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Australia
Looking to employ or expand your business within Australia?
To help get you started we are pleased to provide an overview of key information about Australia’s employment market, including Hiring Regulations, Tax Rates, Termination Regulations, National Public Holidays and Employee Benefits.
Expanding into Australia
Key facts
Contract Types
Contracts can be Fixed Term, indefinite, full-time, part-time or casual. Contract provisions will vary between the different states of Australia.
Probation
6 months but can be up to 12 months if more than 15 people are employed.
Working Hours
38 hours per week.
Overtime
Overtime rates are 150% for the first 2 or 3 hours and 200% over this. If the employee is an “Award” employee overtime must be paid, otherwise employees can work reasonable hours without overtime.
Other Financial
Annual bonuses are common, usually 6-10% of annual pay. Australia has a pay as you go tax system i.e., employers withhold employee taxes and pay them on to the government.
Other
Monthly payroll is paid on the 28th -30th of each month. Contracts must be accompanied by a Fair Work Information Statement.ut is usually at the end of the month.
Tax rates valid for: 2023/24
Corporation Tax: 30% (25% for small business)
Consumption Tax: 10%
Payroll Taxes: 4.9%
Varies from state to state and different threshold amounts apply.
Employers’ Social Security (Superannuation Guarantee)
12% from July 2024
Subject to a cap
Employees’ Contributions
N/A (But 2% Medicare levy)
Income Tax Rates (till July 2024)
- Tax free allowance: Up To 18,200 – 0%
- Lower rate: 18,200-45,000 – 19%
- Middle Rate: 45,000-120,000 – 32.5%
- Higher rate: 120,000-180,000 – 37%
- Top rate: Above 180,000 – 45%
Notice
Notice requirements are determined by length of service:
- Less than 1 year: 1 week
- 1 – 3 years: 2 weeks
- 3 – 5 years: 3 weeks
- Over 5 years: 4 weeks
Employees over 45 years of age with 2 years’ service or more are entitled to an additional week’s notice.
Payment in lieu of notice is allowed. Employment contracts may provide for longer notice with a maximum of 12 months. 4 weeks is normal for professionals.
Dismissal
Reasons allowed for termination vary according to the number of employees within the company and the length of service. The employee has 21 days from the date of dismissal to file a claim with the Fair Work Commission. Remedy is reinstatement, or compensation with up to 6 months’ pay.
During Probation
Allowed and the employee has no right to approach the Fair Work Commission.
Severance Pay
- 1-2 years: 4 weeks’ severance pay
- 2-3 years: 6 weeks’ severance pay
- 3-4 years: 7 weeks’ severance pay
- 4-5 years: 8 weeks’ severance pay
- 5-6 years: 10 weeks’ severance pay
- 6-7 years: 11 weeks’ severance pay
- 7-8 years: 13 weeks’ severance pay
- 8-9 years: 14 weeks’ severance pay
- 9-10 years: 16 weeks’ severance pay
- Over 10 years: 12 weeks’ severance pay
National Public Holidays: 7 minimum plus additional holidays declared by each state and territory.
January 1st – January 1st
Type: National, Day Given in Lieu: Yes
Australia Day – January 26th
Type: National, Day Given in Lieu: Yes
Royal Hobart Regatta* – Feb 12th
Type: T, Day Given in Lieu: NA
Labour Day – March 4th
Type: WA, Day Given in Lieu: NA
Labour Day – March 11th
Type: V, T, Day Given in Lieu: NA
Adelaide Cup Day – March 11th
Type: SA, Day Given in Lieu: NA
Canberra Day – March 11th
Type: ACT, Day Given in Lieu: NA
Eight Hours Day – March 11th
Type: T, Day Given in Lieu: NA
Good Friday – March 29th
Type: National, Day Given in Lieu: NA
Easter Monday – April 1st
Type: National, Day Given in Lieu: NA
ANZAC Day – April 25th
Type: National, Day Given in Lieu: Yes
Labour/May Day – May 6th
Type: NT, QL, Day Given in Lieu: NA
Reconciliation Day – May 27th
Type: ACT, Day Given in Lieu: NA
Western Australia Day – June 3rd
Type: WA, Day Given in Lieu: NA
King’s Birthday – June 10th
Type: ACT, SA, NSW, NT, T, V, Day Given in Lieu: NA
NT Picnic – August 5th
Day Type: NT
Day Given in Lieu: NA
Royal National Agricultural Show Day (Brisbane only) – August 10th
Type: QL, Day Given in Lieu: NA
King’s Birthday – September 23rd
Type: WA, Day Given in Lieu: NA
Labour Day – October 7th
Type: ACT, NSW, SA, Day Given in Lieu: NA
Queen’s Birthday – October 7th
Type: QL, Day Given in Lieu: NA
Melbourne Cup Day – November 5th
Type: V, Day Given in Lieu: NA
Christmas Day – December 25th
Type: National, Day Given in Lieu: Yes
Boxing Day – December 26th
Type: National, Day Given in Lieu: Yes
Only national holidays and mainland states plus Tasmania are listed. Note additional holidays may be observed in some regions.
