Can a foreign company hire employees in Australia?
Yes, through an Australian entity or an Employer of Record. Employer cost is modest by international standards: superannuation at 12% plus state payroll tax where the threshold is crossed. The complexity sits in the Modern Award system, which sets binding minimum conditions by occupation and industry.
An Australian entity is normally a proprietary limited company, requiring an ACN from ASIC, at least one director ordinarily resident in Australia, an ABN and PAYG withholding registration, plus workers’ compensation insurance in each state where staff work.
An Employer of Record signs the Australian contract, runs payroll with Single Touch Payroll reporting, pays superannuation and manages award classification and workers’ compensation. The resident director requirement is often the practical reason a first Australian hire goes through an EOR.
Sources: Fair Work Act 2009 · Corporations Act 2001 · verified 3 August 2026
Why companies hire in Australia
Australia offers a highly skilled English-speaking workforce, a stable common-law framework and time-zone alignment with Asia-Pacific operations. Sydney and Melbourne dominate professional hiring, with Brisbane, Perth and Adelaide carrying sector-specific depth in resources, defence and agriculture technology.
For companies coordinating APAC activity, Australia often serves as the management base while operational roles sit elsewhere in the region. The regulatory environment is predictable and enforcement is transparent.
Employer cost is comparatively simple: superannuation at 12% plus state payroll tax where thresholds are exceeded. Superannuation caps at a quarterly maximum contribution base, so very senior salaries do not scale contributions indefinitely.
The distinctive complexity is the Modern Award system. More than a hundred awards set minimum pay, hours, penalties and allowances by industry and occupation, and they apply on top of the National Employment Standards. Determining whether an award covers a role is the first compliance question, not a footnote.
EOR, entity or contractor — which model fits?
Use an EOR to avoid the resident director requirement and state-by-state workers’ compensation. Incorporate once Australia is a permanent base. Contractor arrangements carry real exposure: sham contracting is prohibited, and contractors paid mainly for their labour are entitled to superannuation regardless of how the contract is framed.
| Employer of Record | Own entity (Pty Ltd) | Contractor (ABN) | |
|---|---|---|---|
| Time to first hire | 1–2 weeks | 3–6 weeks (ASIC, resident director, ABN, PAYG, workers’ comp) | Days |
| Local presence required | None | At least one director ordinarily resident in Australia | None |
| Ongoing obligations | EOR runs payroll, STP, super, award compliance, workers’ comp | Company tax, ASIC filings, all of the above | Invoice-based |
| Superannuation | Handled | Yours | Still payable if the contract is mainly for labour |
| Best for | First hires, testing, distributed teams | Permanent operations, larger teams | Genuinely independent businesses |
Superannuation follows labour, not employment status. A contractor engaged mainly for their personal labour is entitled to the 12% guarantee even where they invoice through an ABN. Many foreign companies discover this only when the ATO raises a Superannuation Guarantee Charge.
How Employer of Record hiring works in Australia
Typical flow for an Australian hire. Award classification should be settled before the offer, since it sets the minimum rate and conditions.
How much does it cost to employ someone in Australia?
The National Minimum Wage sets the floor for award-free employees, and is reviewed annually by the Fair Work Commission with changes taking effect from 1 July. Most employees are instead covered by a Modern Award setting higher classification-based minimums.
Pay frequency is not prescribed by statute but must be at least monthly, and fortnightly is most common. Payslips must be issued within one working day of payment and must contain prescribed information including superannuation contributions.
Annualised salary arrangements can absorb award entitlements such as overtime and penalty rates, but only where the arrangement satisfies strict record-keeping and reconciliation requirements. Failing the reconciliation test creates underpayment liability, which has produced several high-profile cases.
Superannuation is calculated on ordinary time earnings and is capped at a quarterly maximum contribution base, which limits employer cost for high earners.
