Overview

Capital
Canberra
Currency
Australian Dollar (AUD)
Date Format
dd/mm/yyyy

COVID-19

Due to COVID-19, temporary changes in labor law have been enforced.  However, these changes are award-based and do not apply to all workers in Australia.  For more information, please visit the Australian government website.

Contributions

Employer

Employer Payroll Contributions

New South Wales
4.85%
Payroll Tax
1.00%
Medicare
10.00%
Superannuation (capped at 21,002.06 AUD per year)
15.85% Total Employment Cost

Employer Payroll Contributions

Victoria
4.85%
Payroll Tax
1.00%
Medicare
10.00%
Superannuation (capped at 21,002.06 AUD per year)
15.85% Total Employment Cost
Employee

Employee Income Tax

Exempt
Income up to 18,200 AUD
0.19 AUD for each dollar between
18,201- 45,000 AUD
5,092.00 AUD + 0.325 AUD for each dollar between
45,000- 120,000 AUD
29,467 + 0.37 AUD for each dollar between
120,000- 180,000 AUD
51,667 AUD + 0.45 AUD for each dollar over
180,000 AUD and over
Employer Taxes
3 HIGHEST
3 LOWEST
Brazil
China
Slovakia
Australia
South Africa
Georgia
Macedonia
82.39%
41.12%
37.2%
15.35%
2%
2%
0%

Minimum Wage

General

As of July 1, 2021, the minimum wage in Australia increased to 20.33 AUD per hour (772.60 AUD per week).

Minimum wage (per month)
$4000
$2663
$2518
$2518
$36.80
$17.24
$2.33
Geneva
Luxembourg
Australia
Australia
Angola
Tanzania
Venezuela
3 HIGHEST
3 LOWEST

Payroll

Payroll Cycle

Employees are paid weekly, bi-monthly, or monthly.   

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
13th Salary

There are no provisions in the law regarding 13th salaries.

Working Hours

General

The standard workweek is 38 hours.

Overtime

Minimum employment conditions are outlined in the Fair Work Act, 2009 and Industrial Awards. Awards are either industry-based or occupation-based. Employees covered by Awards are generally paid overtime. Most Awards provide for overtime to be paid for time worked in excess of 38 hours per week, or in excess of 10 hours per day. Overtime or a penalty is generally paid to Award based employees for work performed on a weekend or a public holiday. 

If an employee is not an Award employee, they are considered to be “Award Free.” Award Free employees do not have a statutory right to be paid overtime. However, such employees do have the right to work only 38 plus reasonable additional hours per week. There is no formal definition of what is “reasonable additional hours,” however, such employees are generally expected to work overtime hours that are necessary to complete the job they are employed to do.  

Leave

Paid Time Off

Full-time employees are entitled to 4 weeks of paid leave per year, while employees who work in shifts receive 5 weeks.

Vacation days
Public holidays
3 HIGHEST
3 LOWEST
Spain
Austria
Brazil
Australia
Michigan
China
Federal
30
14
44
30
13
43
30
13
43
20
11
31
2
11
13
5
7
12
10
10
Public Holidays

Public holidays vary by state.

Sick Days

Employees are entitled to 10 days paid leave per year which can be used if the employee is sick or if they need to care for a family member. 

Maternity Leave

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.

PAID MATERNITY LEAVE (DAYS)
413
410
365
364
45
30
0
Norway
Bulgaria
Serbia
Australia
United Arab Emirates
Tunisia
Federal
3 HIGHEST
3 LOWEST
Paternity 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

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.

Other Leave

Bereavement– 2 days’ paid leave

Termination

Termination Process

Reason for termination varies based on the number of employees an employee has and the length and type of service:

  • 15 employees
    Length of Employment: Up to 6 months
    Type of employees: Permanent
    Reasons for terminations: No specific reason is needed
  • Over 15 employees:
    Length of Employment: 6 months+
    Type of employees: Permanent
    Reasons for terminations: A valid reason is needed
  • 15 employees or less:
    Length of Employment: Up to 12 months
    Type of employees: Permanent
    Reasons for terminations: No specific reason is needed
  • 15 employees or less or less
    Length of Employment: 12 months +
    Type of employees: Permanent
    Reasons for terminations: A valid reason is needed
  • Casual employees:
    Length of Employment: N/A
    Type of employees: Casual
    Reasons for terminations: Once employed for 12+ months, there must be a valid reason

Employees dismissed in the first 6 months of employment (or 12 months of employment if employed by a 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 dismissal applications are heard in the Fair Work Commission – a specialist employment tribunal.