ACT Canberra, NSW New South Wales, NT Northern Territory, QL Queensland, SA South Australia, T Tasmania, V Victoria, WA Western Australia. The day given in lieu may differ by state, usually if a holiday falls on weekend, it is observed on the following Monday.
All leave entitlement is based on a 5-day working week. Public holidays falling on Sunday not included. Number of days quoted are working days unless stated otherwise.
Paid legal entitlement (working days)
20 days minimum (25 days for shift workers). It is common for employers to provide more than the statutory minimum.
Carry over permitted
Yes, employees can carry over entitlement indefinitely and leave accumulates from year to year.
Payment in lieu allowed
Unused leave can be cashed out if the employee still has at least 4 weeks leave left over, by written agreement between both parties. Paid out in full at termination.
Sick
10 days’ paid sick leave per year which can also be used as Carer’s leave. This leave can be carried over. If the employee is unable to work after 10 days, then he can use 3 months of unpaid leave with evidence of illness. Sick leave is paid by the employer.
Maternity
12 months’ unpaid leave after 1 year of service. Many employers provide paid leave. New mothers can be eligible for 18 weeks of paid federal government paid leave, paid in addition to employer leave (see parental leave). Employees may request up to an additional year of unpaid leave. Special (unpaid) maternity leave is also available for those who have complications during pregnancy, it is available within 28 weeks of the due date, and employees can take as long as they need.
Paternity
Up to 2 weeks of government paid leave if not receiving paid leave from the employer and if the employee meets work and income level tests.
Parental
The government pays up to 18 weeks’ parental leave for employees who meet income, employment and residency tests. It is possible to request 12 months’ unpaid leave additional to maternity and paternity leave, which can be extended for up to 24 months with employer agreement.
Bereavement
2 days paid for compassionate, and bereavement leave each time a member of the employee’s immediate family or household dies, or suffers a life-threatening illness.
Other
Additional Carer’s Leave – 2 days unpaid per occasion (if no personal leave (sick/carer’s) leave is left.
Family and domestic violence leave – 5 days unpaid per 12 months
Community service leave 10 paid days eg for jury service and for voluntary emergency work. (After 10 days this leave is unpaid and unlimited as long as it is reasonable)
Medical
Some employers provide supplementary group medical cover, in addition to the state provision of Medicare. Individual medical insurance plans are usually provided by means of an allowance. Cover is not always extended to dependents. Typical insurance plans will fill the gap in Medicare cover including hospitalisation, ambulance services, therapies, dental and vision. Some employers will offer employees the opportunity to contribute to a voluntary employee-paid group plan whereby the employees can avail of discounted premiums.
Life
Life cover which is additional to that provided under the superannuation plan is occasionally offered.
Pension
Supplementary pensions are not normally offered in Australia, though some employers may contribute more than the mandatory amount to the Superannuation Fund.
Other
In Australia insurance brokers do not get income from commission from the insurers, but rather charge fees to set up policies. This would be several thousand dollars. Critical mass for a group policy is 5.
