--- title: "Australia" id: "11961" type: "employer-of-record" slug: "australia" published_at: "2025-08-05T18:42:17+00:00" modified_at: "2026-08-13T15:00:20+00:00" url: "https://topsourceworldwide.com/employer-of-record/australia/" markdown_url: "https://topsourceworldwide.com/employer-of-record/australia.md" taxonomy_continent: - "Oceania" --- # Employer of Record in Australia Employ in Australia without an entity — 12% superannuation, Payday Super, award compliance and work permits handled by local specialists. [Get Started](https://topsourceworldwide.com/contact-us/) ## 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. ### No entity required Employ staff in Australia, and 180+ other countries, without setting up and maintaining a local subsidiary. ### Award compliance from day one Modern award rates vary by industry and role. We classify each position under the correct award and apply its pay floors and conditions automatically. ### Payday Super, on schedule From 1 July 2026, superannuation contributions of 12% must be paid with each pay cycle, not quarterly. We calculate and remit them within seven business days every time. ### Work permits for skilled migrants We sponsor and manage skilled migration visas for non-Australian hires, working within the points-based system and employer sponsorship requirements. ### Working in days, not months We register the employment before day one — your hire can be working in Australia in days, while an entity setup would still be months away. ## 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. [Talk to our Australia team](https://topsourceworldwide.com/contact-us/) ## 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 expert](/contact-us) ##### Australia Annually Monthly | | British Pound | Australia | | --- | --- | --- | | Base Salary (per month) | | | | Employer Contributions | | | | Total Cost (Annual) | | | | Total Cost (Monthly) | | | Employer of Record services in [Learn more](#) Payroll Outsourcing in [Learn more](#) ## How EOR in Australia works: the process through TopSource Step 1 ### Confirm the role and structure We agree the position, salary and benefits with you, classify the role under the correct modern award, and confirm visa requirements for non-Australian hires. Step 2 ### Issue an award-compliant contract Your new hire receives an employment contract in writing, with probation, notice, leave entitlements and the applicable award rates clearly set out. Step 3 ### Sponsor the visa, if needed For non-Australian hires we manage the skilled migration visa application as the sponsoring employer, building realistic visa processing times into the start date. Step 4 ### Register and run payroll We register as employer, then calculate salary, 12% superannuation contributions paid with each pay cycle under Payday Super, PAYG tax withholding and award entitlements. Step 5 ### Support the relationship day to day Your account manager and the employee both have a direct line for contract questions, leave balances, award compliance issues and anything else that comes up. ## Know your Australia hiring costs before you commit Tell us the role and award classification — we’ll send back the full Australian employment cost, superannuation and award rates included, within one business day. [Get a Custom Employment Quote](https://topsourceworldwide.com/contact-us/) ## Employer Costs in Australia at a Glance 12% Employer superannuation contribution, Payday Super paid each cycle AUD 26.44/hr National minimum wage from 1 July 2026 4 Weeks statutory annual leave, plus 8 national public holidays ## 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. #### All employees: the 12% superannuation guarantee Employers must contribute 12% of ordinary time earnings into an eligible employee’s superannuation fund, capped at an annual maximum contribution base of AUD $270,830 in 2026-27. From 1 July 2026, these contributions must reach the employee’s fund within seven business days of each pay date (Payday Super), not quarterly. Failing to meet the deadline incurs charges and penalties. The contribution base reset from quarterly to annual that same date, significantly simplifying compliance for higher earners. #### Modern award rates and minimum wage Most Australian employees are covered by a modern award, which sets pay scales, hours and conditions above the national minimum wage. Award rates vary significantly by industry — hospitality rates differ from construction which differ from clerical — and applying the wrong award is underpayment — a civil breach, and since January 2025 intentional underpayment can also be a criminal offence. The national minimum wage of AUD $26.44/hour applies only to employees not covered by an award or enterprise agreement. #### Leave, parental leave and public holidays Statutory annual leave is four weeks. Government-funded Parental Leave Pay rose to 26 weeks from 1 July 2026, paid at the national minimum wage flat rate (about AUD $1,004.70 a week, plus 12% super) — not at the employee’s full salary. Employees also receive the 8 national public holidays under the National Employment Standards, plus additional state and territory holidays. Long-service leave also accrues depending on tenure and the employee’s state. Leave is a compliance mine because the Fair Work Act closely regulates how it can be managed. #### Work permits for skilled migrants (visas) Non-Australian hires need visa sponsorship under Australia’s skilled migration program. The process is complex — the employer must be on the sponsorship register, meet sponsorship obligations, and the employee’s role must match a position on the relevant occupation list. Processing times vary significantly. This is where an established Australian employer of record removes months of uncertainty and regulatory exposure. ## 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: 1. Hiring your first one to five people in Australia 2. Sponsoring skilled migrants who need visa sponsorship 3. Still validating the market before committing to an entity and years of compliance 4. Working to a hiring deadline measured in weeks, not months [Get a cost comparison](https://topsourceworldwide.com/contact-us/) ## 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. [EOR Services](https://topsourceworldwide.com/employer-of-record/) [Australia