Boundless Logo
Country Guide

Australia

Hire in Australia at a Glance

CURRENCY
$ Australian dollar
WORKING HOURS
38 hours/week
PUBLIC/BANK HOLIDAYS
8 days
CAPITAL
Canberra
LANGUAGE
English
REMOTE WORKERS
1.1 M
MINIMUM HOURLY SALARY
$21.38
TAX YEAR
1st Jul - 31st June
DATE FORMAT
DD/MM/YYYY
MISCLASSIFICATION PENALTIES
Misclassification fines of up to AU$54,000, plus AU$10,800 per manager involved in addition ot back-paying employee entitlements and interest.
FUN FACT
It would take more than 27 years to visit one new Aussie beach every day.

Employment tax: 

13.74% - 18.85%

Payroll tax - 0-6.85% (determined by territory and salary)

Superannuation - 10.5% (increasing by 0.5% each year, reaching 12% in 2025)

Employee tax: 

2% - 47%

Medicare levy: 2%

Income tax:
 
Taxable IncomeIncome tax
$ 0 - 18,2000
$ 18,201 - 45,00019 cents for each $1 over $18,200
$ 45,001 - 120,000$5,092 plus 32.5 cents for each $1 over $45,000
$ 120,001 - 180,000$29,467 plus 37 cents for each $1 over $120,000
Over $ 180,000$51,667 plus 45 cents for each $1 over $180,000
  
  

Australia Employment Cost Calculator

Use our handy calculator to understand what are all the employment costs you have to consider in Australia

Provide us with some extra details and we will send you a full breakdown of the salary costs.

Employer of Record in Australia

Read more
An Employer of Record is the legal employer of a worker in Australia. As such, the Employer of Record takes care of all Australia compliance aspects of employment, including payroll, taxes, statutory benefits, employment contracts and more.

the employer of Record is responsible for:

Ensuring their employment is compliant with local employment laws
Processing local payroll
Filing employment related taxes and returns
Issuing payslips to the employee
Distributing salary payments

How Employer of Record works

COMPANY

Maintains a direct relationship with the employee, allocates them work tasks, and manages their performance.

BOUNDLESS

Takes care of payroll, taxes, benefits, ensuring the employee and the company are compliant with all legal regulations.

EMPLOYEE

The third party to the agreement, the employee, fulfils all of their obligations as a worker for the company.

Statutory Benefits in Australia

Read more
Medicare
Superannuation
Worker compensation insurance
Flexible work
Personal carer's leave

Common Non-mandatory Benefits in Australia

Read more
Life and disability insurance
Long term disability
Employee Assistance Programme
Childcare places and subsidies
Additional annual leave
Private healthcare
Paid parental leave
Commuter allowance
Career development allowance

Employee Rights and Protections

Read more
Employment agreement
Payslip
Flexible working
Equal opportunity
Fair work information statement
Protection from adverse employer actions
Modern Awards
Redundancy payment
Union membership

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

Probation

Read more
There is no prescribed probationary period under Australian law. Usually, employees in Australia are subject to a probationary period of either 3 or 6 months.

Payment Frequency

Monthly is the most common, however, employees may also be paid weekly or fortnightly.

End of Employment

Read more
Sound reasoning to the dismissal is vital for employers to ensure a minimal risk of unfairness claims from employees. That includes capacity, performance, misconduct or redundancy. Failing to base a termination on the above areas could result in an unfair dismissal claim. Termination of the employment must be consistent with the terms of any employment contract and the requirements of any Modern Award/enterprise agreement that applies to the relevant employee. Failure to do so can result in claims for breach of contract or breach of the industrial instrument.

Employees who have been employed for six months (12 months for businesses with less than 15 employees) are protected from terminations of employment that are harsh, unjust, unreasonable or that don't follow the correct grievance procedure.

Employees working with the business for at least one year are entitled to redundancy pay according to their length of service. Redundancy pay is in addition to an employee's notice period.

Frequently Asked Questions

What are my options if I want to hire a worker in Australia?

While there are generally four ways of employing people across borders, not all are legal or sensible. Here is an overview of each way to employ a worker in Australia, outlining the potential cons.
 