We make expansion in Australia simple
Employing people compliantly across international borders can be challenging but we make it simple, bringing down barriers and making light work of the complexities. We offer the full range of compliant global expansion solutions so that wherever, whenever and however you want to employ people, we can support you.
EOR Services
Employ people compliantly in 180+ countries – without setting up new entities. We’ll shoulder responsibility as Employer of Record (EOR), making sure all your international employment is fully compliant.
We can also take care of your global HR from multi-country payroll to onboarding and offboarding.
Payroll Solutions
Getting global payroll right is one of the hardest challenges for any business expanding into new countries. We can shoulder this burden, freeing up valuable in-house resource to focus on growing your business.
Consider us an extension of your HR team, ready to answer all your questions large and small.
Global Mobility
Mobilise your people across borders with ease. Relocating to work abroad can feel daunting. But with Leap29 at your side, your employees can feel safe and supported.
We’ll guide your employees through the complexities of working in another country, helping them settle in fast.
Entity Services
Follow the opportunities to grow your business – wherever they take you.
We lighten the load of establishing and managing foreign entities and can help you solve all your entity challenges from running compliant, accurate multi-country payroll to local accounting and financial reporting.
PEO Solutions
Employ international talent wherever and whenever you need it – and enjoy the peace of mind of knowing you’re fully compliant. Our Professional Employer Organisation (PEO) services allow you to focus on growing your business while we handle compliance, multi-country payroll and your global HR.
Support & Advisory
The help you need to make your global growth effortless – trusted guidance and advice on your expansion challenges large and small.
HR Support
When you’re employing people in lots of different countries, answering just a simple query can take a disproportionate amount of time for your in-house HR team. Our HR Support service reduces this burden, saving you time and money and giving you the confidence of knowing your employees are well looked after, whatever their location.
Contractor Payroll
Enjoy compliant contractor payroll that meets all local requirements for tax, social security and employment legislation. We understand the importance of compliant contractor payroll to the success of your business and will pay your contractors on time, every time.
Start hiring today – and onboard within hours.
Pricing
Budget confidently with transparent, competitive fees and no hidden costs.
Want us to shoulder employer liability and take care of your global HR through our EOR solution? No problem. Just want global payroll? You can have that too. Pick the solutions that your individual business needs.
We’re a people business with employee management software, not a software business that works in employee management!
At Leap29 we offer access to the latest technology and software to easily and effectively manage your employees from anywhere in the world.
Our bespoke online portal LeapForward helps ensure a smooth onboarding process, manages monthly payroll and easily facilitates additional bonuses and expenses. By streamlining your processes through our online portal, it will help you attract and retain great talent and take the pain out of payroll management.
Integrated fully with our global EOR services, LeapForward comes at no additional cost to you but is guaranteed to save you time and money whilst simplifying your employee management procedures.
Australia
Expansion Resources
Want to learn more about employment and expansion into Australia?
Check out our Australia resource pages below for more information about the employment market in Australia.
Our Recruitment Services
A global recruitment partner you can trust
We solve global recruitment challenges for businesses large and small. Whether you’re building out a new team, expanding into another country or looking for a confidential executive level hire, you can trust us to deliver.
Need 80 contractors in Brazil? Looking for just one very special permanent hire? Want us to take care of your global HR? It’s all in a day’s work at Leap29.
Whatever and wherever your mandate, we can help.
Permanent Recruitment
Connect with great permanent talent to drive your business forward. We help you find both key strategic hires to lead organisational growth and project specialists to deliver on deadlines and budgets.
Workforce Management
Reduce the complexity of managing workers in different countries and save yourself time, energy and money.
Local expertise, global reach
Employ people compliantly in 180+ countries – with or without your own foreign entities. We can help you set up and manage foreign entities – or act as an Employer of Record. We can also help with multi-country payroll and all your HR management. Wherever, whenever and however you want to employ people, we can help.
180+
India
Denmark
Brazil
New Zealand
Romania
Belgium
USA
France
Italy
Netherlands
Talk to an expert today
Whatever stage you’re at in your global expansion journey, we can help.
Contact us today to see how Leap29 can be the trusted partner that supports your global expansion.