Australia

There are four common ways to hire in Australia. You can run payroll from your HQ, where the employee remains tied to your home entity, though this is usually limited to short-term or specific cases. You can engage contractors for independent work, set up a local entity, or use an Employer of Record. An EOR enables compliant hiring in Australia without establishing a local company. 

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 in rules and regulations.

Contractors work well when the relationship is project-based and the person serves multiple clients. If an individual gives their full and undivided attention to your company in Australia, employment is the right structure under Australian law, covering entitlements like paid leave, superannuation, and sick leave. For project-based contractor engagements, Boundless’s Agent of Record (AOR) service handles classification, contracts, and payments compliantly in Australia.

HR compliance in Australia means your policies and procedures respect all applicable Australian employment laws and regulations. When you hire in Australia, this matters both to safeguard employee rights and to reduce employer risk. Compliance covers labour laws, sick leave (10 days), annual leave (4 weeks), minimum wage ($24.95/hour), tax credits, and working hours. Following these is fundamental for the correct running of your business.

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.

An Employer of Record is the legal employer of the individual in Australia for government, tax, and employment purposes. It provides a locally compliant contract, runs payroll, files employment taxes, and manages statutory benefits such as 52 weeks of maternity leave and 12% superannuation contributions. You remain responsible for sourcing workers, managing day-to-day work, and funding payroll each cycle.

Boundless as the Employer of Record files all pertinent taxes and social security contributions as they relate to the compliant employment of an individual in their home country.

Boundless partners with employment lawyers and advisers in each country we operate in, including Australia. They ensure employment contracts and onboarding documents comply with the local jurisdiction. We hold detailed discussions on specific norms such as payroll, social protection, data protection, notice periods, and work-from-home regulations. When a sensitive issue arises, our internal team engages the relevant firm promptly.

The company remains responsible and informs employees of the day-to-day management of the people and teams that are employed through Boundless, including any disciplinary or performance issues. Boundless ensures compliance with Australia-specific procedures, practices and labour laws while employing people and teams on behalf of the company.

Any new employee that is locally employed through an Employer of Record gets full employment rights and benefits as specified in Australian employment law. They get a locally compliant employment contract, statutory maternity leave, annual leave, illness benefits, any relevant tax credit, and many more. All Australia-based employees receive healthcare through the public healthcare system.

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 to submit any additional data needed and get a downloadable PDF via email.