Employer Payroll Tax
Employee Payroll Taxes
The hourly minimum wage in New South Wales is 19.49 AUD or 740.80 AUD per week.
The national minimum wage is $19.49 per hour.
There are no legal requirements to when an employee needs to be paid by, however, it is common to pay employees by the following schedule:
- Monthly – by the 28th to the 30th of the month
- Bi-weekly – every second week on any agreed day (usually Wednesday or Thursday)
Bi-monthly – Every 15th and 30th
A full work week in NSW is 38 hours a week, or 8 hours a day.
In general, overtime is paid at a rate of 150% of the regular pay for weekdays and 250% for weekends and holidays.
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.
New South Wales has 11 public holidays.
Mothers are entitled to 12 months unpaid maternity leave after working for 12 months with the same employer. Some employers provide paid maternity leave.
In addition, employees can apply to the Federal Government scheme which provides payment for 18 weeks of maternity leave.
Fathers are entitled to 5 days unpaid leave at the time of the birth or adoption of a child.
Employees can also apply to the Federal Government scheme for additional leave.
Parental leave includes maternity and paternity leave, as well as leave for when a child is adopted. To be eligible, an employee must have completed at least 12 months of employment.
Parental leave is an unpaid leave that lasts for 12 months, and it is possible to request an additional 12 months from the employer.
Work Related Injury Leave: In New South Wales, the State Insurance Regulatory Authority (SIRA) is the body responsible for regulating workers compensation.
Every employer must have workers compensation insurance, and the employer must notify them with any work injuries within 48 hours of the incident.
If the employee is absent for more than 7 days, they must choose a preferred doctor for treatment (usually the family doctor).
A certificate of capacity must be filled out by the doctor (instead of a medical certificate) with recommendations of what the employee needs in order to recover. This must be signed by the employee so that it may be shared with the employer.
An employer may not dismiss an employee within 6 months of them being in a work accident.
In New South Wales, the employer must have a valid and just reason for terminating an employee and is required to give the employee written notice.
Employees dismissed in the first 6 months of employment (or 12 months of employment in small business) cannot make a claim of “unfair dismissal” to the Fair Work Commission. However, there are some exceptions to this known as General Protections matters where there is no minimum engagement period applying.
Unfair Dismissals applications are heard in the Fair Work Commission – a specialist employment tribunal.
In NSW, notice period is determined by the amount of time the employee has been employed:
Length of employment
Less than 1 year
If the employee is over the age of 45 years and have been employed for at least 2 years, they are entitled to an additional week of notice.
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*
Goods and Service Tax (GST) is 10%.