The Apply AUS Taxes Rule is used to apply taxes to employee pay. The rule triggers the application to calculate the amount of taxes deducted from gross pay. This rule is the Australian equivalent of the Apply Taxes Rule that is used for Canadian and US employees.
Important: Every ruleset for Australian employees needs to have an instance of the Apply AUS Taxes Rule added in order for the application to calculate and apply taxes.
For Australian employees, the system applies tax to earnings based on the following factors:
- The configuration of the earning in Payroll Setup > Earnings and Definitions.
- The federal tax info record in the Federal Tax Info section of the Payroll > Tax Definitions screen in the employee's profile in People.
Employee address and work location address don’t impact tax rules.
The Superannuation contribution amount to Choice Fund = Employer Nominated Default Fund and Superannuation Employer unassigned Fund is calculated as part of this rule, that is, the superannuation contribution amount becomes available only after the Apply AUS Taxes Rule has been completed in the calculation.
The Superannuation contribution amount to Choice Fund = Employee Nominated APRA Fund is instead calculated as part of the Apply AUS Superannuation Rule, that is, the superannuation contribution amount becomes available only after the Apply AUS Superannuation Rule has been completed in the calculation.
Apply AUS Taxes Rule Parameters
Although parameters are displayed in Apply AUS Taxes Rule, they aren’t used by the application. To configure the application to deduct taxes from employee earnings, you need to add the Apply AUS Taxes Rule to each ruleset, but you do not have to define values for any of the parameters.