2026 mandatory employer contributions
| Contribution | Total rate | Employer share | 2026 cap | Effective cost |
|---|---|---|---|---|
| Superannuation Guarantee | 12% | 100% employer | A$270,830/year (from 1 Jul 2026) | 12.00% |
| Payroll tax — New South Wales | 5.45% | 100% employer | Payroll above A$1.2m | 5.45% above threshold |
| Payroll tax — Victoria | 4.85% | 100% employer | Payroll above A$900,000 | 4.85% above threshold |
| Workers’ compensation insurance | Varies by state and industry | 100% employer | — | Premium, not a percentage of payroll |
| Leave loading | 17.5% on annual leave pay | 100% employer where an award requires it | — | ≈1.3% of salary where applicable |
Worked example
| Gross salary A$120,000/year · below the payroll tax threshold | |
| Superannuation — 12% × A$120,000 | A$14,400 |
| Payroll tax — below state threshold | A$0 |
| Total employer contributions | A$14,400 · 12.0% |
| Same salary · NSW employer above the A$1.2m payroll threshold | |
| Superannuation — 12% × A$120,000 | A$14,400 |
| NSW payroll tax — 5.45% × A$120,000 | A$6,540 |
| Total employer contributions | A$20,940 · 17.5% |
Worked example
| Gross salary A$120,000/year · below the payroll tax threshold | |
| Superannuation — 12% × A$120,000 | A$14,400 |
| Payroll tax — below state threshold | A$0 |
| Total employer contributions | A$14,400 · 12.0% |
| Same salary · NSW employer above the A$1.2m payroll threshold | |
| Superannuation — 12% × A$120,000 | A$14,400 |
| NSW payroll tax — 5.45% × A$120,000 | A$6,540 |
| Total employer contributions | A$20,940 · 17.5% |
| Role | Gross | Employer cost | Total |
|---|
Australia employer-cost calculator
What does a real hire cost? Benchmarks by role
How Australia compares — employer on-costs in the region
| Country | Employer cost | Notes |
|---|---|---|
| Australia | 12% super, plus payroll tax above threshold | Low statutory cost by international standards. Complexity sits in the Modern Award system rather than in contribution rates. |
| New Zealand | ≈ 3%–4% | KiwiSaver employer contribution plus ACC levies. |
| Singapore | ≈ 17% local / ≈ 0% foreign | CPF for citizens and permanent residents only, capped at S$8,000 of monthly wages. |
How do payroll, income tax and the 13th month work?
Payroll is reported to the tax office in real time through Single Touch Payroll, with tax withheld under PAYG. The financial year runs 1 July to 30 June, so rate changes land mid-calendar-year rather than in January.
Single Touch Payroll
Every pay event is reported to the ATO at the time of payment. Year-end finalisation is due by 14 July, after which employees access their income statement through myGov rather than receiving a payment summary.
Financial year
1 July to 30 June. Minimum wage, superannuation and tax changes take effect on 1 July, which catches employers who plan around a January cycle.
Payslips
Mandatory within one working day of payment, showing gross and net pay, superannuation contributions, and all deductions. Records must be kept for seven years.
Leave loading
Many Modern Awards require an additional 17.5% loading on annual leave pay. It is not universal but it is common, and it is a real cost line where the award applies.
No 13th month
Not an Australian concept. Bonuses are discretionary or contractual.
Superannuation fund choice
Employees choose their fund. Where they do not, the employer must request the stapled fund details from the ATO rather than defaulting to its own choice.
Sources: ATO Single Touch Payroll · Fair Work Ombudsman · verified 3 August 2026
2026 resident income tax brackets
Non-residents are taxed from the first dollar at a higher starting rate and do not pay the Medicare levy. Working holiday makers have their own separate schedule. Getting residency status right at onboarding matters more in Australia than in most markets because the difference in withholding is substantial.
Employees with study loans have additional compulsory repayments withheld through payroll, which is a common source of confusion on a first payslip.