Notice Period

The notice period is determined by the amount of time the employee has been employed:

  • Less than 1 year of employment: 1 weeks’ notice
  • 1-3 years of employment: 2 weeks’ notice
  • 3-5 years of employment: 3 weeks’ notice
  • 5+ years of employment: 4 weeks’

If the employee is over the age of 45 and has been employed for at least 2 years, they are entitled to an additional week of notice.

Severance Pay

Severance pay is given based on a continuous period of service, and the pay rate is given for ordinary hours worked:

  • At least 1 year but less than 2 years: 4 weeks’ severance pay
  • At least 2 years but less than 3 years: 6 weeks’ severance pay
  • At least 3 years but less than 4 years: 7 weeks’ severance pay
  • At least 4 years but less than 5 years: 8 weeks’ severance pay
  • At least 5 years but less than 6 years: 10 weeks’ severance pay
  • At least 6 years but less than 7 years: 11 weeks’ severance pay
  • At least 7 years but less than 8 years: 13 weeks’ severance pay
  • At least 8 years but less than 9 years: 14 weeks’ severance pay
  • At least 9 years but less than 10 years: 16 weeks’ severance pay
  • At least 10 years: 12 weeks’ severance pay
Probation Period

The probation period is 6 months, however, if an employer has 15 employees, it is extended to 12 months. In addition, employers are able to shorten the minimum probation period. In doing so, however, the employer forgoes the benefits of a probation period.

VISA

VISA

Australia has a diverse range of Visas that are intended to suit various professions. Each visa is unique and has specific requirements.

  • Employer Nomination Scheme (ENS) visa: Employers nominate an employee to live and work in Australia. Under this scheme there are three subclasses:
  • Direct entry stream
  • Labour agreement scheme
  • Temporary residence transition stream.

Processing time for these visas can take anywhere from 6-17 months.

  • Temporary activity and specialist visas – Short stay work visa for specific types or highly specialized work.

Temporary Work Visas

  • Temporary Skill Shortage visa – sponsorship needed
  • Temporary Graduate visa
  • Skilled – Recognised Graduate visa
  • Skilled Regional (Provisional) visa
  • Business Innovation and Investment (Provisional) visa– Sponsorship needed

Permanent Work Visas

  • Regional Sponsor Migration Scheme – Sponsorship needed
  • Permanent Residence (Skilled Regional) Visa Open for applications November 2022
  • Employer Nomination Scheme visa– Sponsorship needed
  • Skilled Independent visa
  • Skilled Nominated visa – Sponsorship needed
  • Skilled Regional visa
  • Business Innovation and Investment (Permanent) visa – Sponsorship needed
  • Business Talent (Permanent) Visa – Sponsorship needed
  • Distinguished Talent visa – Sponsorship needed
  • Distinguished Talent visa – Sponsorship needed

VAT

General

Goods and Service Tax (GST) is 10%.

For hiring in Australia without a local entity see our Australian PEO service

Version History

July 1, 2021
Minimum wage increased to 20.33 AUD per hour (772.60 AUD per week)
Superannuation increased to 10.00%

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    Questions & Answers

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    Brianna Rockport
    Brianna Rockport
    7 months ago

    Who can request flexible work arrangement? How does it work? 

    Emily Kuhnert
    Admin
    7 months ago

    Hi Brianna, thank you for your question! This applies to all employees that are covered by the National Employment Standard (NES). Parents of school-age children, caregivers, disabled employees, employees over the age of 55, an employee experiencing violence from a family member, and a few others can request flexible work arrangements. This could mean reduces working hours, change in schedule, location where work is conducted. To be eligible, the employee must have completed at least 12 months of employment. The employee must make a formal written request detailing the reason for the request, and the employer has 21 days to respond and must give reason if the request is denied. It is important to note that there is no obligation on the employer side to grant the request.

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