Hire in Australia
Australia PEO &
Employer of Record
Hire & manage teams remotely in Australia without a local entity. We handle HR compliance, payroll & taxes so you can focus on your business.
Hire Employees in Australia
The NNRoad Advantage ☺
Pay as you go
Global account manager
Employer of Record in Australia
Compliance & Payroll
Recruiting process outsourcing – including but not limited to resume screening, shortlisting candidates, coordination for interviews, and assistance for salary negotiation.
Hiring and termination of employees/local labor contracts (contract administration – engagement, extension termination and conversion to permanent hire).
On-boarding and off-boarding employees following labor law practice.
Complete payroll solution and benefit administration
Employee management – employee record retaining, time keeping, bonus and allowance management, expense and claims, and leave employee database management accordingly to the local law.
Mandatory insurance compliance (i.e. pension, labor and health insurance) according to the local labor laws.
Payment management (Invoicing customers/clients and vendor payments).
Work VISA application assistance, if needed.
Local individual income tax reporting.
Payroll & PEO in Australia
Compliance & Payroll
Registering the necessary company and personnel information for payroll calculation in the payroll software and system
Monthly Payroll Processing
Year-End Adjustment and Annual Declaration
Taxes & Payroll in Australia
Employee Income Taxes:
Individual income tax rates in Australia are based on progressive tax brackets. Incomes at or bellow AUD18,200 per year are not taxed.
Income tax is the primary source of revenue for the Australian government and is levied on individuals and companies based on their taxable income. In Australia, the income tax system operates on a progressive tax scale, meaning that individuals with higher incomes pay a higher rate of tax.
The tax year runs from July 1st to June 30th and individuals are required to file an annual tax return with the Australian Taxation Office (ATO) by October 31st. The ATO uses this information to calculate the amount of tax that an individual owes or the amount of refund they are entitled to. The income tax rate for individuals varies based on their taxable income, with the current highest marginal tax rate being 45%.
19%: AUD18,201 – AUD37,000
32.5%: AUD37,001 – AUD90,000
37%: AUD90,001 – AUD180,000
45%: AUD180,001 and above
37% * 10,000 = 3700
32.5% * 43,000 = 13,975
19% * 18,800 = 3572
0% * 18,200 = 0
3700+13,975+3572+0 = 21,247
Yearly income tax = AUD21,247
Employer Costs in Australia
As an employer in Australia, there are several costs associated with employing staff. In addition to paying the employee’s salary, employers are responsible for making compulsory superannuation contributions on behalf of their employees, which are currently set at 9.5% of the employee’s ordinary time earnings.
Employers must also cover the cost of various insurances such as workers compensation insurance, public liability insurance, and professional indemnity insurance. Employers are also required to provide various workplace benefits to their employees, such as paid leave entitlements, which may include annual leave, personal leave, and long service leave. Employers must also comply with various legislative requirements, including the Fair Work Act 2009, which sets minimum standards for employment conditions in Australia. Failure to comply with these obligations can result in penalties and fines.
Employers must pay income taxes based on the salary of their employees:
10% – Superannuation AKA Superguarantee (capped at AUD21,000 per year)
5.45% – Payroll Tax
1.0% – Medicare
Benefits & Insurance in Australia
In Australia, there are several benefits and insurance options available to employees, in addition to their salary. One of the most significant is the compulsory superannuation system, which requires employers to make contributions to a nominated superannuation fund on behalf of their employees. This provides employees with a nest egg for their retirement.
Many employers offer a range of benefits such as health insurance, life insurance, and income protection insurance. These benefits can help employees to manage their health, financial and other risks. The Fair Work Act 2009 sets out minimum standards for leave entitlements, such as annual leave, personal leave, and long service leave, which provide employees with time off work and financial support during times of need. Some industries, such as construction and hospitality, have specific insurance requirements and benefits that may differ from the general standards. It is important for employees to understand their entitlements and to choose insurance options that best meet their needs.
Employees in Australia benefit from a pension fund known as the Superannuation AKA the Superguarantee. This is an employer cost set at 10 % of the employee’s salary (capped at AUD21,000 per year).
Medicare healthcare insurance is a mandatory employer cost set at 1% of the employee’s salary.
Working Hours in Australia
In Australia, the standard working week is typically 38 hours, spread over five days from Monday to Friday. Full-time employees are entitled to a minimum of four weeks of annual leave per year, and part-time employees are entitled to a pro-rata amount based on the number of hours they work. The Fair Work Act 2009 also sets out minimum entitlements for other types of leave, such as personal leave (sick leave) and carer’s leave. The maximum number of ordinary hours that can be worked in a day is generally 10 hours, and the maximum number of hours that can be worked in a week is generally 76 hours.