Sources: Australian Taxation Office · verified 3 August 2026, bracket values pending line-by-line verification
| Band | Rate |
|---|---|
| Tax-free threshold | $0 – $18,200 · 0% |
| Second bracket | $18,201 – $45,000 · 15% |
| Third bracket | $45,001 – $135,000 · 30% |
| Fourth bracket | $135,001 – $190,000 · 37% |
| Top bracket | Over $190,000 · 45% |
| Medicare levy | 2% of taxable income, residents only |
| Non-residents | 30% from the first dollar, then 37% and 45% |
| Low Income Tax Offset | Up to $700, applied automatically at assessment |
| Study loan repayments | Compulsory withholding above a repayment threshold |
What does Australian labor law require?
The National Employment Standards give four weeks of paid annual leave, ten days of personal leave, and a maximum 38-hour ordinary week. On top of that, Modern Awards set binding minimum pay and conditions by occupation and industry, and they cover far more employees than foreign employers expect.
Modern Awards
Around 120 industry and occupation awards set minimum pay rates, penalty rates, allowances and conditions. They apply automatically to covered employees regardless of the contract, and paying above the award rate does not exempt an employer from its other conditions. Identifying the correct award and classification level is the first compliance step.
National Employment Standards
Ten minimum entitlements applying to all employees: annual leave, personal and carer’s leave, parental leave, maximum weekly hours, flexible working requests, public holidays, notice and redundancy pay, and the Fair Work Information Statement.
Annual leave
Four weeks per year, accruing progressively, and paid out in full on termination. Shift workers get five weeks. Many awards add a 17.5% leave loading.
Personal and carer’s leave
Ten days per year, paid, accruing and carrying over indefinitely. Covers both the employee’s own illness and caring responsibilities.
Long service leave
A distinctively Australian entitlement, set by state legislation rather than federally. Typically around two months of paid leave after seven to ten years with the same employer. It accrues as a real liability from the start.
Casual employment
A defined status with a 25% loading in place of leave entitlements, and a pathway to convert to permanent employment. Misusing casual status is a common compliance failure.
Sources: Fair Work Act 2009 · National Employment Standards · state long service leave acts · verified 3 August 2026
Contracts & probation
Working hours & overtime
Award-covered employees typically receive time and a half for the first two or three hours of overtime and double time thereafter, plus penalty rates for evenings, weekends and public holidays. Salaried employees can be paid an annualised salary that absorbs these, but only if the arrangement satisfies a better-off-overall test and is reconciled periodically.
From 1 July 2026 new rules protecting penalty and overtime rates came into full effect, restricting arrangements that reduce them. Review any annualised salary arrangement against the current position.
Sources: Fair Work Act 2009 · Fair Work Commission · verified 3 August 2026
Annual leave
Annual leave
Other statutory leave
| Leave | Entitlement | Pay |
|---|---|---|
| Personal / carer’s leave | 10 days per year | Paid. Accrues progressively and carries over indefinitely. Covers the employee’s own illness and caring responsibilities. |
| Compassionate leave | 2 days per occasion | Paid, on the death or serious illness of an immediate family or household member. |
| Long service leave | Typically ~2 months after 7–10 years | Paid. Set by STATE legislation, not federally, so entitlement and qualifying period differ between NSW, Victoria, Queensland and the others. Accrues as a real liability from the start of employment. |
| Parental leave (unpaid) | Up to 12 months, with a right to request a further 12 | Unpaid under the Fair Work Act, separate from the government scheme. |
| Paid Parental Leave (government) | 26 weeks from 1 July 2026 | Government-funded at the national minimum wage, with superannuation paid on it at 12%. Final step of a staged expansion. |
| Family and domestic violence leave | 10 days per year | Paid, available in full from day one rather than accruing. |
| Community service leave | As required | Unpaid, except jury service where make-up pay applies for the first ten days. |
Public holidays
Australia has national public holidays plus additional days set by each state and territory, so the total differs by location — Victoria observes days that New South Wales does not, and vice versa. The King’s Birthday falls on different dates in different states. Confirm the applicable state calendar before publishing.
| Holiday | Date (2026) |
|---|---|
| New Year’s Day | Thu 1 Jan |
| Australia Day | Mon 26 Jan |
| Good Friday | Moveable feast — confirm annually |
| Easter Monday | Moveable feast — confirm annually |
| Anzac Day | Sat 25 Apr |
| King’s Birthday | Date varies by state — confirm locally |
| Christmas Day | Fri 25 Dec |
| Boxing Day | Sat 26 Dec |
Family & sick leave
Superannuation is the principal statutory benefit, with employer contributions at 12% of ordinary time earnings paid into the employee’s chosen fund. Medicare provides universal healthcare funded through the tax system, so private medical cover is an enhancement rather than a necessity.