Payroll](https://topsourceworldwide.com/global-payroll/australia/) > “Their expertise and understanding of the unique hiring, payment, and human resource practices in each country has been nothing short of outstanding. Our Client Success Manager, has done just that … ensured our success. Her availability and willingness to engage on a personal level has made all the difference.” Director of Research Operations, > “Excellent service, especially from our account manager who has gone above and beyond to help us use the platform effectively. Our manager, significantly simplifies my workload. It is like having your own TopSource HR representative on your team.” Chief Human Resources Officer, > “TopSource has been our go-to resource for international hiring. They are responsive, thorough, respectful and knowledgeable. The Client Success team has provided us with the utmost customer service, and the more we use TopSource, the more, it gives us access to more resources and knowledge.” Senior Manager, Human Resources , ## 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 [Read more](https://topsourceworldwide.com/hr-advisory/market-selection-advisory/) ##### Salary Benchmarking Identify and prioritize markets for growth based on talent, cost & regulations [Read more](https://topsourceworldwide.com/hr-advisory/salary-benchmarking/) ##### Global Skills Analysis Map skill availability by region to align talent strategies with business goals.. [Read more](https://topsourceworldwide.com/hr-advisory/global-skills-analysis/) ##### Talent Acquisition Find, hire & onboard the highly skilled team members you need in each locality. [Read more](https://topsourceworldwide.com/talent-acquisition/) ##### Talent Strategy Optimization Optimize your talent strategy to enable your organization to achieve it’s global ambitions. [Read more](https://topsourceworldwide.com/hr-advisory/talent-strategy-optimization/) ##### Global Benefits Review Benchmark your global benefits to boost employee retention. [Read more](https://topsourceworldwide.com/hr-advisory/global-benefits-review/) ## Frequently asked questions ### What does an employee in Australia actually cost? 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. ### What are modern awards and why do they matter? 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. ### What is Payday Super and how does it affect payroll? 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. ### Can you sponsor skilled migration visas for non-Australian hires? 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. ### How much annual leave do Australian employees get? 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 or our own Australian entity — which should we choose? 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. [Couldn’t find what you were looking for?](/contact-us/) ## Hire Anywhere with Our EOR Services We help you legally employ and pay talent across 180+ countries—so you can scale faster. 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Castries Currency: Dollar](https://topsourceworldwide.com/employer-of-record/saint-lucia/) [Saint Vincent & the Grenadines Capital: Kingstown Currency: Dollar](https://topsourceworldwide.com/employer-of-record/saint-vincent-the-grenadines/) [Saipan Capital: Capitol Hill Currency: US Dollar](https://topsourceworldwide.com/employer-of-record/saipan/) [San Marino Capital: City of San Marino Currency: Euro](https://topsourceworldwide.com/employer-of-record/san-marino/) [Saudi Arabia Capital: Riyadh Currency: Riyal](https://topsourceworldwide.com/employer-of-record/saudi-arabia/) [Senegal Capital: Dakar Currency: West African CFA Franc](https://topsourceworldwide.com/employer-of-record/senegal/) [Serbia Capital: Belgrade Currency: Serbian Dinar](https://topsourceworldwide.com/employer-of-record/serbia/) [Seychelles Capital: Victoria Currency: Seychellois Rupee](https://topsourceworldwide.com/employer-of-record/seychelles/) [Slovakia Capital: Bratislava Currency: Euro](https://topsourceworldwide.com/employer-of-record/slovakia/) [Slovenia Capital: Ljubljana Currency: Euro](https://topsourceworldwide.com/employer-of-record/slovenia/) [Solomon Island Capital: Honiara Currency: Solomon Islands Dollar](https://topsourceworldwide.com/employer-of-record/solomon-island/) [South Korea Capital: Seoul Currency: Won](https://topsourceworldwide.com/employer-of-record/south-korea/) [South Sudan Capital: Juba Currency: South Sudanese Pound](https://topsourceworldwide.com/employer-of-record/south-sudan/) [Sri Lanka Capital: Colombo Currency: Rupee](https://topsourceworldwide.com/employer-of-record/sri-lanka/) [St-Maarten Capital: Philipsburg Currency: Netherlands Antillean Guilder](https://topsourceworldwide.com/employer-of-record/st-maarten/) [Sudan Capital: Khartoum Currency: Sudanese Pound](https://topsourceworldwide.com/employer-of-record/sudan/) [Suriname Capital: Paramaribo Currency: Surinamese Dollar](https://topsourceworldwide.com/employer-of-record/suriname/) [Sweden Capital: Stockholm Currency: Swedish Krona](https://topsourceworldwide.com/employer-of-record/sweden/) [Taiwan Capital: Taipei Currency: Dollar](https://topsourceworldwide.com/employer-of-record/taiwan/) [Thailand Capital: Bangkok Currency: Thai Baht](https://topsourceworldwide.com/employer-of-record/thailand/) [Trinidad & Tobago Capital: Port of Spain Currency: Trinidad and Tobago Dollar](https://topsourceworldwide.com/employer-of-record/trinidad-tobago/) [Tunisia Capital: Tunis Currency: Tunisian Dinar](https://topsourceworldwide.com/employer-of-record/tunisia/) [Uganda Capital: Kampala Currency: Ugandan Shilling](https://topsourceworldwide.com/employer-of-record/uganda/) [United Kingdom Capital: London Currency: Ponds Sterling](https://topsourceworldwide.com/employer-of-record/united-kingdom/) [US Virgin Island Capital: Charlotte Amalie Currency: United States Dollar](https://topsourceworldwide.com/employer-of-record/us-virgin-island/) [Venezuela Capital: Caracas Currency: Venezuelan Bolívar](https://topsourceworldwide.com/employer-of-record/venezuela/) [Zambia Capital: Lusaka Currency: Zambian Kwacha](https://topsourceworldwide.com/employer-of-record/zambia/) [Zimbabwe Capital: Harare Currency: Zimbabwean Dollar](https://topsourceworldwide.com/employer-of-record/zimbabwe/) Load more