Overview

Capital Canberra

Currency Australian Dollar

calendar icon Public holidays calendar

Taxes

Employer 5.45% - Payroll Tax
Up To 12% - Medicare
9.5% - Pension Fund

Employee 0% - Income up to AUD 18,200
19% - AUD 18,200 - 37,000
32.5%% - AUD 37,000 - AUD 90,000
37% - AUD 90,000 - AUD 180,00
45% - AUD 180,000 and over

Termination

Termination Process If the employee has been in the company for less than a year, one weeks of notice is required by the employer. Over 5 years in the company requires 4 weeks of notice. Additionally, written notice must be given on the day of termination and a payment can be made in lieu of notice.

Advance Notice Notice period depends on seniority of worker.
• 1 year or less – 1 week
• 1 - 3 years – 2 weeks
• 3 – 5 years – 3 weeks
• More than 5 years – 4 weeks

Severance Pay Payment is given based on continuous period of service, and pay rate is given for ordinary hours worked.
At least 1 year but less than 2 years 4 weeks
At least 2 years but less than 3 years 6 weeks
At least 3 years but less than 4 years 7 weeks
At least 4 years but less than 5 years 8 weeks
At least 5 years but less than 6 years 10 weeks
At least 6 years but less than 7 years 11 weeks
At least 7 years but less than 8 years 13 weeks
At least 8 years but less than 9 years 14 weeks
At least 9 years but less than 10 years 16 weeks
At least 10 years 12 weeks*

Mandatory Benefits

Pension Fund Mandatory occupation pension (Superannuation) is comprised of funds from the employer and government.
• Employer – 9.5% of employees earning
• Government - depends on employees’ annual income.

Minimum Wage

General The national minimum wage is $18.93.

Non Mandatory

Expat Benefits Expats are entitled to benefits called “Living Away From Home Allowance” which includes recovery of domestic expenses, other costs as part of salary at a tax free rate and tax reduction on holidays with family. However, to be eligible, the expat must be relocated to Australia for a specified amount of time with intent to move back to their home country afterward. Additionally, their house in their home country must remain available and not rented during the time in Australia.

Payroll

Additional Employee Withholding If an employee makes $47,916 per month, they must contribute 4.85% of their salaries.

VAT

General GST is 10%.