Asia-Pacific · AUD

Hire in Australia

Commonwealth of Australia, 26.5 million population, $64,490 GDP per capita. Everything you need to know about employment law, tax, compliance and hiring in Australia.

Capital

Canberra

Currency

Australian Dollar (AUD)

Languages

English

Time zones

UTC+8 (AWST), UTC+9.5 (ACST), UTC+10 (AEST)

Hiring overview

Typical time to hire
1-3 weeks for contractor, 3-6 weeks for full-time
Entity requirement
Australian Pty Ltd. Registration at ASIC. ABN (Australian Business Number) required. Must register for PAYG withholding, Super, and GST if applicable.
EOR available
Yes, from $399/employee/month through a Corpshore entity
Contractor of record
Yes, from $39/worker/month

Employment law

Standard workweek
38 hours (National Employment Standards)
Maximum weekly hours
38 hours
Minimum annual leave
20 days (4 weeks; shift workers get 5 weeks)
Public holidays
8 per year
Maternity leave
18 weeks Parental Leave Pay (government-funded at minimum wage). Increasing to 26 weeks by 2026.
Paternity leave
Shared in the 18-26 week entitlement (Dad and Partner Pay of 2 weeks being folded into Parental Leave Pay)
Notice period
1-5 weeks depending on tenure (under NES). Longer periods common by contract.
Severance
Redundancy pay: 4-16 weeks depending on tenure (NES). Small businesses (<15 employees) exempt.
Probation
Minimum employment period: 6 months (12 months for small businesses) before unfair dismissal protection applies
Overtime rules
Reasonable overtime requests permitted under NES. Modern awards set overtime rates (typically 1.5x first 2-3 hours, 2x thereafter).

Tax overview

Income tax range
0% to 45% (tax-free threshold AUD 18,200). Stage 3 tax cuts effective July 2024.
Corporate tax
30% (25% for base rate entities with aggregated turnover under AUD 50M)
Social contributions
Superannuation (Super Guarantee): 11.5% employer (2024-25, rising to 12% in 2025-26). No separate social security tax.
VAT / GST
10% GST (broad-based, with exemptions for food, education, health)
Tax year
1 July to 30 June
Treaty network
Over 45 tax treaties

Compliance landscape

Worker classification
Multi-factor test under common law. High Court decisions (Jamsek, CFMMEU v Personnel Contracting, ZG Operations) have shifted focus to the written contract rather than practical reality. Sham contracting provisions in Fair Work Act.
Data protection
Privacy Act 1988 (amended 2022). APPs (Australian Privacy Principles) apply to organisations with turnover above AUD 3M. OAIC enforces. Major reform (Privacy Act Review) underway.
Right to work
Visa with work rights required. Temporary Skill Shortage (TSS/subclass 482) for sponsored workers. Skills in Demand visa replacing TSS in late 2024.
Non-compete
Under federal review (2023-24). Currently assessed under common law restraint of trade principles. Enforceable if reasonable. Government has signalled intent to limit or ban non-competes for workers under an income threshold.
Collective bargaining
Enterprise bargaining under the Fair Work Act 2009. Modern Awards set industry minimums. Fair Work Commission oversees. Union density ~14%, concentrated in public sector and construction.

Payment rails

Bank transfer (NPP/BECS)
Stripe Connect
Wise

New Payments Platform (NPP/PayID) enables instant bank transfers 24/7. BECS (Bulk Electronic Clearing System) for payroll. Stripe Connect supports AUD natively. Superannuation is paid separately through approved clearing houses.

Key considerations for hiring

  • Superannuation (employer-funded retirement) at 11.5% (rising to 12%) is a significant additional employment cost
  • Modern Awards (industry-specific minimum conditions) cover most non-managerial employees and are legally binding
  • Australia's skilled migration programme is a major talent pipeline: over 190,000 permanent skilled visas per year
  • Sydney and Melbourne are Asia-Pacific's major English-speaking tech hubs outside the US

Business and cultural context: Australia

Business culture

Informal, egalitarian, and direct. Australians value authenticity and dislike pretension (tall poppy syndrome). Work-life balance is culturally important. Flat hierarchies in most workplaces.

Key industries

Mining and resources
Financial services
Technology
Healthcare
Education
Agriculture

Talent pool strengths

Software engineering
Mining engineering
Financial services
Healthcare
Cybersecurity

Historical context

Australia's Fair Work system, established by the Fair Work Act 2009, replaced the controversial WorkChoices legislation. The system's foundation is the Modern Award: 122 industry-specific instruments that set minimum pay, overtime, penalties, and conditions for ~2.7 million workers. No other English-speaking country has a comparable system of legally binding sectoral minimums.

Ready to hire in Australia?

Use our EOR service from $399/month and we handle employment law, payroll, tax and compliance in Australia for you.

Hire in Australia, employment law, tax, compliance | Corpshore Work