What's the difference between PAYG withholding and PAYG instalments?

Withholding is tax taken from your employees' pay; instalments are pre-payments toward your own tax bill. They're separate things, both reported to the ATO.

Quarterly, 28 days after the end of each quarter. It must be received by the fund by then, not just paid.

What's the current super rate?

12% of ordinary time earnings from 1 July 2025.

What happens if super is paid late?

It stops being deductible and attracts a Super Guarantee Charge - and unpaid super can be pursued from directors personally. We help you avoid that.

What is STP finalisation?

The end-of-year step that locks in your employees' income statements so they can lodge their returns. We make sure it's done on time.

We've fallen behind on super - what now?

Act quickly. Late super has consequences, but they're far worse if ignored. We'll help you bring it up to date and deal with the ATO.

PAYG & Super Lodgements

PAYG withholding, PAYG instalments and super get muddled all the time. We set them up correctly, report them on time through STP and your BAS, and make sure super is paid before it can become a personal liability.

Book a Chat Call (07) 5593 6060

How we help — at a glance

What we handle for PAYG and super:

✓PAYG withholding registration & reporting

✓PAYG instalments

✓Super guarantee (currently 12%)

✓Single Touch Payroll

✓IAS lodgements

✓ATO arrangements if you fall behind

Book a chat (07) 5593 6060

PAYG withholding and instalments, kept straight

The two get confused constantly, partly because they share a name. PAYG withholding is the tax you hold back from your employees’ wages and send to the ATO on their behalf. PAYG instalments are pre-payments toward your own income tax bill, so you’re not hit with the whole lot at year end. They’re separate obligations, reported in different ways, and we set both up correctly so the amounts are right and you’re neither over- nor under-paying through the year.

Single Touch Payroll, done right

Single Touch Payroll (STP) means every pay run is reported to the ATO at the time you pay your staff – their wages, the tax withheld and the super accrued. Done properly it’s invisible; done badly it produces mismatches that surface at year end and annoy your employees when their income statements are wrong. We make sure your payroll software is set up correctly, each run reports cleanly, and the end-of-year STP finalisation is lodged on time so your team can do their own returns without chasing you.

Super paid on time, every quarter

Unpaid or late super is one of the few things that can become a personal liability for company directors – so it’s worth getting right. We calculate super on the correct earnings (it’s not always just base wages), remind you ahead of each quarterly due date, and make sure it’s actually paid and received by the fund in time, not just sent. Quarterly super is due 28 days after the end of each quarter, and the deadline is firm.

Why late super is a director’s personal risk

If super isn’t paid on time, it stops being tax-deductible and the business has to lodge a Super Guarantee Charge statement – which costs more than the super would have. Worse, unpaid super and PAYG can be pursued from directors personally through a director penalty notice. None of this is meant to alarm you; it’s simply why we keep a close eye on the dates. Paid on time, super is a routine cost. Left to slip, it’s one of the few business debts that can follow you home.

Common questions

What’s the difference between PAYG withholding and PAYG instalments?: Withholding is tax taken from your employees’ pay; instalments are pre-payments toward your own tax bill. They’re separate things, both reported to the ATO.
When is super due?: Quarterly, 28 days after the end of each quarter. It must be received by the fund by then, not just paid.
What’s the current super rate?: 12% of ordinary time earnings from 1 July 2025.
What happens if super is paid late?: It stops being deductible and attracts a Super Guarantee Charge – and unpaid super can be pursued from directors personally. We help you avoid that.
What is STP finalisation?: The end-of-year step that locks in your employees’ income statements so they can lodge their returns. We make sure it’s done on time.
We’ve fallen behind on super – what now?: Act quickly. Late super has consequences, but they’re far worse if ignored. We’ll help you bring it up to date and deal with the ATO.

Read more on our site

General information only – not financial or legal advice. Thresholds and tax rules change; confirm current requirements or speak to us before acting on anything you read here.

What Our Clients Say

Chris and the team have offered constant and ongoing advice and support as we’ve faced the challenges of a fast-growing business. QC Accountants have been able to keep up with us and guide us each step of the way. QC’s highly experienced and friendly staff have a deep understanding of our business’s unique needs and are an absolute pleasure to work with. I’d recommend QC to anyone as they’ve always been there offering excellent support whenever needed.

When purchasing our business Chris from QC Accountants provided a comprehensive due diligence report and this report was crucial in understanding the business we were purchasing. We then used this information to negotiate the purchase price. He also assisted with providing documentation to the bank to help secure our business loan. The past 18 months during COVID have been challenging, Chris’s ongoing support, help and advice has been priceless during this difficult period. QC Accountants took the stress away when applying for Job Keeper, cash-flow boost and Government grants. AC Fitouts is extremely happy with Chris and the team at QC Accountants. They are wonderful to work with and I would highly recommend their services. They are professional, knowledgeable, reliable and friendly.

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QC Accountants have been instrumental in the growth and streamlining of my business. They have assisted me with tax grants that I would have otherwise not known about or been unable to complete alone. The team at QCA are very responsive, friendly and patient. If I have a problem or question, they are onto it right away. I would recommend them to everyone because they are an honest and local business that you can trust.

QC Accountants were a shoulder to lean on in our early days, helping and guiding our business to meet all our regulatory and financial obligations. They kept their steady hand on the tiller, playing the role of Chief Financial Officer, from financial modelling, budgeting, bookkeeping, financial accounts preparation, board management accounts, liaising with our auditors - nothing was too much. This allowed us to focus on growing our business with their financial input which was invaluable! Their accessibility, their willingness to listen to our particular needs and coming up with a solution is first class. For any business out there that doesn't have the ability to have a dedicated Financial Director then appoint QC Accountants. They will get the job done and give you back the time to focus on what is important to you and your business.

QC Accountants have been a great foundation of knowledge and support for us as new business owners. I'm able to call or email anytime with the same day turnaround and there is always someone on hand to help navigate any issues within the business. There is never a problem too big or small! I would recommend QC Accountants because they are relatable, reliable and efficient. As a new business owner learning the ropes, it is really nice to be able to call and have someone teach me the process in how they solved an issue so I can learn along the way. I've always felt like there are no silly questions and we are all part of a team.