The National Employment Standards provide four weeks’ annual leave, ten days’ paid personal and carer’s leave, parental leave and long service leave — the last accruing under state legislation and often overlooked by foreign employers because it has no equivalent elsewhere.
Common enhancements include salary packaging arrangements, additional superannuation, private health cover and flexible work. Novated car leases are widely used and tax-effective.
Paid parental leave is available through the government scheme, and many employers top it up. This has become a significant competitive differentiator in professional hiring.
Termination, notice & severance
| Period of continuous service | Minimum notice period |
|---|---|
| 1 year or less | 1 week |
| More than 1 year to 3 years | 2 weeks |
| More than 3 years to 5 years | 3 weeks |
| More than 5 years | 4 weeks |
Employees over 45 who have completed at least two years of service when they receive notice get an additional week. An award, enterprise agreement or contract may set a longer period, and the longer period governs.
Payment in lieu is at the employee’s full pay rate, which includes incentive payments and bonuses, loadings, monetary allowances, and overtime or penalty rates. Redundancy pay, by contrast, is calculated at the base rate and excludes all of those. The two use different bases, which is a frequent calculation error.
Redundancy pay
| Period of continuous service | Redundancy pay |
|---|---|
| Less than 1 year | Nil |
| At least 1 year but less than 2 | 4 weeks |
| At least 2 but less than 3 | 6 weeks |
| At least 3 but less than 4 | 7 weeks |
| At least 4 but less than 5 | 8 weeks |
| At least 5 but less than 6 | 10 weeks |
| At least 6 but less than 7 | 11 weeks |
| At least 7 but less than 8 | 13 weeks |
| At least 8 but less than 9 | 14 weeks |
| At least 9 but less than 10 | 16 weeks |
| At least 10 years | 12 weeks |
Redundancy pay falls from 16 weeks to 12 at ten years of service. Fair Work states this is consistent with the 2004 Redundancy Case decision of the Australian Industrial Relations Commission. It is a genuine step down, not a typographical oddity.
Small business employers with fewer than fifteen employees are generally exempt from redundancy pay, counting associated entities as one entity and including the employees being dismissed. Regular and systematic casuals count toward the fifteen.
Accrued annual leave and long service leave must be paid out on termination. Where a business becomes insolvent, the Fair Entitlements Guarantee covers unpaid wages, leave, up to five weeks of pay in lieu of notice and up to four weeks of redundancy pay per year of service, but it does not cover superannuation or bonuses.
Sources: Fair Work Ombudsman — Notice of termination and redundancy pay fact sheet, retrieved and confirmed 3 August 2026 · Fair Work Act 2009 ss. 117, 119
How do work permits and visas work in Australia?
The main employer-sponsored route is the Skills in Demand visa, which requires the employer to be an approved sponsor and to nominate a role on the relevant occupation list at or above the income threshold. A Skilling Australians Fund levy applies per year of sponsorship.
Sponsorship approval, nomination and the visa application are three separate stages, and the Skilling Australians Fund levy is a significant per-employee cost paid upfront by the employer rather than the applicant. Employers must also meet labour market testing requirements unless an exemption applies.
Independent skilled migration and working holiday visas exist and carry no employer obligation, which is often the faster route where the candidate already holds one.
