Overview

Capital
Canberra
Currency
Australian Dollar

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

Minimum Wage

General

The hourly minimum wage in  New South Wales is 19.49 AUD or 740.80 AUD per week.

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.

VAT

General

GST is 10%.

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.

Termination

Termination Process

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.  

Advance Notice

In NSW, notice period is determined by the amount of time the employee has been employed:

Length of employment

Notice Period

  

Less than 1 year

1 week

1-3 years

2 weeks

3-5 years

3 weeks

5+ years

4 weeks

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.

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*

Payroll

Payroll Frequency

In NSW, employees get paid weekly, bi-monthly or monthly. 

Pay Date

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

Working Hours

A full work week in NSW is 38 hours a week, or 8 hours a day. 

Overtime Payment

In general, overtime is paid at a rate of 150% of the regular pay for weekdays and 250% for weekends and holidays. 

Additional Withholdings

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