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Australia

Introduction
 

General overview & country facts, as well as labour regulations.
Employer Contributions
 

These are additional costs incurred by employers over and above the employee’s monthly gross salary and/or bonus.
Employee Contributions
 

These are costs incurred by employees that reduce their monthly gross salary and/or bonus to determine their net “take home” pay.
Employment Terms
 

All you need to know about salary & bonuses, working hours & overtime, probation period, notice period & severance pay, as well as all leave types.

COUNTRY PLAYBOOK

Australia
Everything you need to know about payroll, benefits & hiring top talent in Australia

Currency

Australian Dollar (AUD)

Salary payment frequency

Monthly

Capital

Canberra

Time Zone

GMT +11:00

Official Languages

English

Is English spoken?

Yes
Employer of Record Australia Guide

Quick Links

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Introduction

General Overview & Economic Facts
  • Australia, officially known as the Commonwealth of Australia, is a sovereign country comprising of the mainland Australian continent, the island of Tasmania in addition to numerous smaller islands
  • It spans an area of approximately 7,617,930 km2 (2,941,300 mi2) and has a population of approximately 25.69 million
  • Australia is a highly developed country with a high-income economy. Its economy is sustained by its abundant natural resources, well-developed international trade relations, mining exports, banking, manufacturing, agriculture and education
  • Its economy ranks 13th by nominal GDP (2021) and 19th by PPP (2021)
  • It ranks 8th on the HDI with a high quality of life, democracy, health, education, economic freedom, civil liberties, safety and political rights
    Why Employ In Australia?
    • The main exports are iron ore, coal briquettes, petroleum gas, gold and aluminum oxide
    • 12.89 % of the population is between the ages of 15 and 24 years, with 41.15% of the population being between the ages of 25 and 54. Australia has a fairly youthful population, making it a favourable country to employ young, energetic employees
    Overview Of The Labour Law
    • The main sources of employment law in Australia is legislation (federal, state and territory laws), industrial instruments and the common law
    • The National Employment Standard contained in the Fair Work Act is the most important piece of employment law. It provides the minimum terms and conditions for employment including maximum work hours, paid and unpaid leave, notice periods and severance and redundancy pay
    • Australia’s labour laws are designed to provide flexibility and protection to both employers and their employees
    Fun Country Facts
    • An Australian man once tried to sell New Zealand on eBay
    • Canberra was selected as the capital because Sydney and Melbourne could not stop arguing which city should be the capital
    • Lamingtons originate from Australia
    Why Use Playroll Services For Australia?
    • Employing in Australia requires companies to have their own legal entity in the country as well as to manage payroll, employee benefits, taxes and legal compliance. This can get quite complicated, especially with the complexity of employment laws in Australia
    • With Playroll’s Employer of Record services, your team will be employed by our established legal entities in each country
    • We will take care of payroll, employee benefits, taxes, legal compliance and provide ongoing employee support, so that you can focus on growing your team
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    Employer Contributions

    These are additional costs incurred by employers over and above the employee’s monthly gross salary and/or bonus.

    Superannuation Guarantee (SG)
    Calculated on a minimum salary of AUD 5,400 and a maximum salary of AUD 235,680.00 per annum

    10.00%

    Fringe Benefits Tax (FBT)

    47.00% per annum

    Workers Compensation

    Victoria
    ±1.27%

    New South Wales
    ±1.40% – 1.44%

    Queensland
    ±1.20%

    South Australia
    ±1.65%

    Western Australia
    ±1.704%

    Australian Capital Territory
    ±2.80%

    Tasmania
    ±2.50%

    Payroll Tax

    Australian Capital Territory

    Calculated on a minimum total salaries paid by the employer of AUD 2,000,000.00 per annum

    6.85%

    New South Wales

    Calculated on a minimum total salaries paid by the employer of AUD 1,200,000.00 per annum

    4.85%

    Northern Territory

    Calculated on a minimum total salaries paid by the employer of AUD 1,500,000.00 per annum

    5.50%

    Queensland

    Total salaries paid between AUD 1,300,000.00 and AUD 6,500,000.00 per annum
    4.75%

    Total salaries paid AUD 6,500,000.00 per annum or more
    4.95%

    South Australia

    Total salaries paid between AUD 1,500,000.00 and AUD 1,700,000.00 per annum
    0.00% – 4.92%

    Total salaries paid AUD 1,700,000.00 per annum or more
    4.95%

    Tasmania

    Total salaries paid between AUD 1,250,000.00 and AUD 2,000,000.00 per annum
    4.00%

    Total salaries paid AUD 2,000,000.00 per annum or more
    6.10%

    Victoria

    Total salaries paid AUD 700,000.00 per annum or more

    Ordinary rate- 4.85%

    Regional rate- 1.2125%

     

    Western Australia

    Total salaries paid between AUD 1,000,000.00 and AUD 100,000,000.00 per annum
    5.50%

    Total salaries paid between AUD 1,000,000.00 and AUD 1,500,000,000.00 per annum
    5.50% for wages up to 100 Million AUD + 6.00% for wages from 100 Million AUD to 1,5 Billion AUD

    Total salaries paid AUD 1,500,000,000.00 per annum or more
    5,50% for wages up to 100 Million AUD + 6.00% for wages from 100 Million AUD to 1,5 Billion AUD + 6.50% for wages above 1.5 Billion AUD

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    Employee Contributions

    These are costs incurred by employees that reduce their monthly gross salary and/or bonus to determine their net “take home” pay.

