auto-generates these records is far safer. If Fair Work inspectors request records and you can't produce them, the burden of proof shifts to you — and the penalty for underpayment can include back-pay plus interest.

Step 6 — Collect the Right Documents From Your Employee

Before your employee's first pay run, you need three documents from them: a Tax File Number Declaration (TFN Dec), a Superannuation Standard Choice Form, and a signed employment contract or letter of engagement. The TFN Declaration tells you what tax scale to apply — it captures their TFN, residency status, whether they have HELP debt, and whether they're claiming the tax-free threshold. If an employee doesn't give you their TFN within 28 days, you're required to withhold tax at the top marginal rate of 47 cents in the dollar. That's painful for them and creates admin headaches for you.

The employment contract doesn't have to be complex, but it must specify the employment type (full-time, part-time, or casual), the applicable Modern Award or enterprise agreement, the pay rate, and the hours of work. For casual employees, the contract should also include the casual loading — currently 25% on top of the base rate under most awards, as mandated by the Fair Work Act. A written contract protects both parties and is your first line of defence if a dispute arises.

For migrant employees, there are two additional considerations. First, you must not employ someone who doesn't have the right to work in Australia. You can verify work rights using the Visa Entitlement Verification Online (VEVO) system at border.gov.au — it's free and takes two minutes. Second, employees on temporary visas are still entitled to the full minimum wage, all leave entitlements, and super. There is no legal basis to pay a migrant worker less than an Australian citizen doing the same job under the same award.

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How long does it take to register as an employer in Australia?

If you already have an ABN, you can complete PAYG withholding registration, super fund setup, and STP software onboarding in one day. The ATO Business Portal processes PAYG registrations almost instantly. Allow 24–48 hours for your super fund to activate your employer account.

Do I need to register as an employer if I only hire casual employees?

Yes. Casual employees trigger the same PAYG withholding, super, STP, and Fair Work obligations as full-time employees. The only difference is the 25% casual loading and different leave entitlements — the registration requirements are identical.

What is the penalty for not registering for PAYG withholding?

The ATO can apply a failure-to-lodge penalty of $330 per 28-day period (up to $1,650) for not registering and lodging. Beyond that, you remain personally liable for all tax that should have been withheld — even if you already paid the employee gross wages. You can't recover that withholding from the employee after the fact.

Does payday super affect me when I register as a new employer in 2026?

Yes — if you hire anyone and run a payroll on or after 1 July 2026, you must pay super on that same payday rather than quarterly. The quarterly super cycle ends on 30 June 2026. New employers registering from July 2026 onward have never had the quarterly option — payday super is the default from day one.

Can I register as an employer if I'm on a student visa or temporary visa in Australia?

Generally yes — holding a student visa does not prevent you from registering an ABN and employing staff. However, your work hour conditions apply to your own labour, not to managing a business per se. You should get specific migration advice if you're unsure how employing staff interacts with your visa conditions, especially if you're paying yourself a wage from the business.

Related: How To Pay Super Employees Australia · Single Touch Payroll Small Business Australia · Casual Employee Payroll Australia · Payday Super 2026 · Payslip Requirements Australia · Australian Payroll Changes 1 July 2026