Payroll tax: 0-6.85% (determined by territory and salary)
Superannuation: 11.5% (due to reach 12% in July 2025)
Medicare levy: 2%
| Taxable Income | Income tax |
|---|---|
| $ 0 - $18,200 | $0 |
| $ 18,201 - $45,000 | 16c for each $1 over $18,200 |
| $ 45,001 - $135,000 | $4,288 plus 30c for each $1 over $45,000 |
| $ 135,001 - $190,000 | $31,288 plus 37c for each $1 over $135,000 |
| Over $ 190,001 | $51,638 plus 45c for each $1 over $190,000 |
Paid time off: 4 weeks + bank holidays
Paternity leave: 2 weeks paid annual leave
Sick leave: 10 days
Parental leave: 16 weeks
Maternity leave: 52 weeks of which 90 days are paid at the national minimum wage
Independent contractor agreements
Direct local employer setup
Partnering with an Employer of Record Australia /full-service Professional Employer Organisation
Setting up a local company in Australia is relatively straightforward. However, the difficult part comes after the initial setup when employers have to comply with national employment standards, calculate and run payroll every month, file taxes, extend and manage all mandatory employee benefits, and stringently follow changes of rules and regulations. Here is an overview of everything you will find yourself needing to do.
As with every other country, there are certain costs associated with employing a worker in Australia that come on top of the gross salary you are offering. In Australia those are payroll tax and Superannuation contributions. To view the exact percentages and amounts given the salary you are planning to offer, you can use our handy calculator tool.
Boundless as the Employer of Record Australia files all pertinent taxes and contributions to the state health care provider as they relate to the compliant employment of an individual in their home country.
In Australia, both employers and employees have to pay taxes. For employers, these include payroll tax and Superannuation and for employees, they include Income tax and medicare levy. To get a clear overview of both employee and employer taxes, use our salary breakdown calculator, submitting any additional data needed and get a downloadable pdf like this one.
