Why hire in Australia through an EOR
Australia’s employment costs are transparent: 12% superannuation on top, award rates that vary by industry, and Payday Super now paid with each payslip instead of quarterly. Through an EOR, all of it is already running.
Hire in Australia without setting up an entity
Australia is a magnet for skilled talent but a complex payroll jurisdiction. Award rates vary dramatically by industry and role — and they’re not optional. Superannuation is 12% of ordinary time earnings, now paid with each payslip instead of quarterly under the new Payday Super rules from 1 July 2026. The minimum wage is AUD $26.44 an hour as of that date. Setting up an Australian business entity is slow, expensive and creates tax and compliance obligations that don’t evaporate when plans change.
An Employer of Record clears all of it: TopSource employs your Australian hires under the right award, pays super within the Payday Super window, manages visas for skilled migrants, and gives you no entity to unwind if the market doesn’t validate your thesis. Hire with certainty, not risk.
Calculate Your Employee Costs in Australia
Enter a gross salary and modern award category to see the full monthly cost of a hire in Australia — 12% Payday Super and statutory leave included in your total spend per employee.
Employment Cost Calculator
*Indicative figures only and not definitive legal advice. Local regulations change frequently. Consult an expertAustralia
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How EOR in Australia works: the process through TopSource
Employer Costs in Australia at a Glance
Employer Costs in Australia Explained
Australian employers pay 12% superannuation contribution on ordinary time earnings, now required to be paid with each pay cycle as part of the Payday Super reforms from 1 July 2026. There is no employer income tax, though state payroll tax applies once total wages exceed each state’s threshold — generally AUD $1–2 million a year. The national minimum wage is AUD $26.44 per hour, rising to AUD $1,004.90 per week from 1 July 2026. Most employees are covered by higher modern award rates depending on their industry. Here’s the breakdown.
EOR or entity setup: which one fits your Australia plan?
Registering an Australian company is slow, expensive and creates years of tax and compliance exposure. An EOR makes sense when you’re testing the market or hiring a first small team of skilled workers; entity setup takes months and costs tens of thousands, and the tax obligations don’t disappear even if plans change. Your own Pty Ltd usually makes sense once Australian headcount and permanence are certain.
Consider an EOR if you’re:
- Hiring your first one to five people in Australia
- Sponsoring skilled migrants who need visa sponsorship
- Still validating the market before committing to an entity and years of compliance
- Working to a hiring deadline measured in weeks, not months
Why TopSource for Employing in Australia
TopSource for Employer of Record, global payroll or any other of our services represent a simpler, more reliable and transparent option.
We don’t hide fees or sneak price increases. We don’t lock you in for employees you don’t use. But we do give you a dedicated point of contact, available on the phone so you get answers fast — including on the questions Australia raises constantly, from modern award classification to visa processing and Payday Super timing. We blend HR advisory with in-market expertise, and we stay flexible around the needs of your business.
More than an Employer of Record.
Employer of Record services are only one way that we help you accelerate your global growth goals. From talent advisory to entity management, we give you the tools you need to research, enter and expand into your key markets.
Market Selection Advisory
Compare available talent, compensation, additional costs and regulations across different countries
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Salary Benchmarking
Identify and prioritize markets for growth based on talent, cost & regulations
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Global Skills Analysis
Map skill availability by region to align talent strategies with business goals..
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Talent Acquisition
Find, hire & onboard the highly skilled team members you need in each locality.
Read more
Talent Strategy Optimization
Optimize your talent strategy to enable your organization to achieve it’s global ambitions.
Read more
Frequently asked questions
The base is gross salary plus 12% superannuation paid with each payslip under Payday Super, plus statutory leave accruals. If the employee is covered by a modern award, their actual pay is likely higher than the national minimum. State payroll tax applies only once wages exceed each state’s threshold — generally AUD $1–2 million a year — so small teams usually fall below it. We quote the exact all-in cost per hire before you commit.
Modern awards are legally binding minimum pay scales, hours and conditions set by industry. They apply to most Australian employees and override the national minimum wage. The wrong award classification is underpayment and exposes employers to penalties and backpay claims. Our award classification is the first thing we check for every Australian hire.
From 1 July 2026, employers must pay superannuation contributions within seven business days of each pay date instead of quarterly. This brings super payments in line with wages. The maximum contribution base moved from a quarterly cap to an annual cap of AUD $270,830. Non-compliance triggers superannuation guarantee charges and penalties.
Yes. The employer must be registered as a sponsor and the employee’s role must match an occupation on the skills list. Processing times vary and visa costs are real; we manage the application as the sponsoring employer and build realistic timelines into start dates.
Statutory leave is four weeks per year. Government Parental Leave Pay rose to 26 weeks from 1 July 2026, paid at the national minimum wage rate (not the employee’s full salary). Public holidays — 8 national under the National Employment Standards plus state and territory days — are also paid. Long-service leave accrues over time. Leave is tightly regulated under the Fair Work Act; undercounting or not accruing correctly is a compliance breach.
EOR wins on speed and predictability: employees working in weeks, no months of entity setup, and a single known monthly cost. Your own Pty Ltd wins on scale once headcount and permanence are certain. Many clients run both in sequence — EOR to enter, entity once proven — and we transfer the team across when the time comes.
Hire Anywhere with Our EOR Services
We help you legally employ and pay talent across 180+ countries—so you can scale faster.