* Playroll continues to analyse immediate opportunities and fulfilled roles by recruitment partners, contractors and employers to identify in-demand jobs.

Capital City
Canberra
Currency

Australian Dollars (A$)

Timezone

AEST, ACST, AWST (GMT +8/9/10)

Payroll
Monthly
Employment Cost

16.4% - 18.5%

Annual Leave

20 days

In-demand Specialties*
Healthcare, Professional And Technical Services, Construction

The Ultimate Guide to Hiring Employees in Australia

Simplify hiring employees in by partnering with Playroll. Our Employer of Record (EOR) handles hiring, onboarding, payroll, taxes, immigration, benefits administration, and compliance. While you maintain control of day-to-day tasks and responsibilities.

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Key Considerations Before Hiring In Australia

Employing in Australia requires employers to own a legal entity in the country and manage payroll, tax, benefits and compliance through their own in-country resources. Grow your team in Australia with our Employer of Record solution, ensuring streamlined, compliant business expansion with no entity.

Playroll allows you to hire employee's in Australia quickly, easily and we even automate tax document collection, benefits, payroll and more.

Good To Know

Australia, ranked 14th in global GDP, has sustained economic growth for two decades. Its economy, fueled by a robust international trade presence (42% of GDP), is supported by abundant resources, a secure financial system, and advanced digital infrastructure.

The country prioritises research and development, with investment exceeding GDP by two percentage points. Seven universities in Australia rank among the top 100 globally, contributing to a highly educated workforce that benefits businesses worldwide.

Australia's strategic time zone positioning facilitates collaboration with global teams, especially for remote workers. Emphasis on a healthy work-life balance enhances motivation and productivity.

With a stable political and economic climate, Australia assures businesses of a talented and dependable workforce due to its high standard of living. This makes the country an attractive destination for those seeking skilled professionals.

playroll-good-to-know

Fundamental Aspects of Employment in Australia

In Australia, there is a distinction between fixed-term and permanent employment contracts under the law. It is considered standard practice to provide written employment contracts to employees to outline basic terms of of employment, such as:

  • Identification of both parties
  • Starting date (and employment duration for temporary contracts)
  • Workplace and working hours
  • Job position and responsibilities
  • Base salary (including compensation and benefits)
  • Holidays and leave entitlements
  • Notice periods
  • Probation period (if applicable)
  • Mention of prevailing industry awards

Probationary Period in Australia

In Australia, the standard probation period is 6 months. However, for companies with 15 employees, this period is extended to 12 months. While there is an option to reduce the minimum probation period, doing so means forfeiting the benefits associated with a standard probation period.

Working hours in Australia

An employee's weekly work hours are 38 hours maximum, unless the employer requests them to work additional reasonable hours.

Overtime in Australia

Overtime compensation varies depending on the award, agreement, or contract. Nevertheless, certain contracts or agreements may specify instances where employees receive extra time off instead of overtime pay.

Navigating Key Aspects of Payroll in Australia

Australia has a robust and complex payroll and tax system, and as an employer, it pays to understand payroll process basics.

1 July - 30 June

Fiscal Year in Australia

1 July - 30 June is the 12-month accounting period that businesses in Australia use for financial and tax reporting purposes.
monthly

Payroll Cycle in Australia

The payroll cycle in Australia is usually monthly, with employees being paid by the 28th to the 30th of the month.
19.84 AUD p/h

Minimum Wage in Australia

The minimum wage for employees in Australia is typically 19.84 AUD per hour, amounting to ~753.92 AUD per month for a typical 38 hour work week.

Minimum wages and salaries in Australia

The national minimum wage is established annually by the Fair Work Commission (FWC), which becomes effective after July 1.

Bonus Payments in Australia

There are no legal provisions for 13-month salaries in Australia.

Comprehensive Overview of Employment Taxes in Australia

Understanding the tax obligations for both employers and employees is crucial when operating in Australia's business landscape. This section explains how taxes and statutory fees affect payroll and individual earnings in Australia.

Employer Tax Contributions

Employer payroll contributions are generally estimated at an additional 16.4% - 18.5% on top of the employee salary in Australia.

Tax Rate Tax Type

Employee Payroll Tax Contributions

In Australia, the typical estimation for employee payroll contributions cost is around Aside from income tax, employees are not legally required to make any additional contributions..

Tax Rate Tax Type

Individual Payroll Tax Contributions

Australia determines individual income tax through a progressive rate system. Other factors, including household status, the number of children, location, age, and marital status, can influence the overall tax rates.

Tax Rate Income Bracket

Pension in Australia

Australia's pension system consists of various types, including old-age pension, person pension, and public pension. Employers must contribute a minimum percentage of their employees' earnings to superannuation, currently set at 11%, gradually increasing to 12% by 2025. Failure to comply results in a superannuation guarantee charge.

