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Find out how Remote can guide you through the complexities of managing cross-border hiring, payroll, taxes, and compliance.

 

Payroll services in Australia

Australia has a strong economy with key industries in mining, healthcare, finance, and technology. With specific labor laws and tax regulations, employers in Australia must ensure compliance with local payroll requirements, including superannuation contributions, employment contracts, and tax obligations. Understanding these regulations is essential for smooth payroll operations and legal compliance.

Payroll breakdown in Australia

Employers in Australia must adhere to national payroll regulations regarding wages, taxes, and social contributions. Below is an overview of key payroll components:

Minimum wage and working hours

  • Minimum wage: Australia’s minimum wage is AUD 23.23 per hour.
  • Payroll frequency: Salaries are generally paid weekly, biweekly, or monthly.
  • Standard working hours: The normal workweek in Australia is 38 hours, typically spread over five days.
  • Overtime: Employees are entitled to additional pay for overtime work, calculated based on industry awards and enterprise agreements.

Taxation and superannuation contributions

  • Personal income tax: Australia has a progressive income tax system with rates ranging from 0% to 45% depending on income levels.
  • Employer contributions: Superannuation: 11% of the gross salary (mandatory employer pension contribution).
  • Employee contributions : Personal income tax: Withheld from wages based on the Pay-As-You-Go (PAYG) system.
  • Corporate tax: The corporate income tax rate in Australia is 30% (25% for small businesses).
  • Tax reporting: Employers must file payroll taxes and contributions with the Australian Taxation Office (ATO) regularly.

Payroll compliance in Australia

  • Employment contracts must be provided in writing and specify terms such as salary, working hours, and job responsibilities.
  • Payroll deductions: Employers must ensure accurate deductions for superannuation and income tax.
  • Employers must stay updated on changes to Australia’s labor laws and tax regulations to avoid penalties.

Quick facts: Important considerations for employers

  • Payroll frequency: Salaries are generally paid weekly, biweekly, or monthly.
  • Currency: Payroll in Australia is processed in Australian Dollars (AUD).
  • Tax reporting: Employers must file payroll taxes and contributions with the Australian Taxation Office.
  • Payroll deductions: Employers must ensure accurate deductions for superannuation and income tax.
  • Payroll compliance: Employers must stay updated on changes to tax rates and reporting requirements.

Run payroll in Australia with Remote

Managing payroll in Australia requires careful attention to tax regulations, employment laws, and social security requirements. Employers must stay informed about tax rates, wage laws, and reporting deadlines to ensure smooth payroll processing and avoid penalties.

The good news is, you can pay anyone, anywhere — from your team in the office to your team abroad, all with Remote Payroll. To see just how easy global payroll can be with Remote, book a demo today.