Employers and employees can negotiate flexible working arrangements, such as part-time work, job sharing, and telecommuting, to meet the needs of both parties. It is important to note that some industries, such as construction and hospitality, have specific working hours and leave entitlements that may differ from the general standards.
Working Hours Per Week
According to the National Employment Standards (NES) of Australia. The legal maximum working hours per week in Australia is 8 hours for full-time employees. Note that maximum legal working hours can vary by industry in certain countries. Contact us for more detailed information.
Overtime Laws & Regulations
Overtime compensation varies based on the industry. Australia has a list of 122 industries with various mandatory overtime rates and “modern awards” which states the employment terms for each industry. Employees that are not entitled to overtime rates must still be compensated for overtime work. Employees working overtime on regular workdays are guaranteed 150% of regular wages. Employees working Sundays are guaranteed 200% of the regular wage. When working in Australia, employees can ask for time off instead of overtime compensation.
Termination Laws in Australia
In Australia, the Fair Work Act 2009 sets out the minimum standards for the termination of employment. Either the employer or the employee can initiate the termination of employment, but the termination must be carried out in accordance with the provisions of the Act. An employer must provide written notice of termination to an employee, the minimum notice period of which depends on the length of service of the employee.
In some cases, an employer may be able to terminate an employee without notice if the employee engages in serious misconduct. An employee may also be able to terminate their employment without notice if the employer breaches the terms of the employment contract. In the event of a dispute, either party can seek resolution through the Fair Work Commission, which is the national workplace relations tribunal. It is important for both employers and employees to understand their rights and obligations when it comes to termination of employment to ensure that the process is carried out fairly and in accordance with the law.
Severance in Australia is only provided in cases of redundancy, when an employee’s job becomes redundant either through technology or cost reductions.
Employers in Australia must provide employees with a minimum statutory notice period between 1-4 weeks in the event of termination.
- Employed for 1 year = 1 week’s notice
- Employed for 1-3 years = 2 weeks notice
- Employed for 3-5 years = 3 weeks notice
- Employed for more than 5 years = 4 weeks notice
Employment Contract in Australia
Contracts must follow the regulations set by the National Employment Standards but can be agreed upon either verbally or through a written contract.
Employers can put their employees on a probationary period to assess if employees are suitable for the role and business. The employer decides on the length of the probationary period which can range from a few weeks to a few months not exceeding 1 year.
During a probationary period, employees receive the same entitlements as an employee, not on probation.
Types of Leaves in Australia
Employees in Australia are entitled to 4 weeks or 20 days paid leave annually. Untaken leave accumulates, is not capped and does not expire.
Full-time employees in Australia are entitled to 10 days of paid sick or personal leave per year.
Full-time employees in Australia are entitled to 12 months of unpaid maternity leave. The maternal employee can request an extra 12 months of unpaid leave for a total of 24 months of unpaid leave.
Full-time employees who are new fathers are entitled to 5 days of unpaid leave starting from the birth of their newborn child.
Under the Federal Government’s paid parental leave scheme, eligible employees and new mothers who pass an income test, a work test and meet residency rules, are entitled to up to 18 weeks’ paid leave at the minimum wage.
Bereavement leave refers to leave taken as a result of a loss of someone in the employee’s immediate family or in the case of a miscarriage. Full-time employees in Australia are entitled to 2 days paid leave each time.
Public Holidays in Australia
In Australia, there are several public holidays throughout the year, which provide employees with a day off work and time to spend with family and friends. The most well-known public holidays are Australia Day, Christmas Day, and New Year’s Day. The number of public holidays that employees are entitled to varies depending on the state or territory in which they work. In some states, additional regional or local public holidays are also observed. If an employee is required to work on a public holiday, they are generally entitled to receive penalty rates, which are higher than their normal pay rate.
The Fair Work Act 2009 sets out the minimum standards for public holidays, including entitlements for part-time and casual employees. It is important for both employers and employees to understand their rights and obligations with respect to public holidays to ensure that they are treated fairly and in accordance with the law.
- New Year’s Day – January 1
- Australia Day – January 26
- Canberra Day – March 14
- Good Friday – April 15
- Easter Sunday – April 17
- Easter Monday – April 18
- Anzac Day – April 25
- Reconciliation Day – May 30
- Queen’s Birthday – June 13
- Labour Day – Oct 3
- Christmas Day – Dec 25
- Boxing Day – Dec 26