Employing in Australia

With its reliable economy and progressive economic growth, we’re seeing an increasing number of employers look for their next expansion opportunity “down under”.  As the world’s 14th largest economy, Australia is a reliable and low-risk market to enter — representing a safe but potentially rewarding option for those looking to grow internationally.

Australia is a great place to find talented people to join an international team. As well as having a well-educated workforce (well over a third of the population hold a tertiary qualification), the country also offers a multi-cultural, multi-lingual talent pool.

Thanks to its close business ties with Asia, Australia offers a potential gateway to sell goods and services into Asian markets, while its many free trade agreements also provide opportunities to do business all around the world. This combination of a thriving domestic market and a stepping stone for further global trade makes Australia a tempting target for internationally expanding companies.

Contents

Our Expertise

Managing a global workforce in Australia

In the dynamic business environment of Australia, managing a global workforce requires adherence to specific labour laws and taxation regulations, including the Pay As You Go (PAYG) system. TopSource Worldwide's expertise in Australian employment standards, along with our global reach, ensures that businesses can effectively manage their international workforce in Australia. This includes handling local payroll intricacies, tax obligations, and ensuring overall compliance with Australian employment laws.

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Extensive expertise

Our team of experienced, knowledgeable staff collectively provide up-to-date employment information across 180 countries, so you can always get accurate advice.

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Entity-free employment

Feel free to hire employees from all over the world without being weighed down by setting up entities, running complex payroll or recruiting a hiring team.

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Payroll without hassle

Have the confidence that your staff will always be paid accurately and on time, so that you can focus on your core business activities and work towards your success. 

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Always-on support

Access helpful, relevant, personalised advice whenever you need it, along with expert-led recruitment policies and tried-and-tested HR best practices.

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Global Employee Cost Calculator

Estimate the cost of your new hire with our calculator. Simply enter their location and salary information in to this handy tool to see what will be spent in employment costs each month.

Employment Cost Calculator

Australia
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Australia

British PoundAustralian Dollar
Base Salary (per month)£3,297.09A$6,249.74
Local employer's costs£0.00A$0.00
Total Cost (Annual)£39,565.08A$74,996.84
Hiring in Australia

Please note - the above costs are an estimate, and the actual amount may differ based on a number of variables.

The Government Payroll Tax varies based on territory, therefore this employer cost will vary depending on the employee's exact location. Highest rate of 6.85% has been considered here.

Additional setup and management fees may apply.

TESTIMONIALS

Hear from our clients about our EOR solutions in Australia

"With TopSource we were able to have employees hired or maintained in Nutreco without having to establish an entity in these countries for only 1-2 employees. I think most countries are covered by TopSource, so they can help us with almost all cases. Good advice on conditions and direct contact with employees. Invoicing done directly to the company. An easy process compared to hiring employees by ourselves."

Annette van Duijnhoven
Nutreco

”We searched the market for a local payroll vendor in 2014 and we chose TopSource as our partner. We were looking for error-free and timely payroll processing and TopSource Worldwide delivers this, saving us time and money. We have worked together for 8 years now and would recommend them to anyone."

Praveen Lihinar
Sungard

”TopSource Worldwide has a detailed and methodical onboarding process that made it easy for us to get set up and running with our UK employees. They were able to take the worry out of trying to comply with all local laws and regulations. Because they have this knowledge we do not have to research on our own and hope we are in compliance. This has saved us hours of time and gives both the company and employees a sense of security."

Supervisor
Client based in Ft Worth, Texas, USA
GLOBAL EXPANSION STRATEGY

Personalised Employer of Record services in Australia

TopSource Worldwide offers personalised Employer of Record (EOR) services tailored to meet the specific needs of your business in Australia. This includes handling employee onboarding, payroll processing, tax compliance, employee benefits management, and HR support. Our EOR services ensure that your business meets all legal and regulatory requirements, providing a hassle-free solution to manage your Australia-based employees.

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End-to-end Australia payroll services

Looking to expand into Australia? Our unparalleled expertise in global payroll services ensures that your business can seamlessly navigate the complexities of payroll on a global scale, supporting your Australia expansion initiatives.

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Global entity management

Venturing into the Australian market can be both exciting and challenging. With distinct business regulations, cultural nuances, and economic landscapes, it's essential to have a clear roadmap for your business establishment journey.

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Accounting

Whether your goal is to process your purchase-to-pay transactions with minimum errors or manage your expense claim procedure, our team of experts can handle your accounting responsibilities, allowing you to focus on your core business and save time and money.

