Report_EmploymentTaxesUpdate_National by Pitcher Partners

Introduction

Today’s leaders are expected to build agile, resilient organisations that are capable of adapting quickly, sustaining performance and earning trust across a diverse and evolving workforce. As workforce models become more complex with flexible work, incentives, equity participation and contractor arrangements, the line between people strategy and regulatory requirements can become blurred. Decisions made in the name of culture, capability and performance now flow directly into payroll systems, cash flow and regulatory exposure.

Our latest Employment Taxes Update reflects that reality. With the introduction of Payday Super, heightened data‑matching across payroll tax, Superannuation Guarantee (SG), Fringe Benefits Tax (FBT), PAYG Withholding, and increasing scrutiny of contractor and platform models, it is evidence that employment taxes have become a leadership issue, not just a finance one.

This update also examines the growing use of equity based remuneration and the interaction between Employee Shares Schemes (ESS) and payroll tax. This is an area where misunderstandings continue to give rise to unexpected liabilities for employers.

Depending on your workforce model, two further developments may also be relevant. The Commonwealth Treasury’s review of electric vehicle FBT concessions and ongoing gig economy litigation following Uber’s appeal to the High Court each carry potential implications for employer obligations. We have outlined the key considerations to help you assess practical implications to your business.

Taken together, these developments reflect a consistent theme: employment taxes obligations are becoming more complex, more interconnected and more visible to regulators. Our update is structured to support the oversight of your business – clearly signposting key dates, emerging risks and the actions likely to be relevant to your organisation. Where any of these issues warrant a further discussion, our team is available to assist.

Important dates

(March – August 2026)

The period from March to August 2026 represents one of the more compliance-intensive times of the year for employers. Across Federal and State jurisdictions, a significant number of lodgement and payment deadlines fall within this window – spanning FBT, SG, payroll tax, ESS and the introduction of Payday Super. Federal and State Budget announcements also fall within this period.

The table below outlines these critical dates to help you plan and meet your obligations with confidence. Please note that dates are correct at the time of writing but may change subject to announcements from Federal and State government departments and agencies.

March

(Tuesday)

April

28 April 2026 (Tuesday) SG payment due (January – March quarter)

May

12 May 2026 (Tuesday) Federal Budget 2026–27

21 May 2026 (Thursday) 2026 FBT annual return lodgment and payment due (for employers not lodging electronically through a tax agent)

June

25 June 2026 (Thursday) 2026 FBT annual return lodgment and payment due (for employers registered under tax agents’ lodgement program)*

*Provided employers have registered onto a tax agent’s lodgment program by 21 May 2026.

July

1 July 2026 (Wednesday) Small Business Super Clearing House closes

1 July 2026 (Wednesday) ‘Payday Super’ commences

1 July 2026 (Wednesday) ACT payroll tax changes take effect

14 July 2026 (Tuesday) 2026 Single Touch Payroll finalisation and Reportable Fringe Benefits Amounts (RFBAs) reported to the ATO

14 July 2026 (Tuesday) 2026 ESS Statements due to employees

21 July 2026 (Tuesday) Annual payroll tax return due (2026 year – QLD, VIC, WA, TAS, NT)

28 July 2026 (Tuesday) Annual payroll tax return due (2026 year – NSW, ACT, SA)

28 July 2026 (Tuesday) SG contributions due (Apr–Jun 2026 quarter)

tax – ACT

tax – QLD, VIC, WA, TAS, NT

tax – NSW, ACT, SA

(Friday)

Payday Super is coming. Is your business ready?

From 1 July 2026, the way employers pay superannuation is changing – and the countdown has started.

Under the new Payday Super regime, SG contributions will need to reach employees’ super funds within seven (7) business days of each pay day (Qualifying Earnings day). That is a significant shift from the existing quarterly contribution model and affects every business with employees on payroll.

The change was locked in following the enactment of the Treasury Laws Amendment (Payday Superannuation) Act 2025, and is already a key ATO priority in its 2025 26 to 2028 29 corporate plan. The message is very clear: the Government is committed to closing the SG gap.

For employers, this means tighter timelines, updated systems and new processes – starting now. We have put together a detailed breakdown of what’s changing, what stays the same, and what you need to do to get ready.

Employment agency provisions

Why contractor arrangements are still under the

microscope

The NSW Supreme Court has handed down yet another significant ruling on the employment agency provisions, and it is one that businesses using contractor arrangements need to know about.

In SKG Cleaning Services Pty Ltd v Chief Commissioner of State Revenue; Ezko Property Services (Aust) Pty Ltd atf The Ezko Unit Trust v Chief Commissioner of State Revenue [2025] NSWSC 1219, the Court found that payments by two commercial cleaning companies to their subcontractors constituted wages under the employment agency provisions, making them subject to payroll tax.