Sources: Department of Home Affairs · verified 3 August 2026, current thresholds and levy amounts pending verification
| Route | Who it fits | Key criteria | Notes |
|---|---|---|---|
| Skills in Demand visa | Employer-sponsored skilled workers | Approved sponsor; nominated occupation on the relevant list; income threshold; labour market testing unless exempt | Three-stage process; Skilling Australians Fund levy paid upfront by the employer |
| Skilled Independent visa | Skilled workers without an employer sponsor | Points-tested against occupation, age, English and experience | No employer obligation; permanent from grant |
| Working Holiday visa | Young people from eligible countries | Age and nationality criteria | No employer sponsorship; separate tax schedule applies |
What are the main compliance risks when hiring in Australia?
It can. A fixed place of business or a dependent agent habitually concluding contracts can create a permanent establishment and bring the foreign company into Australian company tax. Registering for PAYG withholding does not itself create one, but the employee’s activities may.
Australia has an extensive treaty network and the analysis usually turns on the dependent agent test. The Australian Taxation Office has also issued guidance on employees working remotely from Australia for foreign employers, which is directly relevant given how much of that arrangement exists.
Sources: Income Tax Assessment Act · ATO guidance · applicable tax treaties · verified 3 August 2026
| Risk | Likelihood | Impact | Warning signs | Preventative control |
|---|---|---|---|---|
| Modern Award misclassification | High | Back pay of the underpayment plus penalties; wage theft is now a criminal offence in serious cases | Assuming no award applies; wrong classification level; annualised salary not reconciled | Identify the applicable award and level before the offer; reconcile annualised salaries periodically |
| Unpaid superannuation | High | Superannuation Guarantee Charge: the shortfall plus interest and an administration fee, not tax-deductible; director penalties apply | Missing the new seven-business-day Payday Super deadline; not paying super to labour-only contractors | Reconfigure payroll for Payday Super; treat labour-only contractors as super-eligible |
| Sham contracting | High | Penalties under the Fair Work Act plus back entitlements and superannuation | Engaging a worker on an ABN who is in substance an employee | Apply the multi-factor test; an ABN and invoice prove nothing on their own |
| Unfair dismissal claim | Medium | Reinstatement or compensation up to six months of pay | Dismissal without a valid reason or a fair process after the qualifying period | Give notification, an opportunity to respond, and document the process |
| Long service leave underprovisioning | Medium | Balance-sheet shortfall on long-tenure exits | Not accruing from the start; applying the wrong state’s rules | Accrue from day one under the correct state legislation |
| Payroll tax registration failure | Medium | Back tax with interest and penalties in each affected state | Crossing a state threshold without registering; grouping rules missed | Monitor total Australian payroll against each state threshold |
| Permanent establishment | Lower | Australian company tax registration and assessment | Employee concluding contracts; remote worker arrangements | Take Australian tax advice — the ATO has issued guidance on remote workers |
Contractor misclassification risk check
The multi-factor test looks at control, ability to delegate, commercial risk, provision of tools and whether the person is genuinely operating a business of their own. An ABN and an invoice prove nothing on their own.
The superannuation point is the one that catches foreign employers most often: a contractor paid principally for personal labour is entitled to the 12% guarantee, and unpaid amounts attract the Superannuation Guarantee Charge with interest and an administration fee.
Contractor misclassification self-check
Tick each that applies. The more indicators, the more the arrangement resembles employment — courts assess substance over labels. 0–2 lower risk · 3–4 borderline · 5+ high risk. Indicative only, not legal advice.
Compliant onboarding checklist
The Fair Work Information Statement must be given to every new employee before or as soon as practicable after they start. Casual employees receive an additional Casual Employment Information Statement.
Compliant onboarding checklist
Hiring in Australia — frequently asked questions
Direct answers to the questions employers ask most.
No. An Employer of Record can employ the worker through its own Australian entity. Setting up your own Pty Ltd requires at least one director ordinarily resident in Australia, which is often the practical reason a first Australian hire goes through an EOR.
Yes, through an EOR or its own Pty Ltd. The Fair Work Act governs work performed in Australia, including the National Employment Standards and any applicable Modern Award, regardless of where the employer sits.
Through an EOR, one to two weeks for someone with work rights, with award classification settled before the offer. A visa-sponsored hire takes two to four months across sponsorship approval, nomination and the visa itself.
