Australia
Make employment in Australia easy. Let us handle payroll, benefits, taxes, compliance, and even stock options for your team in Australia, all in one easy-to-use platform.
- Capital city
Canberra
- Currency
Australian dollar ($, AUD)
- Languages
English
- Population size
25,771,300
- Remote-Owned Local Entity
Facts & Stats
- Capital city
Canberra
- Currency
Australian dollar ($, AUD)
- Languages
English
- Population size
25,771,300
- Ease of doing business
Very easy
- Cost of living index
$$$$ (14 of 139 nations)
- Payroll frequency
Monthly
- VAT - standard rate
10%
- GDP - real growth rate
2.2%
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.
Grow your team in Australia with Remote
Looking to employ workers in Australia? Companies hiring in Australia must either own a legal entity in the country or work with a global employment solutions provider, usually one that provides employer of record services.
Remote can employ your team in Australia on your behalf through our local legal entity in the country and handle payroll, benefits, taxes, and compliance for your Australia team. You can also pay contractors now in Australia with Remote.
Risks of misclassification
Australia, like many other countries, treats self-employed individuals or contractors and full-time employees differently. Misclassification of contractors in Australia may lead to fines and penalties for the offending company.
Employing in Australia
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.
Minimum Wage
In Australia, the National Minimum Wage is $21.38 per hour.
Payroll Cycle
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.
Onboarding Time
We can help you get a new employee started in Australia fast. The minimum onboarding time we need is only 5 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.
8 Public holidays
Competitive benefits package in Australia
Remote supports our clients by offering competitive benefits packages that will help you attract and retain the best talent across the globe! Our benefits specialists have done the research on norms and requirements in each local market and have crafted packages that will allow your employees to thrive, no matter what country they live in.
Our benefits packages in Australia are tailored to fulfil the local needs of your employees. Typically, our packages contain some or all of the following benefits:
Health Insurance
Dental Insurance
Vision Insurance
Mental Health Support
Pension or 401(K)
Life and Disability Insurance
Local market insights
In Australia, only 10%* of employers offer supplemental health insurance to their workforce. (*based on 3rd-party market research from our partners)
The country has a robust public health system, and while supplemental health insurance is not the norm today, it provides employees with access to a wider range of options for providers and specialists. Having health insurance also offers tax benefits to high-earning employees.
Employees who receive private health insurance are exempt from the Medical Levy Surcharge (MLS), which is an additional tax charge to any employees earning over AUD$90,000 (AUD$180,000 for couples and families) who don’t have locally compliant private health insurance in place.
Having private health insurance is also required for employees on certain visas in Australia.
Remote offers healthcare plans in Australia that satisfy the MLS and visa requirements.
Our core benefits (which often include things like healthcare) are required in most countries where we hire. Because Remote is the employer of record, it’s important for us to offer the same core benefits to all employees in a country to ensure fair equity and non-discriminatory hiring practices, which protects your business and ours. Note that we do not add a markup on any benefits premiums or administration costs.
If you'd like specific information about our benefits packages in Australia, start onboarding your first employee with Remote today.
For more insight into fair equity and benefits best practices, download our Global Benefits Guide and share with the rest of your hiring team.
Taxes in Australia
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
Types of Leave
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.
Employment termination
Termination process
An employer in Australia 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.
Notice period
The notice period for terminating an employee in Australia depends on the tenure of the employee at the company.
Employees with 1 year of service or less are entitled to one week of notice.
Employees with more than 1 year to 3 years of service are entitled to two weeks’ notice.
Employees with more than 3 years to 5 years of service are entitled to three weeks’ notice.
Employees with more than 5 years of service are entitled to four weeks’ notice.
Employees over the age of 45 who have been employed for at least two years require an additional week of notice.
Severance pay
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.
Employees with 1 year but less than 2 years of service at the company receive at least four weeks’ severance pay.
Employees with 2 years but less than 3 years of service at the company receive at least six weeks’ severance pay.
Employees with 3 years but less than 4 years of service at the company receive at least seven weeks’ severance pay.
Employees with 4 years but less than 5 years of service at the company receive at least eight weeks’ severance pay.
Employees with 5 years but less than 6 years of service at the company receive at least 10 weeks’ severance pay.
Employees with 6 years but less than 7 years of service at the company receive at least 11 weeks’ severance pay.
Employees with 7 years but less than 8 years of service at the company receive at least 13 weeks’ severance pay.
Employees with 8 years but less than 9 years of service at the company receive at least 14 weeks’ severance pay.
Employees with 9 years but less than 10 years of service at the company receive at least 16 weeks’ 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.
Probation periods
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 or above, and 12 months for small businesses with less than 15 employees.