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Global EOR services

Managing a diverse global workforce can be complex. This is where TopSource steps in as an invaluable employer of record services partner for companies seeking to expand their global reach while ensuring compliance with local employment laws and regulations.

Global Expansion Simplified

How to do business in Australia

Entering the Australian market presents a mix of excitement and challenges. Given unique business regulations, cultural intricacies, and economic dynamics, a well-defined roadmap is crucial for a successful business establishment.

TopSource Worldwide is with you at every stage. Whether it's navigating local regulations or facilitating seamless operational transitions, our expertise ensures a swift and efficient process for establishing your business in Australia.

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Australia Insights

Key insights into Australia's landscape

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VAT rates: Australia has a Goods and Services Tax (GST) of 10%, levied on the supply of most goods and services.

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Ease of Doing Business rank: Australia ranks 14th in the World Bank's Ease of Doing Business Index, indicating a very favourable business environment.

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Consumer Confidence Index: As of 2022, Australia's Consumer Confidence Index was 106.4, reflecting positive economic sentiment.

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Employee maternity/paternity leave: Maternity leave is generally 18 weeks, and paternity leave is 2 weeks, supporting work-life balance for new parents.

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Employee termination period: Standard notice for termination varies but commonly ranges from 1 to 4 weeks, depending on the length of employment.

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Employee salary pay date: Wages are typically paid fortnightly or monthly, with specific pay dates stipulated in employment contracts and subject to labour laws.

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Bank holidays: Australia observes national holidays, including New Year's Day, Australia Day, and Christmas, with a total of 10 public holidays varying by state and territory.

Employment contracts and related legislation

Employees in Australia benefit from protection in the workplace through a combination of fair work laws, awards, enterprise agreements and employment contracts.

If you’re looking to expand into Australia, you should be aware that some jobs are covered by awards (modern awards). A modern award is a document which sets out the minimum terms and conditions of employment on top of the National Employment Standards (NES). These modern awards came into effect on the 1st of January 2010. Our contracts team will work with you to identify if an award applies and if so, we will ensure the contractual provisions meet the requirements of the applicable award.

Alongside awards, employment in Australia is governed by the National Employment Standards, which dictate certain statutory provisions: maximum working hours, annual leave, personal/carer's leave and compassionate leave. It’s compulsory for employees to be provided with a copy of these provisions (Fair Work Information Statement) on commencement of employment. Further information on the Fair Work Information Statement.

Holidays & leave

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Probationary periods

The Fair Work Act 2009 does not use the word ‘probationary’, but we incorporate this into our contracts for ease of understanding. The act states that a new employee must serve a minimum period of employment of six or 12 months before they are allowed to access the unfair dismissal legislation. The applicable period is subject to certain criteria.

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Paid time off

The Fair Work Act 2009 allows for the following vacation leave as a minimum:

  • Four weeks paid annual leave (carried over if unused)
  • 10 days paid personal/carer’s leave (carried over if unused)
  • Payment for public holiday (if employee would have usually worked that day)
  • Two days paid compassionate leave for each occasion when a member of the employee’s immediate family or household sustains a serious illness, serious injury or dies
  • All employees are entitled to five days unpaid family and domestic violence leave (in a 12-month period)
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Sick leave

Under national law, full-time employees in Australia are entitled to 10 days paid personal, sick or caregivers’ leave per year. Untaken sick leave accumulates from year to year, but it is not paid out on termination of employment.

Sick leave (called personal leave) can be taken when the employee is unwell or to allow the employee to care for a family member who is unwell or affected by an unexpected emergency. In Australia, sick leave is funded by the employer rather than by the state.

Healthcare in Australia

Australian Residents

Australia boasts a universal public healthcare system. All permanent Australian residents have access to Medicare, the state health care provider, and this is paid for through taxes.  The government is also active in trying to persuade anyone who earns over a certain threshold to take out private policies on top of their state coverage to relieve pressure on the system. Medicare provides coverage for basic healthcare coverage including GP costs, hospital costs, 85% of a specialist’s costs and pharmaceutical costs.

Private insurance

High earners face an extra tax unless they take out private insurance, and costs for private insurance rise incrementally once an individual reaches the age of 30. A high proportion of the population — around 50% — has private insurance. For most, this is in addition to Medicare.

There are three basic types of private insurance: hospital insurance, ‘extras’ and ambulance insurance. Hospital insurance provides cover in private hospitals with private doctors. Extras include things like glasses and dental costs. Ambulance insurance provides cover as emergency vehicles are not covered by Medicare (except in some states).

Non-residents

Individuals who are not resident in Australia but who may be working on a visa would not normally be entitled to Medicare in Australia — instead, the individual is required to take out their own private policy. It should be noted that some visas dictate that the policy must be one of the "registered private healthcare policy providers” and places the onus on securing this healthcare on the employee.