One of around 120 industry and occupation instruments setting minimum pay, penalty rates, allowances and conditions. They apply automatically to covered employees regardless of the contract, and paying above the award rate does not exempt you from the other conditions. Identifying the right award and classification level is the first compliance step.
Superannuation at 12% is the main statutory cost. State payroll tax of roughly 4.85% to 5.45% applies only once your total Australian payroll crosses the state threshold. On A$120,000, a small employer pays A$14,400; an employer above the NSW threshold pays about A$20,940.
From 1 July 2026 superannuation must reach the employee’s fund within seven business days of each payday, replacing quarterly payment. The calculation base also changed from Ordinary Time Earnings to a broader Qualifying Earnings concept. Both need payroll system changes, and the first affects working capital.
Yes. From 1 July 2026 the maximum contribution base is A$270,830 a year, giving a maximum contribution of A$32,499.60 per employee. Once earnings reach the threshold, contributions stop for the rest of the financial year. This replaced the previous A$62,500 quarterly cap.
Only above the state threshold. New South Wales charges 5.45% on payroll above A$1.2 million and Victoria 4.85% above A$900,000. An employer with one or two staff often falls below entirely. Registration is required in each state where staff work, and grouping rules can aggregate related entities.
No. It is not an Australian concept. Bonuses are discretionary or contractual. Note instead that many Modern Awards require a 17.5% leave loading on annual leave pay.
Real-time reporting of every pay event to the tax office at the time of payment. Year-end finalisation is due by 14 July, after which employees access their income statement through myGov rather than receiving a payment summary.
1 July to 30 June. Minimum wage, superannuation and tax changes take effect on 1 July, which catches employers who plan around a January cycle.
Four weeks per year under the National Employment Standards, accruing progressively from day one, plus ten days of paid personal and carer’s leave. Shift workers get five weeks of annual leave. Accrued leave is paid out in full on termination.
A distinctively Australian entitlement of roughly two months of paid leave after seven to ten years with the same employer. It is set by state legislation rather than federally, so the entitlement and qualifying period differ between states, and it accrues as a real liability from the start of employment.
Not universally. The National Employment Standards set a maximum of 38 ordinary hours plus reasonable additional hours, but overtime and penalty rates come from Modern Awards. Award-covered employees typically get time and a half then double time, plus penalties for evenings, weekends and public holidays.
A defined status carrying a 25% loading in place of leave entitlements, with a pathway to convert to permanent employment. Misusing casual status where the work is regular and systematic is a common compliance failure.
One week up to a year of service, two weeks to three years, three weeks to five years and four weeks beyond, with an extra week for employees over 45 with at least two years of service. Contracts and awards often specify longer, and the longer period governs.
After six months of service, or twelve months at a small business employer with fewer than fifteen employees. The dismissal needs a valid reason and a fair process including notification and an opportunity to respond. Remedies are reinstatement or compensation capped at six months of pay.
Yes, on a statutory scale by continuous service: 4 weeks at one year, rising to 16 weeks at nine years, then falling to 12 weeks at ten years or more — a step down Fair Work attributes to the 2004 Redundancy Case decision. Employees with less than twelve months of service get none. Small business employers with fewer than fifteen staff are generally exempt. Redundancy pay uses the base rate of pay, excluding bonuses, loadings, allowances and penalty rates, whereas payment in lieu of notice uses the full rate including all of them.
Usually the Skills in Demand visa. The employer must become an approved sponsor, nominate a role on the relevant occupation list at or above the income threshold, and pay the Skilling Australians Fund levy upfront. Sponsorship, nomination and visa are three separate stages.
Often yes. A contractor engaged mainly for their personal labour is entitled to the 12% guarantee even where they invoice through an ABN. This catches foreign employers regularly, and unpaid amounts attract the Superannuation Guarantee Charge with interest and an administration fee that is not tax-deductible.
