Your income statement is the record your employer sends to the Australian Taxation Office (ATO) about what you were paid and how much tax was withheld. Those two numbers flow into your tax return, so a wrong figure can mean a wrong assessment. This guide explains where to find the statement, how to read it, what it means when it is not yet "tax ready", and how PAYG withholding sits on the employer side of the same system.
This article covers employees whose employer reports through Single Touch Payroll (STP). If you are a contractor, ran a business, or had income that no one withheld tax from, different rules apply and you will need separate guidance.
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What an income statement replaced
Most employees in Australia now get an income statement rather than the old paper payment summary. The ATO publishes a page called "Access your income statement" in the working-as-an-employee section of its website, which is the starting point for employees. The Fair Work Ombudsman also covers payment summaries and income statements under its paying wages guidance, which is useful because it frames the statement as a pay record question as much as a tax question.
Two records can describe the same pay:
| Record | Who creates it | Typical position today |
|---|---|---|
| Income statement | Employer reports to the ATO through STP | The default for most employees |
| PAYG payment summary | Employer issues to the payee | Still used in situations where STP reporting does not cover the payment |
The ATO's PAYG withholding pages refer to "PAYG payment summary", "Single Touch Payroll (STP) PAYG payment summary", and "PAYG withholding payment summaries", and note that end-of-year finalisation happens through STP. The precise point at which each applies is set out in ATO guidance such as "Check what type of payment summary you need to give your payees for the financial year" — check that material directly rather than assuming your situation is standard.
Why this matters to you: if a payment should have been reported to the ATO but was not, it will not appear in your income statement, and you are still required to report the income.
Where to find your statement
The ATO's "Access your income statement" guidance covers the routes available. In broad terms there are three:
- Directly, through ATO online services. If you have an ATO online account linked to your myGov, your income statement is available there. Exact menu labels and steps are set out on the ATO page, which is updated as the service changes. Use that page rather than a third-party walkthrough.
- Through your tax agent. The ATO states your tax agent can access your income statement or payment summary information, and lists the channels they use. If you lodge through a registered agent, ask them to send you a copy of the figures they will rely on — you remain responsible for their accuracy.
- By asking your employer. Payroll teams keep the same records they reported. If something is missing or looks wrong, payroll is usually the fastest place to resolve it.
If you cannot use online services at all, ask your agent, or contact the ATO about your options.
How to read the figures
You do not need to calculate anything to check your statement. You need to compare it against records you already hold: your payslips and your bank deposits.
Work through these checks before you lodge:
- Gross payments. Does the total match the gross (pre-tax) pay on your payslips for the year? Compare gross to gross. If you compare the statement's gross figure to what landed in your bank account, the numbers will not agree, because your take-home pay has tax and any deductions such as superannuation contributions or salary sacrifice already removed.
- Tax withheld. Does the total match the sum of the PAYG withholding amounts shown on your individual payslips? Add the payslip amounts and compare.
- Employer details. Are all employers you worked for during the year listed? Multiple jobs in one year means multiple statements.
- Completeness. Do you have any income the statement does not show — a second job, a short contract, back pay, or a final payment made after your last regular pay run?
A practical habit: reconcile as you go, not in July. A quick check after your final pay of the year makes it far easier to get a payroll error corrected than trying to reconstruct it months later.
What "tax ready" means, and what to do if the statement is not
An income statement carries a status. In ATO language, the status people watch for is "tax ready" — meaning the employer has finished reporting for the year and you can rely on the figures for your return.
The common trap is lodging before that status applies. The ATO flags the case where "your income statement is not tax ready in ATO online services" as something to deal with rather than ignore, and the practical reading is straightforward:
- If it is not tax ready, the employer has most likely not completed end-of-year finalisation. Contact payroll and ask when finalisation will occur, or wait and check again. Lodging against unfinished figures risks an amended assessment later.
- If it stays wrong after finalisation, ask payroll to correct the report. An employer-side correction updates what the ATO holds.