This decision is a timely reminder that the employment agency provisions cast a far wider net than most people expect. The payroll tax definition of an ‘employment agency’ extends well beyond the traditional commercial understanding, and that gap continues to catch businesses off guard.

If your business engages contractors or operates through agency style arrangements, now is a good time to review your structure. The scrutiny on these arrangements shows no signs of abating.

Employee Share Schemes and payroll tax

What Australian employers need to know

Employee Share Schemes (ESS) can be an effective tool to attract, retain and motivate employees but when it comes to payroll tax, the rules can catch employers off guard.

While favourable outcomes can often be achieved for income tax purposes, it is payroll tax that can surprise employers unexpectedly.

The part that often gets missed

Payroll tax is state based, and while the rules are largely harmonised across Australia, each state has its own legislation. Under those rules, shares and options granted under an ESS may be treated as taxable wages even when no cash changes hands.

Importantly, payroll tax can apply regardless of whether your ESS qualifies for income tax concessions. So even when your employees benefit, you may still have a liability as the employer.

Timing matters more than you think

Employers can generally choose when payroll tax is triggered. This is known as the ‘relevant day’ which is either at grant or at vesting. That choice affects both how the ESS interest is valued and employer’s cashflow, so it is worth thinking through carefully when designing an ESS.

Valuation adds another layer of complexity. Most state revenue offices (with the exception of Victoria) do not accept the Net Tangible Asset valuation method for payroll tax purposes, even in circumstances where it may be permitted for income tax which can result in a higher taxable value than expected.

Getting ahead of these issues is important, so there are no unexpected adverse consequences later.

Australia’s electric vehicle tax concessions under review

What employers need to know

Australia’s Electric Car Discount has been a game-changer for Electric Vehicle (EV) adoption since it was launched on 1 July 2022. Now, Australian Commonwealth Treasury has commenced a statutory review of the concessions. While no immediate changes are proposed, it is worth understanding what is being examined and why it matters for your business.

What is an electric car discount?

The Electric Car Discount was introduced to reduce the upfront and ongoing costs of EVs, with two key concessions:

An exemption from FBT for eligible EVs provided to employees, including through salary packaging; and

An exemption from import tariffs on eligible vehicles.

These measures were designed to accelerate EV uptake, expand consumer choice and support Australia’s broader emissions reduction objectives. By most measures, they have worked, with EV adoption growing significantly since the concessions were introduced.

What it means for employers right now

Good news: nothing changes today. Employers can continue to apply the FBT exemption to eligible EVs that meet existing criteria, and keep offering EVs through salary packaging or fleet arrangements. However, the review signals that future policy settings may evolve. As EV adoption becomes more mainstream and the fiscal impact of the concessions grows, it is reasonable to expect some adjustments down the track, particularly to eligibility thresholds or the scope of vehicles covered.

What is the Treasury Review examining?

As required by legislation, Treasury announced the review in December 2025 to assess how the Electric Car Discount has operated over its first three years. The review will examine:

How effective the concessions have been in encouraging EV adoption

Whether the current design and eligibility settings remain appropriate

How the concessions interact with other Commonwealth policies, including broader transport and emissions measures

Uber’s payroll tax case reaches the High Court

A landmark payroll tax dispute involving Uber is now before the High Court of Australia, and if you engage contractors through a platform-based model, this one is worth watching closely.

The case centres on whether payments to drivers constitute taxable wages under the Payroll Tax Act 2007 (NSW) It follows a New South Wales Court of Appeal ruling on 1 August 2025, which overturned Uber’s earlier win and found that fares collected by Uber and paid to drivers (after deducting Uber’s service fee) were subject to payroll tax. The dispute covers the period from 2015 and 2020, with liabilities exceeding $81 million.

Uber was granted special leave in December 2025, and the High Court will now decide how contractor provisions apply to the platform based business. Given Australia’s harmonised payroll tax laws, the outcome could have significant national implications not just for rideshare, but for the broader gig economy such as food delivery services, digital marketplaces and any business operating a similar model.

What this means for your business

Two findings from the appeal are worth noting now. First, payments described as ‘commissions’ or ‘pass through amounts’ may still be treated as taxable wages. Second, acting as a payment agent doesn’t automatically exempt a business from payroll tax obligations.

What to do while you wait for the High Court’s decision

This is a good time to get ahead of the issue. We recommend you review your contracting arrangements to understand who is genuinely supplying services to whom. In this analysis, both substance and form are important. It is also worth mapping your payment flows to identify amounts that could be characterised as paid ‘for or in relation to work’.

From there, assess available exemptions and make sure your supporting evidence is robust. When the High Court hands down its decision, you will want to be in a position to act quickly.

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