Stablecoin Payroll in Australia

Navigating Stablecoin Payroll in Australia

Australia offers one of the most mature and transparent frameworks for cryptocurrency regulation in the world. With clear ATO guidance, robust workplace standards, and widespread crypto awareness among tech-savvy professionals, it provides a stable environment for implementing compliant stablecoin payroll.

Highlights

• Instant payments: Send compensation in seconds across borders
  
• Lower costs: Avoid high international transfer fees
  
• Clear rules: ATO guidance on crypto taxation in place since 2014
  
• Super system: Employer contributions must use AUD equivalents
  
• Tech-ready talent pool: In Sydney, Melbourne, and Brisbane
  

Employment Types & Stablecoin Tax Treatment

Permanent Employees

• Tax: PAYG withholding based on AUD gross income + Medicare levy (2%)
  
• Superannuation: Employer pays 11% (rising to 12% by July 2025) on Ordinary Time Earnings in AUD
  
• Stablecoins: Withhold PAYG and Medicare on AUD equivalent; super contributions must still be paid in AUD

Example:

Contractors (ABN Holders / Freelancers)

• Payment: Can be 100% in stablecoins with agreement
  
• Tax: Self-assessed; GST applicable if registered at 10%
• Super: Not required unless contract stipulates

Casual Employees

• Casual loading +25% instead of leave entitlements
• PAYG tax and super contributions apply if earnings exceed AUD 450/month

Tax Framework

Income Tax on Receipt

• Stablecoins treated as property; AUD equivalent at time of receipt taxed as income
  
• PAYG withholding must reflect AUD value; reported via Single Touch Payroll (STP)

Capital Gains Tax (CGT)

• Disposal of stablecoins (e.g., conversion to AUD) may be a CGT event
  
• Holding >12 months: 50% CGT discount available on personal gains
  
• Less than 12 months: Full marginal rate applies

Superannuation Requirements

• Rate: 11–12% of Ordinary Time Earnings (OTE) in AUD (from July 2025)
  
• Payment: Must be made quarterly into compliant super funds (e.g. via clearing house)
  
• Note: Stablecoin bonuses or base pay do not count toward super payment - only AUD equivalence is used for calculations

Single Touch Payroll (STP) Reporting

Australian payroll law mandates real-time reporting of wages, tax withheld, and super liability. For stablecoin payroll:

• Report AUD equivalent of stablecoin payments under normal payroll items
  
• Indicate payment method in payroll system notes
  
• Record super liability based on total reported AUD sum

STP must include:

• Gross salary in AUD
  
• Tax withheld
  
• Payment type (noting stablecoin use)
  
• Superannuation obligations

Implementation Best Practices

• Agreements: Employment contracts reference AUD salaries; separate consent forms cover stablecoin payment specifics
  
• Valuation: Use Reserve Bank of Australia or reputable exchange AUD rates for consistent payroll accounting
  
• Recordkeeping: Retain transaction hash, wallet address, AUD equivalent, and rate used - for a minimum of 5 years under ATO rules
  
• Employee Education: Provide resources on PAYG tax, CGT implications, wallet security, and conversion strategies
  

Why Toku for Australia Payroll

• Regulatory Compliance: ATO, STP, super obligations handled on AUD equivalents
  
• Payment Flexibility: Net pay can be in USDC/USDT with full agreement
  
• Integrated Payroll: Compatible with popular Australian payroll platforms
  
• Global Reach: Perfect for companies operating across Asia-Pacific timezone