Some terminology or abbreviations might not be familiar to audiences outside of Australia who might have to work with Australia payroll, including implementation consultants and support users.
The following table lists a number of abbreviations and terms that can help you in forming a more complete understanding of how Australia payroll is handled in Dayforce:
| Abbreviation or Term | Definition |
|---|---|
| ABA | Australia Bankers Association |
| Australian Banking Association (ABA) File | A standardized format for Australian bank files. |
| ABN | Australia Business Number. A unique identifier issued by the ATO to all Australian businesses. |
| ACT | Australian Capital Territory |
| APRA | Australian Prudential Regulation Authority |
| AUSkey |
A login key that identifies individuals who use an eligible government online services on behalf of a business. For additional details, see https://abr.gov.au/AUSkey/AUSkey-explained/. |
| ASIC | Australian Securities & Investments Commission |
| ATO | Australian Taxation Office. Governing body that handles the reporting and auditing of payments and taxes in Australia (similar to HMRC in the United Kingdom). |
| BAS |
Business Activity Statement. For additional details, see https://www.ato.gov.au/business/business-activity-statements-(bas)/. |
| BSB | Bank State Branch. A six-digit number used to identify the individual branch of an Australian financial institution. |
| DSP | Digital Service Providers |
| EBA | Enterprise bargain agreement. An agreement for wage and working conditions. |
| FWO | Fair Work Ombudsman. Independent statutory office in Australia that helps to ensure compliance with Australian workplace laws. The FWO also monitors, inquires into, investigates, and enforces compliance with Australia's workplace laws |
| Garnishee | Automatic calculation and deduction of employee Garnishments and payment to appropriate agencies. |
| HELP, SSL, TSL, SFSS | Types of student loan debt. Payments on these debts are withheld from pay in combination with the PAYG withholding. |
| Lodge, lodgement, lodgement data |
|
| LSL | Long Service Leave. An employee entitlement to an additional vacation on full pay after an extended period of service with an employer. In Australia, employees are generally entitled to long service leave over and above their annual leave if they work for a particular employer for a certain length of time. Employees who remain with the one employer for seven or 10 years are generally entitled to 6-8.66 weeks paid LSL, depending on state/territory law. |
| Medicare | The publicly funded universal healthcare system in Australia. Contributions are made through a Medicare levy or a Medicare levy surcharge. Generally, the Medicare levy (but not the surcharge) is included as part of the PAYG withholding calculation. |
| Money Movement | Net payments using bank files. |
| Pay-As-You-Go (PAYG) | Withholding tax requirement. Similar to other countries’ requirements, employers must withhold tax on amounts paid to employees and other workers. Withheld amounts are remitted to the ATO. The tax year in Australia runs from 1 July to 30 June of the following calendar year. |
| Payroll Tax | State and territory tax on employers based on the amount of wages paid to employees. |
| RSA | Retirement Savings Account |
| Salary Sacrifice |
Arrangement between an employer and employee under which the employee agrees to reduce their pre-tax wages in return for an employer-provided benefit of similar value. These benefits might be tax-advantaged for some workers and generally include fringe benefits, exempt benefits, or super. |
| SAFF | SuperStream Alternative File Format. The format in which the superannuation clearing house must receive payment information. |
| SMSF | Self-managed super fund |
| STP | Single Touch Payroll. A new way of reporting salaries/wages, PAYG withholding, and super to the ATO in real-time instead of at the end of a financial year. |
| SPIN | Superannuation product identification number |
| Superannuation (or "super") |
Retirement program put in place to require employers to contribute to eligible employees’ super accounts and to encourage workers in Australia to save for retirement. Superannuation in Australia is partly compulsory and is further encouraged by tax benefits. |
| Superannuation clearing house | Establishments used by employers to disburse the contribution (employer and employee) to the schemes/funds. |
| Superannuation (super) standard choice form | Employees complete this form as a new hire. They can nominate APRA fund or retirement savings account (RSA), a self-managed super fund (SMSF) or the super fund nominated by my employer. |
| SuperStream: | The way businesses must report and pay employee superannuation guarantee contributions to super funds. With SuperStream, money and data are sent electronically in a standard format. |
| TFN |
Tax File Number. A unique nine-digit identifier issued by the Australian Taxation Office (ATO) to each taxpaying entity. This can be an individual, company, superannuation fund, partnership, or trust. |
| USI | Unique Superannuation Identifier for identifying a fund/scheme. |
| Working holiday maker | Employees in Australia on a working holiday visa. For more information, see ato.gov.au/whm |