If an employee on a working visa doesn't have access to the state system and is taken ill or hospitalised, this can be very costly for them and the state may well levy these charges on the employee. It’s, therefore, important to ensure employees on a visa have the requisite insurance in place.

Employers Costs in Australia

Superannuation

Employers are required to pay superannuation contributions (also called “superannuation guarantee” (SG) contributions) to an approved superannuation fund for their employees at 9.5% (as of 2020) of the employees’ “ordinary time earnings”. This generally consists of wages and salaries, commissions and allowances — but not overtime. This rate will continue to increase progressively up to 12% from 1 July 2025. 

Fringe benefit taxes

In Australia, employers have to pay an additional Fringe Benefit Tax (FBT) if they provide certain benefits to their employees. This FBT applies even if the benefit is provided by a third party under an arrangement with the employer. Examples of these include:

  • Allowing an employee to use a work car for private purposes
  • Giving an employee a discounted loan
  • Paying an employee’s gym membership
  • Providing entertainment by way of free tickets to concerts
  • Reimbursing an expense incurred by an employee, such as school fees
  • Giving benefits under a salary sacrifice arrangement with an employee

A fringe benefit liability may also arise if an employee incurs expenses and the employer:

  • Reimburses them for expenses
  • Pays a third party for the expenses

The expenses can be business or private expenses or a combination of both, but they need to be incurred by the employee. If the employer incurs the expense, for example through a corporate credit card, they won’t have provided an expense payment fringe benefit. However, depending on what is paid for — a property, meal entertainment or tax-exempt body, for example — entertainment fringe benefit could arise.

Employ and pay anywhere

Specialising in multi-country payroll solutions

TopSource Worldwide offers comprehensive payroll outsourcing services, ensuring seamless and accurate management of your organisation's payroll functions. With cutting-edge technology and a team of experienced professionals, we handle payroll processing, tax compliance, and regulatory requirements with precision.

Calculate Your Employer of Record Taxes in Seconds

Employment Cost Calculator in Australia

Our Employment Cost Calculator simplifies complex tax calculations for global businesses. Accurately assess tax obligations, ensuring compliance with local regulations. Streamline payroll management effortlessly with our user-friendly tool, providing transparency and efficiency in international workforce taxation.

In addition to calculating your EOR taxes, our calculator can also help you:

  • Understand the different types of EOR taxes
  • Stay up-to-date on the latest changes to EOR tax regulations
  • Avoid penalties for non-compliance
Our author

Mark Robbins

Global Sales Director

Mark is the Sales Director at Topsource Worldwide. He has been a pioneering figure in the global expansion space since 2013. He is the first salesperson to sell EOR services in Europe, a feat he accomplished in 2013. 

Published 2023-11-14 00:00:00

Updated 2023-11-15 00:00:00

Adrian Cooney

Reviewed by:

Adrian Cooney

Adrian Cooney

Fact checked by:

Adrian Cooney

Employer of Record FAQ

Frequently Asked Questions about Australian employment solutions

What is an Employer of Record in Australia?

An Employer of Record (EOR) is a professional services provider that assumes the responsibility of being the legal employer for a company's workforce in Australia. This entails managing tasks such as payroll processing, tax withholding, benefits administration, and ensuring compliance with local labour laws and regulations.

How do global employment services work?

Global employment services operate as a comprehensive solution for businesses seeking to expand their workforce across borders. These services, often provided by Employer of Record (EOR) companies like TopSource Worldwide, streamline the complexities of international employment.

What are the benefits of working with an Employer of Record in Australia?

Employer of Record companies assume the legal responsibilities associated with employment, alleviating the burden of compliance, payroll, and HR management in Australia. This allows companies to expand globally without the complexities of establishing legal entities in each location.

What is the difference between EOR & PEO?

An EOR acts as the legal employer, handling tasks like payroll, tax compliance, and benefits administration. This allows companies to expand internationally without establishing legal entities. On the other hand, a PEO shares employer responsibilities with the client company, often co-employing workers.

How are employer payroll taxes calculated in Australia?

Calculating employer payroll taxes involves understanding the various taxes associated with employing workers and complying with tax regulations in Australia. Key components include federal and state income taxes, Social Security, Medicare, and unemployment taxes.

What global employment solutions does TopSource offer?

TopSource Worldwide facilitates hassle-free global expansion by acting as the legal employer, handling payroll, tax obligations, and HR responsibilities. With expertise in global entity management, TopSource assists businesses in navigating the intricacies of legal structures across borders.

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