The tax-related information provided in this guide is intended for general guidance and informational purposes only. Reach out to our dedicated team for insights on remote hiring in Australia tailored to your needs.

Easily navigate payroll, taxes and contributions with Playroll.

Grow your distributed workforce today!

Understanding the Protocols for Termination of Employment in Australia

When it comes to terminating employment in Australia, understanding the legal obligations regarding severance pay and contributions is essential. Below is a detailed overview of the key considerations for both employers and employees.

Termination Process

In Australia, terminations must be justified, and employers cannot engage in at-will termination outside the probation period. Acceptable grounds for termination include:

  • Voluntary resignation by the employee
  • Mutual agreement
  • Unilateral termination by the employer (based on probation period, objective grounds, disciplinary reasons, or inadequate performance for the job)
  • Contract expiration

Notice Period

Notice periods in Australia is based on the employee’s length of employment:

  • Less than 1 year of service: 1 week notice
  • 1-3 years of service: 2 weeks’ notice
  • 3-5 years of service: 3 weeks’ notice
  • More than 5 years of service: 4 weeks’ notice

Severance Pay

Severance pay depends on the duration of an employee’s service, and the payment rate corresponds to the regular hours worked:

  • In between 1-2 years: 4 weeks’ severance pay
  • In between 2-3 years: 6 weeks’ severance pay
  • In between 3-4 years: 7 weeks’ severance pay
  • In between 4-5 years: 8 weeks’ severance pay
  • In between 5-6 years: 10 weeks’ severance pay
  • In between 6-7 years: 11 weeks’ severance pay
  • In between 7-8 years: 13 weeks’ severance pay
  • In between 8-9 years: 14 weeks’ severance pay
  • In between 9-10 years: 16 weeks’ severance pay
  • At least 10 years: 12 weeks’ severance pay

Annual Leave Entitlements and Company Policies in Australia

The annual leave entitlement in Australia is 20 days for a full time worker. These can include public holidays on top of that or within those days, which would otherwise be unpaid.

Public Holidays in Australia

The Australian Fair Work Act designates 8 public holidays, but additional holidays may be added or substituted by states or territories. Public holidays that fall on weekends are observed on the corresponding non-weekend day:

Holiday Date

Paid Time Off in Australia

Maternity Leave in Australia

Paternity Leave in Australia

Sick Leave in Australia

Bereavement Leave

Parental Leave In Australia

Australia's Benefits Built Into Playroll

Competitive benefits package in Australia

Playroll is committed to providing tailored, competitive benefits packages that are designed not only to attract but also retain top talent worldwide. Our global team of benefits experts build custom local packages to ensure your employees in Australia's needs are met. Typically our packages contain some or all of the following benefits.

Health Insurance
Pension or 401k
Life and Disability Insurance
Vision Insurance
Dental Insurance
Discounts & Perks

Playroll Supplementary Benefits For Employment In Australia

Make your benefits package in Australia a talent magnet with Playroll's local plans. We offer benefits that are compliant, comprehensive, and flexible — all at competitive rates. Speak with our local territory experts to explore the localized benefits we can offer you, while you scale your team.

  • Workman's Compensation
  • Background Checks
  • Employee Wellness
  • IT Equipment Sourcing

Statutory benefits for employment in Australia

Playroll allows you to provide localized benefits for employees in Australia within minutes. All in one manageable online dashboard. If you'd like specific information about our benefits packages in Australia create an account or contact our global expansion team, today.

Playroll Benefit Services

Playroll's Expertise in Facilitating Work Visas for Australia

At Playroll we're all about empowering employees to work anywhere, making mobility possible for global teams. We sponsor visas and hire the employee for you, so you don’t have to worry about payroll, taxes, and more.

It's important to note, visa support can be complicated. There are many variables that affect whether sponsorship is possible, including one’s nationality, education, marital status, and the immigration policy for the country in question.

Unfortunately, this means we can’t support visas everywhere - with that being said, we handle the entire visa process in-house, and dig into your situation to give you an overview of what to expect if we're able to help with visa sponsorship in Australia.

Playroll Immigration Support

Integrated EOR Platform

Legal and compliance experts are readily available to provide guidance and case-by-case Q&A support.

Accelerated Immigration Timeline

By leveraging dedicated support from in-house legal and compliance experts for case by case questions and more.

Hire in 50+ Countries

Accelerated Immigration Timeline

Acquiring a visa without an entity has never been easier, leverage Playroll's global coverage to sponsor and hire employees.

Playroll Visa Services

Hiring International Employees is Complex.

Playroll makes it easy!