HQ country employment & payroll
 
While the person is in Australia, they are employed and payrolled directly by the company’s HQ entity.
Cons: This may appear attractive, but it generally isn't legal in the long term. HQ payroll won't be possible if the person is not a tax resident in the HQ country.

 

Independent contractor agreements

People are locally registered as sole traders or limited liability company owners in Australia and invoice for their work. There is no direct employment relationship.
Cons: In Australia, this is not a compliant or legal way to engage full-time workers who work solely for your company. There will be challenges in attracting and retaining talent.

 

Direct local employer setup

The company sets up as a fully-compliant local employer. This often involves setting up a local entity and local tax registration.
Cons: Expensive, time-consuming, high-level of complexity. Unknowns around how obligations and costs will evolve over time. There will be a need to stay on top of changes in regulations.

 

Partnering with an Employer of Record Australia /full-service Professional Employer Organisation

Employment is handled by a platform that specialises in employing people on behalf of customer companies. The Employer of Record helps to hire and pay employees.
Cons: For some countries, the ongoing costs may be higher than direct employment. Some education is needed to inform employees about how the employment relationship will work.

How long does it take to set up a company in Australia?

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.

Can I employ people as independent contractors in Australia?

While many employers practice employing remote workers as independent contractors, it's a bad practice. If an individual is giving their full and undivided attention to your company in Australia, treating them as an independent contractor is a likely breach of Irish employment laws and of those in your country.
 
Your company could be liable for fines on owed holiday pay, sick pay, social welfare payments, paternity benefit, maternity benefit, or other legal measures. Since the individuals you are working with do not receive the benefit of local employment laws and protections that are often afforded to people working full-time hours.

What does HR compliance mean in Australia, and why does it matter?

When you hire employees in Australia, you have certain obligations as an employer. HR compliance is about ensuring your policies and procedures respect all applicable laws and regulations regarding employment and work practices. Complying with local employment law in Australia is fundamental for the correct running of your business - not only because these laws are in place to protect employees and guarantee their rights are safeguarded, but to minimise your risk of liabilities as an employer. Being compliant means respecting and following all local labour laws, sick leave and illness benefits, annual leave, minimum wage, tax credits, working hours regulations.

How much does it cost to employ someone in Australia?

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.

What does Employer of Record mean in Australia?

It means that Boundless is the legal employer of the individual, as far as the Irish government, tax, and employment authorities are concerned. We are responsible for:
  • informing you about any pre-employment requirements
  • ensuring their employment is compliant with Irish employment law
  • informing you about the length of the maternity leave, paternity leave, public holidays, illness benefits, medical benefits
  • providing a locally compliant employment contract
  • processing local payroll
  • filing employment-related tax returns
  • issuing payslips to the employee
  • distributing salary payments
  • payments to the local tax authorities
Customers that work with an Employer of Record in Australia are responsible for:
  • sourcing and recruiting their own workers
  • managing the employee’s day-to-day work load
  • contributing to the personal / professional development of the employee through their work
  • following any guidance we give on employment and HR best practices or legal obligations in Australia, such as the employment contract, public holidays, annual leave, sick leave, maternity and paternity benefits, probationary periods, overtime pay, statutory redundancy payments, liability insurance and many others
  • ensuring that payroll bills relating to their team are paid to Boundless before the cut-off point in each pay cycle

Who is responsible for filing and paying employees' taxes and social insurance contributions in Australia if employing through an Employer of Record?

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.

How does Boundless as an Employer of Record Australia ensure HR compliance in Australia?

We carefully choose employment lawyers or advisories to partner with in each country we operate in, including Australia. They ensure the Australian employment contracts, and any other relevant documents required for new employees comply with the local jurisdiction. We have thorough discussions on specific norms such as payroll services, social protection, data protection, notice period or work-from-home regulations. Whenever a potentially sensitive issue arises in Australia, our internal team contacts the relevant firm to ensure all steps are taken to resolve it promptly.

What are the legal responsibilities of a company when they use an Employer of Record service like Boundless in Australia?

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.

Do employees get all their rights and benefits when employed through an Employer of Record in Australia?

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.

What taxes do I need to pay in Australia?

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.

Why choose Boundless as your employment partner in Australia
Next
© 2022 Boundless Technologies Limited.
info@boundlessHQ.com
The Greenway, 112-114 St. Stephen's Green, Dublin, Ireland.
cross