HRMS and Payroll Sydney — Fair Work Compliant Payroll for Indian Businesses in Australia 2026

HRMS and Payroll Sydney — Fair Work Compliant Payroll for Indian Businesses in Australia 2026

Indian businesses with Australian operations — in Sydney's Macquarie Park technology precinct, Parramatta business district, or the CBD — must navigate Australia's Fair Work Act, mandatory superannuation, and the ATO's Single Touch Payroll (STP) reporting system. MICS provides unified HRMS managing Australian payroll compliance alongside India's EPFO, ESIC, and labour law requirements.

Australian Payroll Compliance

Single Touch Payroll (STP Phase 2)

ATO's STP Phase 2 is mandatory for all employers in Australia:

• STP reporting: salary, wages, PAYG withholding, and superannuation reported to ATO at each pay run
• STP Phase 2: disaggregated income type reporting (salary, allowances, termination payments) since 2022
• Finalisation declaration: annual income statement finalisation via STP by 14 July
• MICS HRMS submits STP reports directly to ATO via ATO API

PAYG Withholding (Income Tax)

• Tax file number (TFN): employee provides TFN — employer withholds income tax
• Withholding rates: 2025–26 brackets: 0% to $18,200; 19% to $45,000; 32.5% to $120,000; 37% to $180,000; 45% above $180,000
• Tax withholding variation: employees can apply for reduced withholding via ATO
• No TFN: if employee does not provide TFN, withhold at 47% (top marginal rate)
• PAYG payment summary: replaced by STP income statements — no longer paper-issued

Superannuation (Super)

• Superannuation Guarantee (SG) rate: 11.5% of ordinary time earnings (2024–25); rising to 12% from July 2025
• Eligible employees: all employees aged 18+ earning $450+/month (age threshold removed from July 2022)
• Super funds: employer pays to employee's chosen super fund (or default fund if not nominated)
• Super payment: quarterly by 28 Oct, 28 Jan, 28 Apr, 28 Jul (quarterly payment due dates)
• SuperStream: mandatory electronic super payment and data standard
• MICS HRMS generates SuperStream-compliant super contribution files

Fair Work Act Compliance

• National Minimum Wage: AUD 24.10/hour (from 1 July 2024)
• National Employment Standards (NES): 11 minimum entitlements including annual leave, sick leave, compassionate leave
• Annual leave: 4 weeks per year (5 weeks for shift workers)
• Personal/carer's leave: 10 days per year
• Long service leave: varies by state — NSW: 2 months after 10 years
• Parental leave: 18 weeks government-funded parental leave pay
• Notice period: based on length of service under Fair Work Act

Modern Awards and Enterprise Agreements

• Modern awards: industry-specific minimum pay rates and conditions (e.g., Professional Employees Award for IT workers)
• Enterprise agreements: negotiated agreements above award minimums
• MICS HRMS applies correct award rates based on employee role classification

Workers Compensation

• State-based: NSW Workers Compensation (iCare), Victoria WorkCover
• Compulsory: all NSW employers must have workers compensation insurance
• MICS HRMS tracks payroll data for workers compensation premium calculation

MICS HRMS for Sydney

• Employee database: visa type (482 TSS, 186, 189, 190, Australian citizen/PR), TFN, super fund
• PAYG withholding: automated income tax calculation
• Superannuation: SG calculation, super fund data, SuperStream file generation
• STP Phase 2: direct ATO API submission at each pay run
• Fair Work compliance: NES leave entitlements, modern award pay rates
• Leave management: annual leave, personal leave, long service leave tracking
• Payslip: ATO-compliant digital payslip
• Pricing: AUD 500–2,000/month (Rs. 28,000–1,12,000)

India Parent Entity HRMS

• EPFO: India head office provident fund monthly contributions
• ESIC: India staff health insurance
• TDS: India salary income tax deduction and Form 16
• FEMA ODI: Overseas Direct Investment compliance for Australia investment
• APR: Annual Performance Report for Australian subsidiary
• Pricing: Rs. 4,000–12,000/month

Combined India + Australia HRMS

• Unified platform: AUD payroll (Australia) + INR payroll (India) in one system
• Group headcount: total employee data across both entities
• Intercompany: Sydney-to-India staff secondment cost tracking
• Pricing: AUD 700–2,500/month (combined both entities)

Free Sydney HRMS demo: +91 9355273535 | admin@mics.asia