- If you cannot resolve it before your lodgment deadline, raise it with your tax agent, or contact the ATO to discuss your options. Do not simply enter a number you think is closer.
There is no benefit to guessing. The ATO receives the employer's version of events regardless, and mismatches are identified.
When a PAYG payment summary still applies
The transition to STP did not remove payment summaries from every situation. The ATO's PAYG withholding section still deals with payment summaries, including "Check what type of payment summary you need to give your payees for the financial year", "PAYG withholding payment summaries", and "PAYG withholding annual reports". The Fair Work Ombudsman likewise addresses both payment summaries and income statements in its paying wages material.
Two things follow for you as an employee:
- Ask your employer if you are unsure. For most employees the income statement is the record that matters. Where unusual payments or reporting arrangements apply, your employer should be able to tell you whether a payment summary will also be issued.
- Check the income you must report regardless. The ATO's guidance notes that you need to check income from your payment summary is included in your tax return. The wider principle is important: the return must include your income whether or not a statement was issued for it.
If you are an employer rather than an employee, the ATO pages on payment summaries and annual reports set out which type applies to which payments. Check those pages directly — they turn on the type of payment and the payee, not on preference.
The employer side: PAYG withholding
PAYG withholding is the other half of the same picture. It is the amount withheld from payments to employees and others, which employers then pay and report to the ATO.
The ATO's "PAYG withholding" page covers how to calculate, manage and report withholding tax, including for selected types of workers and foreign residents. Points relevant if you run payroll:
- Registering and cancelling. The ATO sets out how to work out when and how to register for, or cancel, PAYG withholding. Registration is not optional once you have a withholding obligation.
- Due dates depend on your status. The ATO states that due dates for paying and reporting PAYG withholding amounts depend on your withholding status. Look up your status before assuming a quarterly or monthly cycle.
- STP reporting, then finalisation. Employers report through STP during the year and complete end-of-year finalisation, which is what sets employee statements to tax ready. A late finalisation delays employees' returns, not just your own reporting.
- Check or calculate pay. The ATO's PAYG withholding material sits alongside tools to check or calculate pay, including amounts to withhold. If you are setting up payroll for the first time, use those resources rather than estimates.
Employee takeaway: if your employer's withholding category or reporting cycle has changed — after a business restructure, for instance — check that your statement still matches your payslips, because cycles and statuses affect when figures reach the ATO.
Checklist before you lodge
Use this immediately before submitting your return:
- [ ] Every employer from the year appears in your statements.
- [ ] Gross payments match your payslip gross totals.
- [ ] Tax withheld matches the sum of PAYG withholding on your payslips.
- [ ] The statement shows the status the ATO describes as tax ready.
- [ ] Any income not covered by a statement is separately accounted for.
- [ ] Employer details (name and ABN) are correct.
- [ ] Your agent, if you use one, has sent you the figures they will rely on.
Where something fails, the sequence is: ask payroll, wait for a correction or finalisation, then contact the ATO or ask your tax agent if it remains unresolved.
Questions worth asking directly
This guide cannot answer these, because the answers depend on your circumstances and on current ATO settings:
- Which step-by-step route applies to you for accessing your income statement today? Check the ATO page "Access your income statement".
- Does your employer need to give you a payment summary as well? Check the ATO's "PAYG withholding payment summaries" guidance and ask payroll.
- What is your employer's withholding status, and therefore the relevant due dates? Check the ATO's PAYG withholding page.
- Has your employer finalised for the year? Ask payroll first.
General information only
This article is general information about Australian tax administration, not legal, tax, financial or migration advice, and it does not take account of your objectives, financial situation or needs. It is based on the ATO and Fair Work Ombudsman material linked above, which can change; confirm current rules on those official pages before acting. Australian Today is an independent publisher. We are not the ATO, a government body, a regulator, a tax agent, a lender or a comparison service, and we do not lodge anything on your behalf or represent any provider. If your circumstances are complex, speak with a registered tax agent or contact the ATO.