Remote’s guide to employing in Australia.
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We own our own entity in the countries where we operate to shield your company from risk and provide you and your employees with the signature Remote experience.
Sun, surf, and incredibly diverse wildlife make Australia a top destination for people from around the world. Despite Australia’s large size, around 85% of its inhabitants live within a short drive of the coast in cities such as Sydney, Melbourne, and Perth. With one of the top global economies and a host of talented workers, Australia is a great spot to make your next hire.
Ease of doing business
Cost of living index
$$$$ (14 of 139 nations)
VAT - standard rate
GDP - real growth rate
Remote makes it easy for companies of all sizes to employ workers in Australia using our employer of record solution. We can help employ your Australian team using our local Australian entity, as well as handle your payroll, benefits, taxes, and local legal compliance.
Labor regulations in Australia are split between federal and state laws. Many of the country’s employment rules are codified in the Fair Work Act, which provides structure for collective bargaining agreements and sets minimum standards for employers in certain areas. The Fair Work Act covers issues including minimum leave entitlements, maximum working hours, termination guidelines, and severance pay.
Employers cannot cancel or change a visa in Australia. International workers in Australia still have rights and protections at work that are enforced by the Australian government. Only the government has the power to withdraw or update a work visa.
To employ workers in Australia, contact Remote to learn more about your options.
In Australia, the minimum wage for workers 21 years and older is $19.49 per hour. For workers under 21 years, the minimum wage is $9.13 per hour.
For customers of Remote, all employee payments will be made in equal monthly installments on or before the last working day of each calendar month, payable in arrears.
We can help you get a new employee started in Australia fast. The minimum onboarding time we need is only 14 working days.
Our team ensures your employees are onboarded and paid as quickly as possible while keeping your business compliant with all local employment legislation. The minimum onboarding time begins after the employee submits all required information onto the Remote platform. The onboarding timeline is also dependent upon registration with local authorities.
For all non-nationals of the country of employment, the Right to Work assessment (if applicable) will add three extra days to the total time to onboard. There may be extra time required if we need to follow-up on the right to work assessment.
Please note, payroll cut-off dates can impact the actual first day of employment. Remote has a payroll cut-off date of the 10th of the month unless otherwise specified.
Beyond providing your employees with all statutory benefits in Australia, Remote can help you create a custom benefits package for your international team. A competitive benefits package may include perks such as:
Learn how employment taxes and statutory fees affect your payroll and your employees’ paychecks in Australia.
$650,000 - is the annual threshold triggering payroll tax
4.85% - state payroll tax
2.425% - for regional areas
1.2125% - for regional bushfire affected areas
4.85% - state payroll tax
$1.2 million - is the annual threshold triggering payroll tax
4.75% - for employers with $6.5 million or less in Australian taxable wages
4.95% - for employers with more than $6.5 million in Australian taxable wages
$1.3 million - is the annual threshold triggering payroll tax
Regional employers may be entitled to a 1% discount on the rate until 30 June 2023
5.5% - state payroll tax
$1.5 million - is the annual threshold triggering income tax
Variable up to 4.95% - for between $1.5 million to $1.7 million in Australian taxable wages
4.95% - state payroll tax where Australian taxable wages exceeds $1.7 million
$1.5 million - is the annual threshold triggering income tax
Until July 1, 2023, payroll tax in WA is calculated on a tiered rate scale that gradually increases the tax rate to a maximum of 6.5% for employers with annual Australian taxable wages of more than $1 million.
4% - state payroll tax for between $1.25 million to $2 million in Australian taxable wages
6.1% - state payroll tax for over $2 million in Australian taxable wages
$1.25 million - is the annual threshold triggering income tax
6.85% - state payroll tax
2 million - is the annual threshold triggering payroll tax
Employee income tax rates are standardised Australia-wide.
0% - Income up to AUD 18,200
19% - AUD 18,200-AUD 45,000
32.5% - AUD 45,000-AUD 120,000
37% - AUD 120,000-AUD 180,000
45% - AUD 180,000 and over
Note that all Australian employers must contribute to the employee’s superannuation fund (Australia's version of a retirement pension).
The Australian Super guarantee (SG) is the minimum amount employers must pay to avoid incurring a super guarantee charge. As of 2021, the super guarantee is set at 10% of an employee’s ordinary time earnings, but this figure is scheduled to increase progressively up to 12% by July 1, 2027.
Salaried employees in Australia are entitled to four weeks of paid annual leave each year. Shift workers receive an additional week of paid leave, for a total of five weeks per year.
Employees in Australia are entitled to maternity leave, but maternity leave pay (from the Australian government) and maternity leave from work (in which the employee’s job remains theirs) are two different things.
Employees in Australia may take up to two years of unpaid parental leave, broken into two 12-month periods. The employee must request the second period in advance if desired. This leave may be used by either parent. Employee parents also have a legislated right to return to their old job.
To be eligible for any parental leave in Australia, the employee must have worked for the company for at least 12 months. However, employees who have taken parental leave don't have to register another 12 months of work before they can access parental leave for another child with that same employer.
Paid maternity or parental leave (known as PLP) in Australia is managed by the government. Employees who are the primary carer of a newborn or adopted child are eligible for up to 18 weeks PLP paid at the national minimum wage over a set and a flexible period.
The set period of 12 weeks has to be used continuously one year of the birth or adoption. The second 30 days can be taken as flexible periods negotiated with the employer. This leave must be taken within 24 months of the birth or adoption of a child.
Australian employees can continue to access this parental leave pay from the government even if the employer offers a separate private paid parental leave program.
In Australia, partners of employees who give birth are eligible for two weeks of paid leave, paid at the national minimum wage by the Australian government.
Either parent may use the two years of unpaid parental leave in Australia.
An employer in Australia usually cannot terminate an employee without providing written notice. The employer may choose to let the employee work through the notice period or provide payment in lieu of notice. Notice periods and severance pay amounts may be negotiated in employment agreements.
Termination notice requirements in Australia vary depending on the number of employees the company has, the classification of the employee, and the length of time the employee has worked for the company.
The notice period for terminating an employee in Australia depends on the tenure of the employee at the company.
Employees over the age of 45 who have been employed for at least two years are entitled to an additional week’s notice.
Severance pay in Australia depends on the number of years the employee has worked for the company. Employees who have worked for an employer for less than one year are not entitled to severance pay.
Severance pay is reduced to 12 weeks for any employees with at least 10 years of continuous service due to a 2004 Redundancy Case decision made by the national Australian Industrial Relations Commission.
The employer decides on the length of the probation period. It can range from a few weeks to a few months at the start of employment. Australian employee probationary periods typically last between three and six months.
The Australian Fair Work Act refers to a Minimum Employment Period before an employee has access to an unfair dismissal claim if you terminate their employment. This minimum period is six months for companies with more than 15 employees, and 12 months for small businesses with less than 15 employees.