Terms used on this page
How this guide is compiled and verified
- Australian Taxation Office — Super guarantee 12% of ordinary time earnings from 1 July 2025; quarterly maximum contribution base A$62,500 for 2025-26; annual maximum contribution base A$270,830 for 2026-27, derived as concessional cap A$32,500 x 100 / 12; super payable on the labour component of contractor payments · ATO pages last updated 25 Feb 2026 and 3 Jun 2026 · retrieved 3 Aug 2026 · source
- Fair Work Ombudsman — NES notice scale 1 to 4 weeks plus an extra week for over-45s with 2+ years; redundancy scale 4 weeks at 1 year to 16 weeks at 9 years then 12 weeks at 10+; small business exemption under 15 employees; notice paid at full rate, redundancy at base rate; Fair Entitlements Guarantee scope · Fair Work Ombudsman fact sheet · retrieved 3 Aug 2026 · source
- Fair Work Act 2009 — Ss. 117 notice, 119 redundancy pay, 382–392 unfair dismissal, sham contracting provisions · verified 3 Aug 2026 · source
- Fair Work Commission — Annual wage review: national minimum wage A$26.44/hour from 1 July 2026, modern award increase of 4.75% · effective 1 Jul 2026 · source
- Treasury Laws Amendment (Payday Superannuation) Act 2025 — Payday Super framework effective 1 July 2026 and the move to Qualifying Earnings · effective 1 Jul 2026 · source
- Superannuation Guarantee (Administration) Act 1992 — Statutory basis for the superannuation guarantee and the definition of earnings · verified 3 Aug 2026 · source
- State revenue offices — Payroll tax rates and thresholds: NSW 5.45% above A$1.2m, Victoria 4.85% above A$900,000 · verified 3 Aug 2026 · source
- Department of Home Affairs — Skills in Demand visa, sponsorship obligations, Skilling Australians Fund levy · verified 3 Aug 2026 · source
min_wage_monthly is blank because Australia sets hourly and weekly rates (A$26.44/hr, A$1,004.90/wk) rather than a monthly figure. The financial year runs 1 July to 30 June, so rates change mid-calendar-year — the figures here took effect 1 July 2026. The 12–18% on-cost range depends entirely on whether the employer is above the state payroll tax threshold: a small team commonly pays superannuation alone, while an employer above the NSW threshold pays roughly 17.5%. Payroll tax rates and thresholds differ by state and territory; NSW 5.45% above A$1.2m and Victoria 4.85% above A$900,000 are given as examples, not a national rate. Workers’ compensation premiums are additional and vary by state scheme and industry. Long service leave is set by STATE legislation, not federally, so entitlement differs by jurisdiction and must be researched per state. Superannuation is payable to contractors engaged mainly for their labour. visa income thresholds and levy amounts, workers’ comp rates and state holiday dates all pending; tier remains 2. PRIMARY VERIFICATION IN PROGRESS (3 Aug 2026). CONFIRMED at source: superannuation 12% of ordinary time earnings; quarterly maximum contribution base A$62,500 for 2025-26; annual maximum contribution base A$270,830 for 2026-27 with the ATO derivation shown; superannuation payable on the labour component of contractor payments; the full NES notice and redundancy scales. CORRECTION MADE: the guide previously attributed the drop in redundancy pay at ten years to long service leave becoming payable — that rationale was wrong and came from a secondary source. Fair Work attributes it to the 2004 Redundancy Case decision. STILL NOT PRIMARY-VERIFIED: minimum wage A$26.44/hour, Payday Super seven-day rule, state payroll tax rates and thresholds, Modern Award detail, long service leave by state, visa thresholds and levies, workers compensation rates, public holiday dates. Do not publish until those are confirmed against the Fair Work Commission, state revenue offices and Home Affairs. TAX BRACKETS ADDED 3 Aug 2026: 0/15/30/37/45 with an $18,200 tax-free threshold, plus a 2% Medicare levy for residents and 30% from the first dollar for non-residents. Consistent across six independent secondary sources but NOT confirmed on the ATO site — the ATO rates page did not surface in search. Confirm before publishing.
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