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Capital City
Canberra
Currency
Australian Dollars
(
A$
)
Timezone
GMT +8/9/10
Payroll Frequency
monthly
Tax Year
1 July - 30 June
Employer Tax
16.4% - 18.5%
Languages
English
Capital City
Canberra
Currency
Australian Dollars
(
A$
)
Timezone
GMT +8/9/10
Payroll Frequency
monthly
Tax Year
1 July - 30 June
Employer Tax
16.4% - 18.5%
Languages
English
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.
Businesses can only operate smoothly in Australia if they comply with local labor laws including drafting compliant employment contract agreements and meeting taxation and payroll obligations. Learn more about the employment laws and regulations in Australia below, to avoid any compliance issues.
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:
We can help you get a new employee started in Australia quickly, with a minimum onboarding time of just 1-2 working days. The timeline starts once the employee submits all required information onto the Playroll platform and completes any necessary local authority registrations. For non-nationals, the Right to Work assessment (if applicable) may add up to three extra days. Additional time may be needed for follow-ups on this assessment. Please note, payroll cut-off dates can impact the actual start date. Playroll's payroll cut-off date is the 10th of each month unless otherwise specified.
An employee's weekly work hours are 38 hours maximum, unless the employer requests them to work additional reasonable hours.
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.
In Australia, the standard probation period is 6 months. However, for companies with less than 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.
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1 July - 30 June is the 12-month accounting period that businesses in Australia use for financial and tax reporting purposes.
The payroll cycle in Australia is usually monthly, with employees being paid by the 28th to the 30th of the month.
The minimum wage for employees in Australia is typically 23.23 AUD per hour, amounting to ~3,530.96 AUD per month for a typical 38 hour work week.
There are no legal provisions for 13-month salaries in Australia.
Employer payroll contributions are generally estimated at an additional 16.4% - 18.5% on top of the employee salary in Australia.
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.%.
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.
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.
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In Australia, work permits and visas are essential for employers hiring foreign workers or relocating employees. Employers can sponsor skilled workers through the Temporary Skill Shortage (TSS) Visa (Subclass 482) for temporary positions or the Employer Nomination Scheme (ENS) Visa (Subclass 186) for permanent residency. Other options include the Skilled Independent Visa (Subclass 189) for points-tested skilled workers and the Temporary Work (Short Stay Specialist) Visa (Subclass 400) for short-term specialized tasks.
The process involves employers becoming approved sponsors, nominating roles that align with the skilled occupation lists, and ensuring compliance with visa regulations and sponsorship obligations. Processing times and fees vary by visa type, and employers must stay informed of eligibility criteria, labor market testing requirements, and renewal options to effectively integrate international talent into their workforce.
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.
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:
Full-time workers receive four weeks of annual paid leave, whereas employees on shift schedules are entitled to five weeks.
Pregnant employees are entitled to take 12 months of unpaid maternity leave after completing a year of employment with the same employer. Certain employers offer paid maternity leave, and employees can also apply for the Federal Government scheme, which provides payment for 18 weeks of maternity leave.
Husbands are entitled to two weeks of unpaid paternity leave following the birth or adoption of their child. Similar to Maternity Leave, they have the option to utilise the Federal Government scheme for additional leave days.
In Australia, employees receive ten days of paid leave each year, which can be utilised for sickness or to attend to the needs of a family member.
Parental leave encompasses both maternity and paternity leave, including adoption leave. To qualify for this leave, an employee must have worked for a minimum of 12 months. The parental leave, lasting 12 months, is unpaid, but there is an option to request an additional 12 months from the employer.
Employees in Australia are entitled to two days of paid bereavement leave.
In Australia, terminations must be justified, and employers cannot engage in at-will termination outside the probation period. Acceptable grounds for termination include:
In the absence of an award, agreement, or specific clause in your contract, the Fair Work Act sets out minimum notice periods based on an employee's length of service:
Severance pay depends on the duration of an employees service, and the payment rate corresponds to the regular hours worked:
Disclaimer
THIS CONTENT IS FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSTITUTE LEGAL OR TAX ADVICE. You should always consult with and rely on your own legal and/or tax advisor(s). Playroll does not provide legal or tax advice. The information is general and not tailored to a specific company or workforce and does not reflect Playroll’s product delivery in any given jurisdiction. Playroll makes no representations or warranties concerning the accuracy, completeness, or timeliness of this information and shall have no liability arising out of or in connection with it, including any loss caused by use of, or reliance on, the information.
ABOUT THE AUTHOR
Jesse Weisz
Jesse is an experienced R&D Analyst at Playroll, a leading Employer of Record (EOR) provider. With a strong background in data analysis and market research, Jesse specializes in identifying emerging trends and driving innovation in global HR solutions. She is an all-rounder, critical thinker and success-seeker (often inextricably linked to being a late-night tea drinker).
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