    Superannuation (Salary Sacrifice)

    Optional. Subject to a contribution cap

    Employees can contribute more, but they may have to pay additional tax on the excess amounts

    The concessional contribution cap for 2022 is AUD 27,500.00 per annum

    Medicare Levy

    Individual- reduced levy
    Calculated on a minimum salary of AUD 23,227.00 per annum and a maximum salary of AUD 29,032.00 per annum
    0.00 – 2.00%

    Individual- full levy
    Calculated on a minimum salary of AUD 29,033.00 per annum
    2.00%

    Families, no children- reduced levy
    Calculated on a minimum salary of AUD 39,168.00 per annum and a maximum salary of AUD 48,958.00 per annum
    0.00 – 2.00%

    Families, no children- full levy
    Calculated on a minimum salary of AUD 48,959.00 per annum
    2.00%

    Families, 1 child- reduced levy
    Calculated on a minimum salary of AUD 42,765.00 per annum and a maximum salary of AUD 53,454.00 per annum
    0.00 – 2.00%

    Families, 1 child- reduced levy
    Calculated on a minimum salary of AUD 53,455.00 per annum
    2.00%

    Medicare Levy Surcharge (MLS)
    If the employee is an Australian taxpayer who doesn’t have private hospital insurance, and they earn over a certain amount, they may have to pay the Medicare Levy Surcharge (MLS)

    Individual
    Taxable income of AUD 90,001.00 to AUD 105,000.00 per annum
    1.00%

    Taxable income of AUD 105,000.00 to AUD 140,000.00 per annum
    1.25%

    Taxable income of AUD 140,000.00 per annum or more
    1.50%

    Couples, families and single parent families
    Taxable income of AUD 180,001.00 to AUD 210,000.00 per annum
    1.00%

    Taxable income of AUD 210,000.00 to AUD 280,000.00 per annum
    1.25%

    Taxable income of AUD 280,001.00 per annum or more
    1.50%

    Income Tax
    Income Tax is ‘Pay As You Earn’

    Income bracket per annum

    0.00 – 18,200.00
    0.00%

    18,201.00 – 45,000.00
    19.00 % for each AUD 1.00 over AUD 18,200.00

    45,001.00 – 120,000.00
    AUD 5,092.00 plus 32.50% for each AUD 1.00 over AUD 45,000.00

    120,001.00 – 180,000.00
    AUD 29,467.00 plus 37.00% for each AUD 1.00 over AUD 120,000.00

    180,001 or more
    AUD51,667 plus 45% for each AUD1 over AUD180,000

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    Employment Terms

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    General

    Minimum Wage
    • National minimum wage- AUD 20.33 per hour
    Working Hours
    • Maximum of 8 hours per day and 38 hours per week
    • Meal Intervals are usually determined through awards or collective bargaining agreements. The standard is 30 minutes unpaid time.
    • Typical working hours start at 08h30 and end by 17h00, Monday to Friday
    Overtime
    • Overtime work is dependent on whether there is an award for the sector and job title
    • If there is no award then the employee is not entitled to overtime pay
    • The employee can refuse to work the overtime should it not be a reasonable request
    Notice Period
    • Employed between 0 and 1 year- 1 week’s notice
    • Employed between 1 and 3 years- 2 weeks’ notice
    • Employed between 3 and 5 years- 3 weeks’ notice
    • Employed for 5 or more years- 4 weeks’ notice
    • If an employee is older than 45 and has worked for the employer for at least 2 years then they are entitled to an extra weeks notice.
    Severance Pay
    • Employed between 1 and 2 years- 4 weeks’ pay
    • Employed between 2 and 3 years- 6 weeks’ pay
    • Employed between 3 and 4 years- 7 weeks’ pay
    • Employed between 4 and 5 years- 8 weeks’ pay
    • Employed between 5 and 6 years- 10 weeks’ pay
    • Employed between 6 and 7 years- 11 weeks’ pay
    • Employed between 7 and 8 years- 13 weeks’ pay
    • Employed between 8 and 9 years- 14 weeks’ pay
    • Employed between 9 and 10 years-16 weeks’ pay
    • Employed for 10 or more years- 18 weeks’ pay
    Probation Period
    • There is no statutory probation period
    • The probation period is determined in the employment contract
    • It is common to have a probation period between 3 and 6 months
    Bonus
    • There is no statutory bonus
      Public Holidays

      Public holidays 2022

      • January 1st – New Year’s Day
      • January 3rd – New Year Holiday
      • January 26th – Australia Day
      • April 15th – Good Friday
      • April 16th – Day following Good Friday
      • April 18th – Easter Monday
      • April 25th – Anzac Day
      • June 13th – Queen’s Birthday
      • December 25th – Christmas Day
      • December 26th – Boxing Day
      • December 27th – Christmas Holiday
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      Leave

      Paid Leave / Vacation Days
        • Paid leave
        • Paid by employer
        • 20 days per year
        Sick Leave
        • Paid leave
        • Paid by employer
        • Full time sick leave- 10 days
        • Part time sick leave- 1/26 of hours worked in a year
        Maternity Leave
        • Part of parental leave
        Paternity Leave
        • Paid leave
        • Paid by Social Security
        • 2 weeks
        Parental Leave
        • Unpaid leave
        • Employee may apply for Paid Parental Leave with Social Security
        • 12 months
        Unpaid Carers Leave
        • Unpaid leave
        • 2 days
        Compassionate & Bereavement Leave
        • Paid leave
        • Paid by employer
        • 2 days
        Family and Domestic Violence Leave
        • Unpaid leave
        • 5 days
        Pre-Adoption Leave
        • Unpaid leave
        • 2 days
        Start hiring in Australia today!